RANJANA PRAKASH Vs. DIVISIONAL MANAGER

JUDGEMENT

(1.) Leave granted. Heard.

(2.) The claimants are the widow, two sons and mother of one Arun Prakash, aged 46 years, who died in a motor accident on 3.11.2003. At the time of his death he was working as a Bank Manager, State Bank of India and his monthly salary was Rs. 23,134/-. The Motor Accident Claims Tribunal, Muzaffarnagar by its award dated 28.8.2006 awarded a compensation of Rs. 24,12,936/- with interest at 9% per annum. On appeal by the insurer, the High Court, by the impugned judgment dated 9.9.2010, while upholding the findings in regard to income and calculation of compensation, held that the Tribunal ought to have deducted 30% of the annual income towards income tax. Consequently, the High Court deducted 30% and reduced the compensation to Rs. 16,89,055/- with interest at 9% per annum. The said order is challenged by the claimants in this appeal by special leave. The Appellants contend that the High Court committed an error in reducing compensation from Rs. 24,12,936 to Rs. 16,89,055 and seek restoration of the compensation as awarded by the Tribunal.

(3.) Before the High Court, the insurer, relying upon the decisions of this Court inSarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121 and Shyamwati Sharma v. Karam Singh, (2010) 12 SCC 378, contended that where the annual income of the deceased was in taxable range, the annual income for the purpose of computation of compensation should be the annual income less income tax; and that in the absence of any evidence as to the actual income tax paid, the Tribunal ought to have deducted 30% from the income towards income tax and calculated the loss of dependency with reference to the net income.