In a significant ruling by the Supreme Court of India, the case of Verma v. IIT Roorkee has established a new standard for compensation in cases of loss of dependency. The judgement, reflecting the tragic loss of a young and talented individual, emphasizes the importance of fair compensation for the family. The court’s decision highlights the unique circumstances surrounding the case and paves the way for future similar cases to be handled with empathy and consideration.
Analysis
- High Court’s decision of including fellowship of Rs.12,000/- per month in computing loss of dependency was justified.
- Motor Accidents Claims Tribunal was wrong in excluding fellowship component despite evidence from IIT Roorkee.
- Deceased Amol Verma had an M.Tech degree and was working in a prestigious engineering institute, making a salary of Rs.3,000/- per month insufficient.
- High Court correctly calculated annual income of the deceased at Rs.3,00,000/- per annum with future prospects benefit.
- 50% deduction towards personal and other living expenses should have been made due to the deceased being a bachelor.
- The deceased would have likely had a family in the normal course of events, justifying the deduction for the dependency of parents.
- The High Court correctly applied a multiplier of seventeen based on a previous court decision.
- Deduction of 1/3 of annual income for personal expenses was deemed inappropriate in this case, following the Constitution Bench judgment.
- Compensation for dependency was reduced from Rs.34,00,000 to Rs.25,50,000 as per the Court’s decision.
- The direction for payment of Rs.1,00,000 towards loss of love and affection and Rs.25,000 for funeral expenses was upheld with no interference.
- The case involves the loss of a brilliant and young son at the age of 26.
- The circumstances of this case are considered extraordinary.
- The unique nature of the situation is taken into account for the judgement.
Also Read: The Complete Chain of Circumstances – Upholding the Conviction of the Appellant
Decision
- Amounts already paid adjusted
- No reduction in amount awarded for loss of filial consortium
- Total compensation payable by the appellant to first and second respondents is Rs.26,75,000/- with 9% interest per annum from date of filing claim petition
- No interference with award of interest at 9% per annum
- Civil appeal disposed of without any order as to costs
Also Read: The Case of Deed of Gift Acceptance: Raman Aithan Ashari vs. Bhandaram
Case Title: NATIONAL INSURANCE COMPANY LTD. Vs. SATISH KUMAR VERMA
Case Number: C.A. No.-007032-007032 / 2019
