Ram Mohan Reddy, J.@mdashMFA No. 30845/2013 is filed by the claimants in MVC No. 169/2012 seeking enhancement of compensation, aggrieved by the judgment and award dated 28.12.2012 of the MACT (FTC-I), Raichur, while MFA No. 31108/2013 is filed by the insurer of the offending vehicle calling in question the very same judgment and award alleging that the compensation is excessive. With the consent of the learned counsel for the parties, appeals are clubbed together, finally heard and are disposed of by this common order.
2. The fact that one P. Pratap Reddy aged 37 years as on 11.12.2011 the date of accident and death, involving the offending vehicle being a motor car bearing certificate of Registration KA-36/M-3249 and that the deceased a businessman was the proprietor of "M/s. Srinivas Cotton Traders" are not in dispute. So also what is not in dispute is that for the assessment year 2010-2011 the income tax return Ex. P-13 discloses that the deceased returned a gross income of Rs. 2,55,879/- and after deducting income tax of Rs. 7,315/- his income was Rs. 2,48,564/- while for the assessment year 2011-2012 in terms of Ex. P-14 the declared gross income was Rs. 7,33,114/- and after deducting Rs. 71,165/- towards income tax the balance is Rs. 6,61,949/-. It is also a matter of fact that under Ex. P-15 the income tax return for the assessment year 2012-2013 the year of accident and death of the proprietor, the income returned was Rs. 94,218/-.
3. In the premise of the aforesaid facts the judgment impugned discloses that the MACT reckoned Rs. 2,23,695/- as the net income after deducting income tax for the assessment year 2010-2011 and for the assessment year 2011-2012 Rs. 6,00,492.99 paise while for the assessment year 2012-2013 Rs. 94,218/-. The MACT drew an average of the income for the three years to reckon Rs. 3,06,135/-, from out of which Rs. 91,840/- was deducted as representing 30% towards income tax to arrive at Rs. 2,14,295/- as the net annual income of the deceased. The MACT further deducted Rs. 71,431/- being 1/3rd towards personal and living expenses of the deceased to determine the contribution to the family as Rs. 1,42,864/-. Thereafterwards the MACT noticed the decision in
4. Having heard the learned counsel for the parties, perused the pleadings and examined the judgment and award impugned, we find that the MACT adopted a very strange method in determination of compensation under the head loss of dependency. If the deceased returned an annual income of Rs. 2,48,564/- after deducting income tax for the assessment year 2010-2011 and Rs. 6,61,949/- on deducting income tax for the assessment year 2011-2012 while during the year in which the accident took place and the assessee died, naturally and obviously the income was reduced and the gross income was shown as Rs. 94,218/-. Needless to state that it is the average of the incomes for the assessment years 2010-2011 and 2011-2012 is necessarily to be reckoned to arrive at the total income of the deceased. It is also a matter of fact that Exs. P-13 and P-14 discloses the filing of returns much prior to the death of the deceased i.e. for the assessment years 2010-2011 and 2011-2012. The income for the assessment year 2012-2013 is unavailable for the purpose of determination of the income since the assessee died on 11.12.2011 in the accident.
5. The average of the incomes for the years 2010-2011 and 2011-2012 noticed supra, is Rs. 4,55,256.5/- (Rs. 2,48,564/- + Rs. 6,61,949/- = Rs. 9,10,513 � 2)
6. Keeping in mind that the deceased left behind a widow and two minor children as also an aged mother, it is appropriate to deduct 1/4th towards personal expenses of the deceased and so doing, the annual contribution towards the family is Rs. 3,41,442. The age of the deceased being 37 years, the multiplier applicable is ''15'' and applying the same, the claimants are entitled to Rs. 51,21,630/- towards loss of dependency as against Rs. 31,07,280/- i.e. an enhancement of Rs. 20,14,350/- under that head.
7. Since the award of compensation under the conventional heads is not seriously challenged, hence does not call for interference.
8. In the result, MFA No. 30845/2013 filed by the claimants is allowed in part, the judgment and award in MVC No. 169/2012 is modified entitling the claimants to enhanced compensation of Rs. 20,14,350/-, under the head of loss of dependency, with interest at 6% per annum from the date of institution of the petition, and in all other respects remains unaltered. MFA No. 31108/2013 filed by the Insurance Company is dismissed. The amount in deposit is directed to be transmitted to the MACT forthwith.
