TaxTMI 
TaxTMI 
2007 (1) TMI 586
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..../Addl. District Judge, Haldwani, District Nainital (in short 'MACT'). Factual scenario in a nutshell is as follows: On 7.6.1999 at about 9.50 p.m. Vijay Singh Dogra (hereinafter referred to as the 'deceased') was coming from Nandpur to Haldwani on his vehicle No. UP 01-3962. He was driving the said vehicle. When the vehicle reached near the Block Office, Haldwani, it dashed with a Truck No.URN 9417 which was parked on the road in violation of the traffic rules. In the accident the deceased sustained grievous injuries and he was taken to the Base Hospital, Haldwani from where he was referred to Bareilly for better treatment. But he died on 9.6.1999. He was about 33 years of age at the time of accident. Claimants i.e. respon....
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.... income of the deceased is concerned, taking into account the fact that there was no definite material to throw light on the actual income of the deceased, it was taken at ₹ 4,000/- per month and multiplier of 17 was applied and accordingly the compensation was fixed. In support of the appeal, learned counsel for the appellant submitted that the High Court has erroneously fixed compensation by applying multiplier of 17. It was pointed out that the MACT itself noted that no evidence was led to show as to what was the actual income of the deceased. In any event, the multiplier is high. Learned counsel for the respondents on the other hand supported the order of the High Court. Certain principles were highlighted by this Court in the c....
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....ircumstances of the case and capitalizing the multiplicand by an appropriate multiplier. The choice of the multiplier is determined by the age of the deceased (or that of the claimants whichever is higher) and by the calculation as to what capital sum, if invested at a rate of interest appropriate to a stable economy, would yield the multiplicand by way of annual interest. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed- up over the period for which the dependency is expected to last. The considerations generally relevant in the selection of multiplicand and multiplier were adverted to by Lord Diplock in his speech in Mallett v. Mc Mongle (1969 (2) All ER 178) where the de....
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....er annum, is about 12 years' purchase of the arithmetical average annuity of $ 150 per annum, whereas if the first ten years are at $200 per annum and the second ten years at $ 100 per annum the present value is about 14 years' purchase of the arithmetical mean of $ 150 per annum. If therefore the chances of variations in the 'dependency' are to be reflected in the multiplicand of which the years' purchase is the multiplier, variations in the dependency which are not expected to take place until after ten years should have only a relatively small effect in increasing or diminishing the 'dependency' used for the purpose of assessing the damages." In regard to the choice of the multiplicand the Halsbury's....
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....nds, the intention being that the dependants will each year draw interest and some capital (the interest element decreasing and the capital drawings increasing with the passage of years), so that they are compensated each year for their annual loss, and the fund will be exhausted at the age which the court assesses to be the correct age, having regard to all contingencies. The contingencies of life such as illness, disability and unemployment have to be taken into account. Actuarial evidence is admissible, but the courts do not encourage such evidence. The calculation depends on selecting an assumed rate of interest. In practice about 4 or 5 per cent is selected, and inflation is disregarded. It is assumed that the return on fixed interest ....
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....Assurance Co. Ltd. v. Charlie and Another [2005 (10) SCC 720]. Considering the age of the deceased it would be appropriate to fix the multiplier at 13. The MACT itself found that the income was not established. At some point of time it was stated that the income of the deceased was ₹ 6,000/- per month. In the absence of any definite material about the income, monthly contribution to the family, after deduction for personal expenses is fixed at ₹ 3,000/- per month i.e. annually ₹ 36,000/-. Applying the multiplier of 13, the compensation works out to ₹ 4,68,000/. The same shall carry interest @ 6% p.a. from the date of claim till the date of actual payment. It is stated that a sum of rupees four lakhs has been deposit....