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MACT - future rise in income by 100 per cent allowed

In SURESHCHANDRA BAGMAL DOSHI vs THE NEW INDIA ASSURANCE COMPANY LIMITED, the 25 year old daughter of the applicant had died in a car accident. The deceased was a B.E. (Civil) and at the time of her death working as an International Internal Sales Engineer at a monthly salary of Rs.6,273. It was claimed by the father of the deceased that The deceased had a quick successful progression in her career from the initial post of a Secretary, and the claim was based on the prospective earning of the deceased of more than Rs.25,000 per month. The Tribunal, added approximately 100 per cent towards future rise in income and allowed a claim of Rs.15,71,000. Both sides being aggrieved appeal before the High Court declined to accept the future income rise as 100 per cent and took the same as 50 per cent in view of the judgment of this Court in Sarla Verma & Ors. v. Delhi Transport Corporation & Anr.

The question before the Supreme Court thus was whether the Tribunal was right in increasing the amount for future rise in income by 100 per cent, or the High Court was within its right to reduce the said amount to 50 per cent.

The court found that while the Constitution Bench judgment of this Court in National Insurance Company Limited v. Pranay Sethi & Ors.,  while examining the observations in Sarla Verma, gave its imprimatur to the addition of 50 per cent to actual salary of the deceased towards future prospects where the deceased had a permanent job and was below the age of 40 years, as in the present case, however, in a recent order passed by this Court in SLP (C) No.22134/2016 and other connected matters dated 22.11.2017, while taking note of the views expressed by National Insurance Company Limited, it has been observed that the percentage for calculating future rise in income is no bar to future prospects being taken at a higher level where the assessment is based on actual evidence led to the satisfaction of the Tribunal/the Court that the future prospects were higher than the standard percentage. 

Thus in the context of the evidence led in the present case that the two certificates dated 16.10.1998 and 8.7.2005 were proved in terms whereof the deceased’s future prospects would have entitled her to a gross salary in the range of Rs.14,000 to Rs. 17,000 per month. No doubt the second certificate is dated 8.7.2005, after a lapse of 7 years from the first certificate, but then that would be a more realistic estimate of what a person holding that post would be earning at that stage of time. Thus, the assessment of the Tribunal is based on the evidence led in the present case. As noticed above, the standardized percentage is capable of being varied if the evidence is so led.


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