Indian Kanoon - Search engine for Indian Law

70. It has been noticed by this Court that the tribunals have been assessing the compensation and awarding it to the last rupee, at times even in the fraction of a rupee, not bothering to follow the practice of rounding off. Awards in at least two of the cases from which the appeals at hand arise provide ready illustration. This seems to be not correct. It must be added here that human misery cannot be calculated with such mathematical precision. Even otherwise for convenience of accounting, it is desirable that the amount of award is rounded off to the nearest (if not next) thousands of rupees.

(iii). After arriving at an appropriate figure of the present equivalent value of the notional income (i.e. inflation-corrected amount), it shall be rounded off to a figure in next thousands of rupees.

(iv). The amount of notional income thus calculated shall be reduced to two-

third, the deduction to the extent of one-third being towards personal & living expenses of the deceased, the balance taken as the annual loss to estate (hereinafter also referred to as "the multiplicand").

(viii). After the pecuniary loss to estate has been worked out in the manner indicated above, an amount equivalent to the amount thus computed shall be added to it as the composite non-pecuniary damages taking care of not only the conventional heads but also towards future prospects as awarded in R.K. Malik v. Kiran Pal (2009) 14 SCC 1.

(ix). The final sum thus arrived at, appropriately rounded off, if so required to the nearest (if not next) thousands of rupees, shall be awarded as compensation for the death of the child."

"The Central Government may, keeping in view cost of living by notification in the official gazette, from time to time amend the 2nd Schedule".

The High Court of Delhi has taken such situation in paragraph-71 of the judgment as referred above.

Under the aforesaid circumstances, considering the cost inflation index of the year 2007-08 as 552 divided by the cost inflation index of base year 1997- 98 as 331, in view of the Central Government notification and multiplying the same with 15000/- (Rs. 15000/- x A ÷ 331 i.e. 15,000 x 552÷331) gross income comes to Rs.25,015.10/- which is rounded off to Rs.25,000/-. After deducting 1/3 of Rs.25,000/- and applying the multiplier of 15, the pecuniary loss to estate is computed as (Rs.25,000 x 2/3 x 15 = Rs.2,50,000/-). Adding a similar account towards composite non-pecuniary damages, the total compensation work out to Rs.5,00,000/- though the same is reduced to Rs.3,75,000/- in view of the judgment of National Insurance Company Ltd. vs. Farzana; 2009 ACJ 2763.