Shakti Devi vs New India Insurance Co. Ltd. & Anr on 9 November, 2010
Insofar as deduction of 1/3rd made by the
Tribunal is concerned, Sri Raichur would contend that
the sister cannot be construed as a dependant in view of
the law laid down by the Apex Court in SHAKTI DEVI VS.
NEW INDIA INSURANCE COMPANY LIMITED AND
: 12 :
ANOTHER (Civil Appeal No.3660/2006 dated
09.11.2010) whereunder the Apex Court considered as
to the mode, method and extent of deduction to be
made towards personal and living expenses and held
that if the deceased is survived by the parents and
siblings only the mother would be considered to be a
dependant and 50% would be treated as personal and
living expenses of the deceased bachelor and 50% as
the contribution to the family. A caveat has also been
put by Their Lordships holding that in the event family of
a deceased bachelor is large and dependant on income
of the deceased as in a case where a widowed mother
and large number of younger non-earning sisters or
brothers are dependants, his personal and living
expenses can be restricted to 1/3rd and contribution to
the family will have to be taken as 2/3rd. It has been
held as under: