Compensation – Accidental Death of retired employee – Deduction of Family Pension is not permissible

Sh.M.R.Gupta, retired government employee, aged 80 years, died in the road accident while crossing the road on 21.11.2021.  The Tribunal granted compensation of Rs.13,36,140/- vide Award dated 24.1.2024 with interest.   This was challenged on the ground that (i) only non-pecuniary damages ought to have been granted, (ii) compensation for loss of dependency could have been paid since the deceased was not gainfully employed and lastly, (iii) after the death of deceased, the wife is getting family pension of Rs.20,000/- per month.

HELD that there is no co-relation between the family pension, which in any case the family would have got and the amount which is paid on account of accidental death.   Family pension is earned by an employee for the benefit of his family in the form of his contribution in the service as per conditions of service.

If the deduction towards family pension is permitted, it would amount to a tort fissure being given the benefit of munificence or gratuity of others.

 Judgment dated 22.1.2025 of High Court of Delhi in MAC.App. 314/2024 Cholamandal MS General Insurance Co LTD   Vs. Usha Gupta and others with connected matter