Case Note & Summary
The case involved an appeal against the enhancement of compensation awarded by the Chhattisgarh High Court following a motor accident that resulted in the death of Shri Shivlal Verma. The accident occurred on 23.04.1999 when he was struck by a truck driven by respondent No.2. The appellants, including the deceased's family, sought compensation of Rs.28,45,000/- under Section 166 of the Motor Vehicles Act, 1988, claiming negligence on the part of the truck driver. The Tribunal found the driver negligent but assessed the deceased's income at Rs.50,000/- per annum and applied a multiplier of 8, resulting in compensation of Rs.2,59,000/-. The appellants contested this decision, arguing for a higher multiplier due to the deceased's age. The High Court increased the multiplier to 13, awarding Rs.4,20,600/-. The Supreme Court, referencing the Sarla Verma case, determined that the appropriate multiplier for a 28-year-old should be 17, leading to a revised compensation of Rs.5,30,400/-. After adding permissible heads, the total compensation was set at Rs.5,45,400/-. The court directed the respondent to pay the enhanced amount with interest within specified timelines.
Headnote
A) Motor Vehicles Act - Compensation Calculation - Appropriate Multiplier - Motor Vehicles Act, 1988, Section 166 - The Tribunal applied a multiplier of 8 based on the age of the deceased's father, which was deemed inappropriate. The High Court modified the multiplier to 13, but the Supreme Court held that a multiplier of 17 should be applied based on the age of the deceased, leading to a total compensation of Rs.5,45,400/- (Paras 7-10).
Issue of Consideration
Whether the multiplier applied by the Tribunal for calculating compensation was appropriate.
Final Decision
The Supreme Court allowed the appeal, modified the compensation to Rs.5,45,400/-, and directed the respondent to pay the amount with interest within specified timelines.
Law Points
- Motor accident compensation
- multiplier application
- negligence
- Section 166 Motor Vehicles Act
- 1988
