Bombay High Court Allows Appeal for Enhancement of Compensation in Motor Accident Claim for Minor with 70% Permanent Disablement. Notional Income and Multiplier Applied for Child Claimant Under Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The appellant, a minor aged about 4 years at the time of the accident on 27/02/2003, suffered serious injuries when the motorcycle on which he was pillion with his father was dashed by a crane. His left wrist was amputated and right thumb crushed, resulting in 70% permanent disablement. The claimant filed MACP No.31/2003 before the Motor Accident Claims Tribunal at Sangamner under Section 166 of the Motor Vehicles Act, 1988, seeking Rs.10,00,000/- compensation. The Tribunal awarded Rs.3,38,000/- with 9% interest, after deducting 20% for contributory negligence of the father. The claimant appealed for enhancement. The High Court held that the Tribunal erred in assessing compensation for a minor without applying the multiplier method. The court applied a notional income of Rs.15,000/- per annum (as per Second Schedule), multiplier of 15 (based on claimant's age), and 70% disability, arriving at Rs.1,57,500/- for loss of future income. Additionally, Rs.1,00,000/- for pain and suffering, Rs.50,000/- for loss of amenities, Rs.25,000/- for medical expenses, and Rs.10,000/- for special diet and conveyance were awarded, totaling Rs.3,42,500/- before contributory negligence deduction. After deducting 20% contributory negligence, the net compensation was Rs.2,74,000/-. However, since the Tribunal had already awarded Rs.3,38,000/- (which was higher), the appeal was dismissed as the claimant was not entitled to enhancement.

Headnote

A) Motor Accident Compensation - Minor Claimant - Permanent Disablement - Notional Income - Multiplier - The court considered the assessment of compensation for a 4-year-old child who suffered 70% permanent disablement including amputation of left wrist and crushing of right thumb - Held that notional income of Rs.15,000/- per annum and multiplier of 15 should be applied, and contributory negligence of 20% attributed to father was not interfered with (Paras 1-9).

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Issue of Consideration

Whether the compensation awarded by the Tribunal for a minor claimant with 70% permanent disablement is just and proper, and whether the finding of contributory negligence against the father is sustainable.

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Final Decision

The appeal is dismissed. The compensation awarded by the Tribunal is not interfered with as it is higher than the recalculated amount.

Law Points

  • Assessment of compensation for minor with permanent disablement
  • notional income for child
  • multiplier based on age of claimant
  • contributory negligence
  • Motor Vehicles Act
  • 1988
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Case Details

2023 LawText (BOM) (07) 3

First Appeal No.1278 of 2010

2023-07-17

S. G. Chapalgaonkar, J.

Mr. R. K. Temkar for Appellant, Mr. A. B. Gatne for Respondent No.2

Master Swapnil Satish Chaudhari (minor through natural guardian Satish Shivlal Chaudhari)

Smt. Kusumbai D. Jadhav and The United India Insurance Co. Ltd.

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Nature of Litigation

Appeal against award of Motor Accident Claims Tribunal seeking enhancement of compensation for injuries sustained in motor vehicle accident.

Remedy Sought

Enhancement of compensation from Rs.3,38,000/- to a higher amount.

Filing Reason

Claimant aggrieved by inadequate compensation and finding of contributory negligence.

Previous Decisions

Tribunal awarded Rs.3,38,000/- with 9% interest after deducting 20% contributory negligence.

Issues

Whether the compensation awarded by the Tribunal is just and proper? Whether the finding of contributory negligence against the father is sustainable?

Submissions/Arguments

Appellant argued that the compensation is inadequate and the finding of contributory negligence is erroneous. Respondent No.2 (Insurance Company) supported the Tribunal's award.

Ratio Decidendi

For a minor claimant with permanent disablement, compensation should be assessed by applying notional income as per Second Schedule of the Motor Vehicles Act, 1988, and multiplier based on the age of the claimant. The finding of contributory negligence against the father was not interfered with as it was based on evidence.

Judgment Excerpts

The appellant / original claimant suffered injuries in an accident dated 27/02/2003 while he was proceeding on the motorcycle with his father. The claimant suffered 70% permanent disablement. The Tribunal accepted the fact that the claimant has suffered 70% permanent disablement.

Procedural History

Claimant filed MACP No.31/2003 before Motor Accident Claims Tribunal, Sangamner. Tribunal passed award on 18/01/2010. Claimant filed First Appeal No.1278/2010 before Bombay High Court. Appeal heard and dismissed on 17/07/2023.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 173
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High Court Bombay High Court Allows Appeal for Enhancement of Compensation in Motor Accident Claim for Minor with 70% Permanent Disablement. Notional Income and Multiplier Applied for Child Claimant Under Motor Vehicles Act, 1988.
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