Case Note & Summary
The appeal was filed under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 16th August 2004 passed by the Motor Accident Claims Tribunal, Mumbai, in Application No.2405 of 1995. The Tribunal had partly allowed the application with proportionate costs and ordered the original owner of the offending vehicle and the Insurance Company to jointly and severally pay Rs.1,40,000/- to the first appellant along with interest at 6% per annum. The appellants, who are the legal heirs of the deceased Harsukhalal L. Dhuruva, sought enhancement of compensation. The deceased, aged 65 years, was a business partner of Arun Enterprises and Arun Plastic Printer and a commission agent. On 24th March 1995 at about 6:30 p.m., while crossing Peddar Road from west to east after coming from Nalanda society along with his nephew, he was hit by a car driven by respondent no.1. He succumbed to injuries on 27th March 1995. The Tribunal assessed the income of the deceased at Rs.1,500 per month, applied a multiplier of 5, deducted 1/3rd for personal expenses, and attributed 50% contributory negligence to the deceased. The appellants contended that the income should be Rs.3,000 per month, the multiplier should be higher, and contributory negligence was wrongly attributed. The respondent Insurance Company supported the Tribunal's award. The court analyzed the evidence and held that the income of the deceased should be taken as Rs.3,000 per month based on the oral evidence of the appellant and lack of contrary evidence. The multiplier of 5 was correct as per the Second Schedule for age 65. There was no evidence of contributory negligence by the deceased, so the driver was solely negligent. No addition for future prospects was warranted. The court enhanced the compensation under conventional heads: loss of consortium at Rs.40,000 per claimant (two claimants), funeral expenses at Rs.15,000, and loss of estate at Rs.15,000. The total compensation was recalculated as follows: annual income Rs.36,000, after 1/3rd deduction Rs.24,000, multiplied by 5 gives Rs.1,20,000; plus loss of consortium Rs.80,000, funeral expenses Rs.15,000, loss of estate Rs.15,000, total Rs.2,30,000. The court allowed the appeal in part, setting aside the Tribunal's award and directing the respondents to pay Rs.2,30,000 with interest at 6% per annum from the date of application till realization.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Deceased was a 65-year-old business partner and commission agent earning Rs.3,000 per month - Tribunal assessed income at Rs.1,500 per month without proper evidence - Held that income should be taken as Rs.3,000 per month based on oral evidence and lack of contrary evidence (Paras 10-12). B) Motor Accident Claims - Multiplier - Applicability of Second Schedule - Deceased aged 65 years - Tribunal applied multiplier of 5 - Held that as per Second Schedule, multiplier for age 65 is 5, which is correct (Para 13). C) Motor Accident Claims - Contributory Negligence - Deceased pedestrian crossing road - No evidence of negligence by deceased - Tribunal erred in attributing 50% contributory negligence - Held that driver of offending vehicle was solely negligent (Paras 14-16). D) Motor Accident Claims - Future Prospects - Deceased aged 65 years - No evidence of future prospects - Held that no addition for future prospects is warranted (Para 17). E) Motor Accident Claims - Loss of Consortium - Claimants are sons of deceased - Tribunal awarded Rs.5,000 - Held that as per Pranay Sethi, Rs.40,000 per claimant is appropriate (Para 18). F) Motor Accident Claims - Funeral Expenses - Tribunal awarded Rs.2,000 - Held that as per Pranay Sethi, Rs.15,000 is appropriate (Para 19). G) Motor Accident Claims - Loss of Estate - Tribunal awarded Rs.2,500 - Held that as per Pranay Sethi, Rs.15,000 is appropriate (Para 20).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased and in applying the multiplier, and whether contributory negligence was correctly attributed.
Final Decision
Appeal partly allowed. The judgment and award of the Tribunal dated 16th August 2004 is set aside. The respondents are directed to pay Rs.2,30,000 (Rupees Two Lakh Thirty Thousand only) to the appellants with interest at 6% per annum from the date of application till realization. The amount already paid, if any, shall be deducted. The appeal is disposed of accordingly.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation
- Multiplier Method
- Contributory Negligence
- Income Assessment
- Future Prospects
