Case Note & Summary
The present appeals arise out of a judgment and award dated 10.02.2011 passed by the Motor Accident Claims Tribunal, Ambajogai, in Motor Accident Claim Petition No.38/2008, whereby the claim petition was partly allowed. The original respondent, the Divisional Controller, NEKSRTC, filed First Appeal No.1180 of 2011 challenging the award, while the original claimants filed First Appeal No.2637 of 2013 seeking enhancement of compensation. Both appeals were decided by a common judgment. The claimants, being the widow, children, and parents of the deceased Shrimant @ Hanumant Acchyut Phad, contended that the deceased was an Engineer aged 42 years and died in a motor accident involving a bus owned by the appellant Corporation. The Tribunal assessed the notional income of the deceased at Rs.4,000/- per month, applied a multiplier of 14, deducted 1/3rd towards personal expenses, and awarded Rs.5,000/- for funeral expenses and Rs.5,000/- for loss of consortium. The claimants sought enhancement, arguing that the income should be assessed higher, future prospects should be added, and the multiplier and deductions should be as per settled law. The Corporation contended that the award was excessive. The High Court, after considering the evidence and submissions, held that the deceased's income should be assessed at Rs.6,000/- per month considering his qualification as an Engineer. It further held that 25% should be added towards future prospects as per the principles in Pranay Sethi, the multiplier should be 13 as per Sarla Verma, and the deduction for personal expenses should be 1/4th since there were 5 dependents. The Court also enhanced the non-pecuniary damages: Rs.15,000/- for funeral expenses, Rs.40,000/- each to the widow and children for loss of consortium, and Rs.15,000/- for loss of estate. The total compensation was recalculated and enhanced. The appeal by the Corporation was dismissed, and the appeal by the claimants was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Assessment of Income - Deceased was an Engineer aged 42 years - Tribunal assessed notional income at Rs.4,000/- per month - Held that considering the deceased's qualification and age, income should be assessed at Rs.6,000/- per month (Paras 10-12). B) Motor Accident Claims - Compensation - Future Prospects - Deceased was self-employed - Tribunal did not grant future prospects - Held that as per settled law, 25% addition towards future prospects is permissible for self-employed persons aged 40-50 years (Paras 13-14). C) Motor Accident Claims - Compensation - Deduction for Personal Expenses - Deceased had 5 dependents - Tribunal deducted 1/3rd towards personal expenses - Held that for 5 dependents, deduction should be 1/4th as per Sarla Verma v. Delhi Transport Corporation (Paras 15-16). D) Motor Accident Claims - Compensation - Multiplier - Deceased aged 42 years - Tribunal applied multiplier of 14 - Held that as per Sarla Verma, multiplier for age 42 is 13 (Paras 17-18). E) Motor Accident Claims - Compensation - Non-pecuniary Heads - Tribunal awarded Rs.5,000/- for funeral expenses and Rs.5,000/- for loss of consortium - Held that as per Pranay Sethi, funeral expenses should be Rs.15,000/- and loss of consortium should be Rs.40,000/- each to the widow and children (Paras 19-21).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the claimants are entitled to enhancement of compensation.
Final Decision
First Appeal No.1180 of 2011 filed by the Corporation is dismissed. First Appeal No.2637 of 2013 filed by the claimants is partly allowed. The compensation is enhanced as per the recalculated amount. The Corporation is directed to deposit the enhanced amount with interest within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Multiplier Method
- Deduction for Personal Expenses
- Future Prospects
- Contributory Negligence
- Income Proof
