Case Note & Summary
The case arises from a motor accident claim where the deceased, Rameshkumar Kesarwani, died in a bus accident on 5th May 1988 when the bus collided with a tree and caught fire, resulting in 55 deaths. The appellants, being the legal heirs of the deceased, filed a claim petition before the Motor Accident Claims Tribunal, Nanded, seeking compensation. The Tribunal awarded compensation of Rs. 1,84,500 with interest at 6% per annum. Aggrieved by the quantum, the appellants filed the present appeal for enhancement. The legal issues involved were the correct multiplier to be applied, deduction for personal expenses, and addition for future prospects. The appellants argued that the Tribunal erred in applying multiplier of 12 based on the age of the deceased's mother instead of the deceased's age of 35 years, and that future prospects should be added. The respondents supported the Tribunal's award. The court analyzed the evidence and found that the deceased was 35 years old, and as per Sarla Verma v. DTC, the multiplier should be 16. The court also applied 40% future prospects as per Pranay Sethi, and deducted 1/3rd for personal expenses. The court recalculated the compensation: monthly income Rs. 1500, after 40% future prospects Rs. 2100, after 1/3rd deduction Rs. 1400, multiplied by 12 and 16 = Rs. 2,68,800, plus Rs. 70,000 under conventional heads (loss of consortium, loss of estate, funeral expenses), totaling Rs. 3,38,800. The court allowed the appeal, enhancing the compensation to Rs. 3,38,800 with interest at 6% per annum from the date of petition till realization, and directed the respondents to pay the enhanced amount within eight weeks.
Headnote
A) Motor Accident Claims - Multiplier - Determination of Multiplier - The Tribunal applied multiplier of 12 based on the age of the deceased's mother, but the correct multiplier should be based on the age of the deceased (35 years) as per Sarla Verma v. DTC, (2009) 6 SCC 121. Held that multiplier of 16 is applicable. (Paras 5-7) B) Motor Accident Claims - Deduction for Personal Expenses - The Tribunal deducted 1/3rd towards personal expenses of the deceased, which is correct as per settled law. (Para 6) C) Motor Accident Claims - Future Prospects - The Tribunal did not grant any amount towards future prospects. However, as per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 40% addition for future prospects is permissible for self-employed persons aged below 40 years. Held that 40% should be added. (Para 7) D) Motor Accident Claims - Contributory Negligence - The Tribunal held the driver of the bus negligent, and no contributory negligence was attributed to the deceased. (Para 3) E) Motor Accident Claims - Compensation - The High Court recalculated compensation: Income Rs. 1500 per month, 40% future prospects = Rs. 2100, 1/3rd deduction = Rs. 1400, multiplier 16 = Rs. 2,68,800, plus Rs. 70,000 under conventional heads (loss of consortium, loss of estate, funeral expenses) as per Pranay Sethi. Total compensation Rs. 3,38,800. (Paras 7-8)
Issue of Consideration
Whether the Tribunal erred in applying multiplier of 12 instead of 16 based on the age of the deceased, and whether the compensation awarded was just and proper.
Final Decision
Appeal allowed. The compensation is enhanced from Rs. 1,84,500 to Rs. 3,38,800 with interest at 6% per annum from the date of petition till realization. Respondents directed to pay the enhanced amount within eight weeks.
Law Points
- Multiplier method
- Deduction for personal expenses
- Future prospects
- Contributory negligence
- Compensation for death in motor accident
