Bombay High Court Partially Allows Appeal in Motor Accident Claim — Reduces Compensation for 12-Year-Old Deceased. Notional Income of Rs.24,000/- Held Excessive; Multiplier Reduced from 18 to 15.

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

The case arises from a motor accident claim petition filed by the parents (respondent nos.1 and 2) of a 12-year-old boy, Abhishek, who died in a road accident on 2nd November 1993 when a truck hit his bicycle. The Motor Accident Claims Tribunal, Nanded, awarded compensation of Rs.2,52,000/- with interest at 9% per annum from the date of petition. The appellant, Manjeetsingh Sarmukh Singh, who was the original respondent no.1 (owner of the truck), appealed against the award, contending that the compensation was excessive given the deceased's age and that he had transferred the truck to respondent no.4 before the accident, thus he should not be liable. The court examined two issues: the quantum of compensation and the liability of the appellant. On quantum, the court noted that the Tribunal had taken a notional income of Rs.24,000/- per annum for a 12-year-old, which was on the higher side. Following precedents, the court reduced the notional income to Rs.15,000/- per annum. The multiplier was also reduced from 18 to 15. Applying the multiplier of 15 to the notional income of Rs.15,000/-, the total loss of dependency was calculated at Rs.2,25,000/-. Adding Rs.15,000/- for loss of estate and funeral expenses, the total compensation was reduced to Rs.2,40,000/-. On the issue of liability, the court found that the appellant had transferred the truck to respondent no.4 prior to the accident, and thus the liability fell on the transferee. The court held that the appellant was not liable to pay the compensation. The appeal was partly allowed, reducing the compensation to Rs.2,40,000/- and exonerating the appellant from liability.

Headnote

A) Motor Accident Claims - Compensation for Minor - Notional Income - The Tribunal's assessment of notional income at Rs.24,000/- per annum for a 12-year-old deceased was held to be on the higher side; the court reduced it to Rs.15,000/- per annum following precedents. (Paras 5-6)

B) Motor Accident Claims - Multiplier for Minor - The multiplier of 18 applied by the Tribunal was reduced to 15, as per the settled position for minors. (Para 6)

C) Motor Accident Claims - Liability of Transferor - The appellant, who had transferred the offending truck to respondent no.4 prior to the accident, was held not liable for the compensation as the transfer was completed before the accident. (Para 7)

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Issue of Consideration

Whether the compensation awarded by the Tribunal for the death of a 12-year-old boy is excessive and whether the appellant is liable despite transfer of the offending truck.

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Final Decision

Appeal partly allowed. Compensation reduced from Rs.2,52,000/- to Rs.2,40,000/-. Appellant exonerated from liability; respondent no.4 (transferee) held liable to pay the compensation.

Law Points

  • Notional income for child
  • multiplier for minor
  • transfer of vehicle liability
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Case Details

2022 LawText (BOM) (09) 45

First Appeal No.690 of 2004

2022-09-21

S.G.Dige, J.

Mrs.A.N.Ansari for appellant, Mr.G.N.Chincholkar for respondent nos.1 and 2

Manjeetsingh Sarmukh Singh

Ramesh s/o. Vishwanathrao Hurne, Mangalabai w/o. Ramesh Hurne, Dadamiyan alias Lalsha s/o. Saranshah, Sk. Shadulla s/o. Sk. Dade

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal awarding compensation for death of a 12-year-old boy in a road accident.

Remedy Sought

Appellant sought reduction of compensation and exoneration from liability on ground of transfer of vehicle.

Filing Reason

Appellant aggrieved by Tribunal's award of Rs.2,52,000/- with interest, contending compensation was excessive and he was not liable due to prior transfer of the offending truck.

Previous Decisions

Motor Accident Claims Tribunal, Nanded awarded compensation of Rs.2,52,000/- with 9% interest per annum from date of petition.

Issues

Whether the compensation awarded by the Tribunal is on the higher side for a 12-year-old deceased? Whether the appellant is liable to pay compensation despite having transferred the offending truck to respondent no.4 prior to the accident?

Submissions/Arguments

Appellant argued that the deceased was 12 years old with no income, so notional income of Rs.24,000/- was excessive; multiplier of 18 was too high; and appellant had transferred the truck before accident, so he should not be liable. Respondents (claimants) supported the Tribunal's award.

Ratio Decidendi

For a minor deceased, notional income should be assessed reasonably; multiplier for a child is 15. Transfer of vehicle before accident absolves the transferor of liability.

Judgment Excerpts

The Tribunal has considered notional income of deceased boy of Rs.24,000/-... I am of the opinion that the notional income of the deceased boy is on higher side. Considering the age of the deceased, the multiplier of 18 is on higher side. The appropriate multiplier would be 15. The appellant has transferred the offending truck to respondent no.4 prior to the accident. Therefore, the appellant is not liable to pay the compensation.

Procedural History

Claim petition filed by parents before Motor Accident Claims Tribunal, Nanded. Tribunal awarded compensation. Appellant (original respondent no.1) filed First Appeal No.690 of 2004 before Bombay High Court, Aurangabad Bench.

Acts & Sections

  • Motor Vehicles Act, 1988:
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