Bombay High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced for Widow and Children. Future Prospects and Loss of Consortium Granted Under Section 166 of Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The appeal was filed by the claimants (widow, children, and parents of the deceased) against the judgment and award dated 3rd April 2018 in MACP No. 44 of 2010 passed by the Motor Accident Claims Tribunal. The deceased, Ravindra Bhande, died in a motor vehicular accident on 18th February 2010. The Tribunal had awarded compensation of Rs.11,91,082/- with interest at 6% per annum. The claimants sought enhancement, contending that the Tribunal had not granted any amount towards loss of consortium, had not added future prospects to the income, and had applied an incorrect multiplier. The High Court, after considering the evidence and submissions, held that the Tribunal had erred in not granting loss of consortium and in not adding future prospects. The Court noted that the deceased was aged 42 years and had a monthly income of Rs.6,000/- as per the salary certificate. Adding 40% future prospects, the monthly income was taken as Rs.8,400/-. After deducting 1/3rd towards personal expenses, the monthly loss of dependency was Rs.5,600/-, and annual loss was Rs.67,200/-. Applying multiplier of 14, the total loss of dependency was Rs.9,40,800/-. The Court also awarded Rs.40,000/- each to the widow and each child for loss of consortium (total Rs.1,20,000/-), Rs.15,000/- for loss of estate, and Rs.15,000/- for funeral expenses. The total compensation was enhanced to Rs.10,90,800/- with interest at 6% per annum from the date of filing of the claim petition till actual payment. The appeal was partly allowed.

Headnote

A) Motor Accident Claims - Compensation - Loss of Consortium - Future Prospects - The claimants, widow and children of the deceased, sought enhancement of compensation awarded under Section 166 of the Motor Vehicles Act, 1988. The High Court held that the Tribunal erred in not granting any amount towards loss of consortium and in not adding future prospects to the deceased's income. The Court enhanced the compensation by adding 40% future prospects, applying multiplier of 14, and awarding Rs.40,000 each for loss of consortium to the widow and each child, and Rs.15,000 for loss of estate. (Paras 1-10)

B) Motor Accident Claims - Income Calculation - Deduction towards Personal Expenses - The deceased was aged 42 years and had 5 dependents. The Tribunal deducted 1/3rd towards personal expenses. The High Court upheld this deduction as per Sarla Verma v. DTC. (Para 6)

C) Motor Accident Claims - Multiplier - Age of Deceased - The deceased was 42 years old. The Tribunal applied multiplier of 14, which was upheld by the High Court as per Sarla Verma. (Para 6)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, particularly regarding the calculation of income, future prospects, multiplier, and non-pecuniary heads.

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Final Decision

Appeal partly allowed. Compensation enhanced to Rs.10,90,800/- with interest at 6% per annum from the date of filing of the claim petition till actual payment. The Insurance Company to deposit the enhanced amount within six weeks.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Compensation
  • Loss of Consortium
  • Future Prospects
  • Multiplier
  • Deduction towards personal expenses
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Case Details

2021 LawText (BOM) (01) 98

First Appeal No.1524 of 2019

2021-01-18

Smt. Anuja Prabhudessai, J.

Shri Vivek Awchat for Appellants, Shri A.V. Joshi for Respondent No.2, Shri S.D. Zoting for Respondent No.3

Smt. Kiran wd/o Ravindra Bhande, Ku. Prajakta d/o Ravindra Bhande, Harshad s/o Ravindra Bhande

Uttamchand s/o Baburao Nimsorkar, M/s. Arihant Transport Agencies, The National Insurance Co. Ltd., Eknath s/o Marotrao Bhande, Mrs. Bebi @ Laxmibai w/o Eknath Bhande

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of the Motor Vehicles Act, 1988.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

Claimants were dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal partly allowed the claim petition and awarded Rs.11,91,082/- with interest at 6% per annum.

Issues

Whether the Tribunal erred in not granting any amount towards loss of consortium? Whether the Tribunal erred in not adding future prospects to the income of the deceased? Whether the multiplier applied by the Tribunal was correct?

Submissions/Arguments

Appellants argued that the Tribunal did not grant any amount towards loss of consortium and did not add future prospects to the income. Respondent Insurance Company supported the Tribunal's award.

Ratio Decidendi

In motor accident claims, future prospects should be added to the income of the deceased, and loss of consortium should be granted to the widow and children. The multiplier should be as per the age of the deceased as per Sarla Verma.

Judgment Excerpts

The Tribunal has not granted any amount towards loss of consortium. The Tribunal has not added future prospects to the income of the deceased. The deceased was aged 42 years and had a monthly income of Rs.6,000/-.

Procedural History

The claimants filed MACP No. 44 of 2010 before the Motor Accident Claims Tribunal, which partly allowed the claim on 3rd April 2018. Aggrieved, the claimants filed the present appeal before the High Court.

Acts & Sections

  • Motor Vehicles Act, 1988: 166
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High Court Bombay High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced for Widow and Children. Future Prospects and Loss of Consortium Granted Under Section 166 of Motor Vehicles Act, 1988.
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