Case Note & Summary
The appeal arose from a motor accident claim for the death of a 7-year-old boy. The Claim Tribunal had awarded Rs.3,70,000/- as compensation, considering a notional income of Rs.20,000/- per year. The appellants, parents of the deceased, sought enhancement. The High Court noted that the deceased was a brilliant student with a bright future, as per the Tribunal's findings. Following the Supreme Court's decision in Kishan Gopal v. Lala (2013 ACJ 2594), which assessed notional income at Rs.30,000/- per year for a 10-year-old boy, the Court held that the same principle should apply. The Court enhanced the notional income to Rs.30,000/- per year, applied a multiplier of 15, and added Rs.50,000/- towards conventional damages, totaling Rs.5,00,000/-. The respondents were directed to deposit the balance amount with interest at 7.5% per annum from the date of filing the petition until realization. The appeal was allowed.
Headnote
A) Motor Accident Compensation - Death of Minor - Notional Income - The Claim Tribunal awarded Rs.3,70,000/- taking notional income of Rs.20,000/- per year. The High Court, following the Supreme Court in Kishan Gopal v. Lala (2013 ACJ 2594), enhanced notional income to Rs.30,000/- per year, applied multiplier of 15, and added Rs.50,000/- towards conventional heads, resulting in total compensation of Rs.5,00,000/- with interest at 7.5% per annum from the date of petition. (Paras 5-9)
Issue of Consideration
Whether the compensation awarded by the Claim Tribunal for the death of a 7-year-old boy in a motor accident is just and proper, and whether the notional income should be enhanced in light of the Supreme Court judgment in Kishan Gopal v. Lala.
Final Decision
Appeal allowed. Respondents directed to deposit balance amount of compensation (Rs.5,00,000 minus already paid) with interest at 7.5% per annum from the date of filing petition till realization.
Law Points
- Notional income for child death
- multiplier for minor
- compensation enhancement
- interest rate
Case Details
2020 LawText (BOM) (01) 164
First Appeal No. 1127 of 2019
Ms. Monali Pathade for appellants, Ms. Anita Mategaonkar for respondent no.2
Praveen S/o Khemchandji Jain and Tanuja W/o Praveen Jain
Mr. Baby Ulhahnan and The Manager, The Oriental Insurance Co. Ltd.
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Nature of Litigation
Appeal against compensation awarded by Motor Accident Claims Tribunal for death of a 7-year-old boy in a motor accident.
Remedy Sought
Enhancement of compensation from Rs.3,70,000 to Rs.5,00,000 with interest.
Filing Reason
The appellants, parents of the deceased, were dissatisfied with the compensation awarded by the Tribunal.
Previous Decisions
The Claim Tribunal granted compensation of Rs.3,70,000 taking notional income of Rs.20,000 per year.
Issues
Whether the notional income of the deceased child should be enhanced from Rs.20,000 to Rs.30,000 per year.
Whether the compensation awarded by the Tribunal is just and proper.
Submissions/Arguments
Appellants argued that following the Supreme Court judgment in Kishan Gopal v. Lala, the notional income should be Rs.30,000 per year, and compensation should be Rs.5,00,000 with interest.
Respondent no.2 (Insurance Company) opposed the enhancement.
Ratio Decidendi
The notional income for a deceased child should be assessed at Rs.30,000 per year in light of the Supreme Court's decision in Kishan Gopal v. Lala, considering the falling value of rupee. Applying multiplier of 15 and adding Rs.50,000 for conventional heads, total compensation is Rs.5,00,000.
Judgment Excerpts
Short question is involved in this appeal. Boy aged about 7 years died in motor accident. The Claim Tribunal granted compensation of Rs.3,70,000/- by taking into consideration notional income of Rs.20,000/- per year.
As per the findings of learned Claim Tribunal in para 14, deceased was brilliant student and had bright future.
In view of the judgment of Hon’ble Apex Court in case of Kishan Gopal and another Vs. Lala and others reported in 2013 ACJ 2594, appellants are entitled for compensation of Rs.5,00,000/- along with interest of 7.5% P.A. from the date of filing petition till its realization.
Procedural History
The Motor Accident Claims Tribunal awarded compensation of Rs.3,70,000. The appellants filed First Appeal No. 1127 of 2019 before the Bombay High Court, Nagpur Bench, seeking enhancement. The appeal was admitted and heard finally with consent of parties.
Acts & Sections
- Motor Vehicles Act, 1988: Section 163-A
