Case Note & Summary
The appeal was filed by the claimants, the widow and minor children of Xavier Cruz Fernandes, who died in a motor vehicle accident on 23.05.2009. The deceased was 30 years old and employed in Afghanistan with a monthly salary of 550 US Dollars. The Tribunal awarded compensation of ₹7,29,500/-. The claimants appealed seeking enhancement. The High Court found that the Tribunal erred in not adding future prospects, applying multiplier 17 instead of 18, deducting 1/3rd instead of 1/4th for personal expenses, and awarding inadequate conventional damages. The Court recalculated compensation: monthly income ₹24,750 (550 USD × ₹45), add 50% future prospects = ₹37,125, annual income ₹4,45,500, deduct 1/4th = ₹3,34,125, apply multiplier 18 = ₹60,14,250, add loss of consortium ₹1,20,000 (₹40,000 × 3), loss of estate ₹15,000, funeral expenses ₹15,000, total ₹61,64,250. The appeal was allowed, enhancing compensation to ₹61,64,250 with interest at 6% per annum from the date of petition.
Headnote
A) Motor Accident Compensation - Computation of Income - Future Prospects - Deceased earning in foreign currency - The Court held that the Tribunal erred in not adding future prospects to the deceased's income, as per the principles in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. Since the deceased was 30 years old, 50% of his income should be added towards future prospects. (Paras 6-8) B) Motor Accident Compensation - Multiplier - Age of Deceased - The Court held that the correct multiplier for a 30-year-old deceased is 18, as per the Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121. The Tribunal's use of multiplier 17 was erroneous. (Paras 9-10) C) Motor Accident Compensation - Deduction for Personal Expenses - Married Deceased - The Court held that for a married deceased with three dependents, deduction for personal expenses should be 1/4th, not 1/3rd as applied by the Tribunal. (Para 11) D) Motor Accident Compensation - Conventional Heads - Loss of Consortium, Loss of Estate, Funeral Expenses - The Court enhanced the amounts under these heads in line with Pranay Sethi: Loss of consortium ₹40,000 per dependent (three dependents = ₹1,20,000), Loss of estate ₹15,000, Funeral expenses ₹15,000. (Paras 12-13) E) Motor Accident Compensation - Income Conversion - Foreign Currency - The Court accepted the conversion of US Dollars to Indian Rupees at the rate of ₹45 per USD, as the deceased's salary was 550 USD per month, resulting in monthly income of ₹24,750. (Para 7)
Issue of Consideration
Whether the Tribunal erred in computing compensation by not considering future prospects, applying correct multiplier, and awarding adequate amounts under conventional heads for a deceased earning in foreign currency.
Final Decision
Appeal allowed. Compensation enhanced from ₹7,29,500 to ₹61,64,250 with interest at 6% per annum from the date of petition till realization. Respondents jointly and severally liable.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation for death
- Future prospects
- Multiplier
- Income in foreign currency
- Deduction for personal expenses
- Loss of consortium
- Loss of estate
- Funeral expenses
