Case Note & Summary
The case arises from a motor accident on 31.10.1990 at Swawalambinagar Chowk, Nagpur, where the deceased, an Additional District Judge aged 44 years, was hit by a truck while travelling on a scooter to attend court. He suffered serious head injury and died after more than 24 hours in hospital. His widow and three children filed a claim petition before the Motor Accident Claims Tribunal, Nagpur, claiming compensation of Rs.10,16,000/-. The Tribunal partly allowed the claim and awarded Rs.3,04,272/- with interest at 15% per annum from the date of claim petition till realisation, with proportionate costs, making the award joint and several against the owner and Insurance Company. The owner and Insurance Company accepted the award and did not appeal. The claimants appealed for higher compensation. The main legal issues were whether the multiplier applied was correct, whether future prospects should be considered, and whether the interest rate was appropriate. The claimants argued that the multiplier should be 16 and that future prospects should be considered, while the Insurance Company supported the Tribunal's award. The court held that the multiplier of 12 applied by the Tribunal was incorrect and should be 13 as per the Second Schedule to the Motor Vehicles Act, 1988. The court also held that 50% of the salary should be added towards future prospects as the deceased was a government servant with prospects of promotion. The court enhanced the compensation to Rs.7,00,000/- and reduced the interest rate to 6% per annum from the date of claim petition till realisation. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Assessment - Multiplier Method - Deceased was an Additional District Judge aged 44 years - Tribunal applied multiplier of 12 and deducted 1/3rd for personal expenses - Held that multiplier of 13 is appropriate as per Second Schedule to Motor Vehicles Act, 1988 and deduction of 1/3rd is correct (Paras 5-7).
B) Motor Accident Claims - Future Prospects - Deceased was a government servant with prospects of promotion - Tribunal did not consider future increase in income - Held that 50% of the salary should be added towards future prospects (Para 8).
C) Motor Accident Claims - Interest Rate - Tribunal awarded interest at 15% per annum - Held that interest at 6% per annum is appropriate in the facts of the case (Para 10).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was inadequate and requires enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.3,04,272/- to Rs.7,00,000/-. Interest at 6% per annum from date of claim petition till realisation. Award to be paid by respondent No.2 (Insurance Company) within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Multiplier Method
- Deduction for Personal Expenses
- Interest Rate
Case Details
2010 LawText (BOM) (01) 180
A. Parchure, S.A. Deo, V.R. Mundra (for appellants), V.L. Somalwar (for respondent No.2)
Smt. Sunanda Avinash Deo, Atul s/o Avinash Deo, Ku. Laxmi d/o late Avinash Deo, Shrikant s/o Late Avinash Deo
Mangilal Bordia, The Oriental Insurance Company Ltd.
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Nature of Litigation
First appeal against judgment and award of Motor Accident Claims Tribunal, Nagpur in Claim Petition No.44/1991, seeking enhancement of compensation.
Remedy Sought
Appellants (claimants) sought higher compensation of Rs.10,16,000/- instead of Rs.3,04,272/- awarded by Tribunal.
Filing Reason
Claimants were aggrieved by the inadequate compensation awarded by the Tribunal for the death of the deceased in a motor accident.
Previous Decisions
Motor Accident Claims Tribunal, Nagpur partly allowed Claim Petition No.44/1991 and awarded Rs.3,04,272/- with interest at 15% per annum from date of claim petition till realisation, with proportionate costs, making award joint and several against owner and Insurance Company.
Issues
Whether the multiplier of 12 applied by the Tribunal is correct?
Whether future prospects should be considered for computing loss of dependency?
Whether the interest rate of 15% per annum is appropriate?
Submissions/Arguments
Appellants argued that the multiplier should be 16 as per Second Schedule and that future prospects should be considered, and that the interest rate of 15% is correct.
Respondent No.2 (Insurance Company) supported the Tribunal's award and argued that the multiplier of 12 is correct and no future prospects should be added.
Ratio Decidendi
In motor accident claims, the multiplier should be as per the Second Schedule to the Motor Vehicles Act, 1988, and future prospects should be considered for government servants with prospects of promotion. Interest rate should be reasonable, not excessive.
Judgment Excerpts
Being aggrieved by the judgment and award dated 29.6.1993, passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.44/1991, not awarding the compensation in entirety as claimed by the original petitioners/appellants herein, the present first appeal was filed in this Court.
On 31.10.1990 at about 11.00 a.m. at road junction known as Swawalambinagar Chowk, accident took place in which deceased who was working as Additional District Judge at Nagpur was hit by truck from behind when the deceased was travelling on scooter for going to attend the Court.
The Tribunal awarded compensation of Rs.3,04,272/- with interest @ 15% per annum from the date of claim petition till realisation with proportionate costs by making award joint and several.
In my opinion, the multiplier of 12 applied by the Tribunal is on lower side. The appropriate multiplier would be 13 as per the Second Schedule to the Motor Vehicles Act, 1988.
The deceased was a government servant and had prospects of promotion. Therefore, 50% of the salary should be added towards future prospects.
The interest rate of 15% per annum awarded by the Tribunal is on higher side. In my opinion, interest at the rate of 6% per annum would be appropriate.
Procedural History
Claim Petition No.44/1991 filed before Motor Accident Claims Tribunal, Nagpur. Tribunal partly allowed claim on 29.6.1993 awarding Rs.3,04,272/-. Claimants filed First Appeal No.13/1994 before Bombay High Court, Nagpur Bench. During hearing, Civil Application No.2846/2009 filed for additional documents. Judgment reserved on 15.12.2009 and pronounced on 14.01.2010.
Acts & Sections
- Motor Vehicles Act, 1988: Second Schedule
