Case Note & Summary
The appeal arises from a claim petition filed by the appellants, the widow and children of Naraindas, who died in a motor accident on 15th November 1985. The deceased was driving his own car from Mumbai to Ahmadabad when a truck owned by the first respondent dashed against his car, causing his death on the spot. The Motor Accidents Claims Tribunal awarded total compensation of Rs.5,18,400/- but deducted 50% on account of contributory negligence of the deceased. The Tribunal also applied a multiplicand of Rs.4,000/- per month (Rs.48,000/- per annum) and a multiplier of 15, but granted interest only from the date of the award. The appellants challenged the finding on negligence, the quantum of multiplicand, and the denial of interest from the date of accident. The High Court noted that the appeal against the first respondent (owner of the truck) was dismissed for non-prosecution, and therefore the finding on contributory negligence could not be disturbed as it would require recording negligence entirely on the first respondent in his absence. On quantum, the Court found that the Tribunal had erred in taking the net income at Rs.4,000/- per month ignoring the income tax returns which showed net incomes of Rs.15,956/-, Rs.28,445/-, and Rs.47,633/- for the assessment years 1984-85, 1985-86, and 1986-87 respectively. The Court held that the average of the last three years' income should be taken, which worked out to Rs.30,678/- per annum. Adding 50% towards future prospects, the multiplicand was fixed at Rs.46,017/- per annum. Applying a multiplier of 15 (as per Sarla Verma), the total loss of dependency was computed at Rs.6,90,255/-. After deducting 50% for contributory negligence, the amount came to Rs.3,45,127.50, rounded to Rs.3,45,128/-. Adding Rs.15,000/- for loss of consortium and funeral expenses, the total compensation was enhanced to Rs.3,60,128/-. The Court also directed that interest at 6% per annum be paid from the date of filing of the claim petition (1986) instead of from the date of the award. The appeal was partly allowed.
Headnote
A) Motor Accident Compensation - Contributory Negligence - Finding of 50% contributory negligence cannot be disturbed in absence of first respondent - Appeal dismissed against first respondent for non-prosecution - Held that finding on negligence cannot be altered without hearing the owner (Para 3). B) Motor Accident Compensation - Multiplicand - Determination of income - Tribunal erred in taking net income at Rs.4,000/- per month ignoring income tax returns showing increasing trend - Held that multiplicand should be based on average of last three years' income, i.e., Rs.30,678/- per annum, and after adding 50% towards future prospects, multiplicand fixed at Rs.46,017/- per annum (Paras 4-5). C) Motor Accident Compensation - Multiplier - Application of multiplier of 15 as per Sarla Verma v. Delhi Transport Corporation - Deceased aged 40 years - Held that multiplier of 15 is appropriate (Para 5). D) Motor Accident Compensation - Interest - Award of interest from date of petition - Tribunal awarded interest from date of award - Held that interest should be awarded from date of filing of claim petition (Para 6).
Issue of Consideration
Whether the finding on contributory negligence was correct; whether the multiplicand applied was on the lower side; whether interest ought to have been awarded from the date of accident.
Final Decision
Appeal partly allowed. Compensation enhanced to Rs.3,60,128/- with interest at 6% per annum from date of filing of claim petition (1986) till realization. Finding on contributory negligence not disturbed.
Law Points
- Contributory negligence
- Multiplicand determination
- Interest from date of accident
- Multiplier application
