Case Note & Summary
The appellants, parents of the deceased, filed a claim petition under Section 110-A of the Motor Vehicles Act, 1939, seeking compensation of Rs.1.50 lakhs for the death of their son in a motor accident. The Motor Accidents Claims Tribunal awarded Rs.1,05,000/- (excluding the no fault liability amount of Rs.15,000/-) and directed that the amount be deposited within 10 weeks, failing which it would carry interest at 12% per annum. The appellants appealed, contending that the multiplicand of Rs.500/- per month was too low, that compensation under other headings was not granted, and that interest should have been awarded from the date of filing of the claim petition. The respondent insurance company argued that the multiplier of 20 was excessive and the award should be confirmed. The High Court held that the dependency calculation was reasonable given the deceased's income of Rs.900/- per month and the ages of the parents (47 and 45), and that the multiplier of 20 was on the higher side, so no interference with the quantum was warranted. However, the Court found that the Tribunal had not assigned any reasons for denying interest from the date of filing. Therefore, the Court modified the award to direct that the compensation be paid with interest at 7.5% per annum from the date of filing of the claim application till realisation or deposit. The appeal was disposed of accordingly.
Headnote
A) Motor Accident Compensation - Interest - Date of Filing - Motor Vehicles Act, 1939, Section 110-A - The Tribunal granted interest only on default without assigning reasons; the High Court held that interest should ordinarily be awarded from the date of filing of the claim petition unless reasons are given to deny it. The Court modified the award to grant interest at 7.5% per annum from the date of filing till realisation or deposit. (Paras 5-7) B) Motor Accident Compensation - Multiplier - Dependency - Motor Vehicles Act, 1939, Section 110-A - The deceased was earning Rs.900/- per month; the Tribunal took dependency at Rs.500/- per month and applied multiplier of 20. The High Court found the multiplier on the higher side but did not interfere with the quantum, noting that the compensation amount was not excessive. (Paras 2-4)
Issue of Consideration
Whether the Tribunal erred in not granting interest on compensation from the date of filing of the claim petition and whether the quantum of compensation was adequate.
Final Decision
The appeal is disposed of by modifying the impugned award to direct that the compensation granted shall be paid along with interest at 7.5% per annum from the date of filing of the claim application till realisation or deposit of the compensation amount.
Law Points
- Interest on compensation in motor accident claims should ordinarily be awarded from the date of filing of the claim petition unless reasons are given to deny it
- Multiplier must be appropriate to the age of claimants
- Dependency calculation based on income of deceased
