Case Note & Summary
The case arises from a motor accident claim petition filed by the parents of Fareenbee, a 7-year-old girl studying in 2nd class, who lost her life in a road accident. The parents sought compensation under Section 166 of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal, after evaluating evidence, awarded Rs.75,000 with interest at 6% per annum. Dissatisfied with the quantum, the parents appealed to the High Court. The core legal issue was whether the compensation was just and proper. The appellants argued that the Tribunal erred in not applying the multiplier method and notional income as per the Second Schedule. The respondent, Maharashtra State Road Transport Corporation, supported the Tribunal's award. The High Court, relying on Section 163A and the Second Schedule of the Motor Vehicles Act, held that for a child aged 7 years, the notional income should be taken as Rs.15,000 per annum and the multiplier should be 15. Accordingly, the compensation was calculated as Rs.15,000 x 15 = Rs.2,25,000. The Court also awarded interest at 6% per annum from the date of the petition. The appeal was allowed, enhancing the compensation from Rs.75,000 to Rs.2,25,000.
Headnote
A) Motor Accident Claims - Compensation for Child Death - Notional Income - Multiplier - The Tribunal awarded Rs.75,000 with 6% interest for death of a 7-year-old child. On appeal, the High Court held that as per Section 163A and Schedule II of the Motor Vehicles Act, 1988, the notional income for a non-earning child should be taken as Rs.15,000 per annum, and the appropriate multiplier is 15, resulting in a total compensation of Rs.2,25,000 with interest at 6% p.a. from the date of petition. (Paras 1-5) B) Motor Accident Claims - Interest Rate - The High Court maintained the interest rate of 6% per annum as awarded by the Tribunal, noting that it is reasonable. (Para 5)
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal for the death of a 7-year-old child was just and proper, and what should be the appropriate multiplier and notional income.
Final Decision
The appeal is allowed. The compensation is enhanced from Rs.75,000 to Rs.2,25,000 with interest at 6% per annum from the date of the petition till realization. The respondent is directed to deposit the enhanced amount within eight weeks.
Law Points
- Compensation for death of child
- notional income
- multiplier method
- Motor Vehicles Act
- 1988
- Section 166
- Section 163A
- Schedule II
- fatal accident
