Bombay High Court Allows Appeal in Motor Accident Claim - Compensation Enhanced for Death of Labourer Due to Wrong Multiplier. Multiplier of 18 applied instead of 12 under Motor Vehicles Act, 1988 for deceased aged 24 years earning Rs.1400 per month.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The appeal was filed by the claimants, the wife, minor children, and parents of deceased Kacharu Rathod, challenging the inadequacy of compensation awarded by the Motor Accident Claims Tribunal, Ahmednagar, in M.A.C.P. No.200 of 1991. The deceased, a 24-year-old labourer, died on 12.05.1991 when he was crushed under the wheels of a truck bearing No.MWA7419 while loading sugarcane. The driver, respondent no.2, reversed the truck without caution. The claimants sought Rs.2,00,000 compensation, claiming the deceased earned Rs.1400 per month. The Tribunal awarded Rs.1,00,000 with interest at 6% per annum, applying a multiplier of 12 and deducting 1/3rd for personal expenses. The High Court found the multiplier of 12 to be erroneous, as per the Second Schedule to the Motor Vehicles Act, 1988, the appropriate multiplier for a person aged 24 is 18. The court also noted that the Tribunal had not considered future prospects, but declined to add them as the deceased's income was not proved to be from permanent employment. The court recalculated compensation: annual income Rs.16,800 (Rs.1400 x 12), less 1/3rd for personal expenses = Rs.11,200, multiplied by 18 = Rs.2,01,600. The court also awarded interest at 6% per annum from the date of petition until realization. The appeal was partly allowed, enhancing compensation to Rs.2,01,600.

Headnote

A) Motor Accident Claims - Compensation Assessment - Multiplier Method - Deceased labourer aged 24 years earning Rs.1400 per month - Tribunal applied multiplier of 12 and deducted 1/3rd for personal expenses - High Court held multiplier of 18 appropriate as per Second Schedule to Motor Vehicles Act, 1988 - Compensation enhanced from Rs.1,00,000 to Rs.2,01,600 with interest at 6% per annum (Paras 6-8).

B) Motor Accident Claims - Future Prospects - Deceased was a young labourer with no evidence of permanent employment - High Court declined to add future prospects as income was not proved to be permanent - Held that in absence of proof of permanent employment, future prospects cannot be considered (Para 7).

C) Motor Accident Claims - Contributory Negligence - Deceased was loading sugarcane at rear of truck when driver reversed without caution - Tribunal found no contributory negligence - High Court affirmed finding that accident was solely due to rash and negligent driving of driver (Para 5).

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was inadequate and requires enhancement.

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Final Decision

Appeal partly allowed. Compensation enhanced from Rs.1,00,000 to Rs.2,01,600 with interest at 6% per annum from date of petition till realization. Respondents to pay enhanced amount within eight weeks.

Law Points

  • Motor Accident Claims
  • Compensation Assessment
  • Multiplier Method
  • Future Prospects
  • Contributory Negligence
  • Income Proof
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Case Details

2010 LawText (BOM) (02) 8

First Appeal No.192 of 1996

2010-02-16

R.M. Borde

V.S. Bedre, C.V. Korhalkar, P.P. Bafna, D.R. Jaybhar

Sunderabai Kacharu Rathod, Yamunabai Kacharu Rathod, Tulshiram Kacharu Rathod

Jankibai Pandurang Deokar, Ramdas Trimbak Kardak, The Oriental Assurance Company Ltd., Rambhau Balaji Rathod, Deoubai Rambhau Rathod

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Nature of Litigation

Appeal against inadequacy of compensation awarded by Motor Accident Claims Tribunal

Remedy Sought

Enhancement of compensation from Rs.1,00,000 to Rs.2,00,000

Filing Reason

Claimants aggrieved by low compensation awarded for death of breadwinner

Previous Decisions

Motor Accident Claims Tribunal, Ahmednagar awarded Rs.1,00,000 with 6% interest on 12.12.1995 in M.A.C.P. No.200 of 1991

Issues

Whether the multiplier of 12 applied by the Tribunal was correct? Whether future prospects should be considered for a labourer without proof of permanent employment? Whether the compensation awarded was inadequate?

Submissions/Arguments

Appellants argued that the Tribunal erred in applying multiplier of 12 instead of 18 as per Second Schedule for age 24. Appellants contended that future prospects should be considered as deceased was young and healthy. Respondents argued that income of Rs.1400 per month was not proved and multiplier was correctly applied.

Ratio Decidendi

For a deceased aged 24 years, the appropriate multiplier under the Second Schedule to the Motor Vehicles Act, 1988 is 18, not 12. Future prospects cannot be added without proof of permanent employment. Compensation calculated as annual income minus 1/3rd personal expenses multiplied by 18.

Judgment Excerpts

The multiplier adopted by the Tribunal is 12, which is not in consonance with the Second Schedule appended to the Motor Vehicles Act. In the instant case, the deceased was a labourer and there is no evidence to show that he was in permanent employment. As such, future prospects cannot be considered. Thus, the compensation works out to Rs.2,01,600.

Procedural History

Claim petition M.A.C.P. No.200 of 1991 filed before Motor Accident Claims Tribunal, Ahmednagar. Tribunal awarded Rs.1,00,000 on 12.12.1995. Claimants filed First Appeal No.192 of 1996 before Bombay High Court, Aurangabad Bench, which was heard and decided on 16.02.2010.

Acts & Sections

  • Motor Vehicles Act, 1988: Second Schedule
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High Court Bombay High Court Allows Appeal in Motor Accident Claim - Compensation Enhanced for Death of Labourer Due to Wrong Multiplier. Multiplier of 18 applied instead of 12 under Motor Vehicles Act, 1988 for deceased aged 24 years earning Rs.1400 per month.
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