Case Note & Summary
The appellants, being the widow and children of deceased Hafizuddin, filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation for his death in a motor accident. The accident occurred on 2.5.1992 when the deceased was riding a motorcycle and was hit by a Matador driven by respondent No.1. The Motor Accident Claims Tribunal, Aurangabad, awarded compensation of Rs. 1,32,000 with interest at 12% per annum. The appellants appealed for enhancement. The High Court reassessed the deceased's income at Rs. 1500 per month based on evidence, applied multiplier 13, deducted 1/3rd for personal expenses, and calculated loss of dependency at Rs. 1,56,000. Adding Rs. 2,000 for funeral expenses and Rs. 5,000 for loss of consortium, the total compensation was enhanced to Rs. 1,63,000. The court upheld the Tribunal's finding of sole negligence on the driver of the Matador and held the insurer liable. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Enhancement - Income Assessment - Deceased was a driver earning Rs. 1500 per month - Tribunal erroneously assessed income at Rs. 900 per month - Held that based on evidence, income should be Rs. 1500 per month (Paras 5-6).
B) Motor Accident Claims - Multiplier - Deceased aged 40 years - Tribunal applied multiplier 13 - Held that multiplier 13 is appropriate as per Second Schedule to Motor Vehicles Act, 1988 (Para 7).
C) Motor Accident Claims - Deduction for Personal Expenses - Deceased had 7 dependents - Tribunal deducted 1/3rd for personal expenses - Held that deduction of 1/3rd is correct (Para 8).
D) Motor Accident Claims - Contributory Negligence - No evidence of contributory negligence by deceased - Tribunal held driver of Matador solely negligent - Held that finding of sole negligence is correct (Para 9).
E) Motor Accident Claims - Liability of Insurer - Respondent No.3 (New India Insurance Co.) is insurer of Matador - Held that respondent No.3 is liable to pay compensation (Para 10).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the appellants are entitled to enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 1,32,000 to Rs. 1,63,000. Respondent No.3 (New India Insurance Co.) directed to pay the enhanced amount with interest at 12% per annum from the date of petition till realization. No order as to costs.
Law Points
- Motor Accident Claims
- Compensation Enhancement
- Income Assessment
- Multiplier
- Deduction for Personal Expenses
- Contributory Negligence
- Liability of Insurer
Case Details
2011 LawText (BOM) (02) 8
First Appeal No. 225 of 1997
Shri A.A. Dabir for appellants; Smt. V. Kudmulwar for respondent no.1; Smt. V.A. Shinde for respondent no.2; Shri D.S. Kulkarni holding for Shri S.L. Kulkarni for respondent no.3; Shri A.A. Joshi for respondent no.5
Smt. Samina w/o Hafizuddin Siddiqui and others
Sk. Saleem s/o Sk. Mehboob and others
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claims Tribunal seeking enhancement of compensation.
Remedy Sought
Enhancement of compensation awarded by the Tribunal.
Filing Reason
The appellants, being heirs of deceased Hafizuddin, were dissatisfied with the compensation awarded by the Tribunal.
Previous Decisions
The Motor Accident Claims Tribunal, Aurangabad, in M.A.C.P. No. 226 of 1992, awarded Rs. 1,32,000 with interest at 12% per annum.
Issues
Whether the compensation awarded by the Tribunal is just and proper?
Whether the appellants are entitled to enhancement of compensation?
Submissions/Arguments
Appellants argued that the Tribunal erred in assessing the deceased's income at Rs. 900 per month, whereas evidence showed he earned Rs. 1500 per month as a driver.
Appellants contended that the multiplier applied should be 16 instead of 13.
Appellants submitted that the deduction of 1/3rd for personal expenses was excessive given the number of dependents.
Respondents supported the Tribunal's award.
Ratio Decidendi
The court held that the income of the deceased should be assessed at Rs. 1500 per month based on evidence. The multiplier of 13 as per the Second Schedule to the Motor Vehicles Act, 1988, is appropriate for a person aged 40 years. Deduction of 1/3rd for personal expenses is correct. The finding of sole negligence on the driver of the Matador is upheld, and the insurer is liable to pay compensation.
Judgment Excerpts
The challenge in this appeal is to the judgment and award, dated 18.9.1996, rendered by the learned Member, Motor Accident Claims Tribunal, Aurangabad, in Motor Accident Claim Petition No. 226 of 1992, which has been filed by the original claimants for the enhancement of compensation.
Considering the evidence on record, the income of the deceased is assessed at Rs. 1500 per month.
The multiplier of 13 is appropriate as per the Second Schedule to the Motor Vehicles Act, 1988.
The deduction of 1/3rd for personal expenses is correct.
There is no evidence of contributory negligence on the part of the deceased.
Procedural History
The original claimants filed M.A.C.P. No. 226 of 1992 before the Motor Accident Claims Tribunal, Aurangabad, which awarded Rs. 1,32,000 on 18.9.1996. Aggrieved, the claimants filed First Appeal No. 225 of 1997 before the Bombay High Court, Aurangabad Bench, which was reserved on 15.2.2011 and pronounced on 25.2.2011.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166, Section 168
