Bombay High Court Partly Allows Appeal by MSRTC Reducing Compensation in Motor Accident Claim Due to Contributory Negligence and Multiplier Error. Claimants' compensation reduced from Rs. 7,50,000 to Rs. 5,00,000 as deceased was 50% contributorily negligent and multiplier of 13 was corrected to 12.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The appeal arises from a judgment of the Motor Accident Claims Tribunal, Jalna, in MACP No. 01/2013, awarding compensation of Rs. 7,50,000 to the claimants (respondents 1-4), the widow, two sons, and father of deceased Jalindar Karde, who died in a motor vehicle accident on 18-06-2012. The deceased was a pedestrian hit by a Maharashtra State Road Transport Corporation (MSRTC) bus driven by respondent no.5. The Tribunal found the deceased 50% contributorily negligent and the driver 50% negligent. The appellant, MSRTC, challenged the quantum, arguing that the Tribunal failed to deduct the 50% contributory negligence from the compensation and applied an incorrect multiplier. The High Court examined the evidence and found that the Tribunal's finding on contributory negligence was based on the testimony of eyewitness PW2 and the spot panchanama, showing the accident occurred in the middle of the road, and thus upheld the 50% contributory negligence. However, the High Court noted that the Tribunal applied a multiplier of 13 for a deceased aged 45 years, whereas as per Sarla Verma v. DTC, the correct multiplier for age 41-45 is 12. The High Court recalculated the loss of dependency: notional income of Rs. 3,000 per month (as per Tribunal), annual income Rs. 36,000, after 1/4th deduction for personal expenses (since 4 dependents), annual loss Rs. 27,000, multiplied by 12 = Rs. 3,24,000. Adding Rs. 70,000 for conventional heads (loss of consortium, funeral expenses, etc.), total compensation before contributory negligence would be Rs. 3,94,000. After deducting 50% contributory negligence, the claimants would be entitled to Rs. 1,97,000. However, considering the overall circumstances and the fact that the Tribunal had awarded Rs. 7,50,000, the High Court, in the interest of justice, reduced the compensation to Rs. 5,00,000, which is more than the calculated amount but less than the Tribunal's award. The appeal was partly allowed, and the award was modified accordingly.

Headnote

A) Motor Accident Claims - Contributory Negligence - Deceased pedestrian hit by ST bus while crossing road - Tribunal held deceased 50% negligent - High Court upheld finding of contributory negligence - Held that the Tribunal's finding on contributory negligence was based on evidence and not perverse (Paras 7-9).

B) Motor Accident Claims - Multiplier - Deceased aged 45 years - Tribunal applied multiplier of 13 - High Court corrected to multiplier of 12 as per Sarla Verma v. DTC - Held that multiplier should be 12 for age group 41-45 (Para 10).

C) Motor Accident Claims - Deduction for Personal Expenses - Deceased married with 4 dependents - Tribunal deducted 1/4th - High Court upheld deduction of 1/4th as per Sarla Verma - Held that deduction of 1/4th is correct for 4 dependents (Para 10).

D) Motor Accident Claims - Quantum - Loss of dependency calculated as Rs. 3,000 x 12 x 12 x 3/4 = Rs. 3,24,000 - Plus conventional heads Rs. 70,000 - Total Rs. 3,94,000 - After 50% contributory negligence, claimants entitled to Rs. 1,97,000 - But High Court awarded Rs. 5,00,000 considering overall circumstances - Held that compensation reduced from Rs. 7,50,000 to Rs. 5,00,000 (Paras 11-13).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in awarding compensation without deducting contributory negligence of the deceased and in applying the correct multiplier.

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Final Decision

The appeal is partly allowed. The impugned award is modified. The claimants are entitled to total compensation of Rs. 5,00,000 instead of Rs. 7,50,000. The rate of interest at 6% per annum as awarded by the Tribunal is maintained. The appellant is directed to deposit the modified amount within eight weeks. The amount already deposited shall be adjusted. The deficit court fees, if any, shall be paid by the appellant.

Law Points

  • Contributory negligence
  • Multiplier determination
  • Deduction for personal expenses
  • Quantum of compensation
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Case Details

2019 LawText (BOM) (06) 1

First Appeal No. 04234 of 2016

2019-06-24

Smt. Vibha Kankanwadi

Mr. D.S. Bagul for appellant, Mr. V.M. Humbe for respondents no.01 to 04

Maharashtra State Road Transport Corporation, through its Divisional Controller, MSRTC, Jalna

Smt. Kausabai w/o. Jalindar Karde, Atul s/o. Jalindar Karde, Rahul s/o. Jalindar Karde, Gangadhar s/o. Vinayak Karde, Rajendra Sukhdeo Barkul

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Nature of Litigation

First appeal against award of Motor Accident Claims Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988

Remedy Sought

Appellant MSRTC sought reduction of compensation awarded to claimants, challenging the quantum on grounds of non-deduction of contributory negligence and wrong multiplier

Filing Reason

The Tribunal awarded Rs. 7,50,000 to the claimants for the death of Jalindar Karde in a road accident, but the appellant contended that the Tribunal failed to deduct 50% contributory negligence of the deceased and applied multiplier of 13 instead of 12

Previous Decisions

Motor Accident Claims Tribunal, Jalna, in MACP No. 01/2013 awarded Rs. 7,50,000 with interest at 6% per annum from the date of petition

Issues

Whether the Tribunal erred in not deducting the 50% contributory negligence of the deceased from the compensation amount? Whether the Tribunal applied the correct multiplier of 13 for a deceased aged 45 years?

Submissions/Arguments

Appellant argued that the Tribunal failed to deduct 50% contributory negligence from the compensation and applied wrong multiplier of 13 instead of 12 as per Sarla Verma. Respondents argued that the Tribunal's award was just and proper, and the finding on contributory negligence was based on evidence.

Ratio Decidendi

In motor accident claims, the finding of contributory negligence by the Tribunal, if based on evidence, should not be interfered with. The multiplier should be applied as per the age of the deceased as per Sarla Verma v. DTC. For a deceased aged 45 years, multiplier of 12 is applicable. The compensation must be calculated after deducting the percentage of contributory negligence from the total loss of dependency.

Judgment Excerpts

The Tribunal has held that the deceased was 50% negligent and the driver of the ST bus was 50% negligent. The said finding is based on the evidence of PW2 and the spot panchanama. Hence, the finding of contributory negligence is not perverse. As per the decision in Sarla Verma v. Delhi Transport Corporation, for the age group of 41-45 years, the multiplier is 12. The Tribunal has applied multiplier of 13, which is erroneous. Considering the overall circumstances, the compensation is reduced from Rs. 7,50,000 to Rs. 5,00,000.

Procedural History

The claimants filed MACP No. 01/2013 before the Motor Accident Claims Tribunal, Jalna, which awarded Rs. 7,50,000 on an unspecified date. The appellant MSRTC filed First Appeal No. 04234 of 2016 before the Bombay High Court, Aurangabad Bench, challenging the quantum. The appeal was heard and decided on 24-06-2019.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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