Case Note & Summary
The present appeal was filed by the original claimants, the legal heirs of Gunwant Narayan Bari, seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Jalgaon, in M.A.C.P. No.292/2007 dated 17.12.2013. The claimants, consisting of the widow and three minor daughters, along with the parents of the deceased, had filed a petition under Section 166 of the Motor Vehicles Act, 1988, claiming that the deceased was a pillion rider on a motorcycle on 04.02.2007 when a truck coming from the opposite direction dashed against them, causing fatal injuries. The deceased was a watch maker assisting his father in Avdhut Watch Company, earning Rs.5,000 per month, and was aged 39 years. The Tribunal awarded total compensation of Rs.5,44,000 with interest at 7.5% per annum. The claimants appealed contending that the multiplier applied was wrong and future prospects were not considered. The High Court, relying on Sarla Verma v. DTC and Pranay Sethi, held that the correct multiplier for age 39 is 16, and 40% future prospects should be added. The court recalculated the compensation: notional income Rs.5,000 per month, plus 40% future prospects = Rs.7,000, deducting 1/4th for personal expenses = Rs.5,250 per month, annual = Rs.63,000, multiplied by 16 = Rs.10,08,000. Adding Rs.70,000 under conventional heads (loss of consortium, loss of estate, funeral expenses) as per Pranay Sethi, total compensation comes to Rs.10,78,000. The court enhanced the compensation by Rs.5,34,000 over the Tribunal's award, with interest at 7.5% per annum from the date of petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Multiplier - Future Prospects - The Tribunal applied multiplier of 15 for deceased aged 39 years, but as per Sarla Verma v. DTC, (2009) 6 SCC 121, the correct multiplier is 16. Also, 40% future prospects should be added as per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. Held that the compensation is enhanced accordingly (Paras 7-10).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the claimants are entitled to enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.5,44,000 to Rs.10,78,000. The enhanced amount of Rs.5,34,000 shall carry interest at 7.5% per annum from the date of petition till realization. Respondent No.2 (Insurance Company) directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation
- Multiplier
- Future Prospects
- Sarla Verma v. DTC
- Pranay Sethi
