Bombay High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced for Death of Pillion Rider. Income of Deceased Reassessed at Rs. 1,500 per Month with Multiplier of 15 Under Motor Vehicles Act, 1988.

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

The appellants, being the parents and brother of the deceased Pravin Bapusaheb Patil, filed a claim petition before the Motor Accident Claims Tribunal, Satara, seeking compensation for the death of Pravin in a motor vehicle accident on 16-2-1990. The deceased was a pillion rider on a motorcycle driven by his friend Ambewadikar, which met with an accident. The Tribunal awarded compensation of Rs. 1,00,000 with interest at 9% per annum from the date of petition. The appellants challenged the quantum of compensation, contending that the Tribunal had erred in assessing the income of the deceased at Rs. 600 per month and in applying a multiplier of 12 instead of 15. The High Court, after considering the evidence and the Second Schedule of the Motor Vehicles Act, 1988, held that the income of the deceased should be assessed at Rs. 1,500 per month, as the deceased was a young man aged 22 years and the prevailing wage rates supported such assessment. The Court applied a multiplier of 15 as per the Second Schedule for the age group of 21-25 years. After deducting 1/3rd for personal expenses, the loss of dependency was calculated at Rs. 1,000 per month, i.e., Rs. 12,000 per annum, multiplied by 15, resulting in Rs. 1,80,000. Additionally, the Court awarded Rs. 5,000 for loss of consortium and Rs. 2,000 for funeral expenses, totaling Rs. 1,87,000. The Court directed the respondents to pay the enhanced compensation of Rs. 87,000 over the Tribunal's award, with interest at 9% per annum from the date of petition till realization. The appeal was allowed to that extent.

Headnote

A) Motor Accident Claims - Assessment of Income - Deceased Pillion Rider - The Tribunal assessed the income of the deceased at Rs. 600 per month, but the High Court held that considering the deceased was a young man aged 22 years and the prevailing wage rates, his income should be assessed at Rs. 1,500 per month. (Paras 4-5)

B) Motor Accident Claims - Multiplier - Application of Second Schedule - The Tribunal applied a multiplier of 12, but the High Court held that as per the Second Schedule of the Motor Vehicles Act, 1988, for a person aged 22 years, the appropriate multiplier is 15. (Para 6)

C) Motor Accident Claims - Deduction for Personal Expenses - The Tribunal deducted 1/3rd of the income for personal expenses, which was upheld by the High Court. (Para 7)

D) Motor Accident Claims - Loss of Consortium and Funeral Expenses - The High Court awarded Rs. 5,000 for loss of consortium and Rs. 2,000 for funeral expenses, as per the Second Schedule. (Para 8)

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in assessing the income of the deceased at Rs. 600 per month and in applying a multiplier of 12 instead of 15, and whether the compensation awarded was just and proper.

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Final Decision

The appeal is allowed. The compensation is enhanced from Rs. 1,00,000 to Rs. 1,87,000. The respondents are directed to pay the enhanced amount of Rs. 87,000 with interest at 9% per annum from the date of petition till realization.

Law Points

  • Assessment of income for deceased pillion rider
  • application of multiplier as per Second Schedule of Motor Vehicles Act
  • 1988
  • deduction for personal expenses
  • entitlement to compensation for loss of consortium and funeral expenses.
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Case Details

2005 LawText (BOM) (08) 102

First Appeal No.425 of 1997

2005-08-25

R.M.S. Khandeparkar, V.M. Kanade

Shri N.V. Bandivadekar with Ms Aradhan Prabhu for the Appellants, Shri Rahul S. Kate for the Respondent Nos.1 and 2

Bapusaheb Bharamgaunda Patil, Smt. Smita w/o Bapusaheb Patil, Navin Bapusaheb Patil

Ibrahim Gulab Mujawar, Balasaheb Tukaram Patil, The New India Assurance Co. Ltd.

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Nature of Litigation

Appeal against the judgment and award of the Motor Accident Claims Tribunal, Satara, challenging the quantum of compensation.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellants were dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal, Satara, awarded compensation of Rs. 1,00,000 with interest at 9% per annum.

Issues

Whether the Tribunal erred in assessing the income of the deceased at Rs. 600 per month? Whether the Tribunal erred in applying a multiplier of 12 instead of 15? Whether the compensation awarded is just and proper?

Submissions/Arguments

The appellants argued that the income of the deceased should be assessed at Rs. 1,500 per month and the multiplier should be 15 as per the Second Schedule. The respondents supported the Tribunal's award.

Ratio Decidendi

The income of the deceased should be assessed reasonably based on prevailing wage rates, and the multiplier should be applied as per the Second Schedule of the Motor Vehicles Act, 1988, based on the age of the deceased.

Judgment Excerpts

The Tribunal has assessed the income of the deceased at Rs. 600 per month. In our view, this assessment is on the lower side. As per the Second Schedule, for the age group of 21-25 years, the multiplier is 15. We assess the income of the deceased at Rs. 1,500 per month.

Procedural History

The Motor Accident Claims Tribunal, Satara, passed an award on an unspecified date. The appellants filed First Appeal No.425 of 1997 before the High Court of Judicature at Bombay challenging the quantum of compensation.

Acts & Sections

  • Motor Vehicles Act, 1988: Second Schedule
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High Court Bombay High Court Allows Appeal in Motor Accident Claim Case — Compensation Enhanced for Death of Pillion Rider. Income of Deceased Reassessed at Rs. 1,500 per Month with Multiplier of 15 Under Motor Vehicles Act, 1988.
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