Case Note & Summary
The appeal arises from a judgment and award dated 2.1.2006 passed by the Motor Accident Claims Tribunal, Wardha in M.A.C.P. No.49 of 2003. The claimants, being the mother, sister-in-law, niece, and brother of the deceased Prakash Vinayakrao Lakhakwar, sought enhancement of compensation from Rs.74,500 to Rs.5,00,000 with interest at 12% per annum. The accident occurred on 1st January 2003 when the deceased, a pedestrian, was hit by a matador bearing registration No.MH34 M164 driven rashly and negligently by respondent no.3 Rajabhau Laxmanrao Khadokar, owned by respondent no.1 Sujit Laxmanrao Khadokar, and insured with respondent no.2 National Insurance Company Ltd. The deceased died on the spot. The claimants contended that the deceased was a pan shop owner earning Rs.6,000 per month and was the sole earning member of the family. The Tribunal had assessed the deceased's income notionally at Rs.15,000 per annum, applied a multiplier of 12, and awarded Rs.74,500 including no fault liability. The High Court found that the Tribunal erred in assessing income and multiplier. The Court assessed the deceased's income at Rs.6,000 per month based on the evidence, applied a multiplier of 18 as per Sarla Verma v. DTC, added 40% for future prospects as per Pranay Sethi, deducted 50% for personal expenses (deceased being a bachelor), and awarded Rs.1,000 for loss of consortium, Rs.15,000 for loss of estate, and Rs.15,000 for funeral expenses. The total compensation was computed at Rs.9,57,800, but the Court restricted the award to Rs.5,00,000 as claimed. The award was modified accordingly with interest at 7.5% per annum from the date of petition till realization.
Headnote
A) Motor Accident Claims - Compensation for Death - Negligence - Deceased pedestrian hit by speeding matador - Tribunal found negligence of driver - No contributory negligence - Held that driver's negligence was established (Paras 2-3). B) Motor Accident Claims - Assessment of Income - Deceased was pan shop owner earning Rs.6,000 per month - Tribunal assessed notional income at Rs.15,000 per annum - Held that income should be assessed at Rs.6,000 per month based on evidence (Paras 4-5). C) Motor Accident Claims - Multiplier - Deceased aged 25 years - Tribunal applied multiplier of 12 - Held that multiplier of 18 is appropriate as per Sarla Verma v. DTC (Paras 5-6). D) Motor Accident Claims - Future Prospects - Deceased was self-employed - Held that 40% addition for future prospects is warranted as per Pranay Sethi (Para 6). E) Motor Accident Claims - Deduction for Personal Expenses - Deceased was bachelor - Held that 50% deduction for personal expenses is correct (Para 6). F) Motor Accident Claims - Non-pecuniary Damages - Loss of consortium, loss of estate, funeral expenses - Held that amounts should be awarded as per Pranay Sethi (Para 6).
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 allowed. The award is modified. The claimants are entitled to total compensation of Rs.5,00,000 (as claimed) with interest at 7.5% per annum from the date of petition till realization. The enhanced amount shall be paid by the insurer within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation for death
- Negligence
- Income assessment
- Multiplier method
- Future prospects
- Contributory negligence
- No fault liability
