Bombay High Court Allows Appeal by Owner in Motor Accident Claim — Reduces Compensation Due to Lack of Evidence on Income and Negligence of Driver. The Court held that the Tribunal erred in assessing income without proof and in applying incorrect multiplier and future prospects, reducing the award from Rs.4,68,000 to Rs.3,15,000.

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

The case arises from a motor accident claim petition filed by the legal heirs of Gangadhar Suvarnakar (deceased) who died in a vehicular accident on 18-08-2009. The deceased was a pedestrian when he was hit by a car bearing registration No. MH-24/3949 driven by respondent no.6 Tanaji Kanche, owned by appellant Govind Modi, and insured by New India Assurance Co. Ltd. The claimants, being the widow and three children, sought compensation of Rs.5,00,000/-. The Motor Accident Claims Tribunal, Latur, awarded Rs.4,68,000/- with interest at 7.5% per annum, holding the driver 50% negligent and the deceased 50% negligent for contributory negligence. The owner of the vehicle appealed against the award, challenging the quantum and the finding of negligence. The High Court examined the evidence, including the FIR and spot panchnama, and found no material to suggest contributory negligence by the deceased. However, since the claimants did not cross-appeal, the apportionment of negligence was not disturbed. On quantum, the Court found that the Tribunal had assessed the deceased's income at Rs.4,500/- per month without any evidence, and reduced it to Rs.3,000/- per month. The addition for future prospects was reduced from 50% to 25% as per the age of the deceased (45 years). The multiplier was corrected from 13 to 14 as per Sarla Verma. The deduction for personal expenses was upheld at 1/3rd. The Court recalculated the compensation and reduced the total award from Rs.4,68,000/- to Rs.3,15,000/-. The appeal was partly allowed, and the insurance company was directed to pay the reduced amount with interest.

Headnote

A) Motor Accident Claims - Negligence - Apportionment of Negligence - The Tribunal held the driver of the offending vehicle (respondent no.6) 50% negligent and the deceased 50% negligent for contributory negligence - The High Court found no evidence of contributory negligence by the deceased and held the driver solely negligent - However, the Court upheld the apportionment as no cross-appeal was filed by the claimants (Paras 10-12).

B) Motor Accident Claims - Income Proof - Assessment of Income - The Tribunal assessed the income of the deceased at Rs.4,500/- per month based on guesswork without any documentary evidence - The High Court reduced it to Rs.3,000/- per month as there was no proof of income - Held that in the absence of evidence, the income should be assessed conservatively (Paras 13-15).

C) Motor Accident Claims - Future Prospects - Addition for Future Prospects - The Tribunal added 50% towards future prospects - The High Court held that since the deceased was a daily wager aged 45 years, only 25% addition is permissible as per settled law - Held that future prospects should be added at 25% (Para 16).

D) Motor Accident Claims - Deduction for Personal Expenses - The Tribunal deducted 1/3rd towards personal expenses - The High Court upheld the deduction as the deceased had four dependents - Held that 1/4th deduction is appropriate for four dependents, but the Court did not interfere as no appeal by claimants (Para 17).

E) Motor Accident Claims - Multiplier - The Tribunal applied multiplier of 13 - The High Court held that for a person aged 45 years, the multiplier should be 14 as per Sarla Verma v. DTC - Held that multiplier of 14 is applicable (Para 18).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in fixing the income of the deceased and in apportioning negligence between the driver of the offending vehicle and the deceased?

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Final Decision

The appeal is partly allowed. The impugned award is modified. The total compensation is reduced from Rs.4,68,000/- to Rs.3,15,000/-. The insurance company is directed to pay the reduced amount with interest at 7.5% per annum from the date of petition till realization. The apportionment of negligence is upheld as no cross-appeal was filed.

Law Points

  • Motor Accident Claims
  • Negligence
  • Contributory Negligence
  • Income Proof
  • Future Prospects
  • Deduction for Personal Expenses
  • Multiplier
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Case Details

2014 LawText (BOM) (02) 70

First Appeal No.1831 of 2013

0000-00-00

Sanjay V. Mundhe for appellant, R.G. Rodge for respondent nos.2 to 5, A.S. Shelke for respondent no.1

Govind s/o Pralhadrao Modi

The Manager, New India Assurance Company Ltd. and Others

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Nature of Litigation

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

Remedy Sought

The appellant (owner of the offending vehicle) sought reduction of the compensation amount awarded by the Tribunal.

Filing Reason

The appellant challenged the quantum of compensation and the finding of negligence on the part of the driver.

Previous Decisions

The Motor Accident Claims Tribunal, Latur, awarded Rs.4,68,000/- with interest at 7.5% per annum, holding the driver 50% negligent and the deceased 50% negligent.

Issues

Whether the Tribunal erred in fixing the income of the deceased at Rs.4,500/- per month without any evidence? Whether the Tribunal correctly apportioned negligence between the driver and the deceased? Whether the addition of 50% towards future prospects and the multiplier of 13 were correct?

Submissions/Arguments

Appellant argued that the Tribunal erred in assessing the income of the deceased at Rs.4,500/- per month without any documentary evidence, and that the finding of negligence against the driver was incorrect. Respondents (claimants) supported the Tribunal's award and argued that the compensation was just and fair.

Ratio Decidendi

In motor accident claims, the income of the deceased must be proved by evidence; in the absence of proof, a conservative estimate may be made. For a person aged 45 years, future prospects should be added at 25% and multiplier of 14 should be applied as per Sarla Verma. The finding of contributory negligence, if not challenged by the claimants, cannot be interfered with in an appeal by the owner.

Judgment Excerpts

There is no material on record to show that the deceased was negligent in any manner. The Tribunal has assessed the income of the deceased at Rs.4,500/- per month. There is no evidence on record to show that the deceased was earning Rs.4,500/- per month. As per the law laid down by the Hon'ble Apex Court in the case of Sarla Verma v. DTC, the multiplier applicable for the age group of 45 years is 14.

Procedural History

The claimants filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Latur. The Tribunal awarded compensation of Rs.4,68,000/- with interest. The owner of the offending vehicle filed the present first appeal before the High Court challenging the award.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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