Bombay High Court at Goa Allows Appeal in Motor Accident Claim Case Due to Error in Computing Future Prospects and Consortium. Compensation Enhanced from Rs. 13,77,000 to Rs. 15,27,000 for Death of 48-Year-Old Clerk in Road Accident.

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

The case arises from a motor accident claim petition filed by the husband and two sons of the deceased Ujwala, who died in a road accident on 23.02.2007. The deceased was riding an Activa scooter when a water tanker driven rashly and negligently by respondent no.1 dashed into her, causing fatal injuries. The deceased was 48 years old, working as a Clerk at Mapusa Urban Bank Ltd., earning Rs. 16,778/- per month. The claimants sought total compensation of Rs. 25,47,000/-. The Motor Accident Claims Tribunal at Mapusa, by judgment dated 14.05.2009, awarded Rs. 13,77,000/- with interest at 7.5% per annum. The appellants (original claimants) appealed for enhancement. The High Court considered the issues of future prospects, multiplier, deduction for personal expenses, and consortium. The court held that 30% of the salary should be added for future prospects as per Sarla Verma v. DTC, applied the correct multiplier of 13, and upheld the 1/3rd deduction for personal expenses. The court enhanced the compensation for loss of consortium from Rs. 5,000/- to Rs. 1,00,000/-, for loss of estate from Rs. 5,000/- to Rs. 10,000/-, and for funeral expenses from Rs. 5,000/- to Rs. 10,000/-. The total compensation was recomputed as Rs. 15,27,000/-, and the appeal was partly allowed with enhanced compensation and interest.

Headnote

A) Motor Accident Claims - Compensation - Future Prospects - Deceased was 48 years old, employed as a Clerk with permanent job - Tribunal erred in not adding future prospects to income - As per Sarla Verma v. DTC, 30% addition for future prospects is warranted for deceased aged 40-50 with permanent job - Held that 30% of salary should be added towards future prospects (Paras 8-10).

B) Motor Accident Claims - Compensation - Multiplier - Deceased aged 48 years - Tribunal applied multiplier of 13 - As per Sarla Verma, multiplier for age 46-50 is 13 - Held that multiplier of 13 is correct (Para 11).

C) Motor Accident Claims - Compensation - Deduction for Personal Expenses - Deceased had three dependents (husband and two sons) - Tribunal deducted 1/3rd towards personal expenses - As per Sarla Verma, for 2-3 dependents, deduction is 1/3rd - Held that deduction of 1/3rd is proper (Para 12).

D) Motor Accident Claims - Compensation - Loss of Consortium - Tribunal awarded Rs. 5,000/- for loss of consortium - As per Rajesh v. Rajbir Singh, Rs. 1,00,000/- should be awarded for loss of consortium to the spouse - Held that appellants are entitled to Rs. 1,00,000/- for loss of consortium (Paras 13-14).

E) Motor Accident Claims - Compensation - Loss of Estate and Funeral Expenses - Tribunal awarded Rs. 5,000/- for loss of estate and Rs. 5,000/- for funeral expenses - As per Rajesh, Rs. 10,000/- each is appropriate - Held that amounts are enhanced to Rs. 10,000/- each (Paras 15-16).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in computing compensation for the death of Ujwala, particularly regarding future prospects, multiplier, and consortium.

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Final Decision

Appeal partly allowed. The compensation awarded by the Tribunal is enhanced from Rs. 13,77,000/- to Rs. 15,27,000/-. The enhanced amount of Rs. 1,50,000/- shall carry interest at 7.5% per annum from the date of claim petition till realization. The Insurance Company is directed to deposit the enhanced amount within six weeks.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Compensation
  • Loss of Consortium
  • Future Prospects
  • Multiplier
  • Deduction for Personal Expenses
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Case Details

2016 LawText (BOM) (01) 163

First Appeal No. 58 of 2010

2016-01-21

K. L. Wadane

2016:BHC-GOA:142

Mr. E. Afonso for Appellants, Mr. Sudin Usgaonkar, Senior Advocate with Ms. Vinita Palyekar for Respondents

Shri Narayan Anant Dalvi and Mrs. Pratima P. Vaigankar

Shri Shivdas Bhartu (deceased) by his son Rahul Shivdas Bhartu, Shri Rahul Shivdas Bhartu, Shri Gajanan Bhartu, and The New India Assurance Co. Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

Claimants were dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

Motor Accident Claims Tribunal at Mapusa allowed Claim Petition No. 25 of 2008 and awarded Rs. 13,77,000/- with interest at 7.5% per annum.

Issues

Whether the Tribunal erred in not adding future prospects to the income of the deceased? Whether the multiplier applied by the Tribunal is correct? Whether the deduction for personal expenses is proper? Whether the compensation for loss of consortium, loss of estate, and funeral expenses is adequate?

Submissions/Arguments

Appellants argued that the Tribunal failed to add future prospects to the salary of the deceased, which is mandatory as per Sarla Verma v. DTC. Appellants contended that the compensation for loss of consortium, loss of estate, and funeral expenses is too low and should be enhanced as per Rajesh v. Rajbir Singh. Respondents supported the Tribunal's award, submitting that the compensation is just and fair.

Ratio Decidendi

In motor accident claims, for a deceased aged 40-50 with a permanent job, 30% of the salary must be added towards future prospects. The multiplier for age 46-50 is 13. For 2-3 dependents, 1/3rd is deducted for personal expenses. Loss of consortium to spouse is Rs. 1,00,000/-, loss of estate Rs. 10,000/-, and funeral expenses Rs. 10,000/-.

Judgment Excerpts

The Tribunal has not considered the future prospects of the deceased while computing the compensation. As per the ratio laid down in Sarla Verma v. DTC, 30% of the salary is to be added towards future prospects. The multiplier of 13 applied by the Tribunal is correct. The deduction of 1/3rd towards personal expenses is proper. The compensation for loss of consortium is enhanced to Rs. 1,00,000/-. The compensation for loss of estate and funeral expenses is enhanced to Rs. 10,000/- each.

Procedural History

Claim Petition No. 25 of 2008 was filed before the Motor Accident Claims Tribunal at Mapusa, which awarded compensation on 14.05.2009. Aggrieved, the claimants filed First Appeal No. 58 of 2010 before the High Court of Bombay at Goa. The appeal was reserved on 08.01.2016 and judgment pronounced on 21.01.2016.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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