Case Note & Summary
The appellant, father of deceased Bhaveshbhai Faldu, filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation of Rs.75,00,000 for the death of his son in a road accident on 09.09.2016. The deceased, aged 27, held a degree in Automobile Engineering and worked as a lecturer at Dholakia School and as a service adviser at Shree Siddhi Vinayak Honda Motors, earning between Rs.50,000 to Rs.55,000 per month. The Motor Accident Claims Tribunal at Rajkot partly allowed the petition, awarding Rs.12,93,600 with 9% interest, assessing the deceased's income at Rs.8,000 per month. The appellant appealed under Section 173 of the Act, arguing that the Tribunal ignored documentary evidence including salary slips (Exh.36), bank statements (Exh.37), and degree certificate (Exh.47). The High Court found that the Tribunal failed to consider the evidence properly. The court noted that the deceased had 21% permanent disability but was still employed, so future prospects of 40% were correctly added. However, the income was reassessed at Rs.15,000 per month based on minimum wages for a graduate, as the salary slips were not fully reliable. Applying the multiplier of 17, deducting 50% for personal expenses, and adding Rs.70,000 for conventional heads, the total compensation was recalculated at Rs.21,40,000. The court allowed the appeal, enhancing the award to Rs.21,40,000 with 9% interest from the claim petition date.
Headnote
A) Motor Accident Claims - Compensation Assessment - Income Proof - Deceased was a lecturer and service adviser earning Rs.50,000-55,000 per month, but Tribunal assessed income at Rs.8,000 ignoring salary slips and bank statements - Held that documentary evidence must be considered; income assessed at Rs.15,000 per month based on minimum wages for graduate (Paras 1-9). B) Motor Accident Claims - Future Prospects - Permanent Disability - Deceased had 21% permanent disability, but Tribunal added 40% future prospects - Held that future prospects are not to be added when there is permanent disability affecting earning capacity; but in this case, disability did not affect employment, so 40% addition is proper (Paras 5-9).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased at Rs.8,000 per month despite evidence of higher earnings, and whether future prospects should be added despite permanent disability.
Final Decision
Appeal allowed. The judgment and award of the Tribunal is modified. The appellant is entitled to total compensation of Rs.21,40,000 with interest at 9% per annum from the date of claim petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation Assessment
- Income Proof
- Future Prospects
- Permanent Disability
