Case Note & Summary
The appellants, legal heirs of deceased Mukeshbhai Amarsinh Parmar, filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation for his death in a motor accident on 21.06.2012. The deceased was standing near Sayla Village when a vehicle driven rashly by opponent no.1 hit him, causing fatal injuries. The Motor Accident Claims Tribunal (Auxi.), Kheda at Nadiad, partly allowed the claim petition, awarding compensation. Aggrieved by the quantum, the claimants appealed under Section 173 of the Motor Vehicles Act, 1988. The High Court heard Mr. Prashant Mankad for the appellants and Ms. M. V. Nanavaty for the respondent Insurance Company. The core legal issues were the assessment of the deceased's income and the grant of future prospects and consortium. The Tribunal had assessed the deceased's income at Rs. 3,000 per month as a daily wager, but the High Court found that the deceased was a skilled labourer (driver and cleaner) earning Rs. 6,000 per month, as per the claim. The High Court added 40% future prospects, applied a multiplier of 15 (deceased aged 35), and deducted 1/4th towards personal expenses. The High Court also enhanced consortium amounts: Rs. 40,000 for spousal consortium to the widow, Rs. 40,000 each for parental consortium to two minor children, and Rs. 15,000 for funeral expenses. The total compensation was recalculated at Rs. 11,82,000, with interest at 7.5% per annum from the date of petition. The appeal was allowed, and the award was modified accordingly.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Deceased was a skilled labourer earning Rs. 6,000 per month, not a daily wager - Tribunal erred in assessing income at Rs. 3,000 per month - High Court enhanced income to Rs. 6,000 per month and added 40% future prospects - Held that the deceased's occupation as a driver and cleaner indicated skilled labour (Paras 5-6). B) Motor Accident Claims - Consortium - Spousal and Parental - Tribunal granted Rs. 40,000 for spousal consortium and Rs. 25,000 for parental consortium - High Court enhanced spousal consortium to Rs. 40,000 and parental consortium to Rs. 40,000 each for two children - Held that consortium amounts should be as per Pranay Sethi guidelines (Para 6). C) Motor Accident Claims - Multiplier - Deceased aged 35 years - Tribunal applied multiplier of 15 - High Court confirmed multiplier of 15 as per Sarla Verma case - Held that multiplier is correct (Para 6).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased as a daily wager instead of a skilled labourer, and in not granting future prospects and adequate consortium.
Final Decision
The appeal is allowed. The judgment and award dated 22.03.2021 passed by the Motor Accident Claims Tribunal (Auxi.), Kheda at Nadiad in MAC Petition No.962 of 2012 is modified. The appellants are entitled to total compensation of Rs. 11,82,000 with interest at 7.5% per annum from the date of 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
- Future Prospects
- Consortium
- Multiplier
- Income Assessment
