Case Note & Summary
The present appeal under Section 173 of the Motor Vehicles Act, 1988 arises from a judgment and award dated 01.07.2019 passed by the Motor Accident Claims Tribunal (Auxi.), Bhavnagar in MACP No.234 of 2015. The appellants, original claimants, are the legal heirs of deceased Jagdishbhai Gordhanbhai Unava, who died in a motor vehicle accident on 24.05.2015. The deceased, aged 22 years, was working as a cleaner-cum-conductor on a truck (GJ-4-X-6395) and was traveling from Bhavnagar to Palanpur Deesa. At the accident spot, another truck (GJ-03-AT-2741) driven rashly and negligently by opponent no.1 dashed into the deceased's truck, causing fatal injuries. The claimants filed a claim petition seeking compensation. The Tribunal partly allowed the petition, awarding Rs. 7,50,000/- with interest at 9% per annum. Aggrieved by the quantum, the claimants appealed. The High Court heard learned advocates for both sides. The court noted that the deceased was 22 years old and a cleaner-cum-conductor, but no income proof was produced. The Tribunal assessed notional income at Rs. 3,000/- per month. The court found that the Tribunal erred in applying a multiplier of 15 instead of 18 as per Sarla Verma v. DTC, and failed to add future prospects. Following National Insurance Co. Ltd. v. Pranay Sethi, the court added 40% towards future prospects. The deduction of 50% towards personal expenses for a bachelor was upheld. The court recalculated compensation: notional income Rs. 3,000/- + 40% future prospects = Rs. 4,200/-; annual income Rs. 50,400/-; after 50% deduction, loss of dependency Rs. 25,200/-; applying multiplier 18, total loss of dependency Rs. 4,53,600/-. Adding Rs. 70,000/- under conventional heads (loss of estate, funeral expenses, loss of consortium) as per Pranay Sethi, total compensation was enhanced to Rs. 5,23,600/-. The court directed the insurance company to pay the enhanced amount with interest at 9% per annum from the date of petition till realization, and the claimants to pay deficit court fees. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Assessment - Multiplier - Deceased aged 22 years, cleaner-cum-conductor - Tribunal applied multiplier of 15 instead of 18 as per Sarla Verma v. DTC - Held that multiplier of 18 is applicable for age group 21-25 years (Para 6). B) Motor Accident Claims - Future Prospects - Deceased was a cleaner-cum-conductor with notional income - Tribunal failed to add future prospects - Held that 40% addition towards future prospects is warranted as per National Insurance Co. Ltd. v. Pranay Sethi (Para 7). C) Motor Accident Claims - Personal Expenses - Deceased was a bachelor - Tribunal deducted 50% towards personal expenses - Held that deduction of 50% is correct as per Sarla Verma (Para 8). D) Motor Accident Claims - Contributory Negligence - No evidence of contributory negligence by deceased - Tribunal did not attribute any negligence to deceased - Held that no interference is required (Para 9).
Issue of Consideration
Whether the Tribunal erred in assessing compensation by applying a multiplier of 15 instead of 18, not adding future prospects, and deducting 50% towards personal expenses instead of 1/3rd?
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 7,50,000/- to Rs. 5,23,600/- (plus interest at 9% per annum from date of petition). Insurance company directed to pay enhanced amount within eight weeks. Claimants to pay deficit court fees.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation
- Multiplier
- Future Prospects
- Notional Income
- Contributory Negligence
