Case Note & Summary
The case involves two appeals arising from a motor accident claim. The claimant, Saalibai, wife of the deceased Kasu Rathod, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the death of her husband in a road accident that occurred on 20.05.2016. The deceased was a coolie aged 64 years. The Tribunal awarded Rs.5,98,000 with interest at 6% per annum. The Insurance Company appealed seeking reduction of compensation, while the claimant appealed seeking enhancement. The High Court, after considering the evidence and submissions, held that the notional income of the deceased should be Rs.9,000 per month instead of Rs.6,000 assessed by the Tribunal, applying the guidelines of the Karnataka State Legal Services Authority and the principles in Sarla Verma. The multiplier of 7 was upheld, and deduction of 1/3rd for personal expenses was maintained. Under conventional heads, the Court awarded Rs.40,000 for spousal consortium to the claimant, Rs.40,000 each for parental consortium to the two children, and Rs.40,000 for filial consortium to the mother, along with Rs.15,000 for loss of estate and Rs.15,000 for funeral expenses, following the decisions in Magma General Insurance and Pranay Sethi. The total compensation was recalculated as Rs.10,04,000. The Insurance Company's appeal was dismissed, and the claimant's appeal was partly allowed. The enhanced amount was directed to be deposited with interest at 6% per annum from the date of petition.
Headnote
A) Motor Vehicles Act - Compensation - Notional Income - For a coolie aged 64 years, notional income fixed at Rs.9,000 per month based on the guidelines of the Karnataka State Legal Services Authority and the principles in Sarla Verma v. Delhi Transport Corporation - The Tribunal had assessed notional income at Rs.6,000 per month, which was found to be on the lower side - Held that the notional income should be Rs.9,000 per month (Paras 10-12). B) Motor Vehicles Act - Compensation - Multiplier - For a victim aged 64 years, multiplier of 7 is applicable as per Sarla Verma v. Delhi Transport Corporation - The Tribunal had applied multiplier of 7, which was upheld (Para 13). C) Motor Vehicles Act - Compensation - Deduction for Personal Expenses - Since the deceased was married and had dependents, deduction of 1/3rd towards personal expenses is appropriate as per Sarla Verma - The Tribunal had deducted 1/3rd, which was upheld (Para 14). D) Motor Vehicles Act - Compensation - Conventional Heads - Under the head of loss of consortium, spousal consortium of Rs.40,000, parental consortium of Rs.40,000 each to two children, and filial consortium of Rs.40,000 to the mother are awarded as per Magma General Insurance Co. Ltd. v. Nanu Ram - Loss of estate and funeral expenses each at Rs.15,000 as per Pranay Sethi (Para 15). E) Motor Vehicles Act - Compensation - Interest - Interest at 6% per annum from the date of petition is awarded, as the Tribunal had awarded 6% interest which was not interfered with (Para 16).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper, and whether the notional income assessed by the Tribunal is correct.
Final Decision
The Insurance Company's appeal (MFA 200789/2018) is dismissed. The claimant's appeal (MFA 201966/2018) is partly allowed. The compensation is enhanced from Rs.5,98,000 to Rs.10,04,000 with interest at 6% per annum from the date of petition. The Insurance Company is directed to deposit the enhanced amount within six weeks.
Law Points
- Notional income for a coolie aged 64 years fixed at Rs.9
- 000 per month
- Sarla Verma v. Delhi Transport Corporation applied
- multiplier of 7 applicable for age 64
- deduction of 1/3rd for personal expenses
- compensation under conventional heads as per Pranay Sethi
- interest at 6% per annum from date of petition.
