Case Note & Summary
The present appeal arises from a judgment and award dated 13.10.2012 passed by the Motor Accident Claims Tribunal (Aux.), Gondal, in M.A.C.P. No. 1320 of 2000, whereby the Tribunal awarded Rs.2,83,270/- as compensation to the claimants, being the heirs of deceased Dayabhai Panchabhai Zapda Zayada, who died in a motor vehicle accident on 10.10.2000. The deceased was riding a motorcycle when a Matador driven by respondent No.1 in a rash and negligent manner dashed against him, causing fatal injuries. The claimants, being the widow and children of the deceased, filed a claim petition seeking compensation. The Tribunal assessed the income of the deceased at Rs.2,000 per month, applied a multiplier of 17, deducted 1/3rd towards personal expenses, and deducted 20% for contributory negligence of the deceased, awarding a total of Rs.2,83,270/-. Aggrieved by the inadequacy of compensation, the claimants preferred the present appeal. The High Court examined the evidence, including the salary certificate showing the deceased's income as Rs.4,000 per month as a driver. The Court held that the Tribunal erred in assessing income at Rs.2,000 per month and reassessed it at Rs.4,000 per month. Following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, the Court added 40% towards future prospects, applied a multiplier of 17, and deducted 1/4th towards personal expenses as per Sarla Verma v. Delhi Transport Corporation, since the deceased had 6 dependents. The Court also enhanced the conventional heads: loss of consortium from Rs.5,000 to Rs.40,000, funeral expenses from Rs.2,000 to Rs.15,000, and loss of estate from Rs.2,500 to Rs.15,000. The deduction of 20% for contributory negligence was upheld as the claimants did not challenge it. The total compensation was recalculated at Rs.7,42,400/- with interest at 7% per annum from the date of filing of the claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Deceased aged 30 years earning Rs.4,000 per month as a driver - Tribunal erroneously assessed income at Rs.2,000 per month - High Court reassessed income at Rs.4,000 per month based on evidence and added 40% towards future prospects as per Pranay Sethi - Held that income should be assessed as per evidence and future prospects must be added (Paras 5-7). B) Motor Accident Claims - Compensation - Multiplier - Deceased aged 30 years - Tribunal applied multiplier of 17 - High Court upheld multiplier of 17 as per Sarla Verma - Held that multiplier of 17 is appropriate for age group of 26-30 years (Para 8). C) Motor Accident Claims - Compensation - Deduction for Personal Expenses - Deceased married with 6 dependents - Tribunal deducted 1/3rd - High Court applied 1/4th deduction as per Sarla Verma for 4-6 dependents - Held that deduction of 1/4th is correct for 6 dependents (Para 9). D) Motor Accident Claims - Compensation - Contributory Negligence - Tribunal deducted 20% for contributory negligence of deceased - High Court upheld deduction as no cross-objection filed - Held that deduction for contributory negligence is not interfered with in absence of challenge (Para 10). E) Motor Accident Claims - Compensation - Conventional Heads - Tribunal awarded Rs.5,000 for loss of consortium, Rs.2,000 for funeral expenses, Rs.2,500 for loss of estate - High Court enhanced to Rs.40,000, Rs.15,000, and Rs.15,000 respectively as per Pranay Sethi - Held that conventional heads must be awarded as per Supreme Court guidelines (Paras 11-12).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased, applying the correct multiplier, deducting personal expenses, and awarding compensation for future loss of income?
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The total compensation is enhanced from Rs.2,83,270/- to Rs.7,42,400/- with interest at 7% per annum from the date of filing of the claim petition till realization. The respondents are jointly and severally liable to pay the enhanced amount. The award is modified accordingly.
Law Points
- Motor Accident Claims
- Compensation Calculation
- Future Prospects
- Contributory Negligence
- Multiplier
- Deduction for Personal Expenses
