Case Note & Summary
The case arises from a motor accident claim petition filed by the legal heirs of Pusharam Gevarchand Mistri (Luhar), who died in a road accident on 24.07.2007. The deceased was riding a luna when an auto-rickshaw driven rashly and negligently by respondent No.6 applied sudden brake, causing the auto-rickshaw to turn turtle and fall on the deceased. He sustained grievous injuries and succumbed on 30.07.2007. The claimants, being the widow and four children, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs.15,00,000/-. The Motor Accident Claims Tribunal partly allowed the petition and awarded Rs.9,73,200/- with 9% interest per annum. The insurance company, IFFCO Tokio General Insurance Company, appealed against the award, contending that the Tribunal erred in not deducting personal expenses of the deceased and in applying the multiplier of 15 instead of 14. The High Court examined the evidence and found that the deceased was aged 50 years and was self-employed as a furniture maker. The Tribunal had assessed notional income at Rs.6,000/- per month but did not deduct any amount for personal expenses. The Court held that as per the principles laid down in Sarla Verma v. DTC, (2009) 6 SCC 121, when the number of dependents is 4 to 6, deduction of 1/4th towards personal expenses is appropriate. The Court also noted that the correct multiplier for age 50 is 13, not 15. Accordingly, the Court recalculated the compensation: annual income Rs.72,000/- (Rs.6,000 x 12), less 1/4th personal expenses = Rs.54,000/-, multiplied by 13 = Rs.7,02,000/-, plus Rs.70,000/- under conventional heads (loss of consortium, loss of estate, funeral expenses) as per Pranay Sethi, total Rs.7,72,000/-. The Court partly allowed the appeal, reducing the compensation from Rs.9,73,200/- to Rs.7,72,000/- with interest at 7.5% per annum from the date of petition till realization.
Headnote
A) Motor Accident Claims - Compensation - Deduction of Personal Expenses - Deceased was married and had five dependents - Tribunal erred in not deducting any amount towards personal expenses - Following Sarla Verma v. DTC, deduction of 1/4th towards personal expenses is appropriate when number of dependents is 4 to 6 - Held that 1/4th of income must be deducted for personal expenses (Paras 7-9). B) Motor Accident Claims - Multiplier - Age of deceased was 50 years at time of accident - Tribunal applied multiplier of 15 - As per Sarla Verma v. DTC, multiplier for age group 46-50 is 13 - Held that multiplier of 13 should be applied (Paras 10-11). C) Motor Accident Claims - Notional Income - Deceased was self-employed furniture maker - No documentary evidence of income - Tribunal assessed notional income at Rs.6,000/- per month - Held that notional income of Rs.6,000/- per month is just and proper (Para 8). D) Motor Accident Claims - Contributory Negligence - No evidence that deceased contributed to accident - Tribunal found driver of auto-rickshaw solely negligent - Held that no contributory negligence can be attributed to deceased (Para 6).
Issue of Consideration
Whether the Tribunal erred in not deducting personal expenses of the deceased and in applying the multiplier of 15 instead of 14, and whether the compensation awarded is just and proper.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.9,73,200/- to Rs.7,72,000/- with interest at 7.5% per annum from date of petition till realization. No order as to costs.
Law Points
- Deduction of personal expenses
- multiplier as per Sarla Verma
- notional income for self-employed
- contributory negligence not established
