Case Note & Summary
The appellant, Bharatbhai Dayabhai Thakor, a 17½-year-old student, was injured in a motor accident on 16.11.2009 when a truck driven rashly and negligently dashed his bicycle on the Radhanpur-Palanpur Highway. He sustained grievous injuries and was treated at Radhanpur Hospital. A criminal complaint was registered. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking Rs. 10,00,000 compensation, claiming he earned Rs. 6,000 per month from agricultural work with his father. The Motor Accident Claims Tribunal, Patan, partly allowed the petition and awarded Rs. 5,46,000 with 9% interest. The appellant appealed for enhancement. The High Court considered the issues of notional income, future prospects, multiplier, and interest rate. It held that a notional income of Rs. 6,000 per month was justified, added 40% future prospects, applied multiplier 18, and calculated total compensation at Rs. 10,88,640. After deducting the Tribunal's award, the enhanced amount was Rs. 5,42,640. The interest rate was reduced from 9% to 7.5% per annum. The appeal was partly allowed.
Headnote
A) Motor Accident Compensation - Assessment of Income for Minor - Notional Income - Motor Vehicles Act, 1988, Section 166 - The claimant, a 17½-year-old student engaged in agriculture, claimed monthly income of Rs. 6,000. The High Court held that in the absence of proof of income, a notional income of Rs. 6,000 per month is just and proper, considering the claimant's age and engagement in agricultural work. (Paras 5-6) B) Motor Accident Compensation - Future Prospects - Motor Vehicles Act, 1988, Section 166 - The High Court applied 40% future prospects to the notional income, following the principle that even in injury cases, future prospects should be considered for self-employed persons, as per settled law. (Para 6) C) Motor Accident Compensation - Multiplier - Motor Vehicles Act, 1988, Section 166 - The appropriate multiplier for a claimant aged 17½ years is 18, as per the Sarla Verma case, and the High Court applied the same. (Para 6) D) Motor Accident Compensation - Interest Rate - Motor Vehicles Act, 1988, Section 171 - The Tribunal awarded interest at 9% per annum. The High Court reduced it to 7.5% per annum, following the prevailing rate of interest and recent decisions of the Supreme Court. (Para 7)
Issue of Consideration
Whether the compensation awarded by the Tribunal for injuries sustained by a minor claimant is just and proper, and whether the rate of interest awarded is appropriate.
Final Decision
The appeal is partly allowed. The compensation is enhanced from Rs. 5,46,000 to Rs. 10,88,640. The enhanced amount of Rs. 5,42,640 shall carry interest at 7.5% per annum from the date of filing of the claim petition till realization. The original award stands modified accordingly.
Law Points
- Notional income assessment for minor students
- Future prospects in injury cases
- Multiplier for age of claimant
- Reduction of interest rate on compensation
