Case Note & Summary
The present appeal arises from a judgment and award dated 13.04.2017 passed by the Motor Accident Claims Tribunal (Aux.), Vadodara in Motor Accident Claim Petition No.373 of 2008. The appellants, being the legal heirs of the deceased Mahipatsinh Shanabhai Raj (Solanki), filed a claim petition seeking compensation of Rs. 20,00,000/- for the death of the deceased in a motor vehicle accident that occurred on 11.02.2008. The deceased was riding his motorcycle at a moderate speed on the correct side of the road when respondent No.1 drove his vehicle bearing No. GJ-06-JJ-9614 at excessive speed in a rash and negligent manner and dashed against the deceased's motorcycle, causing fatal injuries. The Tribunal awarded Rs. 4,32,000/- as compensation. The appellants challenged the award on the ground that the Tribunal erred in assessing the notional income of the deceased at Rs. 3,000 per month and in not awarding just and proper compensation under conventional heads. The High Court considered the submissions and held that the notional income should be assessed at Rs. 4,500 per month, considering the deceased was a vegetable vendor aged 28 years. Applying 40% future prospects as per Pranay Sethi, the monthly income was taken as Rs. 6,300. After deducting 1/3rd for personal expenses, the monthly loss of dependency was Rs. 4,200. Applying a multiplier of 18, the total loss of dependency was computed as Rs. 9,07,200. Additionally, Rs. 70,000 was awarded under conventional heads (loss of estate, loss of consortium, funeral expenses). The total compensation was enhanced to Rs. 9,77,200, with interest at 7.5% per annum from the date of petition till realization. The insurance company was directed to deposit the enhanced amount within eight weeks.
Headnote
A) Motor Accident Claims - Notional Income Assessment - Deceased was a vegetable vendor aged 28 years - Tribunal assessed notional income at Rs. 3,000 per month - Held that in absence of documentary evidence, notional income should be assessed at Rs. 4,500 per month considering minimum wages and cost of living (Paras 5-6). B) Motor Accident Claims - Future Prospects - Deceased was self-employed aged 28 years - Tribunal did not add future prospects - Held that as per Pranay Sethi, 40% addition for future prospects is warranted for self-employed persons below 40 years (Para 7). C) Motor Accident Claims - Multiplier - Deceased aged 28 years - Tribunal applied multiplier of 18 - Held that multiplier of 18 is correct as per Sarla Verma (Para 8). D) Motor Accident Claims - Deduction for Personal Expenses - Deceased was married with three dependents - Tribunal deducted 1/3rd - Held that deduction of 1/3rd is correct (Para 9). E) Motor Accident Claims - Conventional Heads - Tribunal awarded Rs. 30,000 under conventional heads - Held that as per Pranay Sethi, Rs. 70,000 should be awarded under conventional heads (loss of estate, loss of consortium, funeral expenses) (Para 10).
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing the notional income of the deceased and in awarding just and proper compensation under the Motor Vehicles Act, 1988.
Final Decision
The appeal is partly allowed. The judgment and award dated 13.04.2017 is modified. The total compensation is enhanced from Rs. 4,32,000 to Rs. 9,77,200. The insurance company is directed to deposit the enhanced amount with interest at 7.5% per annum from the date of petition till realization within eight weeks.
Law Points
- Notional income assessment for self-employed persons
- Future prospects addition for self-employed persons below 40 years
- Multiplier selection based on age of deceased
- Deduction for personal expenses
- Conventional heads under Motor Vehicles Act
- 1988
