Case Note & Summary
The appeal arises from a motor accident claim where the deceased Thakor Khengarji died in a vehicular accident on 23.02.2017 while riding as a pillion on a motorcycle. The claimants, legal heirs of the deceased, sought compensation of Rs.18,00,000. The Motor Accident Claims Tribunal awarded Rs.5,30,600 with 7.5% interest. The claimants appealed on quantum grounds only, challenging the Tribunal's assessment of the deceased's monthly income at Rs.3000 on notional basis, the deduction of 1/2 for personal expenses, the application of 40% future prospects, and the multiplier of 13. The High Court found that the deceased was employed at Viva Water Supply and earned Rs.7000 per month, as per evidence. The Court held that the income should be assessed at Rs.7000 per month, future prospects at 50% (as per Pranay Sethi), deduction for personal expenses at 1/3 (as per Sarla Verma), and multiplier of 14 (as per Sarla Verma). The Court recalculated the compensation: loss of dependency at Rs.8,82,000, plus Rs.70,000 under conventional heads, total Rs.9,52,000. The appeal was partly allowed, enhancing compensation from Rs.5,30,600 to Rs.9,52,000 with 7.5% interest.
Headnote
A) Motor Accident Claims - Quantum of Compensation - Notional Income - Deceased was employed and earning Rs.7000 per month; Tribunal erred in assessing income at Rs.3000 on notional basis without considering evidence - Held that income should be assessed at Rs.7000 per month (Paras 3-6). B) Motor Accident Claims - Deduction for Personal Expenses - Deceased was married with three dependents; Tribunal wrongly deducted 1/2 instead of 1/3 - Held that deduction should be 1/3 as per Sarla Verma (Paras 4-6). C) Motor Accident Claims - Future Prospects - Deceased aged 45 years; Tribunal applied 40% future prospects - Held that 50% future prospects should be applied as per National Insurance Co. Ltd. v. Pranay Sethi (Paras 4-6). D) Motor Accident Claims - Multiplier - Deceased aged 45 years; Tribunal applied multiplier of 13 - Held that multiplier of 14 should be applied as per Sarla Verma (Paras 4-6).
Issue of Consideration
Whether the Tribunal erred in assessing the monthly income of the deceased at Rs.3000 on notional basis and in applying 1/2 deduction for personal expenses instead of 1/3, and whether future prospects should be 50% instead of 40%.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.5,30,600 to Rs.9,52,000 with 7.5% interest per annum from the date of petition till realization.
Law Points
- Motor Accident Claims
- Quantum of Compensation
- Notional Income
- Future Prospects
- Deduction for Personal Expenses
- Multiplier
