Case Note & Summary
The present appeal arises from a judgment and award dated 03.03.2021 passed by the Motor Accident Claims Tribunal (Main), Tapi at Vyara, in Motor Accident Claim Petition No.32/2019. The appellants, Mithuben Ramanbhai Chaudhari and another, are the legal heirs of the deceased Ramanbhai Vasava, who died in a motor vehicle accident on 27.03.2019. The deceased was riding a bicycle to deposit milk at a milk bank when a car bearing registration No.GJ-19-AF-9654, driven rashly and negligently, first hit an electric pole and then struck the deceased's bicycle from behind, causing fatal injuries. The claimants filed a petition seeking compensation of Rs.10,00,000/-. The Tribunal, after considering evidence, awarded Rs.2,38,000/- with interest at 7% per annum. The appeal was filed only on the ground of quantum, not challenging liability or contributory negligence. The claimants argued that the Tribunal erred in assessing the deceased's monthly income at Rs.3,000/-, as he was engaged in agriculture and animal husbandry, and that at least minimum wages should be considered. They also contended that future prospective income and conventional heads were inadequately awarded. The respondents opposed the appeal, submitting that the Tribunal's award was adequate given the lack of income evidence. The High Court, per Justice Hasmukh D. Suthar, held that in the absence of proof of income, the minimum wage of Rs.6,000/- per month should be taken as the notional income. Applying the principles from National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680, the Court added 10% for future prospects (since the deceased was 50 years old), applied a multiplier of 13, and deducted 1/3rd towards personal expenses. The Court also enhanced conventional heads: loss of consortium to Rs.44,000/-, loss of estate to Rs.16,500/-, and funeral expenses to Rs.16,500/-, with 10% increase as per Pranay Sethi. The total compensation was recalculated at Rs.7,17,000/-, with interest at 7% per annum from the date of petition. The appeal was partly allowed, and the Tribunal's award was modified accordingly.
Headnote
A) Motor Accident Claims - Compensation - Assessment of Income - Deceased was a self-employed agriculturist and animal husbandry worker - Tribunal assessed income at Rs.3,000/- per month without any evidence - Held that in absence of proof of income, minimum wages of Rs.6,000/- per month as per Minimum Wages Act should be considered (Paras 7-8). B) Motor Accident Claims - Future Prospects - Deceased aged 50 years - As per National Insurance Co. Ltd. v. Pranay Sethi, 2017 (16) SCC 680, 10% addition for future prospects is applicable for self-employed persons aged 50-60 years - Held that 10% future prospects should be added (Para 8). C) Motor Accident Claims - Conventional Heads - Tribunal awarded Rs.15,000/- for loss of consortium, Rs.15,000/- for loss of estate, and Rs.15,000/- for funeral expenses - As per Pranay Sethi, these heads should be Rs.40,000/-, Rs.15,000/-, and Rs.15,000/- respectively with 10% increase every three years - Held that compensation under conventional heads be enhanced to Rs.44,000/-, Rs.16,500/-, and Rs.16,500/- respectively (Para 8).
Issue of Consideration
Whether the Tribunal erred in assessing the monthly income of the deceased at Rs.3,000/- and in not awarding future prospective income and adequate conventional heads?
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.2,38,000/- to Rs.7,17,000/- with interest at 7% p.a. from the date of petition till realization. The Tribunal's award modified accordingly.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation for death
- Assessment of income for self-employed persons
- Minimum wages as income
- Future prospects
- Conventional heads
- Loss of consortium
- Loss of estate
- Funeral expenses
