Case Note & Summary
The case arises from a motor accident claim under Section 166 of the Motor Vehicles Act, 1988. The accident occurred on 01.09.2013 when the deceased, Vallabhbhai Nathabhai Bhalani, was driving his car on the Jamnagar Rajkot Highway. A Bolero car driven rashly and negligently from the wrong direction collided with his car, causing fatal injuries. The claimants, being the legal heirs, filed a claim petition before the Motor Accident Claims Tribunal (Aux), Rajkot, which partly allowed the petition and awarded compensation of Rs.1,19,95,033/- with 9% interest. The Insurance Company appealed against the award, challenging the income assessment and the non-attribution of contributory negligence. The claimants filed cross-objections seeking enhancement. The High Court heard both matters together. The court found that the Tribunal erred in not considering contributory negligence on the part of the deceased, as the deceased driver had ample opportunity to avoid the accident. The court apportioned 20% negligence to the deceased. Regarding income, the court held that the average income of the last three years (Rs.7,50,000/- per annum) should be taken instead of the last year's income of Rs.9,00,000/-. Future prospects were reduced from 50% to 40% as per law for self-employed persons. The deduction for personal expenses (1/4th) and multiplier (13) were upheld. The court recalculated the compensation and reduced it to Rs.1,02,55,000/- with 9% interest. The appeal was partly allowed, and the cross-objections were dismissed.
Headnote
A) Motor Vehicles Act - Contributory Negligence - Apportionment of Liability - Section 166 Motor Vehicles Act, 1988 - The accident occurred when the deceased's car was hit by a Bolero coming from the wrong direction. The Tribunal did not attribute any negligence to the deceased. The High Court held that the deceased driver was also negligent as he failed to avoid the accident despite being on the correct side, and apportioned 20% contributory negligence to the deceased. (Paras 6-8) B) Motor Vehicles Act - Income Assessment - Average of Income Tax Returns - Section 166 Motor Vehicles Act, 1988 - The Tribunal accepted the income of the deceased as per the last income tax return of Rs.9,00,000/- per annum. The High Court held that the average income of the last three years (Rs.7,50,000/-) should be taken, as the income was fluctuating. (Paras 9-10) C) Motor Vehicles Act - Future Prospects - Self-Employed - Section 166 Motor Vehicles Act, 1988 - The Tribunal granted 50% future prospects. The High Court reduced it to 40% as per the law for self-employed persons. (Para 11) D) Motor Vehicles Act - Deduction for Personal Expenses - Section 166 Motor Vehicles Act, 1988 - The Tribunal deducted 1/4th for personal expenses. The High Court upheld this deduction as the deceased had four dependents. (Para 12) E) Motor Vehicles Act - Multiplier - Section 166 Motor Vehicles Act, 1988 - The Tribunal applied multiplier of 13 based on the age of the deceased (52 years). The High Court upheld this as per Sarla Verma case. (Para 13) F) Motor Vehicles Act - Interest Rate - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded interest at 9% p.a. The High Court upheld this rate as reasonable. (Para 14)
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased and in not attributing contributory negligence to the deceased driver.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The claimants are entitled to total compensation of Rs.1,02,55,000/- with interest at 9% p.a. from the date of petition till realization. The cross-objections are dismissed. The Insurance Company is directed to deposit the amount within eight weeks.
Law Points
- Contributory negligence
- Income calculation based on average of income tax returns
- Future prospects for self-employed
- Deduction for personal expenses
- Multiplier as per age of deceased
- Interest rate at 9% p.a.
