Case Note & Summary
The appellant, Pathan Mohamadhasim Mustufakhan, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 29.03.2016 passed by the Motor Accident Claims Tribunal (Auxiliary), Panchmahals at Godhra in MACP No.1883/2008. The Tribunal had partly allowed the claim petition and awarded Rs. 1,19,800/- with 9% interest. The appellant sought enhancement of compensation and challenged the finding of contributory negligence. The accident occurred on 31.07.2008 when the appellant was riding a motorcycle and was hit by a truck driven rashly and negligently by the opponent. The appellant sustained grievous injuries including fractures. He was aged 32 years and worked as a tailor earning Rs. 7,000 per month. The Tribunal held the claimant 50% contributory negligent and assessed his income at Rs. 1,500 per month. The High Court found no evidence of negligence on the part of the claimant and held the truck driver solely negligent. The Court assessed the claimant's income at Rs. 3,000 per month, added 40% future prospects, applied multiplier 16, and enhanced compensation for pain and suffering to Rs. 40,000. The total compensation was recalculated as Rs. 2,46,400/- with 9% interest. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Negligence - Assessment of Contributory Negligence - The Tribunal erred in holding the claimant 50% contributory negligent without any evidence of negligence on his part; the accident was solely caused by the rash and negligent driving of the truck driver. (Paras 8-10) B) Motor Accident Claims - Quantum - Income Assessment - For a self-employed tailor with no documentary proof of income, the Tribunal's assessment of Rs. 1,500 per month was too low; considering the notional income for a non-employment case, Rs. 3,000 per month is appropriate. (Paras 11-12) C) Motor Accident Claims - Future Prospects - Self-Employed - Following the principles in National Insurance Co. Ltd. v. Pranay Sethi, 40% addition for future prospects is applicable to self-employed persons aged 32 years. (Para 13) D) Motor Accident Claims - Multiplier - For a claimant aged 32 years, the appropriate multiplier is 16 as per Sarla Verma v. Delhi Transport Corporation. (Para 14) E) Motor Accident Claims - Compensation - Pain, Shock and Suffering - The Tribunal awarded Rs. 20,000 for pain, shock and suffering; considering the grievous injuries and fractures, the same is enhanced to Rs. 40,000. (Para 15) F) Motor Accident Claims - Medical Expenses - The Tribunal awarded Rs. 15,000 towards medical expenses; the same is confirmed as no further evidence was led. (Para 16) G) Motor Accident Claims - Interest Rate - The Tribunal awarded interest at 9% per annum; the same is confirmed as reasonable. (Para 17)
Issue of Consideration
Whether the Tribunal erred in assessing the negligence and quantum of compensation in a motor accident claim?
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The appellant is entitled to total compensation of Rs. 2,46,400/- with interest at 9% per annum from the date of filing of the claim petition till realization. The finding of contributory negligence is set aside. The respondent insurance company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Negligence in motor accident
- assessment of income for self-employed
- future prospects for self-employed
- multiplier method
- Motor Vehicles Act
- 1988





