Case Note & Summary
The present appeal was filed under Section 173 of the Motor Vehicles Act, 1988, by the original claimants, being aggrieved and dissatisfied by the judgment and award dated 29.11.2013 passed by the learned Motor Accident Claims Tribunal (Aux.) Bhavnagar in MACP No. 539 of 1995. The Tribunal had partly allowed the claim petition preferred by the original claimants under Section 166 of the Act, holding them entitled to recover sum of Rs. 5,31,700/- as compensation, to be realised from the original opponents jointly and severally with interest @ 7.5% per annum and proportionate costs from the date of filing of such claim petition till its actual realisation. The claimants had originally claimed Rs. 12 lakhs as compensation. Hence, the present appeal seeking enhancement of the remaining amount of compensation of Rs. 6,68,300 with interest and proportionate costs. The facts of the case are that the deceased, Shravankumar Rai, was a driver aged about 25 years and was earning Rs. 3,000 per month. He died in a motor accident. The Tribunal assessed the income of the deceased at Rs. 3,000 per month, applied multiplier of 12, deducted 1/3rd towards personal expenses, and awarded Rs. 5,31,700/- under the head of loss of dependency. The Tribunal did not award any amount under conventional heads. The High Court, after hearing the learned advocate for the appellants, held that the Tribunal erred in applying multiplier of 12 instead of 18 as per the age of the deceased (25 years). The Court also added 40% towards future prospects as per settled law. The Court recalculated the loss of dependency as follows: monthly income Rs. 3,000 + 40% future prospects = Rs. 4,200; annual income Rs. 50,400; less 1/3rd personal expenses = Rs. 33,600; multiplied by 18 = Rs. 6,04,800. The Court also awarded Rs. 15,000 for funeral expenses, Rs. 40,000 for loss of consortium to each claimant (total Rs. 1,60,000 for four claimants), and Rs. 15,000 for loss of estate. The total enhanced compensation was computed as Rs. 7,94,800. The Court directed that the enhanced amount of Rs. 2,63,100 (Rs. 7,94,800 - Rs. 5,31,700) be paid with interest at 7.5% per annum from the date of filing of the claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Enhancement - Multiplier Method - The claimants sought enhancement of compensation for death of deceased in a motor accident - The High Court applied multiplier of 18 based on age of deceased (25 years) and deducted 1/3rd towards personal expenses - Held that the Tribunal erred in applying multiplier of 12 and not awarding conventional heads (Paras 4-8). B) Motor Accident Claims - Loss of Dependency - Future Prospects - The deceased was a driver earning Rs. 3,000 per month - The Court added 40% towards future prospects as per settled law - Held that the notional income should be considered with future prospects for computing loss of dependency (Paras 5-6). C) Motor Accident Claims - Conventional Heads - Funeral Expenses, Loss of Consortium, Loss of Estate - The Tribunal failed to award any amount under conventional heads - The High Court awarded Rs. 15,000 for funeral expenses, Rs. 40,000 for loss of consortium to each claimant, and Rs. 15,000 for loss of estate - Held that conventional heads are mandatory as per Pranay Sethi guidelines (Para 7).
Issue of Consideration
Whether the claimants are entitled to enhancement of compensation awarded by the Motor Accident Claims Tribunal under Section 166 of the Motor Vehicles Act, 1988.
Final Decision
The appeal is partly allowed. The judgment and award dated 29.11.2013 passed by the Motor Accident Claims Tribunal (Aux.) Bhavnagar in MACP No. 539 of 1995 is modified. The claimants are entitled to total compensation of Rs. 7,94,800/-. The enhanced amount of Rs. 2,63,100/- shall be paid with interest at 7.5% per annum from the date of filing of the claim petition till realization. The original opponents are jointly and severally liable to pay the enhanced amount. No order as to costs.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation
- Multiplier method
- Loss of dependency
- Conventional heads
- Interest rate
