Case Note & Summary
The present appeal was filed by the original claimants under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 15.07.2013 passed by the Motor Accident Claims Tribunal, Banaskantha at Palanpur in MACP No. 71 of 2003. The Tribunal had partly allowed the claim petition under Section 166 of the Act, awarding Rs. 4,89,799/- with interest at 8.5% per annum, and held the opponents No. 2 to 5 jointly and severally liable in the ratio of 65%:35%. The claimants sought enhancement of compensation. The High Court, after hearing learned advocate Mr. Tushar Sheth for the appellants, found that the Tribunal had erred in not applying the correct multiplier and not awarding conventional heads. The court determined the income of the deceased at Rs. 3,000 per month, added 25% towards future prospects, applied multiplier of 14, deducted 1/3rd towards personal expenses, and arrived at a total loss of dependency of Rs. 5,04,000. Adding Rs. 1,50,000 under conventional heads (loss of estate, funeral expenses, loss of consortium), the total compensation was computed at Rs. 6,54,000. After deducting the amount already awarded (Rs. 4,89,799), the enhanced amount was Rs. 1,64,201. The court directed the respondents to pay the enhanced amount with interest at 8.5% per annum from the date of filing of the claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation for Death - Multiplier Method - The court considered the age of the deceased (45 years) and applied multiplier of 14 as per Sarla Verma v. DTC, (2009) 6 SCC 121, adding 25% towards future prospects. The Tribunal had erred in not applying the correct multiplier and not awarding conventional heads. (Paras 5-7) B) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - The Tribunal had apportioned liability 65%:35% between the two vehicles involved. The High Court did not interfere with this finding as it was based on evidence. (Para 4) C) Motor Accident Claims - Conventional Heads - Loss of Estate, Funeral Expenses, Loss of Consortium - The court awarded Rs. 15,000 for loss of estate, Rs. 15,000 for funeral expenses, and Rs. 40,000 for loss of consortium to each claimant (total Rs. 1,20,000 for three claimants) as per Pranay Sethi guidelines. (Para 7)
Issue of Consideration
Whether the compensation awarded by the Tribunal was just and proper, and whether the claimants are entitled to enhancement of compensation.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 4,89,799 to Rs. 6,54,000. Respondents to pay enhanced amount of Rs. 1,64,201 with interest at 8.5% per annum from date of filing of claim petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation for death
- Multiplier method
- Contributory negligence
- Apportionment of liability
- Conventional heads of compensation
- Future prospects





