Case Note & Summary
The appeal arises from a judgment of the Motor Accident Claims Tribunal, Achalpur, in MACP No.48/2001 dated 30/09/2005, awarding Rs.2,25,000 with 9% interest to the claimants (respondents 1-5), the widow and children of deceased Ramkrishna. The deceased died in a motor vehicle accident on 01/10/1996 when a jeep belonging to the appellant (Vidarbha Irrigation Development Corporation) and driven by respondent No.7 hit his bicycle. The claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988, claiming Rs.3,30,000. The Tribunal held the appellant and respondents 6 and 7 jointly liable. The appellant challenged the quantum of compensation. The High Court found that the claimants did not produce any documentary evidence to prove the deceased's income as a labourer earning Rs.50-70 per day. The Tribunal had assumed income without proof. The Court held that in the absence of evidence, notional income of Rs.15,000 per annum as per the Second Schedule to the Motor Vehicles Act should be applied. The deceased was aged 45 years, so the correct multiplier is 13, not 15 as applied by the Tribunal. With 5 dependents, deduction of 1/4th for personal expenses is appropriate. The compensation was recalculated as Rs.15,000 x 13 x 3/4 = Rs.1,46,250, rounded to Rs.1,44,000. The rate of interest was reduced from 9% to 6% per annum. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Quantum - Income Proof - The claimants failed to produce any documentary evidence to prove the deceased's income as a labourer earning Rs.50-70 per day. The Tribunal erred in assuming income without proof. Held that in the absence of evidence, notional income of Rs.15,000 per annum as per Second Schedule to the Motor Vehicles Act, 1988 should be applied (Paras 5-6). B) Motor Accident Claims - Compensation - Multiplier - The deceased was aged 45 years, but the Tribunal applied multiplier of 15 instead of 13 as per Second Schedule. Held that multiplier of 13 is correct for age 45 (Para 6). C) Motor Accident Claims - Compensation - Deduction for Personal Expenses - The deceased had 5 dependents, so deduction of 1/4th for personal expenses is appropriate. Held that after applying multiplier 13 and deduction, compensation works out to Rs.1,46,250, rounded to Rs.1,44,000 (Para 6).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was excessive and required reduction.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.2,25,000 to Rs.1,44,000 with interest at 6% per annum from the date of petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation
- Multiplier
- Income Proof
- Contributory Negligence
