High Court of Bombay at Aurangabad Allows MSRTC Appeal in Motor Accident Claim — Reduces Compensation by Disallowing 50% Future Prospects for Self-Employed Deceased. The Court held that for self-employed persons, addition towards future prospects is not permissible under settled law, modifying the award from Rs. 9,50,000 to Rs. 6,50,000.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The Maharashtra State Road Transport Corporation (MSRTC) appealed against the judgment and order dated 11.04.2016 passed by the Motor Accident Claims Tribunal at Aurangabad in Motor Accident Claim Petition No.69/2015. The claimants, respondents 1 to 5, had sought compensation for the death of Ganesh Jagannath Thombre, who died in a vehicular accident on 01.12.2014 involving an ST bus bearing registration no. MH14BT2455. The claimants alleged that the accident occurred due to the rash and negligent driving of the bus driver, respondent no.6. The Tribunal awarded compensation of Rs. 9,50,000, which included an addition of 50% towards future prospects on the deceased's income. The deceased was a self-employed person. The appellant MSRTC challenged the addition of 50% towards future prospects, arguing that such addition is not permissible for self-employed persons under settled law. The court considered the issue and held that for self-employed persons, no addition towards future prospects can be made. The court relied on the principle that future prospects are only applicable to persons with a regular salary or employment. Consequently, the court modified the award by deleting the 50% addition for future prospects, reducing the compensation to Rs. 6,50,000. The appeal was partly allowed, and the award was modified accordingly.

Headnote

A) Motor Accident Compensation - Future Prospects - Self-Employed Deceased - Addition of 50% towards future prospects is not permissible for self-employed persons - The Tribunal erred in adding 50% of the deceased's income towards future prospects as the deceased was self-employed - Held that the award must be modified by deleting the addition for future prospects (Paras 2, 4-5).

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Issue of Consideration

Whether the Claims Tribunal could add 50% of the actual income of a self-employed deceased towards future prospects while determining compensation payable to his legal representatives.

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Final Decision

The appeal is partly allowed. The impugned judgment and award is modified. The compensation amount is reduced from Rs. 9,50,000 to Rs. 6,50,000. The rest of the terms of the award remain unchanged.

Law Points

  • Future prospects not applicable to self-employed persons
  • Compensation for self-employed deceased
  • Motor Accident Claims Tribunal
  • Section 166 Motor Vehicles Act
  • 1988
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Case Details

2017 LawText (BOM) (07) 61

First Appeal No. 4141 of 2016

2017-07-28

P.R. Bora

Smt Ranjana D Reddy for Appellant, Smt. Savita P. Kakade (Matkar) for Respondent Nos.1 to 5, Mr. Harish S. Bali for Respondent No.6

Divisional Controller, Maharashtra State Road Transport Corporation, Division Office, At Aurangabad

1. Jagnnath s/o. Himmatrao Thombare, 2. Pushpabai w/o. Jagnnath Thombare, 3. Archana w/o. Ganesh Thombare, 4. Yogesh s/o Jagannath Thombare, 5. Sharavani d/o. Ganesh Thombare, 6. Jagannath S/o. Sitaram Walukar

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Nature of Litigation

Appeal against award of Motor Accident Claims Tribunal in a claim petition for compensation due to death in vehicular accident.

Remedy Sought

Appellant MSRTC sought reduction of compensation by deleting the addition of 50% towards future prospects.

Filing Reason

The Tribunal added 50% of the deceased's income towards future prospects, which the appellant contended was impermissible for a self-employed person.

Previous Decisions

The Motor Accident Claims Tribunal at Aurangabad in M.A.C.P. No.69/2015 awarded Rs. 9,50,000 as compensation.

Issues

Whether addition of 50% towards future prospects is permissible for a self-employed deceased person.

Submissions/Arguments

Appellant argued that the deceased was self-employed and hence no addition towards future prospects should be made. Claimants supported the Tribunal's award.

Ratio Decidendi

For self-employed persons, no addition towards future prospects can be made while computing compensation under the Motor Vehicles Act, 1988.

Judgment Excerpts

Where deceased was a self employed person, while determining the amount of compensation payable to his legal representatives, whether an addition of 50% actual income of the said deceased could have been made by the Claims Tribunal towards his future prospects is the issue to be dealt with in the present appeal.

Procedural History

The claimants filed M.A.C.P. No.69/2015 before the Motor Accident Claims Tribunal at Aurangabad, which awarded compensation on 11.04.2016. The MSRTC appealed to the High Court of Bombay at Aurangabad on 28.07.2017.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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