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 was caused by the rash and negligent driving of the bus driver. The Tribunal awarded compensation, including an addition of 50% of the deceased's actual income towards future prospects. The deceased was a self-employed person. The sole issue in the appeal was whether such addition was permissible. The High Court, relying on the principle that future prospects are not to be added for self-employed persons, held that the Tribunal erred. The Court modified the award by deleting the 50% addition towards future prospects, thereby reducing the compensation amount. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Future Prospects - Self-Employed Deceased - Addition of 50% towards future prospects is not permissible for self-employed persons under the Motor Vehicles Act, 1988 - The Tribunal erred in adding 50% of the actual income towards future prospects for a self-employed deceased - Held that the award must be modified to delete the addition for future prospects (Paras 2, 4-5).
Issue of Consideration
Whether the Motor Accident 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.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified by deleting the addition of 50% towards future prospects. The compensation amount is reduced accordingly.
Law Points
- Future prospects
- self-employed
- compensation
- Motor Vehicles Act
- 1988
- Section 166
Case Details
2017 LawText (BOM) (07) 61
First Appeal No. 4141 of 2016
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 actual income towards future prospects for a self-employed deceased, which the appellant contended was impermissible.
Previous Decisions
Motor Accident Claims Tribunal at Aurangabad in M.A.C.P. No.69/2015 awarded compensation including 50% future prospects addition.
Issues
Whether addition of 50% towards future prospects is permissible for a self-employed deceased while determining compensation under the Motor Vehicles Act, 1988.
Submissions/Arguments
Appellant MSRTC argued that for self-employed persons, no addition towards future prospects should be made.
Respondents-claimants supported the Tribunal's award.
Ratio Decidendi
For self-employed persons, no addition towards future prospects is permissible 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 by filing First Appeal No. 4141 of 2016.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166
