High Court of Bombay Upholds Compensation Award in Motor Accident Claim — Reduces Multiplier and Modifies Deductions. Tribunal's finding of contributory negligence and computation of compensation under Section 166 of Motor Vehicles Act, 1988 is upheld, but multiplier corrected from 16 to 13 and personal expenses deduction from 1/3rd to 1/4th.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The case arises from a motor accident that occurred on 04.04.1997 at Tulani Bus Stop, Ordnance Factory, Nagpur. The deceased, Buddulal, was attempting to board a stationary city bus (MH12/R1124) when another city bus (MH12/F8442) came from behind and knocked him down, causing fatal injuries. The claimants, his widow and two minor children, filed a petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation. The Motor Accident Claims Tribunal, Nagpur, found that the accident occurred due to rash and negligent driving of both buses and also held the deceased equally contributory negligent. The Tribunal computed the total compensation at Rs.7,65,000, but reduced it by half due to contributory negligence, awarding Rs.3,82,500 with interest. The appellant, Maharashtra State Road Transport Corporation (MSRTC), appealed against the award, contending that the compensation was excessive. The High Court examined the only issue of whether the compensation was just and proper. The appellant argued that the Tribunal erred in taking into account a revised salary instead of the actual salary at the time of accident, and that the multiplier and deductions were not as per Sarla Verma. The Court found that the Tribunal had correctly applied the principles but made errors in the multiplier and deduction for personal expenses. The Court held that the multiplier should be 13 (instead of 16) as per the age of the deceased (45 years), and the deduction for personal expenses should be 1/4th (instead of 1/3rd) as there were three dependents. The Court also upheld the addition of 30% towards future prospects. After recalculating, the compensation was reduced to Rs.3,51,000, but since the claimants did not appeal, the Court did not reduce the award and dismissed the appeal.

Headnote

A) Motor Accident Claims - Contributory Negligence - Deceased attempting to board a stationary bus was knocked down by another bus coming from behind - Tribunal found equal contributory negligence on part of deceased - Held that finding of contributory negligence is not perverse and is based on evidence (Para 5).

B) Motor Accident Claims - Computation of Compensation - Multiplier - Tribunal applied multiplier of 16 based on age of deceased (45 years) - As per Sarla Verma, multiplier for age 41-45 is 14, but deceased was 45 years, so multiplier should be 13 - Held that multiplier of 13 is appropriate (Para 6).

C) Motor Accident Claims - Deduction for Personal Expenses - Deceased had 3 dependents (wife and two minor children) - Tribunal deducted 1/3rd towards personal expenses - As per Sarla Verma, for 2-3 dependents, deduction is 1/4th - Held that deduction should be 1/4th (Para 7).

D) Motor Accident Claims - Future Prospects - Tribunal added 50% towards future prospects based on salary at time of accident - As per Sarla Verma, for deceased aged 45 years, addition of 30% is appropriate - Held that addition of 30% is correct (Para 8).

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Issue of Consideration

Whether the compensation awarded by the Tribunal is just and proper?

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Final Decision

The appeal is dismissed. The compensation awarded by the Tribunal is upheld, though the Court noted that the multiplier and deduction were not strictly as per Sarla Verma, but since the claimants did not appeal, the award is not reduced.

Law Points

  • Contributory negligence
  • Multiplier as per Sarla Verma
  • Deduction for personal expenses
  • Just compensation under Motor Vehicles Act
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Case Details

2017 LawText (BOM) (07) 228

First Appeal No.587 of 2005

2017-07-20

S.B. Shukre

Shri R.S. Charpe for Appellant

Divisional Controller, Maharashtra State Road Transport Corporation, Division Office, Tekdi Road, Sitabuldi, Nagpur

Smt. Parvatibai wd/o Buddulal Prajapati, Nilesh s/o Buddulal Prajapati, Ashok s/o Buddulal Prajapati

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Nature of Litigation

First appeal against judgment and order of Motor Accident Claims Tribunal awarding compensation under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

Appellant MSRTC sought reduction of compensation awarded by Tribunal.

Filing Reason

Appellant dissatisfied with the quantum of compensation awarded by Tribunal.

Previous Decisions

Motor Accident Claims Tribunal, Nagpur, by judgment dated 04.08.2005 in Claim Petition No.677/1998, awarded Rs.3,82,500 with interest, after reducing total compensation of Rs.7,65,000 by half due to contributory negligence.

Issues

Whether the compensation awarded by the Tribunal is just and proper?

Submissions/Arguments

Learned counsel for appellant submitted that Tribunal ought to have taken salary actually paid at time of accident, not revised salary; multiplier and deductions should be as per Sarla Verma.

Ratio Decidendi

In motor accident claims, the multiplier and deduction for personal expenses must be as per the principles laid down in Sarla Verma. For a deceased aged 45 years, multiplier is 13; for 3 dependents, deduction is 1/4th; addition for future prospects is 30%.

Judgment Excerpts

The only point which arises for my determination is, Whether the compensation awarded by the Tribunal is just and proper? As per ratio in Sarla Verma (Smt) and others Vs. Delhi Transport Corporation and another, reported in (2009) 6 SCC 121, the Tribunal ought to have taken into consideration the salary which was actually paid to the deceased at the time of the accident.

Procedural History

Claim Petition No.677/1998 filed by respondents before Motor Accident Claims Tribunal, Nagpur. Tribunal awarded compensation on 04.08.2005. Appellant MSRTC filed First Appeal No.587 of 2005 before High Court of Bombay, Nagpur Bench. Heard on 20.07.2017 and dismissed.

Acts & Sections

  • Motor Vehicles Act, 1988: 166
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