Case Note & Summary
The appeal was filed by the original claimants, being the widow and two children of the deceased Gajanan Kale, who died in a vehicular accident on 15.2.2012 when his motorcycle was hit by a TATA Indica car. The Motor Accident Claims Tribunal, Akola, in M.A.C.P. No. 47/2012, awarded compensation of Rs. 5,85,000/- with 6% interest. The claimants sought enhancement. The High Court examined the correctness of the multiplier, future prospects, deduction for personal expenses, and interest rate. The Court found that the Tribunal had applied a multiplier of 13 instead of 14 as per Sarla Verma v. DTC, and had deducted 1/3rd towards personal expenses instead of 1/4th. The Court also held that 40% addition for future prospects was appropriate instead of 30%, and that interest should be 9% per annum. Consequently, the compensation was enhanced to Rs. 8,70,000/- with 9% interest from the date of petition. The appeal was allowed.
Headnote
A) Motor Accident Claims - Compensation Assessment - Multiplier Method - Deceased aged 45 years, multiplier of 14 applied as per Sarla Verma v. DTC - Tribunal erred in applying multiplier of 13 - Held that multiplier should be 14 (Para 5).
B) Motor Accident Claims - Future Prospects - Deceased was a skilled labourer earning Rs. 6,000/- per month - Tribunal granted 30% addition towards future prospects - Held that 40% addition is appropriate as per Pranay Sethi guidelines (Para 6).
C) Motor Accident Claims - Deduction for Personal Expenses - Deceased had 3 dependents - Tribunal deducted 1/3rd towards personal expenses - Held that deduction should be 1/4th as per Sarla Verma (Para 7).
D) Motor Accident Claims - Interest Rate - Tribunal awarded 6% interest - Held that 9% interest is appropriate as per recent decisions (Para 9).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal is just, fair and adequate or whether it needs to be enhanced?
Final Decision
The appeal is allowed. The compensation is enhanced from Rs. 5,85,000/- to Rs. 8,70,000/- with interest at 9% per annum from the date of petition till realization. The respondent no. 3 insurance company is directed to deposit the enhanced amount within six weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Multiplier Method
- Deduction for Personal Expenses
- Future Prospects
- Interest Rate
Case Details
2017 LawText (BOM) (07) 260
First Appeal No. 765 of 2016
Dr. (Smt.) Shalini Phansalkar-Joshi, J.
Shri. S. D. Chopde for Appellants, Shri. S. N. Dhangare for Respondent no. 3
Mangala wd/o Gajanan Kale, Nitin s/o Gajanan Kale, Ashish s/o Gajanan Kale
Mahadeo s/o Ashok Gawane, Atmaram s/o Limbaji Gitte, The Oriental Insurance Co. Ltd.
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Nature of Litigation
Appeal against the judgment and order of the Motor Accident Claims Tribunal awarding compensation for death in a vehicular accident.
Remedy Sought
Enhancement of compensation awarded by the Tribunal.
Filing Reason
The claimants were dissatisfied with the quantum of compensation awarded by the Tribunal.
Previous Decisions
The Motor Accident Claims Tribunal, Akola, in M.A.C.P. No. 47/2012, awarded Rs. 5,85,000/- with 6% interest on 14.10.2015.
Issues
Whether the multiplier applied by the Tribunal (13) is correct?
Whether the addition for future prospects (30%) is adequate?
Whether the deduction for personal expenses (1/3rd) is proper?
Whether the rate of interest (6%) is appropriate?
Submissions/Arguments
Appellants argued that the Tribunal erred in applying multiplier of 13 instead of 14 as per Sarla Verma.
Appellants argued that 40% addition for future prospects should be granted as per Pranay Sethi.
Appellants argued that deduction for personal expenses should be 1/4th instead of 1/3rd.
Appellants argued that interest rate should be 9% instead of 6%.
Ratio Decidendi
In motor accident claims, the multiplier should be as per Sarla Verma (14 for age 45), future prospects addition should be 40% for self-employed persons as per Pranay Sethi, deduction for personal expenses should be 1/4th for 3 dependents, and interest rate should be 9% per annum.
Judgment Excerpts
The only question raised for consideration is whether the compensation awarded by the Tribunal is just, fair and adequate or whether it needs to be enhanced?
As per the law laid down by the Apex Court in the case of Sarla Verma v. DTC, for the age group of 41-45 years, the multiplier is 14.
As per the law laid down in the case of Pranay Sethi v. National Insurance Co. Ltd., 40% addition towards future prospects is required to be granted.
As per Sarla Verma, when there are 3 dependents, the deduction towards personal expenses is 1/4th.
The interest rate is required to be 9% per annum.
Procedural History
The original claimants filed M.A.C.P. No. 47/2012 before the Motor Accident Claims Tribunal, Akola, which awarded compensation on 14.10.2015. Aggrieved, the claimants filed First Appeal No. 765 of 2016 before the Bombay High Court, Nagpur Bench.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166
