High Court of Bombay Enhances Compensation in Motor Accident Claim — Deceased was 30-year-old earning Rs.6,000 per month; Tribunal's assessment of income and multiplier modified.

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

The appellants, original claimants in Motor Accident Claim Petition No.26 of 2011, filed an appeal against the judgment and award dated 23.10.2012 passed by the Motor Accident Claims Tribunal at Nandurbar. The claim petition was filed on account of the death of Shaikh Javid @ Javed Patve in a vehicular accident on 23.06.2011 involving a dumper bearing registration No.MH39/E992 owned by respondent no.2 and insured with respondent no.3. The claimants alleged that the accident occurred due to the sole negligence of the dumper driver. The Tribunal awarded compensation of Rs.3,84,000/- with interest at 6% per annum, holding contributory negligence of the deceased. The claimants sought enhancement. The High Court found that the Tribunal erred in assessing the deceased's income at Rs.3,000 per month ignoring the salary certificate of Rs.6,000 per month. The Court also held that the multiplier of 13 applied by the Tribunal was incorrect and should be 17 as per Sarla Verma. Further, 50% addition towards future prospects was warranted as per Pranay Sethi. The finding of contributory negligence was set aside as there was no evidence against the deceased. The compensation was recalculated: income Rs.6,000 + 50% future prospects = Rs.9,000, minus 1/5th towards personal expenses = Rs.7,200 per month, annual Rs.86,400, multiplied by 17 = Rs.14,68,800. Adding Rs.70,000 under conventional heads, total compensation was enhanced to Rs.15,38,800 with interest at 6% per annum from the date of petition till realization.

Headnote

A) Motor Accident Claims - Compensation - Income Assessment - Deceased was 30 years old earning Rs.6,000 per month as per salary certificate - Tribunal erred in taking notional income of Rs.3,000 per month - Held that salary certificate is reliable and income should be taken as Rs.6,000 per month (Paras 7-9).

B) Motor Accident Claims - Multiplier - Deceased aged 30 years - Tribunal applied multiplier of 13 - As per Sarla Verma case, multiplier for age 30 is 17 - Held that multiplier of 17 should be applied (Para 10).

C) Motor Accident Claims - Future Prospects - Deceased was 30 years old with permanent job - Tribunal did not grant future prospects - Held that 50% addition towards future prospects is warranted as per Pranay Sethi case (Para 11).

D) Motor Accident Claims - Negligence - Tribunal held contributory negligence of deceased - No evidence of negligence on part of deceased - Held that accident occurred solely due to negligence of dumper driver (Paras 12-13).

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Issue of Consideration

Whether the Tribunal erred in assessing the income of the deceased and in applying the multiplier, and whether the claimants are entitled to enhanced compensation.

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Final Decision

Appeal allowed. The judgment and award of the Tribunal is modified. The claimants are entitled to total compensation of Rs.15,38,800/- with interest at 6% per annum from the date of petition till realization. The Insurance Company is directed to deposit the enhanced amount within eight weeks.

Law Points

  • Motor Accident Claims
  • Compensation Assessment
  • Income Proof
  • Multiplier
  • Future Prospects
  • Negligence
  • Contributory Negligence
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Case Details

2018 LawText (BOM) (10) 12

First Appeal No.591 of 2014

2018-10-05

P.R. Bora, J.

Shri P.C. Mayure for Appellants; Shri S.S. Jadhav for Respondent No.2; Shri S.R. Bagal for Respondent No.3

Anisabee Shaikh Javid @ Javed Patve and others

Suresh Dhirsing Padvi (deleted), Shankarrao Gajmal More, The United India Insurance Co. Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation on account of death in a vehicular accident.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

Claimants dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

Motor Accident Claims Tribunal at Nandurbar awarded Rs.3,84,000/- with interest at 6% per annum vide judgment dated 23.10.2012 in Claim Petition No.26 of 2011.

Issues

Whether the Tribunal erred in assessing the income of the deceased at Rs.3,000 per month ignoring the salary certificate of Rs.6,000 per month? Whether the Tribunal erred in applying multiplier of 13 instead of 17? Whether the claimants are entitled to future prospects? Whether the finding of contributory negligence of the deceased is sustainable?

Submissions/Arguments

Appellants argued that the Tribunal erred in taking notional income of Rs.3,000 per month despite salary certificate showing Rs.6,000 per month. Appellants argued that multiplier of 13 is incorrect and should be 17 as per Sarla Verma. Appellants argued that future prospects should be added as per Pranay Sethi. Appellants argued that there was no contributory negligence on part of the deceased. Respondent No.3 Insurance Company supported the Tribunal's award.

Ratio Decidendi

In motor accident claims, the income of the deceased should be assessed based on reliable evidence such as salary certificate, and the multiplier should be applied as per the age of the deceased as per Sarla Verma. Future prospects should be added as per Pranay Sethi. Contributory negligence cannot be presumed without evidence.

Judgment Excerpts

The Tribunal has committed an error in not relying upon the salary certificate produced on record. The multiplier of 13 applied by the Tribunal is not correct. As per the law laid down in Sarla Verma, the multiplier for the age group of 30 years is 17. The claimants are entitled to 50% addition towards future prospects. There is no evidence to show that the deceased was negligent in any manner.

Procedural History

Claim Petition No.26 of 2011 was filed before Motor Accident Claims Tribunal, Nandurbar, which awarded compensation on 23.10.2012. Aggrieved, the claimants filed First Appeal No.591 of 2014 before the High Court of Bombay, Bench at Aurangabad.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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