Case Note & Summary
The appellant, Managing Director of Motor Claims Hub, BMTC, challenged the judgment and award dated 01.01.2022 passed by the XIV Additional Small Causes Judge and ACMM and Member-MACT, Bengaluru in MVC No.7856/2019, whereby compensation of Rs.52,95,952/- with interest at 6% per annum was awarded to the respondents-claimants, who are the legal representatives of the deceased Suresh V., who died in a motor vehicle accident. The appeal was filed under Section 173(1) of the Motor Vehicles Act, 1988. The deceased was aged 30 years and a bachelor. The Tribunal computed the loss of dependency by taking the notional income of Rs.15,000/- per month, adding 40% towards future prospects, deducting 50% towards personal expenses, and applying multiplier '18'. The appellant contended that the multiplier should be '17' as per Sarla Verma v. DTC, (2009) 6 SCC 121, since the deceased was in the age group of 26-30 years. The respondents supported the award. The High Court agreed with the appellant, holding that the correct multiplier is '17'. The court recalculated the compensation: notional income Rs.15,000/- + 40% future prospects = Rs.21,000/-; after 50% deduction = Rs.10,500/-; annual loss = Rs.1,26,000/-; applying multiplier 17 = Rs.21,42,000/-; adding Rs.70,000/- under conventional heads = Rs.22,12,000/-. The court modified the award to Rs.22,12,000/- with interest at 6% per annum from the date of petition till deposit. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Multiplier - The Tribunal applied multiplier '18' for a deceased aged 30 years, which is contrary to the settled principle in Sarla Verma v. DTC that for age group 26-30, multiplier is '17'. Held that the multiplier should be '17' (Paras 5-6). B) Motor Accident Claims - Compensation - Deduction for Personal Expenses - The deceased was a bachelor, hence deduction of 50% towards personal expenses is correct as per Sarla Verma. Held that no interference is required (Para 7). C) Motor Accident Claims - Compensation - Future Prospects - The Tribunal added 40% towards future prospects, which is in accordance with Pranay Sethi guidelines. Held that the addition is proper (Para 8). D) Motor Accident Claims - Compensation - Conventional Heads - The Tribunal awarded Rs.70,000/- under conventional heads, which is in line with Pranay Sethi. Held that no modification is needed (Para 9). E) Motor Accident Claims - Compensation - Interest Rate - The Tribunal awarded interest at 6% per annum, which is reasonable. Held that no interference is warranted (Para 10).
Issue of Consideration
Whether the Tribunal erred in applying multiplier '18' instead of '17' for a deceased aged 30 years, and whether the compensation awarded was just and proper.
Final Decision
The appeal is partly allowed. The impugned award is modified. The claimants are entitled to compensation of Rs.22,12,000/- with interest at 6% per annum from the date of petition till deposit. The appellant is directed to deposit the modified compensation within four weeks.
Law Points
- Motor Accident Claims
- Compensation Calculation
- Multiplier Determination
- Sarla Verma Guidelines
- Deduction for Personal Expenses
- Future Prospects
- Contributory Negligence
- Interest Rate
