Case Note & Summary
The case involves two cross-appeals arising from a motor accident claim. The accident occurred on 23.03.2011 when a KSRTC bus driven by Shivanand Badiger hit a pedestrian, Suresh, who died on the spot. The claimants, parents and siblings of the deceased, filed a petition under Section 166 of the Motor Vehicles Act, 1988 before the MACT, Gulbarga. The Tribunal awarded Rs.4,65,000 with interest at 6% p.a., calculating the loss of dependency using a notional income of Rs.4,500 per month, multiplier 18, and deducting 50% for personal expenses. The NEKRTC appealed (MFA 30819/2012) challenging the multiplier and quantum, while the claimants appealed (MFA 32476/2012) seeking enhancement. The High Court held that for a deceased aged 26 years, the correct multiplier is 16 as per Sarla Verma v. DTC, (2009) 6 SCC 121, and recalculated the loss of dependency as Rs.4,32,000 (Rs.4,500 x 12 x 16 x 50%). Adding Rs.5,000 for funeral expenses and Rs.10,000 for loss of estate, the total compensation was reduced to Rs.4,47,000. The interest rate of 6% p.a. was maintained. The NEKRTC's appeal was partly allowed, and the claimants' appeal was dismissed.
Headnote
A) Motor Accident Claims - Computation of Compensation - Multiplier - For a deceased aged 26 years, the appropriate multiplier is 16 as per the decision in Sarla Verma v. DTC, (2009) 6 SCC 121 - The Tribunal's use of multiplier 18 was erroneous and corrected by the High Court (Paras 8-10). B) Motor Accident Claims - Deduction for Personal Expenses - Where the deceased is a bachelor, deduction of 50% towards personal and living expenses is proper - The Tribunal correctly deducted 50% (Para 9). C) Motor Accident Claims - Interest Rate - Award of interest at 6% per annum is reasonable and not interfered with (Para 11).
Issue of Consideration
Whether the Tribunal erred in applying multiplier 18 instead of 16 for a deceased aged 26 years, and whether the compensation awarded is just and proper.
Final Decision
MFA No. 30819/2012 is partly allowed; the compensation is reduced from Rs.4,65,000 to Rs.4,47,000 with interest at 6% p.a. from the date of petition till deposit. MFA No. 32476/2012 is dismissed.
Law Points
- Motor Accident Claims
- Computation of Compensation
- Multiplier as per Sarla Verma v. DTC
- Deduction for Personal Expenses
- Interest Rate
