1. Fatal accident claim for compensation under Section 110-A of the Motor Vehicles Act, 1939. (Para 2 , 3 )
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1997 Supreme(SC) 853
SUPREME COURT OF INDIA
(Orissa High Court)
K Ramaswamy, K S Paripoornan
ADIKANDA SETHI (DEAD) THROUGH LRS. AND ANOTHER, APPELLANTS;
VERSUS
PALANI SWAMI SARAN TRANSPORTS AND ANOTHER, RESPONDENTS.
Civil Appeal No. 3567 of 1997
decided on May 8, 1997.
Important Points
The maximum multiplier for a young person dying in an accident under the Motor Vehicles Act, 1939 should not exceed 18 years purchase factor.
Subject
Civil Law - Motor Vehicle Accidents
Act Referred
Headnote
Compensation - Fatal Accident - Motor Vehicles Act, 1939 - Determination of Compensation
Fact of the Case:
Ballav Kumar Sethi, a young man of 24 years, was fatally knocked down by an oil tanker. The claim under Section 110-A of the Motor Vehicles Act, 1939 was laid on 30-4-1983. The Tribunal awarded a sum of Rs. 1,00,000 to the appellant, which was confirmed and enhanced by the High Court.
Finding of the Court:
The court determined the compensation based on the deceased's annual income and the multiplier system, emphasizing that the maximum multiplier for a young person dying in an accident should not exceed 18 years purchase factor.
Issues: The main issue was the determination of compensation in the case of fatal accidents under the Motor Vehicles Act, 1939.
Ratio Decidendi: The court concluded that the annual income of the deceased and the multiplier of 18 years, which is the maximum for a young person dying in an accident, should be applied to determine the compensation.
Final Decision: The claimants were entitled to receive Rs. 1 lakh as compensation with interest at 6% p.a. from the date of the judgment of the High Court. The appeal was allowed with no costs.
Legal Category Hierarchy
Table of Contents
2. Dispute regarding the appropriate multiplier for calculating compensation and the resulting quantum of the award. (Para 3 , 4 )
3. The court observed that the multiplier for fatal accidents should not exceed 18 years purchase factor, correcting previous higher multipliers used by lower courts. (Para 4 , 5 )
4. The maximum multiplier applicable for determining compensation in fatal accidents is 18 years purchase factor. (Para 4 )
5. Appeal allowed; compensation awarded limited to the claimed amount with interest. (Para 5 , 6 )
6. What is the maximum multiplier permissible for calculating compensation in fatal accidents?
The multiplier used to determine compensation in fatal accidents cannot exceed 18 years purchase factor. (Para 4 )
7. How is the annual income for dependents calculated in fatal accident claims?
The annual income is determined by taking the total annual income of the deceased and deducting the portion spent on themselves to find the amount available for family members. (Para 5 )
8. Can the court award compensation exceeding the amount specifically claimed by the applicants?
No, the compensation awarded is limited to the amount claimed by the claimants in their application. (Para 5 )
ORDER
1. Leave granted. We have heard learned counsel on both sides.
2. This appeal by special leave arises from the judgment of the High Court of Orissa, made on 13-9-1993 in Miscellaneous Appeal No. 384 of 1990.
3. Ballav Kumar Sethi, a young man of 24 years was fatally knocked down by an oil tanker bearing Registration No. TCV 667. The applicant claimed a sum of Rs. 1 lakh towards the loss of the estate of the deceased and the support to the appellant as dependant of the deceased. The claim under Section 110-A of the Motor Vehicles Act, 1939 was laid on 30-4-1983. The Tribunal delivered the judgment awarding a sum of Rs. 1,00,000 to the appellant which was confirmed under appeal by the High Court enhancing the same by a further sum of Rs. 18,000.
4. The principle of determination of the compensation in the case of fatal accidents was determined by this Court in U.P. SRTC v. Trilok Chandra [(1996) 4 SCC 362]. This Court in para 18, after considering the tabulations, found that the maximum multiplier of purchaser was as under : (SCC p. 371).
"... What we propose to emphasise is that the multiplier cannot exceed 18 years purchase factor. This is the improvement over the earlier position that ordinarily it should not exceed 16. We thought it necessary to state the correct legal position as courts and tribunals are using higher multiplier as in the present case where the Tribunal used the multiplier of 24 which the High Court raised to 34, thereby showing lack of awareness of the background of the multiplier system in Davies case [Davies v. Powell Duffryn Associated Collieries Ltd., (1942) 1 All ER 657 : 1942 AC 601]."
5. Thus, we have to conclude that the annual income of the deceased is Rs. 12,000 p.a. and he would have spent Rs. 7500 towards family members and 1/3 for himself; thereby the annual income is taken at Rs. 9000 per year and multiplier of 18 years which is the maximum in the case of the young person dying in an accident, has to be applied. The claimants would get Rs. 1.40 lakhs towards the compensation. Since the claim is limited to Rs. 1 lakhs, the claimants are entitled to get Rs. 1 lakh as compensation with interest at 6% p.a. from the date of the judgment of the High Court.
6. The appeal is accordingly allowed. No costs.
