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2010 Supreme(SC) 1067

IN THE SUPREME COURT OF INDIA
Aftab Alam and R.M. Lodha
Shakti Devi...... Appellant
Vs.
New India Insurance Co. Ltd. & Anr....... Respondents
CIVIL APPEAL NO. 3660 OF 2006
Decided on : NOVEMBER 9, 2010.

Headnote:Motor Vehicles Act, 1988 - Sections 161 (3)(a), 168 and 173 - Death in accident - Compensation of Rs.60,000 with 10% interest awarded by Tribunal by applying multiplier of 8 - At the time of accident, deceased was 22 years old and not married - He was earning about Rs.1,000/- per month from business - Where deceased was self employed. Court shall usually take only actual income at the time of death - However, deceased had a reasonable expectation of Government employment in near future - Amount of compensation enhanced to Rs.1,32,000 by applying multiplier of 11 - Appeal allowed. (Paras 4, 7, 12 and 13)

       (1942) 1 All. E.R. 657; (2009) 6 SCC 121; (2009) 6 SCC 121-Relied on.

JUDGMENT

R.M. LODHA, J.

A mother who lost her 22-year old son in a motor accident is in appeal, by special leave, aggrieved by the inadequate compensation awarded to her. The appellant and her husband Sachidanand Sinha lived at Badom Bazaar in Hazaribagh and their son Pravin Kumar Sinha resided with them. Pravin Kumar Sinha had done B. Com (Honours) and was earning about Rs.1000/- per month from a general store being run from the house. On February 26, 1991 Pravin Kumar Sinha and his father travelled in a bus (UP 72-9015) to Ranchi. When the bus reached near Karmahi forest, a truck (PAX 4785) coming from the opposite direction collided with it. Both vehicles at that time were being driven rashly and negligently. As a result of the accident, two persons died on the spot and appellant's son Pravin Kumar Sinha suffered grievous injuries. He was taken to Nawjiwan hospital, Tumbagara, Manika where he died after few days.

2. The appellant and her husband filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 (for short, `the 1988 Act') before the Motor Vehicle Accident Claims Tribunal, Palamau, Daltonganj (for short, `the Tribunal') claiming compensation for the death of their son in the sum of Rs. 2 lacs from the owners and insurers of the two vehicles. The appellant's husband died during the pendency of claim petition and, accordingly, his name was struck off.

3. The owners of the two vehicles who were impleaded as opposite party Nos. 1 and 2 neither appeared nor filed any written statement. The insurance companies filed separate written statement and contested the claim petition. The opposite party no. 3 - the insurer of the bus - blamed the truck for the accident while the opposite party no. 4 - insurer of the truck - stated that it was due to the rash and negligent driving of the bus driver that the accident occurred.

4. The Tribunal held that the claimant's son died in the accident caused by the bus (UP 72-9015) and the truck (PAX 4785) due to the negligent driving by the drivers of the vehicles. As regards the quantum of compensation, the Tribunal pegged the earning of the deceased at Rs. 1000/- per month and after deducting personal expenses to the extent of 1/3rd, fixed the annual dependency at Rs. 7920/-. The Tribunal applied the multiplier of 8 and held that the compensation so computed would come to Rs. 63,360/-. The Tribunal then made it a round figure of Rs. 60,000/- and after adjusting Rs. 25,000/- which was paid to the claimant towards no- fault liability held that the claimant was entitled to a further sum of Rs. 35,000/- and awarded her simple interest @ 10% p.a. from the date of the award dated June 6, 2000 till its realization. The Tribunal apportioned the award equally between the insurance companies.

5. The appellant challenged the award passed by the Tribunal before the High Court of Jharkhand, Ranchi. However, her appeal was dismissed by the High Court on December 5, 2003.

6. The only issue for consideration in this appeal is with regard to the quantum of compensation. Mr. Braj Kishore Mishra, learned counsel for the appellant argued that the compensation of Rs. 60,000/- for the death of a 22-year old boy in a motor accident is too low and meager and the High Court seriously erred in maintaining the award although the Tribunal erred in arriving at the dependency as well as in applying the multiplier.

7. It must be stated at the outset that the multiplier method has been consistently applied by this Court in the claim cases arising out of the Motor Vehicles Act, 1939 as well as the 1988 Act. This Court emphasized in the case of General Manager, Kerala State Road Transport Corporation, Trivandrum v Susamma Thomas (Mrs.) and Ors.1 that the multiplier method is logically sound and legally well 1 (1994) 2 SCC 176established and must be followed; a departure from which can only be justified in rare and extraordinary circumstances and very exceptional cases. We reiterate that the multiplier method sho












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