SUPREME COURT OF INDIA
Indu Malhotra and Sanjiv Khanna, JJ.
Smt. Sunita Tokas & Anr. – Appellants
Versus
New India Insurance Co. Ltd. & Anr. – Respondents
Civil Appeal No. 6339 of 2019 (Arising out of SLP (Civil) No. 2859 of 2018)
Decided on : 16-08-2019
Motor Vehicles Act, 1988 - Section 166 - MACT awarding compensation of Rs. 14,87,140/- and High Court reducing it to Rs. 9,25,000/- Multiplier - High Court applying multiplier of 15 - High Court applied multiplier on basis of age of mother of deceased - Not awarding anything for future prospects - Taking notional income of deceased as Rs. 7,500/-p.m. - Held, multiplier has to be applied on basis of age of deceased - Held, multiplier of 18 and notional @Rs. 12,000/-p.m. should have been applied - In addition Future Prospects @40% of the notional income of the deceased should have been awarded - Supreme Court enhancing the amount by Rs. 11,39,400/-. (Para 4, 6)
Facts of the case:
This is a appeal for enhancement of compensation for motor accident.
Finding of the Court:
High court applied wrong multiplier and incorrect notional income, and did not award for future prospects.
Result: Appeal allowed.
JUDGMENT
Indu Malhotra, J.
Leave granted.
1. The present Civil Appeal has been filed to challenge the final Judgment and Order dated 01.08.2017 passed by the High Court of Delhi in MAC. APP. No. 323 of 2017. The Appellants herein have filed the present Civil Appeal for enhancement of the compensation granted by the Motor Accident Claims Tribunal, Patiala House Courts, New Delhi ("MACT") and the High Court.
2. The factual matrix in which the present Civil Appeal arises is briefly stated as under :-
2.1. The son of the Appellants viz. Pradeep Tokas was a student who was a trained swimmer, and had won prizes in State-level events.
2.2. On 11.05.2004, Pradeep Tokas was sitting on a two-wheeler as a pillion rider, while travelling on the Upper Ridge Road towards Karol Bagh, New Delhi.
At 1:05 a.m., the said two-wheeler met with an accident with a stationary Truck bearing Registration No. HR-51-GA-0525, which was not visible at night. The truck was standing in the middle of the road without any indicator lights on. The two-wheeler dashed against the stationary truck, and both Pradeep Tokas and the driver died on the spot. Pradeep Tokas was 21 years old at the time of his death.
2.3. The Appellants herein are the parents of the deceased, who filed the Claim Petition before the MACT, Patiala House Courts, New Delhi claiming compensation on the death of their son.
2.4. The MACT vide Award dated 25.05.2009 granted compensation of Rs. 14,87,140/- along with interest @7% p.a. to the Appellant -Claimants.
The compensation was awarded under the following heads :-
(i) The notional income of the deceased was assessed @Rs. 16,246/- p.m. after adding Future Prospects @50%;
(ii) Deduction of 50% towards personal expenses was made from the notional income of the deceased, since he was a bachelor;
(iii) The MACT applied the Multiplier of 15 on the basis of the age of the mother of the deceased;
(iv) Rs. 25,000/- was awarded towards loss of love and affection;
(v) Rs. 10,000/- was awarded towards loss of estate and consortium; (vi) Rs. 5,000/- was awarded towards funeral expenses.
2.5. Aggrieved by the aforesaid Award, the Appellants filed MAC. APP. 323 of 2017 before the Delhi High Court for enhancement of compensation.
The Respondent - Insurance Company also filed a cross-Appeal for reduction of compensation.
The High Court vide the impugned common Judgment and Order dated 01.08.2017 dismissed the Appeal filed by the Appellant - Claimants, and allowed the Appeal filed by the Respondent - Insurance Company in part.
The High Court reduced the amount of compensation awarded by the MACT to Rs. 9,25,000/-. The High Court awarded the following amounts under various heads :
(i) The notional income of the deceased was assessed @Rs. 7,500/-p.m.;
(ii) Deduction of 50% was made from the notional income of the deceased towards personal expenses, since the deceased was a bachelor;
(iii) Multiplier of 15 was applied on the basis of the age of the mother of the deceased;
(iv) Rs. 2,00,000/- was awarded towards loss of love and affection;
(v) Rs. 50,000/- was awarded towards loss of estate and funeral expenses.
3. Aggrieved by the aforesaid Judgment, the Appellant -Claimants have filed the present Civil Appeal for enhancement of the compensation awarded.
We have heard the learned Counsel for the Appellants and the Respondent - Insurance Company.
3.1. The Counsel for the Appellants inter alia submitted that the MACT and the High Court had erroneously applied the wrong Multiplier of 15, on the basis of the age of the mother of the deceased. It was submitted that the Multiplier of 18 ought to have been applied on the basis of the age of the deceased, as per the table set out in the judgment of this Court in Sarla Verma & Ors. vs. Delhi Transport Corporation & Anr, (2009) 6 SCC 121.
3.2. It was further submitted that the High Court erred in fixing the notional income of the deceased @7,500
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