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2019 Supreme(SC) 1448

SUPREME COURT OF INDIA
A. Abdul Nazeer, Sanjiv Khanna, JJ.
Kunjan Sadana – Appellant
Versus
Mahesh Kumar – Respondent
Civil Appeal No. 9312 of 2019
Decided on : 10.12.2019

Headnote:

Motor Vehicles Act, 1988 -- Ss. 166, 168 and 171 -- death case -- accident due to negligence of driver of bus -- deceased 19 years of age and bachelor -- income of deceased determined Rs. 3,918/- p.m. -- 40% of income to be added towards future prospects -- multiplier of 18 applicable -- 50% deduction towards personal expenses -- Claims Tribunal awarded compensation of Rs. 3,72,620/- -- High Court enhanced award to Rs. 5,02,610/- appeal for further enhancement of compensation -- total compensation payable to claimants Rs. 6,62,448/- -- enhanced amount shall carry interest @ Rs. 7%. (2017)16 SCC 680 and (2019)5 SCC 554 relied on. [Paras 12 to 14]

JUDGMENT

Nazeer, J.

1. Delay condoned.

2. Leave granted.

3. The instant appeal has been filed by the claimants challenging the judgment and order dated 8.8.2017 of the High Court of Delhi, in MAC Appeal No. 479 of 2009 wherein the High Court has partly allowed the appeal and consequently enhanced the amount of compensation from Rs. 3,72,620/- to Rs. 5,02,620/-. The appellants have filed this appeal, seeking further enhancement of the compensation.

4. The appellants are the widowed mother and the younger brother (a minor) of the deceased. The deceased namely, Shri Yitesh Sadana alias Prince, a bachelor, aged 19 years, succumbed to injuries that he sustained in a motor vehicle accident that occurred on 18.4.2007, which was caused due to the negligence of the driver of a bus, bearing registration No DL-1PA-4403. It is admitted that the offending vehicle was insured with New India Assurance Co Ltd, the third respondent herein, for third party risk. As mentioned above, the claim petition was allowed in part, by the Tribunal by Award dated 6.6.2009. Thereafter, the appeal filed by the appellants was partly allowed by the High Court.

5. It is contended by the learned counsel for the appellants that the deceased was aged 19 years, therefore, the multiplier applicable for this age group is 18'. However, the Tribunal and the High Court have adopted the multiplier 15', on the basis of the age of the mother of the deceased. In addition, it is also submitted that the High Court failed to consider the future prospects, while awarding the compensation. The learned counsel appearing for the insurer has sought to justify the impugned judgment and order herein.

6. Summary of the compensation awarded by the Tribunal:

Sl No

Details

Amount

1

Loss of Dependency

Rs. 3,52,620.00

2

Funeral Expenses

Rs.      5,000.00

3

Loss of Estate, Love & Affection

Rs.    15,000.00

TOTAL

Rs. 3,72,620.00

7. While calculating the loss of dependency at Rs. 3,52,620/-, the Tribunal considered the income of the deceased at Rs. 3,918/- per month. The age of the mother i.e. 42 years was considered, in order to apply the multiplier 15'. In addition, as the deceased was a bachelor, the Tribunal has reduced 50% of his salary in lieu of his personal expenses. The High Court had enhanced the award to Rs. 5,02,610/-.

8. The High Court while enhancing the compensation, did not consider the future prospects of the deceased. The material on record makes it evident that the deceased was self-employed. The Constitution Bench of this Court in National Insurance Company Limited v. Pranay Sethi and others [(2017) 16 SCC 680], has considered the issue in relation to future prospects, while granting the compensation. It was held as under:

    "59.4 In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component." (Emphasis supplied)

9. In the instant case, as the deceased was aged 19 years, an additional 40% of the established income must be added while computation of the compensation. In addition, 50% of the said amount has to be deducted in lieu of his personal expenses, that he would have incurred to maintain himself as a bachelor, had he been alive.

10. Further, the High Court applied the multiplier at 15', as it took the age of the mother into consideration, and not that of the deceased. A three-Judge Bench of this Court, in Royal Sundaram Alliance Insurance Company Limited v. Mandala Yadagari Goud and others [(2019) 5 SCC 554], held that even if the deceased is a bachelor,

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