SUPREME COURT OF INDIA
B.R. GAVAI, C.T. RAVIKUMAR, JJ.
S. Vasanthi & Anr. - Appellants
Versus
M/s Adhiparasakthi Engg. College and Another - Respondents
Civil Appeal No. 7180 of 2022 [Arising out of SLP (C) No. 10206 of 2020]
Decided On : 11-10-2022
Motor Vehicles Act, 1988 – Section 166 – Death in motor accident – Deceased aged 23 years and doing MBA Course – Compensation of Rs.7,48,052/- alongwith 7.5% interest awarded by Tribunal, subsequently, enhanced to Rs.16,27,000/- by High Court – Deceased was a qualified engineering graduate and was pursuing an MBA degree at SRM University to further his professional capabilities – In view of specific averments made in affidavit as to employment prospects of classmates of deceased and also his young age at the time of accident, Tribunal and High Court have erred in not giving due weightage to the same – Had deceased not met with unfortunate accident, he would have surely drawn salary equivalent to that of his classmates or at least an amount near said amount – Compensation to be paid on account of death of deceased ought to be worked out by enhancing his monthly income to Rs.30,000/- – 50% of amount would have to be deducted as personal and living expenses – Insofar as the loss of consortium is concerned, amount of Rs.40,000/ will have to be awarded – Amount of compensation enhanced to Rs.29,84,000/- along with 7.5% interest. (Paras 11, 12 and 13)
Facts of the case:
Death of Bike rider in vehicular accident. Tribunal, noting that deceased was, at the time of the accident, twenty-three years of age and a student in the second year of the MBA course at SRM University, passed an award amounting to Rs.7,48,052/- as compensation with interest at the rate of 7.5% per annum from the date of the petition till the date of realization. High Court enhanced the compensation from Rs.7,48,052/ to Rs.16,27,000/-. Within that amount, the High Court also enhanced the amount of loss of dependency, loss of love and affection as well as funeral expenses, and further granted an amount of Rs.15,000/ as loss of estate.
Findings of Court:
Since no parent should have to suffer through the death of their children, much less their only child, monthly income as calculated by the High Court is inadequate.
Result : Appeal allowed.
JUDGMENT :
B.R. Gavai, J.
1. Leave granted.
2. This appeal challenges the judgment and order dated 31st January, 2020, passed by the High Court of Judicature at Madras in CMA No. 2518 of 2016.
3. The facts, in brief, giving rise to the present appeal are as under:
3.1 On 22nd May, 2010, S. Sathiyanarayan was riding on a Bajaj Avenger motorcycle, bearing registration No. TN04S6492, at GST Road, Tambaram. While he was travelling from the south to north direction by the western side of the road, a bus owned by M/s Adhiparasakthi Engineering College (respondent no. 1 herein), bearing registration No. TN21H2727, which was being driven rashly and negligently, came from the same direction and dashed against his motor cycle from the backside, thus dragging him under the wheels of the bus. S. Sathiyanarayan perished on the spot.
3.2 Thereafter, the bereaved parents of the deceased, who are the appellants herein, filed a claim petition before the Motor Accident Claims Tribunal, Poonamallee (hereinafter referred to as “the Tribunal”), under Section 166 of the Motor Vehicles Act, 1988, being M.C.O.P. No. 1201 of 2010, for grant of compensation to the tune of Rs.30,00,000/ with interest, on account of the death of their son.
3.3 The Tribunal, noting that the deceased S. Sathiyanarayan was, at the time of the accident, twenty-three years of age and a student in the second year of the MBA course at SRM University, passed an award amounting to Rs.7,48,052/ as compensation with interest at the rate of 7.5% per annum from the date of the petition till the date of realization. Pertinently, the Tribunal fixed the notional monthly income of the deceased at Rs.7,000/ per month, since he was not earning any salary at the time of the accident.
4. Aggrieved by the amount of compensation so awarded, the appellants herein carried an appeal to the High Court seeking enhancement of the compensation.
5. Noting that the notional income fixed by the Tribunal was meagre, the High Court enhanced the notional income to a sum of Rs.10,000/ per month. Thus, the High Court enhanced the compensation from Rs.7,48,052/ to Rs.16,27,000/. Within that amount, the High Court also enhanced the amount of loss of dependency, loss of love and affection as well as funeral expenses, and further granted an amount of Rs.15,000/ as loss of estate.
6. Being aggrieved thereby, the present appeal.
7. We have heard Mr. T. Harish Kumar, learned counsel appearing on behalf of the appellants and Mr. A.K. De, learned counsel appearing on behalf of respondent No. 2United India Insurance Co. Ltd.
8. Mr. T. Harish Kumar, learned counsel for the appellants, submits that both the Tribunal and the High Court have grossly erred in calculating the notional monthly income of the deceased S. Sathiyanarayan at the rate of Rs.10,000/. He submits that the High Court ought to have considered that S. Vasanthi appellant No. 1, in an affidavit filed by her before the Tribunal, had stated that two classmates of her deceased son would go on to get employment with reputed companies in India on a monthly salary of approximately Rs.40,000/. The learned counsel submits that appellant No. 1 had, in fact, produced the salary certificates of the said two classmates with her affidavit. The learned counsel therefore submits that the deceased S. Sathiyanarayan, being an engineering graduate who was pursuing an MBA degree to further his career, would have attracted wellpaying jobs had he been alive. The learned counsel therefore submits that the notional monthly income of the deceased S. Sathiyanarayan should be enhanced to Rs.42842/. The learned Counsel relies on the judgment of this Court in the case of Kurvan Ansari Alias Kurvan Ali and Another vs. Shyam Kishore Murmu and Another, (2022) 1 SCC 317, in support of his contention.
9. Per contra, learned counsel for the respondents contend that both the Tri
Death in motor accident – Quantum of compensation must encompass future prospects of victim.
The assessment of compensation for a deceased based on notional income must consider potential earnings supported by evidence of similar employed individuals.
The court's decision emphasized the importance of accurately determining the deceased's income for calculating compensation, relying on bank statements and considering fluctuations and deductions.
Calculation of compensation for loss of dependency based on the deceased's fluctuating and contractual income, and the application of a multiplier to determine the enhanced compensation.
(1) Death in motor accident – Objective of awarding compensation is to ensure “just and reasonable compensation” to victim or dependants of deceased.(2) Notional income of engineering student cannot ....
The court held that notional income for dependency calculation should reflect the actual salary established, adjusted for correct tax liability and future prospects as per constitutional and judicial....
The court recalibrated compensation for a road accident victim's heirs based on reasonable income estimation, deviating from the original Tribunal assessment.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.