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2022 Supreme(SC) 1651
SUPREME COURT OF INDIA
Hemant Gupta, Sudhanshu Dhulia, JJ.
Narayan & Ors. – Appellants
Versus
Manager Royal Sundaram Alliance Insurance Co. Limited & Anr. – Respondents
Civil Appeal No. 6855 of 2022 (Arising Out of SLP (C) No. 1797 of 2018)
Decided On : 22-09-2022
Mrs. Rajani K. Prasad, Advocate, Mr B. Krishna Prasad, Advocate, Ms. N. Annapoorani, Advocate, For the Appellant / Mr. G. Balaji, Advocate, For the Respondent.
The central legal point established in the judgment is the application of the principle of granting future prospects to claimants in motor accident claims, as established in the judgment of National Insurance Company v. Pranay Sethi & Ors.
Headnote:
Compensation - Motor Accident Claims - National Insurance Company v. Pranay Sethi & Ors. - 2017 16 SCC 680
Fact of the Case:
The appeal arises from a motor accident claim where the deceased was fatally injured in an accident caused by the negligent driving of a Heavy Goods Vehicle. The Tribunal and the High Court awarded compensation, which was subsequently appealed.
Finding of the Court:
The Court found that the Tribunal and the High Court erred in not granting future prospects to the claimants as per the judgment of National Insurance Company v. Pranay Sethi & Ors. The Court allowed the appeal and granted future prospects at the rate of 40% to the claimants, modifying the total compensation payable to the appellants to Rs 37,80,000/- at 7.5% interest.
Issues: The main issue was the calculation of compensation for the claimants, including the consideration of future prospects, income, and multiplier in the context of a fatal motor accident.
Ratio Decidendi: The Court's decision was influenced by the judgment of National Insurance Company v. Pranay Sethi & Ors., which established the principle of granting future prospects to claimants in motor accident claims. The Court applied this principle to modify the compensation awarded to the claimants in the present case.
Final Decision: The appeal was allowed, and the total compensation payable to the appellants was modified to Rs 37,80,000/- at 7.5% interest.
ORDER
1. This appeal is of the claimants, which arises out of the Impugned Judgment dated 05.04.2017 by the High Court of Karnataka at Kalaburagi Bench in an appeal against the order of Motor Accident Claims Tribunal (for short, the "Tribunal") dated 28.06.2014.
2. The accident occurred on 30.03.2010 when the deceased Kiran was riding on a two-wheeler from Sholapur to Pandharpur, Maharashtra. During the journey an accident occurred when a Heavy Goods Vehicle crashed into the two-wheeler and caused fatal injuries to Kiran, who died on the spot. The claim petition was filed on his behalf by his parents and younger brother. The Tribunal was of the opinion that the accident did occur due to the rash and negligent driving by driver of the Heavy Goods Vehicle. The vehicle was insured with respondent no. 2 insurance company and the liability was fixed on the insurance company by the Tribunal. The award was made as per the following table :-
| Head | Details/Amount |
| Occupation | T.V. News Reporter |
| Income | Rs. 10,000/- |
| Age | 25 Years |
| Multiplier | 15 |
| Deduction on account of personal expenses | 50% (1/2) |
| Loss of Consortium | Rs. 30,000/- |
| Loss of Estate | Rs. 50,000/- |
| Funeral Expenses | Rs. 25,000/- |
| Rate of Interest awarded | 6% |
| TOTAL AMOUNT AWARDED | Rs. 10,05,000/- |
3. The matter was taken in appeal to the High Court, which after considering the submissions of the insurance company awarded them increased compensation on the opinion that the income of the deceased should be taken as Rs. 15,000/- and the multiplier should have been eighteen instead of fifteen. The High Court further increased the compensation granted under the head of loss of consortium to Rs. 75,000/-. Therefore, the High Court awarded the amount of Rs. 17,70,000/- with the amount to be given at the 6% interest. Though, we find that the rate of interest awarded should have been fixed at 7.5% and hence the rate of interest stands modified.
4. However, we think that the Tribunal and the High Court have erred in not granting future prospects to the claimants in terms of the judgement of National Insurance Company v. Pranay Sethi & Ors., (2017) 16 SCC 680 Accordingly, the appeal is allowed and the future prospects at the rate of 40% is granted to the claimants. The total compensation payable to the appellants would be Rs 37,80,000/- at 7.5% interest.
