SUPREME COURT OF INDIA
A.S. Bopanna, Pamidighantam Sri Narasimha, JJ.
Girijakumari & Ors. – Appellants
Versus
Lakshmi Sreeni & Ors. – Respondents
Civil Appeal No. 6801 of 2022 (Arising Out of SLP(C) No. 741 of 2019) Diary No. 46284 of 2018
Decided On : 20-09-2022
Compensation - Motor Accidents Claims - Future Prospects - 30% of salary to be considered for loss of dependency - 30% of the salary to be granted for future prospects - Rs. 23,46,956 compensation awarded
Fact of the Case:
The appellants sought enhancement of compensation for the death of the claimant's husband in a motor accident. The Motor Accidents Claims Tribunal rejected the claim, but the High Court awarded Rs. 15,84,656 as compensation. The appellants appealed for further enhancement.
Finding of the Court:
The court found that the High Court was not justified in not considering the future prospects of the deceased and awarded Rs. 23,46,956 as compensation, taking into account 30% of the deceased's salary for loss of dependency.
Issues: The main issue was whether the High Court was justified in not considering the future prospects of the deceased in awarding compensation.
Ratio Decidendi: The court held that future prospects of the deceased should be considered for determining loss of dependency, and 30% of the deceased's salary was granted for future prospects, resulting in the total compensation of Rs. 23,46,956.
Final Decision: The appeal was allowed, and the appellants were awarded Rs. 23,46,956 as compensation, to be deposited by the Insurance Company before the Motor Accidents Claims Tribunal.
ORDER
1. Delay condoned.
2. Leave granted.
3. The appellants are before this Court seeking enhancement of the compensation as against the sum awarded by the High Court.
4. In respect of the accident, which occurred on 04th December, 2011, the compensation claimed was in view of the death of the husband of the claimant no.1, who was working as a driver in the Municipal Corporation as on date of death.
5. The Motor Accidents Claims Tribunal ('MACT' for short), having considered, through the Order dated 28.01.2015, held that the deceased was solely rash and negligent in causing the accident. Hence, had rejected the claim petition filed by the appellants seeking compensation.
6. Aggrieved with the said order, the appellants were before the High Court.
7. The High Court, having considered the matter, had awarded Rs. 15,84,656/- (Rupees Fifteen Lakhs Eighty Four Thousand Six Hundred and Fifty Six Only) as compensation to the appellants.
8. Considering the fact that the issue relating to the accident, the age of the deceased and also the salary which was taken at Rs. 16,212/- (Rupees Sixteen Thousand Two Hundred and Twelve Only) per month for determining loss of dependency, are not in dispute, the said aspects need not be adverted to herein.
9. The only aspect which requires consideration is, as to whether the High Court was justified in not taking into consideration the future prospects of the deceased to award the amount towards loss of the dependency.
10. In that regard, the claim, as put forth before the High Court was that the deceased was working as a driver in the Municipal Corporation. In that circumstance, considering that the employment of the deceased would have secured a steady income to his family with future progression, the future prospects are required to be granted at 30% of the salary which was reckoned by the High Court. If the same is done, it would amount to a sum of Rs. 21,076/- (Rupees Twenty One Thousand and Seventy Six Only) per month. One-third of the same is deducted towards personal expenses of the deceased and if the multiplier of 13' is applied to the remainder, the loss of dependency would work out to a sum of Rs. 21,91,956/-(Rupees Twenty One Lakhs Ninety One Thousand Nine Hundred and Fifty Six Only). The amount of Rs. 1,55,000/- (Rupees One Lakh Fifty Five Thousand Only) awarded under the conventional heads by the High Court is maintained.
11. In that view, the claimants are entitled to the total compensation of Rs. 23,46,956/- (Rupees Twenty Three Lakhs Forty Six Thousand Nine Hundred and Fifty Six Only) with interest at 9% per annum as against the sum of Rs. 15,84,656/-(Rupees Fifteen Lakhs Eighty Four Thousand Six Hundred and Fifty Six Only) awarded by the High Court.
12. The difference of the amount, after deducting the amount already paid, shall be deposited by the Insurance Company before the MACT within a period of six weeks from the date of the receipt of a copy of this order.
13. On deposit, the said amount shall be disbursed to the appellants by apportioning it at 50% to the first appellant and 25% each to the second and the third appellants.
14. The appeal is allowed in the aforestated terms.
15. Pending application(s), if any, shall stand disposed of.
Death in motor accident – While awarding loss of dependency, future prospects and rise in income ought to have been considered.
The main legal principle established is the determination of appropriate income and future prospects in assessing loss of dependency in motor accident compensation cases.
The main legal point established in the judgment is the calculation of compensation for loss of dependency, including the consideration of actual income, future prospects, and personal expenses.
The court determined enhanced compensation based on appropriate notional income, acknowledging future prospects and deductions for self-expense, resulting in total compensation of Rs.15,69,400.
The main legal point established in the judgment is that the reduction of compensation by the High Court was not justified, and the future prospects percentage for loss of dependency was modified to ....
The main legal point established in the judgment is the proper calculation of compensation under Section 166 of the Motor Vehicles Act, 1988, including the consideration of future prospects, personal....
The main legal point established in the judgment is the assessment of compensation in motor vehicle accident cases, including the factors of loss of dependency, future prospects, appropriate multipli....
The court emphasized the importance of considering the deceased's future prospects and other conventional heads in the calculation of compensation under the Motor Vehicles Act, 1988.
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