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2022 Supreme(SC) 1780

SUPREME COURT OF INDIA
S. Abdul Nazeer, V. Ramasubramanian, JJ.
Jyoti & Ors. – Appellants
Versus
National Insurance Company Limited & Ors. – Respondents
Civil Appeal No(s). 6209-10 of 2022 (Arising Out of SLP(C) No(s). 8283-8284 of 2018)
Decided On : 06-09-2022

Advocates Appeared:
Mr. Syed Hasan Isfahani, Advocate, Mr. Vikas Yadav, Advocate, Md. Hasan, Advocate, Mr. Anup Jain, Advocate, for the Appellant; Mr. Rahul Jain, Advocate, Mr. Hetu Arora Sethi, Advocate, Ms. Ritu Bhardwaj, Advocate, Mr. Karan Giri, Advocate, Mr. Avdesh Kumar Dubey, Advocate, Mr. Sachin Mittal, Advocate, for the Respondent.

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 multiplier, and deductions towards personal expenses.

Headnote:

compensation - motor vehicle accident - National Insurance Company Limited v. Pranay Sethi and Others - (2017) 16 SCC 680 - The court discussed the assessment of loss of dependency, future prospects, appropriate multiplier, and deductions towards personal expenses in the computation of compensation.

Fact of the Case:

The case involved an appeal against the reduction of compensation awarded to the claimants in a motor vehicle accident case. The deceased was earning Rs.12,000 per month, and the tribunal initially awarded a total compensation of Rs.32,40,600.

Finding of the Court:

The court found that the High Court was not justified in reducing the deceased's monthly income and that the claimants were entitled to 40% of the income of the deceased towards loss of future prospects. The court recomputed the compensation to Rs.31,93,000 and directed the respondent-Insurance Company to deposit the balance amount of Rs.9,43,000 with interest at 9% per annum.

Issues: The main issue was the computation of compensation, including the assessment of loss of dependency, future prospects, appropriate multiplier, and deductions towards personal expenses.

Ratio Decidendi: The court held that the claimants were entitled to 40% of the income of the deceased towards loss of future prospects and that the appropriate multiplier for the deceased's age should be 17'. The court also emphasized the deductions towards personal expenses in the computation of compensation.

Final Decision: The appeals were partly allowed, and the respondent-Insurance Company was directed to deposit the balance amount of Rs.9,43,000 with interest at 9% per annum.

ORDER

1. Leave granted.

2. These appeals are directed against the judgment and order dated 28.07.2017 passed by the High Court of Delhi in MACT Appeal No.632 of 2016 and MACT Appeal No.236 of 2016 whereby the High Court has reduced the compensation payable to the appellants/claimants from Rs.32,40,600/- to Rs.22,50,000/-.

3. The first appellant is the wife of one Vinod Yadav who died in a motor vehicle accident which occurred on 27.01.2013. The second appellant is the minor daughter and appellants No.3 and 4 are mother and father respectively of the deceased Vinod Yadav.

4. The Tribunal, on appreciation of the materials on record awarded a total compensation of Rs.32,40,600/-. Vinod Yadav was aged 30 years at the time of the accident. The Tribunal assessed his income at the rate of Rs.12,000/- per month. One fourth of the income was deduced towards his personal expenses and multiplier 16' was applied for assessment of loss of dependency.

5. The claimants filed the appeal before the High Court seeking enhancement of compensation. The High Court fixed his income at Rs.9386/- per month. The High Court did not award any amount towards loss of future prospects. As noticed above, the High Court awarded a total compensation of Rs.22,50,000/-

6. We have heard learned counsel for the parties.

7. The claimants led cogent evidence in order to establish that the deceased was earning Rs.12,000/- per month. In our view, the High Court was not justified in reducing the said monthly income of the deceased.

8. The claimants are also entitled to 40% of the income of the deceased towards loss of future prospects in view of the judgment in National Insurance Company Limited v. Pranay Sethi and Others - (2017) 16 SCC 680. The Courts below have applied multiplier 16'. Since the age of the deceased was 30 years at the time of his death, the appropriate multiplier is 17'. One-fourth of the income of the deceased requires to be deducted towards his personal expenses. In view of the above, the compensation payable to the claimants is recomputed as under:

Loss of dependency

Rs.12,000/- x 12 x 17 minus one fourth i.e. Rs.6,12,000/- which comes to Rs.18,36,000/-

40% of the Annual income requires to be added towards future prospects which comes to

Rs.7,34,400/-

Total loss of dependency

Rs.18,36,000/- + Rs.7,34,400/- = Rs.25,70,400/-

9. The appellants are entitled for the following compensation on other heads:

1.

Loss of consortium 44000x4

Rs.1,76,000/-

2.

Funeral Expenses

Rs. 16,500/-

3.

Loss of Estate

Rs. 16,500/-

4.

Medical Expenses

Rs.4,13,600/-

10. Thus, the total compensation payable to the claimants is Rs.31,93,000/-. The High Court has awarded a total compensation of Rs.22,50,000/-. Therefore, the balance of the amount payable to the appellants/claimants is Rs.9,43,000/-.

11. We direct the respondent-Insurance Company to deposit the said sum of Rs.9,43,000/- with interest at 9% per annum from the date of the claim petition till the date of deposit before the Tribunal within a period of four weeks from today.

12. Accordingly, the appeals are partly allowed. Parties are directed to bear their respective costs.

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