The court established that compensation for loss of dependency must consider the deceased's potential income and appropriate deductions based on the number of dependents, affirming a broader interpretation of legal representatives under the Motor Vehicles Act.

ORDER

Time taken for Time taken for Time taken for

disposal of the claim disposal of the appeal disposal of the appeal

petition by MACT by the High Court in this Court

1 year 10 months 3 years 10 months 1 year 10 months

Leave Granted

2. The present appeal is directed against the judgment and order dated 19th September 2022, passed in Miscellaneous Appeal No.5231 of 2018 by the High Court of Madhya Pradesh at Gwalior, which, in turn, was preferred against the order dated 9th October 2018 in Claim Case No.680/2016 passed by Motor Accidents Claims Tribunal, Gwalior (M.P.).

3. The brief facts giving rise to this appeal are that : on 25th September 2016, the deceased, namely Dheeraj Singh Tomar, aged 24 years, was travelling in an Auto bearing registration No. MP 30-R-0582 (hereinafter referred to as the “offending vehicle”) along with other passengers. The driver of the offending vehicle was driving rashly and negligently, overturned the offending vehicle at Gohad Chauraha Road near Gautum Nagar, Bajrang Washing Centre at Gwalior, due to which the deceased died on the spot and the other passengers suffered injuries.

4. The Appellants (dependents of the deceased) filed a claim petition before the Tribunal seeking compensation of Rs.28,50,000/-, submitting therein that the deceased was earning up to Rs.35,000/- per month, by doing wholesale business of fruit selling to meet the daily expenses of the family.

5. The Tribunal by its Order dated 9th October 2018, observed that Respondent No.1 and 2 are jointly and severally liable to pay compensation as the driver, at the time of accident, was driving the vehicle without a valid and effective driving licence. The Tribunal awarded compensation to the tune of Rs.9,77,200/- along with simple interest @ 7% p.a. to appellant No.1 to 3 herein, by taking the notional income of the deceased as Rs.4,500/- per month and fixing the future prospects at 40 per cent. A deduction of 1/3rd amount for personal expenses was made, and Appellant Nos.4 and 5, i.e., his father and younger sister were not considered as dependents of the deceased.

6. Being aggrieved by the amount of compensation awarded, the claimant-appellants filed an appeal before the High Court. The main ground of challenge was that the Tribunal had incorrectly determined the monthly income of the deceased at Rs.4,500/- per month, whereas it should have been Rs.35,000/- per month; and also, that the Tribunal had deducted 1/3rd amount from the annual income of the deceased towards personal expenses, whereas since there are five claimant-appellants, the deduction for personal expenses ought to have been by 1/4th.

7. The High Court, vide its impugned judgment, affirmed the findings of the Tribunal in respect of the amount of compensation awarded and disposed of the same by holding that the insurance company to pay the amount of compensation to the claimants and, thereafter, recover the same from the driver and owner of the offending vehicle as they are jointly and severally liable to pay the compensation in accordance with the decision of this Court in National Insurance Co. Ltd. v. Swaran Singh & Ors. [(2004) 3 SCC 297].

8. Yet dissatisfied, the claimant-appellants are now before us. The points raised by the appellants are that the High Court incorrectly assessed the monthly income of the deceased at Rs.4,500/-, and the appropriate multiplier was also not applied.

9. We have heard the learned counsel for the parties.

10. We are unable to agree with the view taken by the Tribunal and the High Court on the monthly salary of the deceased. It is borne from the record that he was doing wholesale business of selling fruits. It is true that in the absence of any material on record, the claimantappellants were not able to prove the income of the deceased. However, it is imperative to note that the accident took away such a potential earning member of the family.

11. For this purpose, we advert to the Notifica