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SUPREME COURT OF INDIA
A.S. BOPANNA, M.M. SUNDRESH, JJ.
Bishnupriya Panda – Appellant
Versus
Basanti Manjari Mohanty & Anr. – Respondents
Civil Appeal No. 4911 of 2023 (arising out of SLP(C) No 16447 of 2022)
Decided On : 04-08-2023
ORDER
1. Leave granted.
2. Heard the learned counsel for the appellant and perused the appeal papers.
3. Respondents, though served, have not entered appearance and have their say in the appeal.
4. In respect of the accident which had occurred on 27.07.2013, the Motor Accidents Claims Tribunal (for short ‘MACT’) through its award dated 06.07.2019, had awarded a sum of Rs.68,74,000/- with interest at 7% per annum as compensation. Before the High Court, the appeals filed by both the appellant as also by the respondent-Insurance Company was dismissed. It is in that light, the appellant is before this Court seeking further enhancement of the compensation.
5. The MACT, having taken note that the deceased was a student of 4th year of MBBS and was aged about 21 years at the time of the accident which had occurred on 27.07.2013, had taken the notional income of the deceased at Rs.50,000/- per month and added 40% of the same towards future prospects, which adds up to the sum of Rs.70,000/-. 50% of Rs.70,000/- i.e. Rs.35,000/- is deducted towards self expenses and has thereafter awarded the compensation.
6. In so far as the notional income reckoned and the parameters adopted to reach the same, we are of the opinion that the MACT was justified. However, if the very same parameters are taken note, the actual amount of compensation ought to have been a sum of Rs. 75,60,000/- towards loss of dependency and further a sum of Rs.70,000/- towards conventional heads. Hence, the total compensation amount ought to have been Rs.76,30,000/-, which we accordingly correct and rectify. The award passed by the MACT is accordingly modified/ rectified.
7. Hence, we hold that the appellant is entitled to the actual compensation of Rs.76,30,000/- with interest at 7% per annum. The enhanced amount of compensation shall be deposited by the Insurance Company before MACT within six weeks from the date of receipt of a copy of this judgment, which shall thereupon be released to the appellant/claimant herein.
8. With the above modification, the appeal stands disposed of along with the pending application(s), if any.
The court re-evaluated compensation calculations under motor accident claims, determining enhanced compensation based on justified parameters.
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 court's decision was influenced by the law laid down by the Hon'ble Supreme Court in the case of Syed Sadiq Vs. United India Insurance Company, reported in 2014 (1) TNMAC 459 (SC) regarding the d....
The main legal point established in the judgment is the determination of enhanced compensation based on the claimant's income, future prospects, disability percentages, and additional amounts for los....
The court applied the principle of reckoning income on a notional basis and considered future prospects and personal expenses in calculating compensation.
In compensation cases, notional income and future prospects must be adequately considered, ensuring just compensation that reflects loss and dependency.
Court may enhance compensation in motor accident claims while considering just and reasonable criteria for notional income and other losses.
The main legal principle established is the determination of appropriate income and future prospects in assessing loss of dependency in motor accident compensation cases.
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