RAMESH MADHAV BAPAT, J.

( 1 ) THIS appeal is filed by the Oriental insurance Co. Ltd. , aggrieved by the award passed by the Motor Accidents Claims tribunal-cum-District Judge, Kurnool in o. P. No. 946 of 1999 awarding compensation of Rs. 18,01,608. 00 with interest at the rate of 9% p. a. from the date of petition till the date of payment.

( 2 ) THE main contention raised by the learned Standing Counsel Mr. Kota Subba rao appearing on behalf of the appellant that the compensation paid to the claimants in the aforesaid O. P. is exorbitant. Moreover, the multiplier used by the Tribunal is totally wrong. The multiplier used by the Tribunal is 13 as against 10. 45. As per the manner in which the accident was concerned, it is not disputed by the learned Standing Counsel for the appellant. Even the age of the deceased as 45 is not disputed by the learned standing Counsel for the appellant. While opposing the arguments of the learned standing Counsel for the appellant, the learned counsel for the respondents/ claimants submitted at the Bar that the compensation awarded by the tribunal is correct. The learned counsel further submitted that the higher multiplier was used by the tribunal considering the prospects which the deceased could have got it if he would not have died in the motor accident. Therefore, it is submitted by the learned counsel for the respondents that the appeal filed by the Insurance Company be dismissed.

( 3 ) THE learned counsel for the respondents relied upon a ruling reported in jyothi Kaul and others v. State of M. P. and another1 in which their Lordships were pleased to hold that the principle of multiplier depends upon facts and circumstances of each case. Deceased was the Executive Engineer in Irrigation department, who was aged about 50 years at the time of his death and in good health. Considering his chances of promotion, his increments and what he would have received after retirement, compensation is computed. Predecessor of deceased lived for more than 80 years. The multiplier of 13 applied by the Tribunal based on sound reasoning.

( 4 ) THE learned counsel for the respondents further submitted at the Bar that the deduction of 1/3rd income towards personal expenses of the deceased is always not advisable. It can be even less than 1/3rd. We are not in agreement with the submission made by the learned counsel for the respondents. It has been the practice in all the reported cases that 1/3rd income is to be deducted for the expenses of the deceased while computing the compensation payable to the legal representatives of the deceased. The learned counsel for the respondents further submitted that the multiplier used by the tribunal is correct. In order to substantiate his contention, he relied upon a ruling reported in A. P. S. R. T. C. v. Patan Shamshad begum and others2 in which the Division bench of this Court was pleased to hold that the Claims Tribunal has power to apply the reasonable and relevant multiplier in determining compensation under the head "loss of dependency" unlike in mathematical calculations depending upon the facts of each case. We agree with the principle laid down by the Division Bench of this Court. But the learned Standing Counsel appearing for the appellant could not place any material on record, which would weigh in our minds to apply the higher multiplier than the table of multiplier given in Bhagwan das v. Mohd. Arif a case reported in 1987 (2) alt 137. The learned counsel further relied upon a ruling reported in U. P. State Road transport Corporation and others v. Trilok chandra and others3 in which their Lordships held that Second Schedule suffers from several defects, courts and tribunals cannot go by the ready reckoner. It can only be used as a guide. Therefore, the learned counsel submitted that the Second Schedule can be used in finding the appropriate multiplier.

( 5 ) THE learned counsel further relied upon a ruling reported in A. P. S. R. T. C. v. Salvaraj Vijaya and

Click Here to Read the rest of this document