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2003 Supreme(Kar) 42

Karnataka High Court
NORTH WEST KARNATAKA ROAD TRANSPORT corporation, CENTRAL OFFICE, HUBLI - Appellant
Versus
RAFIQ MOULASAB BAGAWAN - Respondent
Decided On : 01-14-03
M.F.A. : 1508 of 2001

Advocates:
D.VIJAYA KUMAR, Gangadhar Sangolli

The multiplier method is a logically sound and well-established method for ensuring just compensation in motor accident claims, especially for assessing loss of dependency.

Headnote:

Compensation - Motor Accident Claims Tribunal - Motor Vehicles Act, 1988 - S. B. MAJAGE, J.

Fact of the Case:

The appellant challenges the exorbitant compensation awarded to the parents of a deceased 5-year-old child in a bus accident. The court considers various precedents and legal provisions to determine the appropriate compensation.

Finding of the Court:

The court finds that the compensation awarded is not based on substantive legal evidence and requires interference. It analyzes previous cases and legal provisions to establish a reasonable compensation amount.

Issues: The main issue is whether the compensation awarded requires interference. The court also considers the method for assessing compensation for the death of a child aged 5 years.

Ratio Decidendi: The court applies the multiplier method to assess just and reasonable compensation for the parents of the deceased child. It considers the risks and uncertainties associated with the future earning capacity of a young child and adjusts the compensation amount accordingly.

Final Decision: The court reduces the compensation amount to Rs. 1,00,000/- based on the application of the multiplier method and the assessment of notional income.

S. B. MAJAGE, J.

( 1 ) THIS appeal by the appellant, who was respondent in MVC No. 1043 of 1999 on the file of the 1st Additional Civil Judge (Senior Division) and additional Motor Accident Claims Tribunal, Belgaum, challenging the order dated 22-12-2000, by which the respondents, who are parents of deceased 5 years' old child, are awarded compensation of Rs. 1,50,000/- since, according to the appellant-Corporation, the compensation awarded is exorbitant and requires to be reduced.

( 2 ) HEARD argument. It is submitted for the appellant-Corporation that the compensation awarded is exorbitant and not based on any substantive legal evidence or basis and as such, requires to be interfered with. On the other hand, learned Counsel for respondents-claimants supported the award. Perused the records carefully.

( 3 ) THE only point for consideration is: "whether the compensation awarded requires interference?"

( 4 ) IN the present matter, the deceased child was aged 5 years at the time of her death in bus accident on 24-4-1999. Though pleaded that she was going to school, the claimants failed to adduce any satisfactory evidence to hold that the deceased was studying in any school. The profession of the father of the deceased is, selling fruits and he is aged about 32 years whereas, the profession of the mother of the deceased is household but her age is not available. The deceased and the claimants belong to Panuharpur in Solapur District. The Tribunal has awarded compensation of Rs. 1,50,000/ -. The correctness of amount of said compensation is challenged.

( 5 ) IT may be noted that in the case of K. Murugesh and Others v M. Palappa and Others, the Supreme Court has awarded compensation of rs. 1 lakh, where the deceased was a boy of 18 years student. However, in the case of Shanti Bai and Others v Charan Singh and Others, the supreme Court has awarded compensation of Rs. 11/2 lakhs in the case of death of 18 years boy. Of course, this Court had reduced the compensation to Rs. 50,000/- from Rs. 1 lakh in the case of death of a boy of 17 years' old student in the case of Bantu and Others v Annappa and others. However, a Division Bench of this Court in the case of Chinna dorai and Another v The Managing Director, Karnataka State Road transport Corporation, Bangalore, has enhanced the compensation to rs. 1,37,500/ -. keeping intact the amount of Rs. 70,000/- awarded towards expenses wherein death of 14 years boy had taken place in accident. At the same time, it may be noted that the Supreme Court enhanced compensation to Rs. 50,000/- from Rs. 33,000/- in the case of death of 20 years boy in the case of Jamnabai and Others v Deepak automobiles and Others. But, this Court in the case of Karnataka State road Transport Corporation, Bangalore v Dharmanna and Another, has awarded compensation of Rs. 43,000/- where death of a 11 years old girl doing coolie had taken place in accident. At the same time, it may be noted that in the case of S. P. Narayana Swamy and Another v Kumaraiya Thevar and Others, the High Court of Madras has enhanced compensation to Rs. 1 lakh from Rs. 15,000/- in the case of death of a 14 years bright student studying in 8th standard wherein the parents had lost their only son. However, in the case of Gouranga Katual v Govinda mohapatra and Others, the High Court of Orissa awarded compensation of Rs. 15,000/- only in the case of death of a girl aged 13 years. Similarly, Allahabad High Court awarded compensation of Rs. 30,150/- only in the case of Kamta Prasad and Another v Jaggan and Company and Another, where death of a minor girl had taken place. So also, in the case of Jahina Akhtar Hasmi and Others v Guljar Singh and Others, Madhya Pradesh High Court enhanced compensation from Rs. 25,000/- to Rs. 35,000/- in the case of death of 12 years' minor. Thus, in none of the said cases, where the deceased was above 10 years old, uniformity or any method is noticed in awarding compensation.

( 6 ) HOWEVER, the Tribunal relied on the











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