IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT GOA
M.S. Sonak, J.
Siddhu Babu Varak & Ors. – Appellants
Versus
Navnath K. Bombale & Ors. – Respondents
First Appeal No. 23 of 2017
Decided On : 11-08-2022
Compensation - Motor Accident Claims Tribunal - The court allowed the appeal and directed the insurance company to deposit enhanced compensation of ?4,43,000/-, together with interest at the rate of 8% per annum from the date of presentation of the application for compensation, in the court within six weeks from the date of the judgment.
Fact of the Case:
The challenge in this appeal is to the judgment and award made by the Motor Accident Claims Tribunal, Mapusa in Claim Petition No. 5/2011. The appellants sought an addition towards future prospects and award consortium in respect of each of the dependants.
Finding of the Court:
The court found that the Tribunal had failed to make an addition towards future prospects and award consortium in respect of each of the dependants. The court allowed the appeal and directed the insurance company to deposit enhanced compensation of ?4,43,000/-, together with interest at the rate of 8% per annum from the date of presentation of the application for compensation, in the court within six weeks from the date of the judgment.
Issues: The issues involved the computation of compensation by the Tribunal, including the addition towards future prospects and award consortium in respect of each of the dependants.
Ratio Decidendi: The court relied on the law in National Insurance Company Limited vs. Pranay Sethi & ors., (2017) 16 SCC 680 and Sarla Verma (Smt.) and ors. vs. Delhi Transport Corporation and anr., (2009) 6 SCC 121 to determine the correct multiplier and make necessary additions to the deceased's annual income for future prospects.
Final Decision: The appeal was allowed, and the compensation amount was determined at ? 14,33,000/- in place of ?9,90,000/-. The insurance company was directed to deposit the enhanced compensation within six weeks from the date of the judgment.
JUDGMENT
1. Heard Mr. Salil Saudagar for the Appellants and Ms. Christabel Afonso for Respondent No.3-Insurance Company.
2. The challenge in this appeal is to the judgment and award dated 23rd May 2012 made by the Motor Accident Claims Tribunal, Mapusa (Tribunal) in Claim Petition No. 5/2011.
3. Mr. Saudagar submits that the Tribunal has failed to make an addition towards future prospects and award consortium in respect of each of the dependants. He hands in a chart in terms of which the just compensation would work out to ? 14,33,000/- and not ?9,90,000/-, as awarded by the Tribunal.
4. Ms. Afonso submits that the Tribunal has awarded excess compensation towards loss of estate and funeral expenses. She submits that otherwise, there is no error in the computation of the compensation by the Tribunal.
5. The records show that the insurance company has accepted the impugned award and even paid the compensation in terms of the same. Thus, there can be no serious dispute about the deceased person's annual income and the age.
6. The Tribunal has correctly determined the deceased's annual income at ?1,26,000/-. However, the Tribunal has failed to make an addition of 40% towards future prospects consistent with the law in National Insurance Company Limited vs. Pranay Sethi & ors., (2017) 16 SCC 680 With this addition, the deceased's annual income will have to be taken at ?1,76,400/-. There is no dispute that deduction of 50% is called for and thus, the annual dependency would come to ?88,200/-.
7. In terms of Pranay Sethi (supra) and Sarla Verma (Smt.) and ors. vs. Delhi Transport Corporation and anr., (2009) 6 SCC 121 the correct multiplier in this case is 15, considering the age of the deceased at the time of the accident. The compensation towards dependency would, therefore, come to ?13,23,000/-.
8. To the above amount, ?15,000/- will have to be added towards loss of estate and another ?15,000/- towards funeral expenses. The Tribunal had awarded compensation of ?20,000/- and ?25,000/- respectively under these heads. These amounts will have to be proportionately scaled down.
9. Further, towards consortium, the original appellants would be entitled to ?40,000/- each. Thus, the compensation of ?80,000/- is due towards consortium.
10. Based on the above, just compensation in this case will have to be computed at ?14,33,000/- in place of ?9,90,000/-. There is no case made out for varying the interest awarded by the Tribunal.
11. Thus, this appeal is allowed and the compensation amount is to be determined at ? 14,33,000/- in place of ?9,90,000/-.
12. The Respondents, including in particular, Respondent No.3-Insurance Company is now directed to deposit the enhanced compensation of ?4,43,000/-, together with interest at the rate of 8% per annum from the date of presentation of the application for compensation, in this Court within six weeks from today. The Insurance Company must give intimation to the learned Counsel for the Appellants before such deposit is made.
13. The original claimants are the parents of Appellant No.1(a)-daughter and appellants No.1(b) and 1(c)-daughter/son- in-law.
14. Mr. Saudagar states that the Appellants left behind no other legal representative and the statement to this effect on oath has been made in the application for bringing on record the said legal representatives. In any case, the Appellants will have to indemnify the Insurance Company in case any further legal representatives turn up to claim compensation. If any legal representative turns up, then, it will be for the Appellants to share this compensation with them.
15. Accordingly, the Appellant No.1(a) will be entitled to 50% of the compensation amount and Appellant No.1(b) and 1(c) will be entitled to 25% each.
16. After the compensation amount is deposited, the Appellants to furnish identity documents and bank details so that the Registry can transfer the compensation amount in the above proportion directly in their bank accounts.
17. The appeal is disposed of in th
National Insurance Company Limited Vs. Pranay Sethi & ors.
Pranay Sethi (supra) and Sarla Verma (Smt.) and ors. Vs. Delhi Transport Corporation and anr.
AI
The court established that compensation for loss of dependency must consider minimum wages, future prospects, and appropriate multipliers, ensuring just compensation for claimants.
There is every requirement to award future prospects. As per the said decision, having regard to the age of the deceased as 25 years as on the date of accident and as he was self-employed, 40% of the....
The main legal point established in the judgment is the assessment and modification of compensation under various heads in accordance with legal precedents and established income of the deceased.
The main legal point established in the judgment is the determination of compensation and interest, and the allocation of compensation among the claimants based on the principles established in relev....
In fatal motor accident claims, the Court holds that notional income must be applied to determine dependency using a multiplier, and that all immediate family members, including siblings, are entitle....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.