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2025 Supreme(Bom) 1681

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
AJIT B. KADETHANKAR, J.
Divisional Controller Maharashtra State Road Transport Corporation Division Office, At Aurangabad - Appellant
Vs.
Govind s/o Shivram Wagh - Respondent
First Appeal No.1369 of 2016 With Cross Objection No.200 of 2025
Decided On : 29-10-2025

Advocates:
Advocate Appeared:
For the Appellant :Ms. Ranjana D. Reddy, Advocate
For the Respondent:Mr. M. R. Deshmukh, Advocate

The court established that compensation must consider future income prospects, especially for students with high potential, and emphasized the need for realistic assessments of earning capacity while applying appropriate multipliers.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Compensation for death in motor accident - The deceased was a final year medical student who died in a bus accident. The Tribunal awarded Rs.54,80,000/- as compensation which was contested on grounds of income estimate and future prospects. Court highlighted the balancing act of ensuring just compensation while applying the correct multiplier based on age, determining income potential from educational qualifications and market standards. The final amount was enhanced to Rs.76,70,000/- with applicable interest. (Paras 1-6, 3.7, 5.1-6.3, orders).

(B) Future Prospects - The inclusion of economic prospects in compensation assessments is endorsed by the Court, clarifying that merit and education significantly influence earning potential for students, allowing for just compensation based on realistic expectations. (Paras 2, 5.1-5.4, 6.2).

Facts of the case:
The deceased, Ganesh Wagh, a medical student, died following an accident involving a bus. The initial compensation deemed income at Rs.35,000/- per month was contested, with claimants providing evidence to assert a higher potential income. The Tribunal applied a 50% deduction for personal expenses and incorrectly set the age at 27 instead of 24. Final compensation included future prospects.

Findings of Court:
Assessing future prospects is imperative in compensating for loss of human life, especially for young professionals. The ruling applied a multiplier based on the age of the deceased and scrutinized income prospects critically to uphold justice under the Motor Vehicles Act.

Issues: Whether the Tribunal was justified in applying reduced income, and whether future prospects should be factored into calculation.

Ratio Decidendi: The Court emphasized the need for a realistic assessment of earning potential for students, affirming that future economic prospects should be integrated into compensation models to achieve a fair outcome.

Result: Appeals dismissed, compensation revised to Rs.76,70,000/- with interest.

JUDGMENT :

AJIT B. KADETHANKAR, J.

Feeling aggrieved by the judgment and award dated 31.12.2015, passed by the learned Member, Motor Accident Claims Tribunal, Aurangabad in Motor Accident Claim Petition No.241 of 2015, the original respondent no.1/M.S.R.T.C. is in appeal under Section 173 of the MOTOR VEHICLES ACT , 1988.

So also, feeling dissatisfied with the quantum of compensation, the claimants in the claim petition are before this Court seeking enhancement in the compensation vide Cross Objection No.200 of 2025.

Since the grievance in both the proceedings is common i.e. “quantum : either excess or deficit” respectively, both the matters are heard together and decided vide this common judgment and order.

Parties are referred to as per their “factual status”for the sake of convenience.

2 . Moot points for consideration :

(i) Applicability of future prospects to deemed income;

(ii) Interest of future prospect;

(iii) Ascertaining income of a student of professional course;

(iv) Method to assess age of the deceased and appreciation of evidence to that effect.

3 . Facts in brief:

3.1 One Ganesh Wagh was proceeding on his bike on 25.02.2015 on Sillod-Aurangabad road at bout 07:00 p.m. A passenger bus owned by M.S.R.T.C. driven by respondent no.4 in the First Appeal dashed the said bike, to which biker namely Ganesh Wagh succumbed. Deceased Ganesh was a meritorious student prosecuting his final year studies in the course of M.B.B.S. at Government Medical College, Aurangabad. The claimants lodged the claim for grant of compensation under Section 166 of the MOTOR VEHICLES ACT , 1988.

3.2 Upon hearing both the parties, the learned Tribunal held that the Bus driver was responsible to cause the accident. As such, full liability of accident was imposed on the bus driver.

3.3 So far as quantum is concern, the claimants examined one Dr. Umeshkumar Shahane (CW-2) at Exhibit- 31 to prove the probable income of the deceased which he could earn soon after clearing M.B.B.S. course. Dr. Shahane had been classmate of the deceased Ganesh and was earning Rs.56,540/- per month salary as Medical Officer in ESIS Hospital. Appointment order and salary slip of Dr. Shahane was proved.

3.4 Placing reliance on the evidence tendered by Dr. Shahane, the claimants averred that income of deceased Ganesh be held atleast @ Rs.56,000/- per month.

3.5 It seems that the MSRTC opposed such argument and submitted that income of deceased Ganesh Wagh cannot be assumed so high considering the state of uncertainty in the life of a person.

3.6 Upon hearing both the parties, the learned Tribunal formed opinion that merely because Dr. Shahane was classmate of deceased Ganesh and was getting salary of Rs.56,540/- per month, it cannot be said that deceased Ganesh would also have earned the same job and same salary. Learned Member of the Tribunal opined that it would be fair and reasonable if income of the deceased could be held as Rs.35,000/- per month.

3.7 As such, holding income of the deceased @Rs.35,000/- per month, granting 50% of it towards ‘Future Prospects’ the annual income of the deceased was held @Rs.6,30,000/-. 50 % of the income was deducted towards personal expenses, as the deceased was a bachelor. Although, the Aadhaar Card and SSC/HSC certificate of the deceased Ganesh were on record showing his age as 24, the learned Tribunal held his age at 27 years referring to the Post Mortem Report and Inquest Panchnama. Hence, applying multiplier of M-17, the learned Tribunal fixed the loss of dependency @Rs.53,55,000/-. The learned Tribunal added Rs.1,00,000/- towards loss of love and affection and conventional expenses Rs.25,000/- towards funeral expenses.

As such, the final compensation arrived @Rs.54,80,000/- inclusive of compensation payable under No Fault Liability.

4 . Moot points raised by the parties :

4.1 MSRTC would object that Ld. Tribunal ought not to have added the component of ‘Future Prospects’ in the income of the deceased as his income was held on notional basis.

4.2 M

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