In a claim for compensation under Section 163A of the Motor Vehicles Act, 1988 by the parents of a bachelor victim, the maximum deduction towards the victim's personal and living expenses is one-third as per the Second Schedule to the Act.

Jayanta Kumar Biswas, J.

The insurance company is the appellant. It is aggrieved by an award of the Motor Accidents Claims Tribunal, Purba Medinipur dated April 19, 2006 in MACC No. 809 of 2004.

2. The mother of a 21-year old bachelor victim killed in a motor vehicle accident on April 2, 2004 filed the application claiming compensation under s. 163A of the Motor Vehicles Act, 1988. The claims tribunal granting compensation did not deduct any amount from the victim's income towards his personal and living expenses.

3. Mr. Das appearing for the insurance company has submitted that the claims tribunal ought to have deducted 50% from the victim's income towards his personal and living expenses. He has relied on New India Assurance Co. Ltd. Vs. Charlie and Another, (2005) 10 SCC 720 ; Syed Basheer Ahamed and Others Vs. Mohd. Jameel and Another, (2009) 2 SCC 225 ; and Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121.

4. Mr. Dey appearing for the claimant has defended the award saying that the law referred to by the insurance company was not in existence at the date the claims tribunal passed the award; and that the decisions relied on were given in connection with accidents which had happened before s. 163A was inserted. He is, however, unable to say what empowered the clams tribunal not to deduct one-third specified in the Second Schedule.

5. The claim was under s. 163A. hence the compensation found payable was to be assessed following the provisions of the Second Schedule to the Act. The provisions provided for deduction of one-third towards the victim's personal and living expenses. Nothing empowered the tribunal not to deduct any amount or to deduct less than one-third. Hence the award is vitiated by a patent error of law. The claims tribunal ought to have deducted one-third.

6. But, according to the insurance company, since the victim was a bachelor and his mother was the claimant, in view of the law on deduction laid down by the Supreme Court, the claims tribunal was required to deduct 50%, not one-third. Hence it is to be examined whether the Supreme Court has laid down any such law.

7. In New India Assurance Co. Ltd. Vs. Charlie and Another, (2005) 10 SCC 720 the Supreme Court said:-- "what would be the percentage of deduction for personal expenditure cannot be governed by any rigid rule or formula by universal application. It would depend upon circumstances of each case."

8. Syed Basheer Ahamed and Others Vs. Mohd. Jameel and Another, (2009) 2 SCC 225 was a fault liability claim case filed by the parents and three sisters of a 20-year old bachelor victim. The claims tribunal granting compensation deducted 50% from the victim's income towards his personal and living expenses. It was contended that the deduction should have been one-third.

9. The Supreme Court upheld the 50% deduction saying as follows:--

"17. On the question of deduction on account of personal expenses by the deceased, there is no set formula which could be applied in every case to determine as to what should be the deduction on this account. The contention that deduction on that count cannot exceed one-third on the ground that there is some statutory recognition in the Second Schedule to the Act for such deduction, is untenable. The said deduction would depend upon the facts and circumstances of each case. In the present case, no evidence was led on this point as well. In the absence of any evidence to the contrary, the practice is to deduct towards personal and living expenses of the deceased, one-third of the income in case he was married and one-half (50%) if he was a bachelor."

10. Mr. Das has heavily relied on Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121. His contention is that in a claim case arising out of the accidental death of a bachelor the general rule is to deduct 50% towards the victim's personal and living expenses. He has relied on para. 15 of the report.

11.