The main legal point established in the judgment is the assessment of compensation in motor accident claims, considering factors such as the deceased's potential income, performance in studies, and future job prospects, as well as addressing the divergence of opinions in previous judgments on the calculation of future prospects and the selection of the multiplier.

G.P. Mittal, J.

1. These two appeals arise out of a judgment dated 08.10.2013 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby a compensation of Rs.19,50,000/- was awarded to the parents of the deceased Aditya who had lost his life in a motor vehicular accident which occurred on 19.06.2011 at 10:40 a.m. near Village Bhatipur, Luxor Road, Haridwar, Uttrakhand.

2. MAC APP.189/2014 is preferred by the HDFC Ergo General Insurance Company Limited (the Insurance Company), the insurer of the offending vehicle on the plea that the compensation awarded is exorbitant and excessive whereas MAC APP.640/2014 has been filed by the parents of the deceased Aditya (the Claimants) for enhancement of compensation.

3. The Appellant Insurance Company hereinafter shall be referred to as the Insurance Company, whereas the Appellants in MAC APP.640/2014 shall be referred to as the Claimants.

4. The question of negligence is not disputed by the learned counsel for the Insurance Company in MAC APP.189/2014.

5. Deceased Aditya was pursuing B.Tech. 3rd year from Echelon Institute of Technology, Faridabad, affiliated to Maharshi Dayanand University, Rohtak. The Claims Tribunal while referring to the judgment in B. Ramulamma & Ors. v. Venkatesh Bus Union & Anr. 2011 ACJ 1702 (AP High Court), assumed the minimum income of the deceased as Rs.25,000/- per month, deducted 2500/- towards liability of the income tax, deducted 50% towards personal and living expenses and applied a multiplier of 14 as per the age of the deceased’s mother (41 years) and computed the loss of dependency as Rs.18,90,000/-. The Claims Tribunal further added a sum of Rs.25,000/- towards loss of love and affection and funeral expenses and Rs.10,000/- towards loss of estate.

6. It is urged on behalf of the Insurance Company that the assumption of income of Rs.25,000/- per month was on the higher side, particularly in view of the fact that deceased Aditya has not been able to clear all the subjects even in the first semester and the second semester. It is contended that the Claims Tribunal ought to have taken the minimum wages of a matriculate to compute the loss of dependency.

7. On the other hand while arguing that the compensation awarded was too meagre and low, the following contentions are raised on behalf of the Claimants.

(i) Aditya was a student of B.Tech., in due course he was to get a settled job with good future prospects. Addition 50% towards future prospects should have been made. Reliance is placed on Rajesh & Ors. v. Rajbir Singh & Ors., (2013) 9 SCC 54 and V. Mekala v. M. Malathi & Anr., (2014) 11 SCC 178.

(ii) Since deceased Aditya was aged 20 years of age, the Claims Tribunal ought to have adopted a multiplier of 18 instead of 14 on the basis of the age of the mother of the deceased. Reliance is placed on Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121; Reshma Kumari & Ors. v. Madan Mohan & Anr., (2013) 9 SCC 65; and

(iii) The compensation of Rs.25,000/- awarded towards loss of love and affection on the lower side.

FUTURE PROSPECTS

8. It is no gainsaying that in appropriate cases some addition towards future prospects must be made in case of death or injury of a person pursuing a professional course. At the same time, it cannot be laid down as a uniform principle that every person pursuing professional course will have a bright future. There may be a student pursuing engineering from the reputed engineering colleges like Indian Institute of Technology (IIT), Regional Engineering College or any other reputed college. At the same time, a number of engineering Colleges have mushroomed where an engineering graduate may find it difficult to secure a job of an engineer. In the instant case, deceased Aditya, as stated earlier was a student of an unknown engineering college, i.e. Echelon Institute of Technology, Farida