IN THE HIGH COURT OF DELHI AT NEW DELHI
GAURANG KANTH, J.
Prabhawati Devi and Others – Petitioners
Versus
Sanjeev Kumar Jha and Others – Respondents
MAC. APP. No. 363 of 2013, C.M. No. 6570 of 2013
Decided On : 09-09-2022
Motor Vehicles Act - Compensation Enhancement - 173 - Loss of Dependency, Loss of Love and Affection, Funeral Expenses, Loss of Estate, Loss of consortium - 54, 59, 21 - The court discussed the legal provisions related to compensation under the Motor Vehicles Act, specifically focusing on loss of dependency, future prospects, conventional heads, and multiplier to determine the compensation. The court referred to the judgments of the Hon’ble Supreme Court in Pranay Sethi, Sarla Verma, and K. Suresh to interpret and apply the legal principles in reaching its decision to enhance the compensation amount.
Fact of the Case:
On 11.02.2010, the deceased was hit by a car and declared brought dead. The Tribunal awarded compensation of Rs. 8,03,800/- to the claimants. The Appellants appealed for enhancement of compensation based on the deceased's potential income and future prospects.
Finding of the Court:
The court found that the future income of the deceased should be determined at Rs. 15,000/- per month and enhanced the compensation to Rs. 22,63,000/- along with interest. The court also directed the Insurance Company to deposit the awarded compensation within 4 weeks.
Issues: Assessment of income of the deceased, application of multiplier, and determination of future prospects.
Ratio Decidendi: The court applied the legal principles established in Pranay Sethi, Sarla Verma, and K. Suresh to determine the future income and enhance the compensation amount.
Final Decision: The court enhanced the compensation to Rs. 22,63,000/- along with interest and directed the Insurance Company to deposit the awarded amount within 4 weeks.
JUDGMENT :
GAURANG KANTH, J.
1. The present appeal has been preferred by the Appellants under Section 173 of the Motor Vehicles Act for enhancement of compensation amount awarded by the Court of learned Presiding Officer, Motor Accident Claims Tribunal, South East District/Saket Courts, New Delhi in Suit No. 327/2010 vide its Award dated 20.09.2012.
2. The learned Tribunal vide its impugned Award dated 20.09.2012 held Respondent No. 3 herein/Insurance Company of the car liable to pay compensation to the Appellants. The relief granted by the learned Tribunal is as under:
| 1. | Loss of Dependency | Rs. 7,48,800/- |
| 2. | Loss of Love and Affection | Rs. 25,000/- |
| 3. | Funeral Expenses | Rs. 10,000/- |
| 4. | Loss of Estate | Rs. 10,000/- |
| 5. | Loss of consortium | Rs. 10,000/- |
Facts of the case
3. Brief facts of the case as noted by the learned Motor Accident Claims Tribunal are as under:
4. The learned Tribunal awarded compensation of Rs. 8,03,800/- in favour of the claimants and directed Respondent No. 3/Insurance Company to deposit the said amount with interest @ 9% per annum from the date of filing of the petition till realization. Against the impugned Award, the present Appeal is preferred.
Submissions of the Appellants
5. Mr. S.N. Parashar, learned counsel for the Appellants contended that the learned Tribunal has erred in not assessing the income of the deceased as per his vocation. He further contended that deceased was 27 years of age and at the time of accident, he was pursuing MBA final year from Sikkim Manipal University. While pursuing his MBA he was working in a private company and was earning Rs. 8,000/- per month. Learned counsel further contended that the deceased has appeared for his final year MBA examination and has received an appointment letter for the post of Assistant Manager, Finance on a monthly salary of Rs. 30,000/- per month. He further contended that the appointment letter has been filed as Ex.PW-1/17, however, the learned Tribunal without taking into account the appointment letter, computed the head “Loss of dependency” on the basis of proved salary of Rs. 8,000/- which is arbitrary and in contravention of the law laid down by the Hon’ble Supreme Court in the case of Ashvin Bhai Jayanti Lal Modi vs. Ramkaran Ramchandra Sharma, 2014 (11) SCALE 427. Learned counsel also relied upon the judgment of this Court dated 07.03.2018 passed in MAC. APP. No. 376/2017 titled as Bharti AXA Gen. Insurance Co. Ltd. vs. Upender Kumar Shastri.
6. Learned counsel for the Appellants further contended that in terms of the dicta of Hon’ble Supreme Court in National Insurance Co. Ltd. vs. Pranay Sethi and Others, AIR 2017 SC 5157, an addition of 40% of the established income s
Ashvin Bhai Jayanti Lal Modi vs. Ramkaran Ramchandra Sharma
K. Suresh vs. New India Assurance Co. Ltd. (2012) 12 SCC 274
National Insurance Co. Ltd. vs. Pranay Sethi and Others
Sarla Verma and Others vs. DTC and Another
United India Insurance Company Limited vs. Satinder Kaur alias Satwinder Kaur and Others
The main legal point established in the judgment is the application of legal principles related to compensation under the Motor Vehicles Act, specifically focusing on loss of dependency, future prosp....
The main legal point established in the judgment is the application of principles from Pranay Sethi and Sarla Verma for the calculation of compensation under various heads in fatal accident cases.
The main legal principle established in the judgment is the standardization of addition to income for future prospects and the need for uniformity and consistency in determining compensation in motor....
The main legal point established in the judgment is the application of legal principles from the case of Pranay Sethi (Supra) to determine the compensation under various heads, including future prosp....
The court established that actual income evidence must be prioritized over notional income in compensation claims under the Motor Vehicle Act.
The main legal point established in the judgment is the application of legal principles set by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Pranay Sethi & Ors. to determine ....
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