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IN THE HIGH COURT OF DELHI
Gaurang Kanth, J.
Prabhawati Devi - Appellant
Versus
Sanjeev Kumar Jha - Respondent
MAC.APP. 363 of 2013 and C.M. No. 6570 of 2013
Decided On : 09-09-2022




Compensation in motor accident cases must objectively calculate projected income and future prospects, with reliance on the deceased's age for multiplier application, ensuring just compensation for loss.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal for enhancement of compensation by legal representatives of deceased in a motor accident case - Original compensation awarded was Rs. 8,03,800/-; court enhanced it to Rs. 22,63,000/- due to miscalculation in loss of dependency and lack of acknowledgment of future prospects - future income set at Rs. 15,000/- monthly with 40% enhancement for future prospects as statutory standard. (Paras 20-22)

(B) Compensation calculation - Importance of applying the multiplier based on deceased's age for loss of dependency; court changed multiplier from 9 to 17, aligning it with the age of the deceased instead of the mother. (Paras 7-10)

(C) Conventional heads of compensation were standardized to Rs. 15,000/- for loss of estate, Rs. 40,000/- for loss of consortium, and Rs. 15,000/- for funeral expenses, with acknowledgment of inflation. (Paras 14, 20)

(D) Evidence substantiation needed for future income claims - appointment letter's validity questioned; despite this, the court recognized the potential for higher income post-MBA. (Paras 16-19) (E) Compensation must reflect a realistic attempt to restore dignity and provide just recompense for the trauma suffered. (Paras 18-19) (F)

Result: Appeals allowed; total compensation modified to Rs. 22,63,000/- with interest.

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 DependencyRs. 7,48,800/-
2.Loss of Love and AffectionRs. 25,000/-
3.Funeral ExpensesRs. 10,000/-
4.Loss of EstateRs. 10,000/-
5.Loss of consortiumRs. 10,000/-

Facts of the case

3. Brief facts of the case as noted by the learned Motor Accident Claims Tribunal are as under:

    "On 11.02.10, the deceased was standing with his motorcycle bearing no. DL 38 BL 9905. He was waiting at the gate of RTO Office, Vasant Vihar to meet the RTO Officials. At about 10.00 AM a car bearing no. DL 30 BD 2733 being driven by respondent no.1 in a rash and negligent manner came at a fast speed from the side of Nelson Mandela Marg and took a sharp U- Turn. Respondent no.1 could not control the car, hit the motorcycle of the deceased and ran over him. He was taken to Trauma Centre, AllMS by a Constable in a private car where he was declared brought dead. Respondent no.2 was the owner of the car and it was insured with respondent no.3. A case was registered vide FIR 44/10 at the police station Vasant Vihar. SHO of the police station Vasant Vihar filed a Detailed Accident Report. It was clubbed with the petition filed on behalf of the petitioners. In the report, the Investigating Officer had verified the driving license of the respondent no.1 and also filed the copy of the charge sheet containing the postmortem report and other documents as per which the cause of death was shock due to multiple injuries produced by blunt force object"

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 AshvinBhai JayantiLal Modi Vs Ramkaran Ramchandra Sharma reported as 2014 (11) SCALE 427. Learned counsel also relied upon the judgment of this Court dated 07.03.2018 passed in MAC.APP. 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 & Ors reported as 2017 AIR (SC) 5157, an addition of 40% of the established income should be granted under the head 'Future Prospects', however, the learned Tribunal erred in making an addition of 30% of the establishe


















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