HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
Anoop Kumar Dhand, J.
Smt Champa Joshi & Ors. – Appellants
Versus
Dileep @ Daleep & Ors. – Respondents
S.B. Civil Miscellaneous Appeal No. 6440 of 2011
Decided On : 17-02-2022
Motor Vehicles Act - Compensation Calculation - The court applied the principles established in the cases of Sarla Verma and Pranay Sethi to determine the compensation for the claimants, considering the deceased's age, income, and future prospects. The court enhanced the compensation based on the application of these legal provisions.
Fact of the Case:
The appellants appealed against the judgment and award passed by the Motor Accident Claims Tribunal, seeking enhancement of compensation for the death of Shiv Dutt Joshi in a motor accident.
Finding of the Court:
The court found that the Tribunal had erroneously applied a multiplier of 16 instead of 15, and had not awarded compensation for future prospects and conventional expenses as per the legal precedents.
Issues: The issues included the calculation of compensation, application of the correct multiplier, and consideration of future prospects and conventional expenses.
Ratio Decidendi: The court applied the principles established in the cases of Sarla Verma and Pranay Sethi to determine the compensation, considering the deceased's age, income, and future prospects.
Final Decision: The court allowed the appeal, enhancing the compensation by Rs. 3,00,900 and ordered the Insurance Company to pay the enhanced amount within six weeks.
ORDER
1. The instant appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellants against the judgment and award dated 28.04.2011, passed by the Motor Accident Claims Tribunal-cum-Additional District Judge (Fast Track No.7), Jaipur City, Jaipur (for short 'Tribunal') in MAC Case No.405/2005 (1946/2004), whereby, the Tribunal has awarded a sum of Rs. 6,72,700/- on account of death of Shiv Dutt Joshi, which occurred on 22.11.2001.
2. Learned Tribunal after framing the issues, evaluating the evidence available on record and hearing both the sides, decided the claim petition of the appellants and awarded compensation of Rs.6,72,700/- under various heads in favour of the appellants- claimants.
3. Learned counsel for the appellants submitted that deceased was aged about 38 years at the time of accident and he was working as Class IV employee in the department of Sales Tax and at the time of his death he was earning Rs.5020/-. Learned counsel submitted that no amount towards future prospects has been awarded in the light of the judgment of the Hon'ble Supreme Court in the case of National Insurance Company Ltd. v. Pranay Sethi & Ors. : (2017) 16 SCC 680. Learned counsel further submitted that under the head of conventionalhead a sum of Rs.30,000/- has been awarded while the claimants-appellants are entitled to get Rs.70,000/-. Lastly, learned counsel submitted that under these circumstances, the impugned judgment and award needs suitable enhancement.
4. Per contra, learned counsel for the respondent-Insurance Company submitted that the learned Tribunal while deciding the claim petition of the appellants has rightly taken into consideration the factors while calculating the amount of compensation, in the case after evaluating the evidence available on the record. Learned counsel further submitted that the judgment dated 28.04.2011 does not call for any intereference by this Court and lastly, he argued that the learned Tribunal has erroneously applied the multiplier of 16, looking to the age of the deceased, while as per the judgment of Hon'ble Apex Court in the case of Sarla Verma v. Delhi Transport Corporation: (2009) 6 SCC 121, and as per the judgment of Pranay Sethi (supra), the multiplier of 15 should have been applied instead of 16.
5. Learned counsel for the respondent, however, are not in a position to controvert the submissions made by the learned counsel for the appellants with respect to re-computation of the award in the present case in the light of the judgment of Hon'ble Supreme Court in the case of 'Sarla Verma & Ors. (supra)' and 'Pranay Sethi (supra)'.
6. I have considered the submissions made at bar and gone through the judgment dated 28.04.2011, as well as the other relevant documents available on the record. it is not in dispute that the age of the deceased was 38 years when the accident occurred and it is also not in dispute that the deceased was a Government Servant and he was posted as Class IV employee in the Department of Sales Tax when the accident occurred. In the light of the judgment passed in the case of Sarla Verma (supra), the multiplier of 15 is required to be applied in the present case while calculating the award.
7. Since, no compensation has been awarded in the head of future prospects, the amount to the extent of 50% is to be added towards future prospects. The appellants are also entitled to get Rs. 70,000/- in the conventional head, in the light of the judgment of Hon'ble Supreme Court in the case of "Pranay Sethi (supra)".
8. In view of the material available on record and the law laid down by Hon'ble Supreme Court in Pranay Sethi (supra), the appellants-claimants are entitled to get compensation in the following terms:-
Monthly income | Rs. 5020/- |
Annual income | Rs. 5020 x12 = Rs.60,240/- per annum |
Multiplier to be applied | 15 60,240 X 15 = Rs.9,03,600/- |
Less 1/3 towards personal expenses | Rs. 9,03,600/- - Rs. 3,01,200/- = Rs. 6,02,400/- |
Add 50 per cent towards future prospec | |
National Insurance Company Ltd. vs. Pranay Sethi & Ors. : (2017) 16 SCC 680
Sarla Verma vs. Delhi Transport Corporation: (2009) 6 SCC 121
The main legal point established in the judgment is the application of the principles from Sarla Verma and Pranay Sethi cases to calculate compensation under the Motor Vehicles Act.
The court established that compensation for a deceased must consider the age-based multiplier and future prospects, enhancing the total amount awarded.
The appropriate multiplier for calculating compensation must consider the age of the deceased, and 10% future prospects should be included in the compensation amount.
The court emphasized the correct application of multipliers and consideration of future prospects in determining compensation under the Motor Vehicles Act.
Accurate income assessment and consideration of future prospects are essential in determining compensation for motor accident claims.
Compensation calculations in motor accident claims must include allowances and future prospects, with appropriate multipliers based on the deceased's age.
The court applied the legal principles established in the judgments delivered by the Hon'ble Supreme Court in the cases of Sarla Verma and Pranay Sethi to re-compute the compensation award.
The court established that compensation calculations must accurately reflect the deceased's age, income, dependents, and future prospects, adhering to established legal precedents.
Future income prospects must be considered in compensation calculations, and the appropriate multiplier should reflect the deceased's age and established legal guidelines.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.