IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
MADAN GOPAL VYAS, J.
Gokulram son of Sh. Sonaram – Appellant
Versus
Darshan Singh son of Sh. Harnam Singh - Respondent
S.B. Civil Misc. Appeal No. 2656 of 2012
Decided on : 18-09-2023
Motor Vehicles Act, 1988 – Section 173, 163 – Scheme for payment of compensation in case of hit and run motor accidents – Default of payment – Awarded compensation – Claim petition – Accident Claims – Notional income – Appeals – Held, Court deem it appropriate to apply he multiplicand of Rs.45,000/-per annum – Considering legal principles laid down case which was approved in National Insurance Company Limited, proper multiplier would be of 15 – Thus, loss of dependency as calculated – Besides aforesaid, claimants (parents of victim of accident) are separately entitled for loss of filial consortium under conventional head of funeral expenses – Thus, total payable compensation as calculated – This amount would be payable minus already paid amount along with interest of 6% as ordered by Tribunal from date of application within two months – In default of payment within time aforesaid, 12% interest would be chargeable from date of death till realization – appeal stands allowed
JUDGMENT :
The present civil misc. appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellants against the judgment and award dated 27.7.2012 passed by the learned Motor Accident Claims Tribunal, Pali in Claim Case No.152/2009 whereby the learned tribunal partly allowed the claim petition and awarded compensation to the claimants-appellants a sum of Rs.2,27,300/-.
2. Dissatisfied with the award amount, the present civil misc. appeal has been preferred. Arguing on the appeal, learned counsel for the appellants submits that in the present case, at the time of accident, the deceased Virma Ram 19 years’ old. However, the learned tribunal while assessing the monthly income of the deceased has awarded a meagre amount of Rs. 2 lacs. Learned counsel for the appellant submits that the learned tribunal failed to take into consideration the future prospects of the deceased and if the same was taken into consideration, then the whole amount as claimed by the appellants would have been awarded. Further, it is submitted that towards the heads of damages, mental agony, loss of love and affection and funeral expenses, not a single penny was awarded to the appellants-claimants.
3. Learned counsel for the appellants relying upon the judgment of the Madras High Court delivered in the case of Stalin & Anr. Vs. S. Baskaran (CMA No.4422/2019), decided on 17.3.2021 submits that in death case of a boy of 14 years, the Hon’ble Madras High Court awarded total compensation to the tune of Rs.6,75,000/- to the claimants.
4. Learned counsel further while relying upon the judgment of this Court delivered in the case of Smt. Mamta & Anr. Vs. Mahendra Singh & Ors. (SBCMA No.2648/2015), decided on 23.2.2022 submits that in that case too, this Court awarded a sum of Rs.7,85,000/-to the claimants-appellant because in the said case too, a boy aged about 8 years died in an accident.
5. Learned counsel also relied upon the judgment of the Hon’ble Apex Court in the case of Kishan Gopal & Anr. Vs. Lala & Ors (Civil Appeal No.7173/2013), decided on 26.8.2013, wherein too, the Hon’ble Apex Court awarded a sum of Rs.5 lacs to the claimants as their son aged about 10 years has been expired in an accident.
6. Learned counsel for the appellants submits that in view of the above, it is clear that the learned tribunal has awarded a meagre amount of compensation to the claimants-appellants and, therefore, the same deserves to be enhanced suitably.
7. Per contra, learned counsel appearing for the respondents opposed the prayer made by the learned counsel for the appellants and submits that the learned tribunal has rightly passed the impugned award and the same does not warrant any interference.
8. Heard learned counsel for the parties and perused the material available on record.
9. In Kishan Gopal & Anr. Vs. Lal & Ors reported in (2014) 1 SCC 244, the Hon’ble Supreme Court held that even in case of death of a child having no income, the notional income should be taken as multiplicand and it should be multiplied with proper multiplier. The Hon’ble Supreme Court also took into note that in the Second Schedule to Section 163 A of the Motor Vehicles Act, 1988, there is provision for “notional income” for compensation to those who had no income prior to the accident. In the Schedule, the notional income was Rs.15,000/- per annum.
10. In the case of Lata Wadhwa v. State of Bihar reported in (2001) 8 SCC 197, considering the dwindling value of money, the Hon’ble Supreme Court applied enhanced notional income of Rs.24,000/- per annum.
11. While considering the adoption of just notional income, the Hon’ble Supreme Court in para 38 of Kishan Gopal’s case observed as follows :-
Kishan Gopal & Anr. Vs. Lal & Ors reported in (2014) 1 SCC 244
Lata Wadhwa v. State of Bihar reported in (2001) 8 SCC 197
National Insurance Company Limited v. Pranay Sethi and Ors. reported in (2017) 16 SCC 680
The court established that the notional income for a non-earning child should be set at Rs.30,000 per annum, applying a multiplier of 15 for calculating compensation, considering inflation and emotio....
Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding amount so claimed – Tribunal/Court ought to award ‘just’ compensation.
The court established that compensation for minors must reflect notional income and apply appropriate multipliers, ensuring just compensation for loss of dependency.
The main legal point established in the judgment is the application of the multiplier method and consideration of notional income in calculating 'just compensation' for the death of a child in a moto....
The main legal point established in the judgment is the application of legal principles under the Motor Vehicles Act 1988, particularly Section 163A, to determine compensation for the death of a chil....
Point of Law : In spite of repeated directions, Scheduled-II of Motor Vehicles Act, 1988 is not yet amended. Therefore, fixing notional income of Rs.15,000/-per annum for non earning members is not j....
Notional figure fixed by the Apex Court since Manju Devi's judgment has been consistently Rs.2,25,000/- for children below the age of 15 years.
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