SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Raj) 1792

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR 
Rekha Borana, J.
Smt. Champa Devi W/o Lt. Sh. Prabhuram - Appellants
Versus
Ashok Bhai Dabariya S/o Sh. Arjun Bhai and ors. - Respondents 
S.B. Civil Misc. Appeal No. 1725/2024
Decided On : 16-01-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr. Jaswant Singh
For the Respondent: Mr. Vishal Singhal with Ms. Anamika Baghmar

Compensation for motor accident claims must reflect actual income and future prospects, applying appropriate multipliers as established in case law.

Headnote:

(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Compensation for death in motor accident - Tribunal awarded Rs.7,76,100/-; appellants claimed enhancement based on actual income and appropriate multiplier - Court found monthly income to be Rs.13,050/- and applied a multiplier of 13, resulting in total compensation of Rs.22,54,944/- with interest @6%. (Paras 1, 11, 12)

(B) Compensation Calculation - The court emphasized the need to consider actual income and future prospects in determining compensation, referencing established case law for multiplier application and conventional heads. (Paras 4, 10)

Facts of the case:
The appeal was filed by dependants of Prabhuram Meghwal, who died in a motorcycle accident caused by a negligent driver. The Tribunal initially awarded Rs.7,76,100/- based on an assessed monthly income of Rs.5,382/-. (Paras 1, 2)

Findings of Court:
The court recalculated the monthly income to Rs.13,050/-, applied a multiplier of 13, and determined total compensation to be Rs.22,54,944/-. (Paras 7, 11)

Issues: The main issues included the correct assessment of the deceased's income, appropriate multiplier application, and adequacy of compensation under conventional heads. (Paras 4, 10)

Ratio Decidendi: The court ruled that the actual income and future prospects must be considered for compensation calculation, adhering to principles established in prior case law. (Paras 9, 10)

Result: Appeal partly allowed; total compensation enhanced to Rs.22,54,944/- with interest.

ORDER :

Rekha Borana, J.

1. The present misc. appeal has been preferred by the appellants-claimants seeking enhancement of the compensation amount awarded vide judgment/award dated 01.02.2024 passed by the Motor Accident Claims Tribunal (ADJ) Pindwara, District Sirohi in MAC Case No. 386/2022 (180/2017) (CIS No. 386/2022).

The learned Tribunal, vide impugned judgment/award dated 01.02.2024 awarded a sum of Rs.7,76,100/- in favour of the claimants alongwith interest @6% per annum from the date of filing of the claim petition.

2. Brief facts as pleaded in the claim petition are that on 23.03.2017, Prabhuram Meghwal was en route from Bamanwada to Pindwara, on his motorcycle bearing registration no. RJ-38-SA- 7020. At approximately 3:00 PM, upon reaching Sarhad Jhankar, a Toyota car bearing registration no. GJ-01-RB-1168, being driven rashly and negligently, collided with Prabhuram's motorcycle from behind, resulting in an accident. Unfortunately, Prabhuram succumbed to the injuries sustained in the incident. FIR No. 101/2017 pertaining to the accident was lodged at Police Station Pindwara.

The offending vehicle, on the date of accident, was insured with respondent No.2 – Insurance Company.

3. The appellants-claimants are the dependants of deceased Prabhuram. The learned Tribunal after framing the issues, evaluating the evidence available on record and after hearing the counsel for the parties, while assessing the monthly income of the deceased to be Rs.5,382/-, awarded total compensation of Rs.7,76,100/- in favour of the appellants-claimants, the breakup of which is as under:

1.Annual Income of the deceased5,382 x 12 = Rs.64,584/-
2.Loss of Income (as per the age of the deceased between 51-55 years a multiplier of 11, addition of 10% for future prospects and 1/4 deductions qua personal expenses).Rs.5,86,099/-
3.Under the head of ‘Consortium’40,000 x 4 = Rs.1,60,000/-
4.Under the head of ‘Funeral Expenses and Loss of Estate’Rs.30,000/-
7.Amount awarded by the Tribunal (round of)Rs.7,76,100/-

Learned Tribunal also awarded interest @6% per annum from the date of filing of the claim petition i.e. 28.06.2017.

4. Learned counsel for the appellants raised the following grounds:

(i) The learned Tribunal erred while computing the income of the deceased to be merely Rs.5,382/- per month while treating him as an un-skilled labour whereas he was employed as Supervisor with Divine Stone, RIICO Industrial Area, Sirohi and was earning a monthly income of Rs.17,500/-. Further, the deceased also earned an additional income of Rs.10,000/- through agricultural activities.

(ii) The learned Tribunal erred while applying multiplier of 11 only whereas keeping into consideration the age of the deceased at the time of accident, i.e. 50 years 7 months 29 days, a multiplier of 13 ought to have been applied in terms of the principle laid down in the case of Sarla Verma and Ors. Vs. Delhi Transport Corporation and Ors.; (2009) 6 SCC 121 Further, counsel relied upon the case of Shashikala and Ors. v. Gangalakshmamma and Anr.; (2015) 9 SCC 150 to submit that the multiplier to be used while computing the compensation in motor accident claims has to be determined on basis of the age attained by the deceased/injured and not on basis of the running age.

(iii) The learned Tribunal erred while taking into consideration the future prospects of the deceased at the rate of 10% only whereas keeping in view the age and income of the deceased, an addition of 30% ought to have been made with regard to future prospects in view of the guidelines as laid down in the case of National Insurance Company Limited v. Pranay Sethi and Ors.; (2017) 16 SCC 680

(iv) The learned Tribunal committed a significant error in its adjudication by providing insufficient compensation qua the conventional heads.

5. Learned counsel for the respondent Insurance Company vehemently opposed the ground raised qua the income and age of the deceased. However, he is not in a position to refute the legal position regarding

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top