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2021 Supreme(J&K) 620

IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
Tashi Rabstan, J.
Adarsh Gupta & Ors. – Petitioners
Versus
National Insurance Co. Ltd. & Ors. – Respondents
MA No. 413 of 2012
Decided On : 29-09-2021

Advocates:
Advocate Appeared:
For the Petitioner: Vishnu Gupta
For the Respondent: Suneel Malhotra

The appropriate income, future prospects, and multiplier for calculating compensation under the Motor Vehicles Act were determined based on legal principles established in previous cases.

Headnote:

Motor Accidents - Compensation - Motor Vehicles Act - 2017 (16 SCC 680), 2019 SC 1825, 2009 SC 3104 - The court discussed the appropriate income of the deceased, future prospects, multiplier, loss of dependency, loss of consortium, funeral expenses, and loss of estate. The interpretation of various sections of the Motor Vehicles Act was towards the fulfillment of objectives to aid victims and their dependants to lead a respectable life.

Fact of the Case:

A young man lost his life in a road accident. The claimants filed a petition for compensation, which was initially awarded at Rs. 6,39,000. The claimants appealed for enhancement of the award, arguing that the deceased's income was underestimated and future prospects were not considered.

Finding of the Court:

The court found that the deceased's income was underestimated and future prospects were not considered. It referred to legal principles established in previous cases to determine the appropriate income, future prospects, and multiplier for calculating compensation.

Issues: Underestimation of deceased's income, failure to consider future prospects, and incorrect calculation of compensation.

Ratio Decidendi: The court applied legal principles from previous cases to determine the appropriate income, future prospects, and multiplier for calculating compensation.

Final Decision: The court allowed the appeal, modified the compensation amount to Rs. 36,20,500, and directed the insurance company to pay the compensation with interest. It also circulated the judgment to all Motor Accidents Claims Tribunals in the UT of J&K and UT of Ladakh.

JUDGMENT :

1. This Judgment shall dispose of MA No. 413/2012 which arises out of impugned award dated 09.05.2012 passed by learned Motor Accidents Claims Tribunal, Rajouri, (for short MACT, Rajouri) whereby an amount of Rs. 6,39,000 was awarded in favour of claimant/appellant No. 1 alongwith interest @ 6% per annum from the date of filing of claim petition till its realization.

2. Factual matrix of this case, as gathered from the impugned award, is that on 08.08.2007, a young man lost his life in a tragic road accident in the prime of his youth when he was travelling in a Maruti Car bearing Registration No. JK02V/4099. The vehicle was being driven by respondent No. 2 herein in a rash and negligent manner and when the vehicle reached near Sujanpur (Punjab), the driver lost control over the vehicle after which the vehicle collided with an Eucalyptus tree, as a result thereof deceased died on spot. The deceased, Dr. Abhinav Gupta was Final Year MBBS student in Acharya Shri Chander College of Medical Sciences & Hospital Jammu, and had taken his final year examination about 2/3 days before the unfortunate accident.

3. Claimants filed a claim petition before the learned MACT, Rajouri for claiming compensation on account of death of the deceased. National Insurance Company Ltd. contested the claim petition and following issues came to be framed:

    1) Whether on 08.08.2007 the driver of vehicle No. JK02V/4099 (Maruti Car) was driving the car rashly, negligently and recklessly on Jammu-Pathankot Road and when it reached near Sujanpur (Punjab) the driver of the offending vehicle lost control over the vehicle and collided against an Eucalyptus tree and thereby caused accident as a result of which Dr. Abhinav Gupta son of petitioners No. 1 & 2 sustained severe injuries resulting into his death on spot? OPP.

2) In case issue no. 1 is proved in affirmative, to what amount of compensation the petitioner is entitled to and from whom? OPP. 3) Whether the driver of the offending vehicle was not holding a valid driving licence, therefore the respondent No. 3 is not liable to pay compensation? OPR-3.

4) Whether the offending vehicle was being driven against the terms & conditions of insurance policy, if so, what is its effect? OPR-3.

4. The Tribunal after examining the entire record and on the basis of the evidence led awarded Rs. 6,39,000/- alongwith interest @ 6% per annum in favour of claimant/appellant No. 1 herein. Being not satisfied with the awarded amount, claimants have filed this MA No. 413/12 for enhancement of the award.

5. The appellants have preferred this appeal mainly on the ground that the learned Tribunal has failed in its duty to award just and reasonable compensation and the act of the learned Tribunal in assessing income of the deceased at Rs. 10000/- per month is too low and disproportionate to the qualification and keeping in view the profession of the deceased. The other ground inter alia taken by the appellants in this appeal is that the learned Tribunal was duty bound to enhance the income of the deceased by at least 50% towards the future prospects. The appellants are also aggrieved of the Multiplier applied by the learned Tribunal while calculating the compensation.

6. Mr. Sunil Malhotra, learned counsel appearing for the Insurance Company submitted that the award passed by the learned Tribunal is appropriate and in consonance with the law laid down by the Hon'ble Supreme Court and, thus, needs no interference from this Court.

7. I have heard learned counsel appearing for the parties and also perused the memo of appeal as well as record of the Tribunal.

8. Admittedly, the insurance company has not disputed the age of the deceased nor his qualification. Otherwise too, it is borne out from the record that the deceased was a final year MBBS student in Acharya Shri Chander College of Medical Sciences & Hospital Jammu, and had take

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