The main legal point established in the judgment is the correct application of the multiplier for calculating compensation under the Motor Vehicles Act, and the consideration of service benefits and pension in determining just compensation.

JUDGMENT :

1. The appellants/Union of India challenged the award made by the Motor Accidents Claims Tribunal, Jammu on 30.01.2012 awarding a sum of Rs. 24,03,000/- as compensation alongwith interest to the wife, children and parents of Sepoy Sushil Kumar, who died in a motor vehicle accident on 27.03.2006 while travelling in 3 Ton Army Vehicle No. OD-12725K from Bhiala to Mandi. The accident took place in Bhiala Mandi when the vehicle had fallen into deep gorge.

2. The Tribunal awarded Rs. 23,78,000/- as Loss of dependency, Rs. 5,000/- as Funeral Expenses, Rs. 10,000/- as Loss of Estate and Rs. 10,000/- as Loss of Consortium.

3. Aggrieved by the award of compensation, the appellant challenged the same inter alia on the grounds:-

(i) That the multiplier applied by the Tribunal was not correct;

(ii) That the Tribunal has not taken into consideration the service benefits paid to the dependents amounting to Rs. 16,61,251/-, besides the pension of the deceased has been wrongly fixed and the deductions are not in accordance with law;

(iii) That the interest awarded is also on the higher side;

(iv) That the Tribunal erred in holding that the deceased was drawing Rs. 18,874/- as monthly salary and increase of 50% income towards future income was not justified; and

(v) That the deduction in the case had to be 1/3rd but the Tribunal wrongly directed deduction of 1/4th as personal expenses.

4. Respondents (hereinafter referred to as 'claimants') have also filed Cross objections to the appeal seeking enhancement on the ground that multiplier was erroneously slashed down and questioning 10% deduction on account of the income tax and failure of the Tribunal to award compensation for love and affection to the minor children seeking enhancement of the compensation.

5. On the pleadings of the parties, following issues were framed by the Tribunal:-

i. Whether an accident occurred on 27.03.2006 at Bhiala Khari Mandi, Poonch due to rash and negligent driving of offending Army Vehicle No. OD-127259-K in the hands of erring driver as a result of which deceased Sushil Kumar suffered fatal injuries? OPP

ii. If issue No. 1 is proved in affirmative whether petitioners are entitled to the compensation; if so what amount and from whom? OPP

iii. Relief.

6. The finding of the Tribunal on Issue No. 1 has not been challenged and rightly so, because the nature of the accident is such that on principle of res-ipsa-loquitur, the driver of the vehicle must be held guilty of negligence, as the vehicle had rolled down the hill.

7. It is not disputed that the monthly salary of the deceased, who was Sepoy in the army and posted in the Rashtriya Riffle was Rs. 13,981/- as stated by PW-Havaldar Naresh Kumar. This statement is supported by the salary certificate issued by the Major M.D. Patel for OIC records, who is the authority to issue such certificate.

8. The Tribunal enhanced the future loss of income by 50% relying on the judgment of Hon'ble Apex Court in AIR 2009 SC 3104 titled Sarla Verma & Ors. Vs. Delhi Transport Corporation & Anr., JKJ Soft JKJ/32047 Since the Constitution Bench of Hon'ble Supreme Court in AIR 2017 SC 5157 titled National Insurance Co. Ltd. vs. Pranay Sethi, has approved the doctrine of multiplier laid down in Sarla Verma's case (supra), it is not proper to introduce uncertainties of the life to the multiplier. Hence the compensation has to be calculated by applying the multiplier of 16. Thus, the Tribunal had wrongly applied the multiplier of 14 instead of 16.

9. The Tribunal had rightly calculated the monthly salary of Late Sushil Kumar to be Rs. 18,874/- after making addition of 50% actual salary towards future prospectus and making deduction on account of income tax. Thus, after making 1/4 deductions from the income of the deceased towards his personal expenses, considering number of dependents of the deceased, who were more than four, therefore, the annual loss of dependency of the claimants would be Rs. 169,866/-. Loss of dependency of the claimants