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2023 Supreme(All) 2241

IN THE HIGH COURT OF ALLAHABAD
DINESH KUMAR SINGH, J.
Smt. Sushma Tripathi - Appellant
Versus
Kailash Chandra and Others - Respondents
FIRST APPEAL FROM ORDER NO. 323 OF 2004.
Decided On : 08-05-2023

Advocates appeared:
For the Appellant : R.K.Pandey, S.K.Shukla.
For the Respondent: Ram Singh, Rajendra Singh Chauhan.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 168 and 173 - Compensation for the death of a Jeep driver in a motor accident while applying the incorrect multiplier and excluding certain claims for loss of estate and consortium. The court emphasized that the Tribunal's application of a multiplier of 17 was not justified for a 21-year-old, advocating for a multiplier of 18 instead, and underscoring the need for additional compensation for loss of estate and consortium. (Paras 5-9)

(B) Appeal - The court revised the compensation order to recompute using a basic income of Rs.16,000/- with a multiplier of 18, including Rs.25,000/- for loss of estate and Rs.25,000/- for loss of consortium. (Para 9)

Facts of the case:
The motor accident resulted in the death of the deceased who was earning Rs.2,000/- monthly as a Jeep driver. The Tribunal allocated Rs.1.76 Lakhs without addressing the loss of estate and consortium, applying a multiplier based on the deceased's unmarried status.

Findings of Court:
The Tribunal's calculations were deemed inadequate, necessitating an adjustment of compensation based on the correct methodology, emphasizing financial support for the deceased's dependents.

Issues: The tribunal's miscalculations regarding the appropriate multiplier and failure to award loss of consortium and estate were principal concerns.

Ratio Decidendi: The court reaffirmed that when calculating compensation, the potential earnings of the deceased should be directly correlated with the family’s financial needs, prioritizing proper application of the multiplier based on the deceased’s age and income.

Result: Appeal allowed partly, with directions for recomputation of compensation by the Tribunal.

Table of Content
1. compensation awarded for the death in accident. (Para 1 , 2 , 3 , 4)
2. arguments for enhanced compensation calculation. (Para 5)
3. court's reasoning on income and multiplier. (Para 6 , 7 , 8)
4. adjustment of compensation sum awarded. (Para 9)
5. final direction for recalculated compensation payout. (Para 10)

JUDGMENT

Dinesh Kumar Singh, J.

Present appeal has been preferred for enhancement of compensation as awarded by Motor Accidents Claims Tribunal/ Additional District Judge, Court No.3, Banda vide judgment and order dated 31.05.2003.

2. Deceased- Prakash Chandra Dwivedi along with his brother- Prem Chandra Dwivedi and Suneel Kumar travelled in a Jeep No.UP78/V5361 on 20.12.1998. Said Jeep met with an accident with Truck No.MP19A/6414. As a result of the accident, the deceased got severely injured and died.

3. Before the Tribunal, oral evidence was led to the effect that the deceased was earning Rs.2,000/- per month, and he was a Jeep Driver. He was 21 years of age.

4. The Tribunal after considering the evidence was of the view that since the deceased was unmarried, he would be spending Rs.12,000/- on himself and Rs.8,000/-on the family members. Thus, applying the multiplier of 17, calculated the compensation, and awarded Rs.2,000/- towards Funeral and last rites, Rs.5,000/- for mental trauma and Rs. 5,000/- for other expenses, thus an amount of Rs.1.76 Lakhs with interest @ 9 % from the date of institution of the claim was awarded.

5. Learned counsel appearing for the appellant submits that when there was no dispute in respect of the income of the deceased i.e. Rs.24,000/- per year, the Tribunal ought to have applied multiplier on 16,000/- after deducting 1/3 from the said income. It is also submitted that multiplier of 17 has been applied whereas the deceased was 21 years of age, therefore, maximum multiplier 18 ought to have been applied. Learned counsel appearing for the appellant submits that no amount has been awarded as consortium and loss of estate.

6. Despite the case is being taken up in the revised call, no one appears for the respondents.

7. From perusal of the impugned judgment and record, it is evident that oral evidence was led to the effect that the deceased was earning Rs.2,000/- per month as Jeep Driver. No evidence was led by the respondents to dispute the said income. It is also settled consistently by this Court that a person would spend 1/3 for maintaining himself and 2/3 for his family. When the deceased was only 21 years of age, applying the multiplier by 17 was not correct.

8. Considering the aforesaid fact, I am of the view that when the deceased yearly income of Rs.24,000/- was not in dispute, the Tribunal ought to have applied the multiplier on 2/3 of the income i.e. Rs.16,000/-, and the multiplier should have been of 18. The Tribunal ought to have awarded some amount towards loss of estate and consortium.

9. In view thereof, I allow this appeal partly, and it is directed to recompute the compensation of 16,000/- with multiplier of 18 and also award on the compensation of Rs.25,000/- for loss of estate and Rs.25,000/- for loss of consortium.

10. Record of the case is returned to the learned Tribunal to calculate the compensation accordingly and the respondents should pay the compensation within a period of 2 months from the date such compensation is recalculated and directed to be paid by the respondents. Any amount paid shall be adjusted from the final compensation which is directed to be recalculated in terms of the judgment passed.

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