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2024 Supreme(All) 1827

IN THE HIGH COURT OF ALLAHABAD
VIPIN CHANDRA DIXIT, J.
Kusma Devi And 3 Others - Appellants
Versus
Jitendra Kumar And 2 Others - Respondents
FIRST APPEAL FROM ORDER NO. 233 OF 2019.
Decided On : 07-05-2024

Advocates appeared:
For the Appellant :Ram Singh, Amit Kumar Singh, Advocates.
For the Respondent:Rahul Sahai, Advocate.

Compensation for death in motor accidents must include future prospects and non-pecuniary damages, with the multiplier adjusted based on the deceased's age.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for death in motor accident - Appeal against the award of Rs. 5,79,283/- by the Claims Tribunal - Claimants argued for enhancement based on future prospects and non-pecuniary damages - Court found that the deceased's age justified a multiplier of 9 instead of 7, and reassessed compensation to Rs. 26,09,080/- with 6% interest. (Paras 2, 3, 6, 7)

(B) Legal principles - Future prospects and non-pecuniary damages must be considered in compensation calculations, as established in National Insurance Company Ltd. v. Pranay Sethi and Sarla Verma v. Delhi Road Transport Corporation. (Paras 3, 6)

Facts of the case:
The appeal was filed by claimants against the compensation awarded for the death of Man Singh Yadav, aged 59, in a motor accident. The Claims Tribunal awarded Rs. 5,79,283/- without considering future prospects or adequate non-pecuniary damages. (Paras 2, 3)

Findings of Court:
The court reassessed the compensation to Rs. 26,09,080/- considering the deceased's age and applicable multiplier, along with non-pecuniary damages. (Paras 6, 7)

Issues: The main issues included the appropriate multiplier for calculating compensation and the inclusion of future prospects and non-pecuniary damages. (Paras 3, 6)

Ratio Decidendi: The court ruled that the multiplier should be 9 based on the deceased's age and that future prospects and non-pecuniary damages must be factored into compensation calculations. (Paras 6, 7)

Result: Appeal partly allowed, compensation enhanced to Rs. 26,09,080/- with interest.

JUDGMENT

Vipin Chandra Dixit, J.

Heard Sri. Ram Singh, learned counsel for the appellants and Sri. Rahul Sahai, learned counsel for the Insurance Company respondent no.3. No one is present for respondent nos.1 & 2.

2. This first appeal from order has been filed by the appellants claimants against the judgment and award dated 14.9.2018 passed by Motor Accident Claims Tribunal/District Judge, Fatehpur in M.A.C.P. No.327 of 2017 (Smt. Kusuma Devi and others v. Jitendra Kumar and others) awarding compensation of Rs. 5,79,283/- alongwith 6% annual simple interest to the claimants on account of death of Man Singh Yadav aged 59 years.

3. It is submitted by learned counsel for the appellants that very meagre amount of compensation has been awarded by the Claims Tribunal. It is further submitted that nothing has been awarded by the Claims Tribunal in terms of future prospects and only Rs. 20,000/- was awarded for non-pecuniary damages, whereas the claimants are entitled for 15% future prospects and Rs. 70,000/- for non pecuniary damages in view of law laid down by Hon'ble Apex Court in the case of National Insurance Company Ltd. v. Pranay Sethi reported in 2017(4) T.A.C. 673. Lastly, it is submitted by learned counsel for appellants that the age of deceased was 59 years at the time of accident and the Claims Tribunal has erred in applying the multiplier of 7', whereas it should be 9' in view of Table provided in the case of Sarla Verma v. Delhi Road Transport Corporation reported in 2009(2) TAC 677 (S.C.).

4. On the other hand, learned counsel for Insurance Company opposite party No.3 has not disputed the aforesaid legal position.

5. Considered the rival submissions of learned counsels for the parties and perused the record.

6. It is admitted fact that the age of the deceased was 58 years 9 months 4 days at the time of accident and as per service condition the retirement age was 60 years and there was no provision for pension and as such, the claimants are not entitled for any amount towards future prospects. The appellant no.2 to 4 are major sons of the deceased and they are not dependents on the income of the deceased and as such, deduction would be 1/3 in place of 1/4th. The compensation awarded by the Claims Tribunal is reassessed as below:-

    1) Monthly income = Rs. 35,265/-

    2) Annual income = Rs. 35,265/- X 12 = Rs. 4,23,180/-

    3) Deduction towards personal expenses(1/3rd) = Rs. 4,23,180/- - Rs. 1,41,060/- =Rs. 2,82,120/-

    4) Multiplier applicable (9) =Rs. 2,82,120/- x 9 = Rs. 25,39,080/-

    5) Non-pecuniary damages =Rs. 70,000/-

    Total = Rs. 25,39,080/- + Rs. 70,000/- = Rs. 26,09,080/-

7. In view of aforesaid discussion, the appeal filed by claimants is hereby partly allowed and award of the Claims Tribunal is modified and compensation awarded by the Claims Tribunal is enhanced from Rs. 5,79,283/- to Rs. 26,09,080/-.

8. The claimants-appellants are also entitled to 6% interest on the enhanced amount from the date of award dated 14.9.2018.

9. The United India Assurance Company Limited/opposite party No.3 is directed to pay enhanced amount alongwith interest to the claimants within two months from today.

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