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2024 Supreme(Online)(Bom) 3826
BOMBAY HIGH COURT
SHIVKUMAR DIGE, J
1.SMT. LATA CHANDAR ALIAS CHANDRAKANT AGAWANE AND ORS – Appellant
Versus
MAHARASHTRA STATE ROAD TRANSPORT CORPN. – Respondent
FA 586 / 2009
Mr. R. S. Alange, Ms. P. M. Bhansali i/b. G. S. Hegde and Associates
The court established that accurate income assessment, future prospects, and appropriate multipliers are essential for fair compensation in fatal accident claims.
Headnote:(A) Motor Vehicles Act, 1988 - Compensation - Claim for enhancement of compensation for the death of a progressive agriculturist - Tribunal's assessment of monthly income at Rs.2,000/- challenged; court finds it should be Rs.3,000/- based on evidence - Future prospects of 40% awarded as per Supreme Court precedent - Multiplier adjusted from 17 to 16 due to deceased's age - Consortium amount and funeral expenses recalculated as per established guidelines. (Paras 2-5)
(B) Compensation Calculation - Court emphasizes the need for accurate assessment of income and future prospects, and proper application of multipliers in compensation claims. (Paras 5)
Facts of the case:
The claimant sought enhancement of compensation for the deceased, a progressive agriculturist earning approximately Rs.2,00,000/- annually from various sources, including agriculture and milk business. The Tribunal initially awarded Rs.1,64,000/- based on a monthly income of Rs.2,000/-. (Paras 1-5)
Findings of Court:
The court recalculated the monthly income to Rs.3,000/-, awarded 40% for future prospects, adjusted the multiplier to 16, and recalculated the total compensation to Rs.4,48,800/-. After deducting the Tribunal's award, the claimants are entitled to an additional Rs.2,84,800/-. (Paras 5-6)
Issues: The main issues included the appropriate monthly income of the deceased, the application of future prospects, and the correct multiplier to be applied. (Paras 2-5)
Ratio Decidendi: The court ruled that the Tribunal's assessment of income was inadequate and emphasized the necessity of considering future prospects and applying the correct multiplier based on the deceased's age. (Paras 5)
Result: The appeal is allowed, and the claimants are entitled to enhanced compensation of Rs.2,84,800/- with interest. (Paras 6)
Oral Judgment :
1. By way of this appeal, the claimant is seeking enhancement of compensation.
Digitally signed by 1/5 SHUBHADA SHUBHADA SHANKAR SHANKAR KADAM KADAM Date: 2024.02.06 +0530 2. It is contention of leaned counsel for the appellants/claimants that deceased was progressive agriculturist. He was doing milk business, looking after land of others as yearly labourer and he used to earn yearly income near about Rs.2,00,000/- but the Tribunal has considered monthly income of deceased at Rs.2,000/-, which is on lower side. Learned counsel further submitted that the Tribunal has not awarded future prospects and consortium amount is awarded on lower side, hence, requested it be allowed.
3. Learned counsel for respondent/corporation submitted that while calculating the compensation the Tribunal has applied multiplier of 17, it should be 16. Learned counsel further submitted that while awarding compensation, the Tribunal has considered all the aspects, hence, no interference is required in it.
4. I have heard both learned counsel, perused the judgment and order passed by Motor Accident Claims Tribunal, Solapur (for short “the Tribunal”).
5. It is claimants’ case that the deceased was a progressive agriculturist, he was having 2.5 acres of bagayat land situated within the limits of village – Pimpalgaon, he used take cash crops, he was doing milk business and he was looking after the land of others as yearly labourer. The deceased was getting Rs.1,00,000/- from agricultural land and Rs.6,000/- per month from milk business and he used to earn more than Rs.15,000/- to 20,000/- from grape garden. The yearly income of the deceased was about Rs.2,00,000/-. To prove the income of the deceased, the claimants have examined PW-1-Lata Agawane, wife of deceased, at Exhibit-12. She has stated that yearly income of the deceased was Rs.2,00,000/-. In support of evidence of PW-1, the claimants have examined PW2-Ashok Pawar. He has stated that he used to collect milk from the deceased. The deceased used to supply 18 to 19 litres milk and he used to pay Rs.4,000/- per month to the deceased. The claimants examined PW-3 Rajaram Kadam, he has stated that deceased used to work in his field ans he used to pay Rs.15,000/- per year to the deceased. Considering the evidence on record, the Tribunal has considered monthly income of deceased at Rs.2,000/- per month. I am unable to understand the reason given by the Tribunal as it has come on record that deceased was agriculturist, he was doing milk business and he was working as labourer in the field of witness, but, these facts are not considered by the Tribunal. Considering the evidence on record, I am considering the monthly income of deceased at Rs.3,000/-.
The Tribunal has not awarded future prospects. As per the view of Hon’ble Apex Court in the case of National Insurance Co. Ltd. vs. Pranay Sethi , 2017 ACJ 2700( SC) , the claimants are entitled for 40% future prospects. Hence, I am considering 40% amount of total income as future prospects.
The Tribunal has applied multiplier of 17, it should be 16 as the deceased was 35 year old at the time of accident.
The Tribunal has awarded consortium amount on lower side. As per the view of Hon’ble Apex Court in Magma General Insurance Co. Ltd. vs. Nanu Ram , 2018 ACJ 2782 (SC) , each claimant is entitled for Rs.48000/- as consortium amount, Rs.18,000/- for loss of estate and Rs.18000/- for funeral expenses.
Considering the above calculations, the claimants are entitled for following compensation :
Particulars Amount Monthly Income Rs. 3000.00 40% future prospects Rs. 1200.00 Total Rs. 4200.00 Annual Income 4200 X 12 Rs. 50400.00 Rs.50400/- X 16(multiplier) Rs. 806400.00 1/3rd deduction for personal expenses Rs. 268800.00 Total Rs. 537600.00 Less 50% Contributory Negligence Rs. 268800.00 Total Rs. 268800.00 Consortium (Rs.48,000/- x 3 (claimants)) Rs. 144000.00 Funeral Expenses and Loss of Estate Rs. 16000.00 Loss of Estate Rs. 16000.00 Total Compensation Rs. 448800.0
