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2018 Supreme(Online)(Chh) 739

IN THE HIGH COURT OF CHHATTISGARH
Judge, J
Jagadhari Singh Pottam and Another v. Mohan Singh and Others
Motor Vehicles Act|MAC Case No. 9 of 2009



Advocates:
For the Appellants/Petitioners: [Counsel for the appellants]
For the Respondents: [Counsel for the insurance company]

The court reinforces the necessity to include future prospects in compensation calculations under the Motor Vehicles Act.

Headnote:This judgment concerns an appeal under S.173 of the Motor Vehicles Act against the compensation awarded under S.166. The Tribunal awarded Rs. 2,45,000, which the appellants argued was insufficient, particularly without consideration of future prospects. The court determined the deceased's income and applied relevant case law to enhance compensation to Rs. 5,23,600, including interest. Issues included the quantification of loss of dependency and conventional heads of damages, leading to the court's final ruling of enhanced compensation.

Table of Content
1. the judgment starts with an overview of the appeal and the compensation awarded. (Para 1 , 2)
2. parties present arguments regarding the adequacy of the compensation awarded. (Para 3 , 4)
3. the court discusses income assessment and the necessity of future prospects in compensation calculation. (Para 5 , 6 , 7 , 8)
4. the court's final decision enhances the awarded compensation. (Para 9 , 10)

1. Present is an appeal under S.173 of the Motor Vehicles Act assailing the award dated 17.9.2009 passed by the learned Additional Motor Accidents Claims Tribunal, Pendra Road in MAC Case No. 9 of 2009.

2. Vide the said impugned award, the Tribunal in a death case under S.166 of the Motor Vehicles Act has awarded the compensation of Rs. 2,45,000 with interest at the rate of 6 per cent per annum from the date of application.

3. The counsel for the appellants submits that the compensation awarded by the Tribunal is on the lower side inasmuch as the Tribunal has not considered the future prospects while quantifying the compensation. Likewise, the multiplier applied is also on the lower side and prays for suitable enhancement of the award.

4. The counsel for the insurance company however opposing the appeal submits that the insurance company in the instant case has been exonerated from its liability and the responsibility of payment of compensation has been fastened upon owner of the vehicle involved in the accident.

5. Having considered the contentions put forth on either side and on perusal of record this court is of the opinion that considering the fact that the deceased was a young boy aged around 17 years at the relevant point of time must have been earning not more than Rs. 3,000 per month and, therefore, the income so assessed by the Tribunal cannot be found fault with.

6. However, considering the decision of the Hon'ble Supreme Court in the case of Sarla Verma v. Delhi Transport Corporation , 2009 ACJ 1298 (SC), as also in all the subsequent decisions, the income under future prospects has become an integral part of the award under the Motor Vehicles Act and in the instant case considering the age of the deceased and also keeping in view the decision of the Supreme Court in the case of National Insurance Co. Ltd. v. Pranay Sethi , 2017 ACJ 2700 (SC), the claimants shall be entitled for 40 per cent of the income towards future prospects.

7. Accepting Rs. 36,000 as the yearly income of the deceased and adding 40 per cent of the same, i.e., Rs. 14,400 towards future prospects, the amount would become Rs. 50,400 of which if half of the same is deducted for personal expenses as the deceased was a bachelor, the amount would come to Rs. 25,200 which if multiplied by multiplier of 18, the amount would become Rs. 4,53,600. It is ordered accordingly that claimants shall be entitled for the compensation of Rs. 4,53,600 towards loss of dependency.

8. So far as the compensation under the conventional head is concerned, again following the decision of the Supreme Court in the case of Pranay Sethi (supra), this court quantifies the amount at Rs. 70,000 under this head. Thus, the total compensation payable to the claimants would become Rs. 5,23,600 instead of Rs. 2,45,000 as awarded by Claims Tribunal. The said enhanced amount shall also carry interest at the same rate as has been awarded by the Tribunal.

9. The said amount shall be payable by the owner - cum - driver of the tractor as is the finding of the Tribunal which remains intact.

10. The appeal stands allowed and disposed of.

Appeal allowed.

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