Motor Vehicles Act, 1988 – s.166 – Death due to motor accident – Tribunal allowed compensation claim of appellants in the amount of Rs.7,78,000/- with interest @ 12% p.a. – High Court allowed an additional amount of Rs.33,000/- under the head of loss of life, expenses and consortium but did not allow for future prospects and also reduced the rate of interest from 12% p.a. to 9% p.a. – On appeal, held: In view of the decision of Constitution Bench in Pranay Sethi, an addition of 25% is warranted, on account of future prospects having regard to the age of the deceased (41 years) – Quantum of compensation shall stand enhanced to Rs.12,67,000/- with interest @ 9% p.a. from the date of the claim petition.
Predecessor-in-interest of the appellants died when the jeep that he was travelling in was hit by a truck driven by the first respondent. MACT allowed the claim in the amount of Rs.7,78,000/- with interest @ 12% p.a., as against the claim of appellants for Rs.13 lakhs. In appeal, High Court allowed an additional amount of Rs.33,000/- under the head of loss of life, expenses and consortium but reduced the rate of interest from 12% p.a. to 9% p.a. Hence, the present appeal. Allowing the appeal, the Court
HELD: 1.1 The High Court had computed the total income of the deceased at Rs 91,800/- (Rs 55,000/- being the income from agriculture and Rs 36,800/- being the income from salary). In view of the decision of the Constitution Bench in Pranay Sethi, an addition of 25% is warranted, on account of future prospects having regard to the age of the deceased (41 years). The total income, after accounting for future prospects at 25% would work * Judgment delivered on 05.04.2018
** Corrigendum dated 06.04.2018
out to Rs 1,14,000/- per annum. An amount of one fourth would have to be reduced on account of personal expenses. The net income would work out to Rs 85,500/-. Applying a multiplier of 14, the total compensation would work out to Rs 11,97,000/-. Adding a further amount of Rs 70,000/- under conventional heads as stipulated in the judgment in Pranay Sethi, the total compensation payable would work out to Rs 12,67,000/-. There is no reason to intefere with the award of interest at 9% p.a. by the High Court. The quantum of compensation shall stand enhanced to Rs 12,67,000/- on which interest shall be payable at 9% p.a. from the date of the claim petition. [Paras 5-7][1054-GH; 1055-A-C]
National Insurance Company Limited v. Pranay Sethi (2017) 13 SCALE 12 – followed.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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