Motor Vehicles Act, 1988: Fatal accident – Compensation – Multiplier – Deceased was aged 54 years on the date of accident – Tribunal applied multiplier of 3 upto the date of superannuation and thereafter multiplier of 8 keeping in view the dependency of life for 10 years – High Court affirmed the order of Tribunal – On appeal, held: In Pranay Sethi, it was held that it is the age of the deceased which is basis for applying suitable multiplier and that the compensation is to be determined keeping in view the future prospects – The future prospects were held to be 15% in respect of a deceased between the age of 50 to 60 years – Thus, the method of determination of compensation applying two multipliers is erroneous and runs counter to the judgment of this Court in Pranay Sethi, affirming the judgment in Sarla Verma – Since the deceased was 54 years of age on the date of incident, therefore, the suitable multiplier would be 11 as per the judgment of this Court in Sarla Verma approved in Pranay Sethi.
Disposing of the appeal, the Court
HELD: 1. In Pranay Sethi, this Court held that the age of the deceased is the basis for applying suitable multiplier and that the compensation is to be determined keeping in view the future prospects. The future prospects were held to 15% in respect of a deceased between the age of 50 to 60 years. Suitable multiplier is to be applied keeping in view the age of the deceased in terms of para 59.7 of the judgment in Pranay Sethi. [Paras 7, 9] [574-E, G; 575-A]
Uma Shankar & Ors. v. Revathy Vadivel & Ors. 2014 SCC OnLine Mad 846; Smt. Kamlesh Devi & Ors. v. Sh. Kitab Singh & Ors. 2011 SCC OnLine Del 2843; Union of India & Ors. v. K.S. Lakshmi Kumar & Ors. 2000 SCC OnLine Kar 406– not good law.
2. The method of determination of compensation applying two multipliers is clearly erroneous and run counter to the judgment of this Court in Pranay Sethi, affirming the judgment in Sarla Verma. Since the deceased was 54 years of age on the date of incident, therefore, the suitable multiplier would be 11 as per the judgment of this Court in Sarla Verma approved by this Court in Pranay Sethi. [Para 11][575-D-E]
National Insurance Company Limited v. Pranay Sethi & Ors. (2017) 16 SCC 680 : [2017] 13 SCR 100 – followed.
Sarla Verma (Smt.) & Ors. v. Delhi Transport
Corporation & Anr. (2009) 6 SCC 121 : [2009] 5 SCR 1098; Reshma Kumari & Ors. v. Madan Mohan & Anr. (2013) 9 SCC 65 : [2013] 2 SCR 706 – relied on United India Insurance Co. Ltd. v. Satinder Kaur alia Satwinder Kaur & Ors. 2020 SCC OnLine SC 410
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.
This page is for informational and research purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.