Ramrao Lala Borse and Anr. vs New India Assurance Company Ltd. and Anr.

Court

Supreme Court of India

Date

19 January 2018

Case No.

Civil Appeal No. 418 of 2018

Result

Allowed

Bench

Dipak Misra, D.Y. Chandrachud, A.M. Khanwilkar

Citation

[2018] 1 S.C.R. 190 : 2018 INSC 43

Headnote

Motor Vehicles Act, 1988:

s.166 – Fatal accident of a 29 years old bachelor – Claim for compensation by his parents (agd 65 and 50 years) – Tribunal, on the basis of age of the deceased adopted multiplier of 17 and awarded compensation – High Court reduced the compensation amount, adopting multiplier of 7 on the basis of the age of claimants – Appeal by the claimants – Held: The correct multiplier to be applied in the present case would be 17, having regard to the age of the deceased – Compensation amount enhanced accordingly. Appellants-claimants filed petition u/s. 166 of Motor Vehicles Act, 1988 claiming compensation for the death of their son in a motor accident. Trial Court using multiplier of 17 having regard to the age of the deceased (29 years) awarded compensation of Rs.61,20,000/- and added further sum of Rs.35,000/- under conventional heads. Interest was awarded at 9% p.a. High Court adopted multiplier of 7 on the basis of age of the claimants (65 and 50) and reduced the compensaton amount to Rs.26,45,000/- with interst @ 9% p.a. Hence the present appeal by the claimants.

Allowing the appeal, the Court

HELD: The correct multiplier to be applied in the present case would be 17 having regard to the age of the deceased. As regards future prospects, an addition of 50 percent would be warranted. On the above basis and making a deduction of 50 percent towards personal expenses (the deceased being a bachelor), the total compensation would stand quantified at Rs 61,20,000/-. After making an addition on account of conventional heads, the total compensation would stand computed at Rs 61,90,000/-. The aforesaid amount shall carry interest @ 9% p.a. from the date of the filing of the claim petition. Apportionment shall be carried out in terms of the award of the Tribunal. [Para 8][193-G; 194-A-B]

National Insurance Company Limited v. Pranay Sethi (2017) 13 SCALE 12 - followed.

Sarla Verma v. Delhi Transport Corporation [2009] 5 SCR 1098 : (2009) 6 SCC 121 - relied on.

The Judgment of the Court was delivered by DR. D. Y. CHANDRACHUD, J., 1. The present appeal arises from a judgment and order of a Division Bench of the High Court of Judicature at Bombay dated 23 October 2015. The High Court has partly allowed the appeal of the insurer and reduced the award of compensation by the Motor Accident Claims Tribunal from Rs 61,55,000/- to Rs 26,45,000/-. 2. The claim before the Tribunal arose thus: On 19 February 2006, Deepak was travelling as a passenger in a luxury bus on Mumbai-Agra road and was occupying a seat on the driver’s side. When the bus was at Atgaon

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