Appeal filed challenging the Motor Accident Claims Tribunal award seeking compensation enhancement for loss of future prospects and other heads. Bench examined Supreme Court guidelines on future prospects and concluded Tribunal had awarded correct amount.
Dismissed the appeal; original award of Rs. 3,39,310/- affirmed. No enhancement granted.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
S.B. Civil Miscellaneous Appeal No. 2293/2018
----Appellants-Claimants
Versus
----Respondents/Non-Claimants
For Appellants : Mr. Gajanand Sharma
HON'BLE MRS. JUSTICE SABINA Order
17/07/2018
Appellants have filed this appeal, challenging the award dated 1.2.2018 passed by the Tribunal, seeking enhancement of compensation amount.
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Learned counsel for the appellants has submitted that the Tribunal has failed to grant compensation to the appellants towards loss of future prospects of the deceased. In support of his arguments, learned counsel has placed reliance on the decision given by the Hon'ble Supreme Court in case of National Insurance Company Limited Versus Pranay Sethi and others AIR 2017 (SC) 4973 , wherein it was held as under:-
“39. Before we proceed to analyse the principle for addition of future prospects, we think it seemly to clear the maze which is vividly reflectible from Sarla Verma, Reshma Kumari, Rajesh and Munna Lal Jain. Three aspects need to be clarified. The first one pertains to deduction towards personal and living expenses. In paragraphs 30, 31 and 32, Sarla Verma lays down:-
“30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra4, the general practice is to apply standardised deductions. Having considered several subsequent decisions of this 37 (2003) 3 SLR (R) 601 31 Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.
31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor
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would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependant. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father.
32. Thus even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and iving expenses of the bachelor and 50% as the contribution to the family. However, where the family of the bachelor is large and dependent on the income of the deceased, as in a case where he has a widowed mother and large number of younger nonearning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.” x x x x
x
“ 44. As far as the multiplier is concerned, the claims tribunal and the Courts shall be guided by Step 2 that finds place in paragraph 19 of Sarla Verma read with paragraph 42 of the said judgment. For the sake of completeness, paragraph 42 is extracted below :-
“42. We therefore hold that the multiplier to be used should be as mentioned in Column (4) of the table above (prepared by applying Susamma Thomas, Trilok Chandra and Charlie), which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for 26 to 30 years, M16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years, and M-13 for 46 to 50 years, then reduced by two units for every
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five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years.”
x x x x
x
“59.Taking into consideration the cumulative factors, namely, passage of time, the changing society, escalation of price, the change in price index, the human attitude to follow a particular pattern of life, etc., an addition of 40% of the established income of the deceased towards future prospects and where the deceased was below 40 years an addition of 25% where the deceased was between the age of 40 to 50 years would be reasonable.
x x x x x
“61. In view of the aforesaid analysis, we proceed to record our conclusions:-
(i) The two-Judge Bench in Santosh Devi should have been well advised to refer the matter to a larger Bench as it was taking a different view than what has been stated in Sarla Verma, a judgment by a coordinate Bench. It is because a coordinate Bench of the same strength cannot take a contrary view than what has been held by another coordinate Bench.
(ii) As Rajesh has not taken note of the decision in Reshma Kumari, which was delivered at earlier point of time, the decision in Rajesh is not a binding precedent.
(iii) While determining the income, an additionof 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.
(iv) In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where
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the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.
(v) For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paragraphs 30 to 32 of Sarla Verma which we have reproduced hereinbefore.
(vi) The selection of multiplier shall be as indicated in the Table in Sarla Verma read with paragraph 42 of that judgment.
(vii) The age of the deceased should be the basis for applying the multiplier.
(viii) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs. 15,000/-, Rs. 40,000/and Rs. 15,000/respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years.”
Appellants had filed the claim petition, seeking compensation on account of death of Jagdish Prasad in the motor-vehicle accident which had occurred on 30.11.2003. Although, it was the case of the claimants that the deceased was earning Rs.6,000/per month but in the absence of any documentary evidence on record in this regard, income of the deceased was liable to be taken as per the minimum wages fixed by the State at the relevant time. Since, accident had occurred in the year 2003, income of the deceased was liable to be taken as Rs.1,800/- per month in view of minimum wages fixed by the State prevalent at the relevant time. As per the postmortem report, deceased was aged about 50
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years at the time of the accident. Hence, the appropriate multiplier to work out the amount of compensation would be ‘13’.
Keeping in view the number of the claimants, one-fourth (1/4th) out of the income of the deceased was liable to be deducted towards his personal expenses.
Thus, the dependency of the claimants comes to Rs.1350 x 12 x 13 = Rs.2,10,600/-. Claimants would be further entitled to receive an addition of 25% of the said amount towards future prospects of the deceased and the said amount comes to Rs.52,650/-. Claimants would be further entitled to receive Rs.40,000/- towards loss of consortium and Rs.15,000/- towards funeral expenses.
Thus, the total amount of compensation comes to Rs.2,10,600/- + Rs.52,650/- + Rs.40,000/- + Rs.15,000/- = Rs. 3,18,250/-. Claimants have already been granted compensation to the tune of Rs.3,39,310/- by the Tribunal.
Hence, the amount of compensation granted by the Tribunal does not require any enhancement.
Dismissed.
Mohita/60
2 issues framed by the court
Whether the Tribunal erred in refusing to enhance the compensation amount awarded to the appellants.
Whether future prospects and other heads of compensation should be increased under the Motor Vehicles Act.
Colour shows how this judgement treated each authority
National Insurance Company Limited Versus Pranay SethiReferred¶22
National Insurance Company Limited Versus Pranay Sethi and others AIR 2017 (SC) 4973 · Who else cites this
Smt. Lalli Devi W/o Late Shri Jagdish Prasad and others
Rajkumar S/o Bhanwar Lal and others
Sabina
As recorded by the court registry
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