Case Note & Summary
The present appeal arises from a judgment and award dated 07.03.2018 passed by the Motor Accident Claims Tribunal (Auxi.), Modasa in MACP No.1967 of 2013 (Old MAC Petition No.292 of 2012). The appellants, who are the original claimants, filed the appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation. The case pertains to a motor vehicle accident that occurred on 04.03.2012. The deceased was travelling in a Maruti Alto Car bearing registration No.GJ-09-AG-8233, driven by opponent no.4, from Virpur to Meghraj. When they reached near the place of accident, the driver of a Mahindra Pickup bearing registration No.GJ-12-GA-0705 (opponent no.1) drove in a rash and negligent manner and dashed into the Maruti Alto Car. As a result, the deceased succumbed to injuries and others sustained serious injuries. The claimants filed a claim petition seeking compensation. The Tribunal partly allowed the claim petition and awarded compensation. However, the Tribunal apportioned 50% contributory negligence on the deceased without any evidence. The Tribunal also did not add future prospects to the income of the deceased. The High Court heard learned Advocate Mr. R. K. Mansuri for the appellants, learned Advocate Mr. R. P. Raval for respondent no.3 Insurance Company, and learned Advocate Mr. R. D. Mehta for respondent no.6 Insurance Company. The High Court held that contributory negligence cannot be presumed without evidence and set aside the apportionment of 50% negligence on the deceased. The entire negligence was attributed to the driver of the offending vehicle. The High Court further held that 40% of the income must be added towards future prospects as the deceased was self-employed and aged about 40 years, following the principles in Pranay Sethi. The multiplier of 15 was upheld. The deduction towards personal expenses was reduced from 1/3rd to 1/4th as the deceased had 4 dependents. The High Court recalculated the compensation and enhanced it from Rs. 6,50,000/- to Rs. 10,50,000/-. The enhanced amount was directed to be paid with interest at 7.5% per annum from the date of filing of the claim petition till realization. The appeal was allowed accordingly.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Negligence - Motor Vehicles Act, 1988, Section 173 - The Tribunal apportioned 50% contributory negligence on the deceased without any evidence on record. The High Court held that contributory negligence cannot be presumed and must be proved by the party alleging it. In the absence of any evidence, the entire negligence was attributed to the driver of the offending vehicle. (Paras 4-5) B) Motor Accident Claims - Future Prospects - Addition to Income - Motor Vehicles Act, 1988, Section 173 - The Tribunal failed to add future prospects to the income of the deceased. Following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the High Court held that 40% of the income must be added towards future prospects as the deceased was self-employed and aged about 40 years. (Para 6) C) Motor Accident Claims - Multiplier - Selection of Multiplier - Motor Vehicles Act, 1988, Section 173 - The Tribunal applied multiplier of 15. The High Court, following Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, held that for the age group of 36-40 years, the appropriate multiplier is 15. The multiplier of 15 was upheld. (Para 6) D) Motor Accident Claims - Deduction towards Personal Expenses - Number of Dependents - Motor Vehicles Act, 1988, Section 173 - The deceased had 4 dependents. The Tribunal deducted 1/3rd towards personal expenses. The High Court, following Sarla Verma, held that for 4 dependents, deduction should be 1/4th. (Para 6) E) Motor Accident Claims - Interest Rate - Award of Interest - Motor Vehicles Act, 1988, Section 173 - The Tribunal awarded interest at 7.5% per annum. The High Court found no reason to interfere with the rate of interest. (Para 7)
Issue of Consideration
Whether the Tribunal erred in apportioning 50% contributory negligence on the deceased without any evidence? Whether the Tribunal erred in not adding future prospects to the income of the deceased? Whether the compensation awarded is just and proper?
Final Decision
Appeal allowed. The judgment and award of the Tribunal dated 07.03.2018 is modified. The compensation is enhanced from Rs. 6,50,000/- to Rs. 10,50,000/-. The enhanced amount shall be paid with interest at 7.5% per annum from the date of filing of the claim petition till realization. The apportionment of 50% contributory negligence on the deceased is set aside. The entire negligence is attributed to the driver of the offending vehicle.
Law Points
- Contributory negligence cannot be presumed without evidence
- Future prospects must be added to income of deceased
- Multiplier to be applied as per age of deceased
- Deduction towards personal expenses depends on number of dependents
- Interest rate on compensation
