Case Note & Summary
The present appeal was filed by the original claimants, the husband and others of the deceased, under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 16.09.2015 passed by the Motor Accident Claims Tribunal (Auxiliary), Morbi in MACP No.78 of 2010. The deceased was a passenger in a rickshaw bearing registration No. GJ-01-AV-5415, which met with an accident due to the rash and negligent driving of the rickshaw driver. The deceased sustained injuries and succumbed to them. The claimants filed a claim petition under Section 163A of the Motor Vehicles Act, 1988, seeking compensation of Rs. 5,00,000/-. The Tribunal partly allowed the claim and awarded Rs. 1,37,000/- with interest at 9% per annum. Aggrieved by the quantum, the claimants appealed. The High Court noted that the claim was under Section 163A, which provides for a structured formula compensation as per the Second Schedule. The Tribunal had deducted 1/3rd towards personal expenses, which is not permissible under Section 163A. The High Court held that the notional income of the deceased should be taken as Rs. 15,000/- per annum as per the Second Schedule, and applying the multiplier of 11 for a person aged 50 years, the loss of dependency would be Rs. 1,65,000/-. Additionally, the claimants were entitled to Rs. 2,000/- for funeral expenses and Rs. 2,500/- for loss of estate, totaling Rs. 1,69,500/-. However, since the appeal was only for enhancement and the claimants did not challenge the award for other heads, the High Court restricted the enhancement to Rs. 1,65,000/-. The appeal was partly allowed, and the compensation was enhanced to Rs. 1,65,000/- with interest at 9% per annum from the date of filing of the claim petition till realization.
Headnote
A) Motor Vehicles Act - Compensation under Section 163A - Structured Formula - Deduction for Personal Expenses - In a claim under Section 163A of the Motor Vehicles Act, 1988, the compensation is determined on a structured formula basis as per the Second Schedule, and no deduction towards personal expenses is permissible. The Tribunal's deduction of 1/3rd towards personal expenses was held to be erroneous. (Paras 5-6) B) Motor Vehicles Act - Notional Income - Assessment of Multiplier - For a deceased aged 50 years, the notional income of Rs. 15,000/- per annum as per the Second Schedule is applicable, and the multiplier of 11 is to be applied. The High Court enhanced the compensation from Rs. 1,37,000/- to Rs. 1,65,000/- with interest at 9% per annum. (Paras 5-7)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in deducting 1/3rd towards personal expenses while awarding compensation under Section 163A of the Motor Vehicles Act, 1988, and whether the compensation awarded was just and proper.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The appellants-original claimants are entitled to total compensation of Rs. 1,65,000/- with interest at the rate of 9% per annum from the date of filing of the claim petition till its actual realization. The respondents are jointly and severally liable to pay the compensation. The award is modified accordingly. No order as to costs.
Law Points
- Section 163A Motor Vehicles Act
- 1988
- structured formula compensation
- no deduction for personal expenses
- no need to prove negligence
- notional income assessment
- multiplier as per Second Schedule
