Facts
Rajendra Bhardwaj, aged about 35, died in a road accident on 29 July 2018.
Source reference: para. 1The Motor Accident Claims Tribunal, Katghora, awarded his dependants ₹13,36,700 in compensation.
Source reference: para. 1The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally on the ground that the Tribunal had assessed the deceased’s income too low.
Source reference: paras. 1–4The driver and owner submitted that the vehicle was insured; the insurer did not appear.
Source reference: paras. 1–4Issues
Whether the Tribunal erred in assessing the deceased’s monthly income at ₹5,688 rather than the applicable minimum wage of ₹8,100
Source reference: paras. 2, 6Whether the compensation awarded by the Tribunal should be enhanced on the basis of the corrected income and the applicable compensation principles
Source reference: paras. 6–8Law Applied
Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of a Claims Tribunal.
Source reference: para. 1In calculating compensation, the Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, applying the principles reflected in its calculation: future prospects, deduction for personal expenses, selection of a multiplier, and conventional heads of compensation.
Source reference: para. 7The Court also applied the Chhattisgarh minimum-wages notification fixing the deceased’s monthly income at ₹8,100.
Source reference: para. 6Reasoning
The Court found that the Tribunal had assessed the deceased’s monthly income at ₹5,688, whereas the applicable minimum-wage notification supported an income of ₹8,100.
Source reference: para. 6Recalculating compensation using that income, the Court added 40% for future prospects, deducted one-fourth for personal expenses, applied a multiplier of 16, and retained ₹1,90,000 for conventional heads.
Source reference: para. 7This produced total compensation of ₹18,22,960, an increase of ₹4,86,260 over the Tribunal’s award.
Source reference: para. 7Holding
The appeal was partly allowed.
The award was enhanced from ₹13,36,700 to ₹18,22,960, entitling the appellants to an additional ₹4,86,260, with interest at 6% per annum from the date of filing the claim application until realization.
Source reference: paras. 8–10The remaining terms of the Tribunal’s award were left unchanged.
Source reference: paras. 8–10The Registry was directed to communicate the enhanced amount to the claimants in Hindi, with paralegal assistance if needed.
Source reference: paras. 8–10Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Motor Vehicles Act, 19881
Original Court PDF
SMT. HEMLATAvsSUNIL KUMAR LONIYA
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