Proved salary, net of professional tax, warrants recalculation with 40% future prospects.

On 30 December 2020, Manojkumar Ranchhodbhai Thakor was riding motorcycle No. GJ-07-EC-6268 when an Eicher vehicle bearing No. MP-09-GE-5119, allegedly driven rashly and negligently from the wrong side, collided with the motorcycle.

The deceased sustained fatal injuries and died. His legal representatives filed M.A.C.P. No. 566 of 2021 before the Motor Accident Claims Tribunal (Aux.), Kheda at Nadiad, claiming compensation on the basis that he was employed as a labourer with Ashish Labour Organisation.

The Tribunal assessed his monthly income at Rs.10,000 and awarded Rs.19,72,128 with interest at 7.5% per annum. The claimants challenged the award only on the issue of quantum, contending that the deceased’s proved monthly income was Rs.11,263.

Whether the Tribunal erred in assessing the deceased’s monthly income at Rs.10,000 instead of the income established through the salary slips and employer’s witness?

Whether the compensation payable under the head of loss of dependency required reassessment by applying future prospects, deduction for personal expenses, and the appropriate multiplier?

Whether the claimants were entitled to enhanced compensation over and above the amount awarded by the Tribunal, with interest?

The Court applied the principles laid down by the Supreme Court in National Insurance Co. Ltd. v. Pranay Sethi, 2017 (16) SCC 680, under which a deceased aged 35 years is entitled to an addition of 40% towards future prospects and, where there are three legal representatives, one-third of the income is deductible towards personal expenses.

The Court also applied the multiplier method for computing loss of dependency and maintained the compensation awarded under conventional heads, including loss of consortium, loss of estate, funeral expenses, and parental consortium.

The Court found that the claimants had produced salary slips at Exhibits 34 to 37 and examined Sushilkumar Manikchandra Tiwari at Exhibit 33, who established the deceased’s employment with Ashish Labour Organisation.

Relying on the salary record, the Court accepted a gross monthly salary of Rs.11,263 and deducted Rs.200 towards professional tax, fixing the net monthly income at Rs.11,063.

Applying the rule in Pranay Sethi, the Court added 40% towards future prospects, resulting in a monthly income of Rs.15,488, and deducted one-third towards the deceased’s personal expenses because he was survived by three legal representatives.

The monthly dependency was consequently assessed at Rs.10,325.

The Court then calculated the loss of dependency at Rs.19,82,400 and retained the Tribunal’s amounts under the other heads. Although paragraph 12 refers to a multiplier of 18, the computation expressly uses a multiplier of 16—Rs.10,325 × 12 × 16—which yields Rs.19,82,400.

The total compensation was enhanced from Rs.19,72,128 to Rs.21,62,400, resulting in an additional award of Rs.1,90,272.

The enhanced amount was directed to carry interest at 7.5% per annum from the date of filing of the claim petition until realization.

The Insurance Company was directed to deposit and satisfy the enhanced award within six weeks of receiving the order, after which the Tribunal was to disburse the amount to the claimants after due verification and deduction of any deficit court fee.