Self-employed deceased below 40 years is entitled to a 40% addition for future prospects.

On 4 March 2011, Dipen Sonowal was driving an auto-rickshaw when it was struck by bus No. AR-02-0311, allegedly driven rashly and negligently by the State Transport Services driver. Dipen Sonowal sustained grievous injuries and died the same day. A criminal case was registered under Sections 279/337/338/304-A/427 IPC against the bus driver.

His wife, two children and mother filed a claim petition before the MACT, Tinsukia.

The State and the bus driver did not appear before the Tribunal, and the proceedings continued ex parte. After recording the claimants’ evidence, the Tribunal held that the accident resulted from the bus driver’s rash and negligent driving. It assessed the deceased’s monthly income at Rs.10,000, applied a multiplier of 16, and awarded Rs.15,85,000 with interest at 6% per annum from the date of filing of the claim petition.

The State appealed under Section 173 of the Motor Vehicles Act, 1988, contending that it had been deprived of an effective opportunity to contest the claim because its engaged advocate failed to appear. The claimants filed a cross-objection seeking enhancement for future prospects and proper compensation under the conventional heads in light of National Insurance Co. Ltd. v. Pranay Sethi.

Whether the ex parte judgment and award passed by the MACT warranted interference on the ground that the State was denied an effective opportunity of hearing?

Whether the claimants were entitled to enhancement of compensation and, if so, to what extent?

What relief and directions should be issued?

The Court applied Section 173 of the Motor Vehicles Act, 1988, governing appeals against awards of the Motor Accident Claims Tribunal.

It relied on Sarla Verma (Smt.) v. Delhi Transport Corporation, (2009) 6 SCC 121, for selecting the appropriate multiplier and determining the deduction for the deceased’s personal and living expenses; where the deceased leaves four dependants, a one-fourth deduction is appropriate, and for a deceased aged 35 years, the multiplier is 16.

It applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, which requires a 40% addition towards future prospects for a self-employed deceased below 40 years of age and prescribes the applicable amounts under the conventional heads of funeral expenses, loss of estate and loss of consortium.

The Court further applied the principle that a party having notice of proceedings and knowledge of the hearing date cannot attribute the consequences of its own failure to participate solely to counsel’s negligence, particularly where the party did not seek setting aside of the ex parte proceedings.

The Court rejected the State’s challenge to the ex parte award. The State had admittedly received notice, engaged an advocate, and was aware through its office of the proceedings, but took no effective steps to participate or to have the ex parte proceedings set aside.

The award was not passed merely because of the State’s absence; the claimants examined two witnesses and produced documentary evidence, upon which the Tribunal determined negligence and compensation. Accordingly, there was no violation of natural justice warranting appellate interference.

On enhancement, the Court accepted the Tribunal’s assessment of the deceased’s monthly income at Rs.10,000 in the absence of documentary proof.

Since the deceased was 35 years old and self-employed, it added 40% towards future prospects, resulting in a monthly income of Rs.14,000. After deducting one-fourth for personal expenses, the monthly contribution to the family was Rs.10,500. Applying the multiplier of 16, the loss of dependency was calculated at Rs.20,16,000.

The Court then substituted the Tribunal’s amounts under the conventional heads with Rs.15,000 for funeral expenses, Rs.15,000 for loss of estate and Rs.1,60,000 for loss of consortium to the wife, two children and mother.

The compensation was enhanced from Rs.15,85,000 to Rs.22,06,000, comprising Rs.20,16,000 for loss of dependency, Rs.15,000 for funeral expenses, Rs.15,000 for loss of estate and Rs.1,60,000 for loss of consortium.

The enhanced amount was directed to carry interest at 6% per annum from the date and in the manner ordered by the Tribunal.

The State was directed to deposit or pay the awarded amount, after adjustment of any amount already paid or deposited, within three months from receipt of the certified judgment.