NEW INDIA ASSURANCE COMPANY LTD. versus SMT. SHANTI PATHAK AND ORS.

Citation: [2007] 8 S.C.R. 237 · Decided: 10-07-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Case Partly allowed
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Judgment (excerpt)

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NEW INDIA ASSURANCE COMPANY LTD. 
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v. 
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SMT. SHANTI PATHAK AND ORS. 
JULY I 0, 2007 
[DR. ARJJIT PASA YAT, P.K. BALASUBRAMANYAN AND D.K. JAIN, JJ.] 
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Motor Vehicles Act, J988-Motor accident-Death-Compensation-
Jn one case age of deceased was 25 years-Jn another case age of deceased 
52 years-Tribunal awarding compensation-By applying multiplier of 17 in c 
case of 25 years old deceased-By applying multiplier of J 3 in case of 25 
years old deceased-Propriety of application of multiplier-Held: In case of 
25 years old deceased multiplier altered to 5 in view of the advance age of 
the claimants-In case of 52 years old deceased multiplier altered to 8 ~n 
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view of age of deceased-Compensations altered accordingly. 
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In a case of motor accident, where the age of deceased was 25 years and 
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age of the claimant was 65 years and more at the time of accident, Motor 
Accident Claim Tribunal awarded compensation applying multiplier of 17 in 
view of age of the deceased. 
In another case where the age of the deceased was 52 years, Tribunal E. 
awarded compensation applying multiplier of 13. The appeals by appellant-
insurer were dismissed by High Court. 
Hence the present appeals. 
Partly allowing the appeals, the Court 
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HELD: I. Considering the income that was taken, the foundation for 
working out the compensation cannot be faulted. Considering the fact that 
the matter is pending since long, it would be appropriate not to remit the case 
back to High Court and to take the multiplier of5 considering the fact that 
the mother of the deceased is about 65 years atthe time of the accident and G 
age of the father is more than 65 years. Taking into account the monthly 
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contribution at Rs. 3,500/- as held by the Tribunal and the High Court, the 
entitlement of the claim would be Rs. 2,10,000/-. The same shall bear interest 
@ 7.5% p.a. from the date of the application for compensation. Payment 
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SUPREME COURT REPORTS 
(2007) 8 S.C.R. 
already made shall be adjusted from the amount due. !Para 711239-E, F, GI 
2. In the case where the age of the deceased was 52 years as per the 
post mortem report, and the multiplier thus has to be 8 instead of 13 as adopted 
by the·Tribunal and upheld by the High Court. The rate of interest awarded 
does not need any .interference. The monthly income has to be taken as Rs. · 
11, 684/- and one-third has to be deducted therefrom for personal expenses. 
Thus, entitlement for loss of income comes to Rs. 7,44,000/-. The other 
amounts awarded by the Tribunal totaling Rs. 29,500/- remain unaltered. Thus . 
the claimant is entitled to Rs. 7, 73,500 alongwith interest at the rate fixed by 
the Tribunal The payment already made shall be adjusted. tpara 91 
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2926-2927 of 
2007. 
From the Final Judgment & Order dated 28.08.2004 and 31.03.2005 of the 
High Court ofUttranchal at Nainital in Appeal from Order No. 233 of2004 and 
Review Application No. 6554 of2004 in Appeal From Order No. 233 of2004 
respectively. 
WITH 
C.A. No. 2928 of2007. 
S.L. Gupta, 8.K. Sharma and Goodwill Indeevar for the Appellant. 
G.E. Vahanvati, SG., Binu Tamta, 8.K. Prasad, P.N. Puri, Kuldlp Singh, 
R.K. Pandey, Sanjay Katyal, T.P. Mishra and Debasis Misra for the 
Respondents. 
The Judgment of the Court was delivered by 
DR. ARIJIT PASA YAT, J. C.ANOS. 2926-2927/07 @SLP ©Nos. 20101~ 
02/05. . 
I. Leave granted . 
2. Challenge in this appeals is to the legality of the judgment rendered • 
by a Division Bench of Uttranchal High Court dismissing the appeal filed 
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before I~ under Section 173 of the Motor Vehicles Act, 1988 (in short the 'Act'). 
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The Motor Accidents Claims Tribunal/Addi. Distrfot Judge, F.T.C. Nainital 
H (hereinafter referred to as the 'tribunal') awarded a sum of Rs.4, 10,000/- in 
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NEWINDIAASSURANCECOMPANYLTD.v.SHANTIPATHAK[PASAYAT,J.] 
239 
favor of the respondents l and 2 (hereinafter referred to as the 'claimants'). A 
3. The background facts which are almost undisputed essentially are as 
follows: 
4. On 11.11.2002 Hem Pathak (hereinafter referred to as the 'deceased') 
who was at the relevant point oftirrie 25 years of age lost his life in a vehicular B 
accident. He was traveling in Jeep No.UP 03/0805. The said jeep had a 
collision with truck bearing No.UP 20A-849 I. Since the truck was the subject 
matter of insurance, the pa
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