RAMRAO LALA BORSE AND ANR versus NEW INDIA ASSURANCE COMPANY LTD. AND ANR

Citation: [2018] 1 S.C.R. 190 · Decided: 19-01-2018 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2018] 1 S.C.R.
RAMRAO LALA BORSE AND ANR
v.
      NEW INDIA ASSURANCE COMPANY LTD. AND ANR
 (Civil Appeal No. 418 of 2018)
JANUARY 19, 2018
   [DIPAK MISRA, CJI, A. M. KHANWILKAR AND
DR. D. Y. CHANDRACHUD, JJ.]
Motor Vehicles Act, 1988:
s.166 – Fatal accident of a 29 years old bachelor – Claim for
compensation by his parents (agd 65 and 50 years) – Tribunal, on
the basis of age of the deceased adopted multiplier of 17 and
awarded compensation – High Court reduced the compensation
amount, adopting multiplier of 7 on the basis of the age of claimants
– Appeal by the claimants – Held: The correct multiplier to be applied
in the present case would be 17, having regard to the age of the
deceased – Compensation amount enhanced accordingly.
Appellants-claimants filed petition u/s. 166 of Motor Vehicles
Act, 1988 claiming compensation for the death of their son in a motor
accident. Trial Court using multiplier of 17 having regard to the age of
the deceased (29 years) awarded compensation of Rs.61,20,000/- and
added further sum of Rs.35,000/- under conventional heads.  Interest
was awarded at 9% p.a. High Court adopted multiplier of 7 on the basis
of age of the claimants (65 and 50) and reduced the compensaton amount
to Rs.26,45,000/- with interst @ 9% p.a.  Hence the present appeal by
the claimants.
Allowing the appeal, the Court
HELD: The correct multiplier to be applied in the present
case would be 17 having regard to the age of the deceased.  As
regards future prospects, an addition of 50 percent would be
warranted. On the above basis and making a deduction of 50
percent towards personal expenses (the deceased being a
bachelor), the total compensation would stand quantified at Rs
61,20,000/-. After making an addition on account of conventional
heads, the total compensation would stand computed at  Rs
61,90,000/-. The aforesaid amount shall carry interest @ 9% p.a.
[2018] 1 S.C.R. 190
190
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191
from the date of the filing of the claim petition.  Apportionment
shall be carried out in terms of the award of the Tribunal.  [Para
8][193-G; 194-A-B]
National Insurance Company Limited v. Pranay Sethi
(2017) 13 SCALE 12 -  followed.
Sarla Verma v. Delhi Transport Corporation [2009] 5
SCR 1098 : (2009) 6 SCC 121 - relied on.
Case Law Reference
(2017) 13 SCALE 12    followed
Para 8
[2009] 5 SCR 1098
   relied on
Para 8
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 418 of
2018.
From the Judgment and Order dated 23.10.2015 by the High Court
of Judicature at Bombay in First Appeal No. 724 of 2015.
Anand Mishra, Amrendra Kumar Singh, Advs. for the Appellants.
Rajesh Kumar Gupta, Adv. for the Respondents.
The Judgment of the Court was delivered by
DR. D. Y. CHANDRACHUD, J., 1. The present appeal arises
from a judgment and order of a Division Bench of the High Court of
Judicature at Bombay dated 23 October 2015.  The High Court has
partly allowed the appeal of the insurer and reduced the award of
compensation by the Motor Accident Claims Tribunal from
Rs 61,55,000/- to Rs 26,45,000/-.
2. The claim before the Tribunal arose thus:
On 19 February 2006, Deepak was travelling as a passenger in a
luxury bus on Mumbai-Agra road and was occupying a seat on the driver’s
side.  When the bus was at Atgaon in Nashik district, a truck bearing
Registration No.RJ-01-G-6386 came from the opposite direction and
collided with the bus resulting in grievous injuries to the passengers
including Deepak. Deepak was shifted to the Government hospital at
Nashik where he succumbed to his injuries.
3. At the time of the accident, the deceased was serving as an
Assistant Teacher in Dadasaheb Dandekar Vidyalaya, a school run by
RAMRAO LALA BORSE v. NEW INDIA ASSURANCE
COMPANY LTD.
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SUPREME COURT REPORTS
[2018] 1 S.C.R.
Shishu Vihar Education Society.  The claimants, who were his parents,
filed a claim under Section 166 of the Motor Vehicles Act 1988 seeking
compensation against the owner of the offending truck and the insurer.
The Tribunal held that the accident was caused due to the rash and
negligent act of the driver of the offending truck.  The Tribunal accepted
the evidence adduced by the Claimants that had the deceased survived,
he would have been made permanent and would have been entitled to
the benefit of 6th Pay Commission wages of at least Rs 40,000 per month.
Adopting a multiplier of 17, the Tribunal awarded compensation of Rs
61,20,000/- to which it added a further sum of Rs 35,

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