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U.P. STATE ROAD TRANSPORT CORPORATION versus SHANTI DEVI AND ORS.

Citation: [2009] 1 S.C.R. 731 · Decided: 03-02-2009 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Case Partly allowed

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Judgment (excerpt)

[2009] 1 S.C.R. 731 
~ 
U.P. STATE ROAD TRANSPORT CORPORATION 
A 
V. 
SHANTI DEVI AND ORS. 
(Civil Appeal No. 597 of 2009) 
•• 
FEBRUARY 3, 2009 
B 
[DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM 
~ 
SHARMA, JJ.] 
). 
Motor Vehicles Act, 1988 - s. 166 - Compensation -
Appropriate multiplier - Determination of - Fatal accident of c 
-< 
person aged 45 years - Survived by wife and 5 children -
Annual income assessed as Rs.60001- -Award of Rs. 90,0001 
- applying multiplier of 15 - Enhancement of, to Rs.2,45,0001 
- by High Court - On appeal, held: When there is lack of 
~ 
material regarding income of deceased, there should be some D 
_, 
amount of guesswork but not totally detached from reality -
In the instant case, appropriate multiplier would be 11 and 
annual income is assessed as Rs. 18, 0001- - Making 113 
deduction for personal expenses, Rs.1,32,0001- awarded as 
compensation with 6% interest from the date of application. 
E 
Husband of respondent no. 1 and father of 
respondent no. 2 a11d 6 died in a motor accident due to 
rash and negligent driving of the driver. The age of the 
deceased was 45 years. His income was taken as Rs. 
F 
10001- pm and Rs. 5001- was deducted as personal 
expenses. Rs. 6000/- was assessed as his annual income. 
--1' 
The multiplier of 15 was applied and Rs. 90,000/- was 
~ 
awarded as compensation with 6% interest from the date 
of application. High Court enhanced the income 
assessed and awarded compensation of Rs. 2,45,0001- by G 
applying the same multiplier of 15. Hence the present 
appeal. 
Partly allowing the appeal, the Court 
731 
H 
732 
SUPREME COURT REPORTS 
[2009] 1 S.C.R. 
A 
HELD: 1.1 No material was placed regarding the 
• 
income of the deceased and the multiplier as adopted is 
high. It is also equally true that delay in filing the cross 
objections was condoned without justifiable reasons and 
there is no challenge to the same. In a case where there 
•
B is lack of material regarding the income of the deceased, 
some amount of guesswork is there. But the same 
should not be totally detached from reality. [Para 9] [734-
~ 
C-D] 
( 
c 
1.2. In the instant case, the appropriate multiplier 
would be 11 and monthly income can be taken at Rs. 
1500/-. The annual income can be taken at Rs. 18,000/-. 
Making one third deduction for personal expenses the 
balance is Rs. 12,000/- and if multiplier of 11 is adopted 
the compensation works out to be Rs. 1,32,000/-. The 
.... 
D MACT and the High Court have granted 6% interest from 
the date of application which is in order. [Para 10] [734-
E-F] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 597 
E of 2009. 
From the JudgmenUOrder dated 2.3.2007 passed by the 
High Court of Judicature at Allahabad in FAFO No. 487 of 
1991. 
F 
Pradeep Mishra and Daleep Kr. Dhayani for the Appellant. 
.... 
Anil Kumar Gupta-II for the Respondent. 
The Judgment of the Court was delivered by 
I 
G 
DR. ARIJIT PASAYAT, J.1. Leave granted. 
2. Challenge in this appeal is to the judgment of a Division 
Bench of the Allahabad High Court allowing the cross 
objections filed by the claimants who are respondents herein 
H while dismissing the appeal filed by the appellant-Corporation. 
U.P. STATE ROAD TRANSPORT CORPORATION v. 
733 
SHANTI DEVI AND ORS. [DR. ARIJIT PASAYAT, J.] 
3. Both the appeal and the cross objections related to an 
A 
~ 
award passed in MACT No. 88/1988 passed by the Motor 
Accidents Claim Tribunal, Kanpur (in short 'MACT'). A Claim 
Petition was filed under Section 110 of the Motor Vehicles Act, 
1939 (in short the 'Act'). It was stated in the said petition that 
one Mahesh Chandra Verma (hereinafter referred to as the 
B 
·deceased') was the husband of respondent No.1 and the father 
of respondents 2 to 6 and had lost his life in a vehicular 
... 
accident. 
4. The MACT noted that bus No.U.H.K.883 owned by the c 
appellant-corporation was involved in an accident on 28.4.1988 
and the accident took place due to rash and negligent driving 
of the driver. So far as the income of the deceased is 
concerned it was taken to be Rs.1,000/- p.m. and out of this 
Rs.500/- was deducted for personal expenses. In the post 
D 
• 
mortem report the age of the deceased was stated to be 45 
. -· 
years and therefore taking the annual income of Rs.6,000/- the 
compensation was assessed at Rs.90,000/- by applying the 
multiplier of 15 but deduction of 40% was made for lump sum 
payment. Interest at the rate of 6% p.a. from the date of 
application was award

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