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UTTARNACHAL TRANSPORT CORPORATION LTD. versus SMT. VIMLA DEVI AND ORS.

Citation: [2009] 2 S.C.R. 504 · Decided: 16-02-2009 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Case Partly allowed

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Judgment (excerpt)

[2009] 2 S.C.R. 504 
A 
UTTARNACHAL TRANSPORT CORPORATION LTD. 
' 
';
v. 
. 
SMT. VIMLA DEVI AND ORS. 
t
Civil Appeal No. 1069 of 2009 
B 
FEBRUARY 16, 2009 
[DR. ARIJIT PASAYAT AN.O ASOK KUMAR GANGULY, 
JJ.] 
Motor Vehicles Act, 1988 : 
• .. 
c 
s. 173 - Enhancement of compensation - Appropriate 
multiplier - Determination of - Fatal acpident of contractor 
aged 43 years - Compensation of Rs, 1,84,500 by tribunal -
High Court taking notional income as Rs. 36, 0001- and 
"' 
adopting multiplier of 15 enhanced compensation to Rs. 
D 
3, 60, 0001- - On appeal, held: In view of the parameters, 
multiplier fixed at 10 -
Rs. 2, 40, 0001- awarded as 
,.. 
compensation with 6% interest from date of claim. 
).-
BS-contractor, aged 43 years met with a fatal 
accident while riding a scooter when bus of the appellant-
E Corporation dashed against it. MACT fixed Rs. 15,000/-
p.a. as notional income of deceased and awarded 
· compensation of Rs. 1,84,500/- with 9% p.a. from the date 
of claim. High Court fixed notional income as Rs. 36,000/ 
- p.a. It adopted multiplier of 15 and awarded Rs. 3,60,000/ 
.... 
F 
- with 9% interest from the date of claim. Hence, the 
present appeal. 
Partly allowing the appeal, the Court 
·HELD: 1.1 The multiplier method involves the 
G, ascertainment of the loss of dependency or the multi- . 
plicand having regard to the circumstances of the case 
and capitalizing the multiplicand by an appropriate 
,~ ' 
multiplier. The choice of the multiplier is determine.d by the 
' ' 
age of the deceased (or that of the claimants whichever is 
504 
\-
H 
UTTARNACHAL TRANSPORT CORPORATION LTD. V. 
505 
SMT. VIMLA DEVI AND ORS. 
higher) and by the calculation as to what capital sum, if A 
invested at a rate of interest appropriate to a stable 
economy, would yield the multiplicand by way of annual 
interest. In ascertaining this, regard should also be had 
to the fact that ultimately the capital sum should also be 
consumed-up over the period for which the dependency B 
is expected to last. [Para 8] [507-F, G] 
1.2 Considering the age of the deceased the multiplier 
as adopted appears to be on higher side. Keeping in view 
the parameters, it would be appropriate to fix the multiplier 
at 10 and the rate of interest @ 6% p.a. No basis has been C 
indicated by the High Court for its presumptuous 
conclusion that the deceased could· have earned 
Rs.36,000/- p.a. Taking an overall view of the matter and 
the multiplier to be adopted, the quantum of Rs.2,40,900/ 
- with 6% interest is fixed from the date of claim. [Paras o 
14, 15 and 16) [ 510-H; 511-A, B] 
General Manager, Kera/a State Road Transport 
Corporation, Trivandrum v. Susamma Thomas (Mrs.) and Ors. 
i994 (2) SCC 176; U.P State Road Transport Corporation and 
Ors. v. Trilok Chandra and Ors. 1996 (4) SCC 362 - referred E 
to. 
I 
Davies v. Powell Duffregn Associated Collieries Ltd. 1942 
AC 601; Nance v. British Columbia Electric Railway Co. Ltd. 
1951 (2) All ER 448; Mallett v. Mc Mangle 1969 (2) All ER 178 
-refurr~~. 
F 
Halsbury's Laws of England vol. 34, para 98 - referred to. 
Case Law Reference_ 
1942 AC 601 
1951 (2) All ER 448 
1969 (2) All ER 178 
1994 (2) sec 11s 
1996 (4) sec 362 
Referred to. 
Referred to. 
Referred to. 
Referred to. 
Referred to. 
Para 7 
Para 7 
Para 9 
Para 12 
Para 12 
G 
H 
506 
SUPREME COURT REPORTS 
[2009] 2 S.C.R. 
A 
CIVILAPPELLATE.JURISDICTION: CivilAppeal No. 1069 
~ 
of 2009 
From the Judgement and Order dated 29.11.2006 of the 
High Court of Uttaranchal at Nainital in A.O. No. 213 of 2004. 
B 
Pradeep Misra, for the Appellant. 
The Judgement of the Court was delivered by, 
DR. -ARIJIT PASAYAT, J. 
t-
c 
1. Leave granted. 
2. Challenge in this appeal is to the judgment of a learned 
Single Judge of the Uttaranchal High Court partially allowing 
the appeal filed by the respondents. The appeal was filed before 
the High Court in terms of Section 173 of the Motor Vehicles 
D 
Act, 1988 (in short the 'Act') seeking enhancement of the 
compensation as fixed by learned 1st Additional District Judge-
... 
cum-Motor Accident Claims Tribunal, Haridwar. (In short the 
)r 
'MACT'). The MACT had awarded compensation of 
Rs.1,84,500/- alongwith interest @ 9% p.a. from the date of 
E 
claim. 
3. The claim petition was filed inter-alia stating that on 
2.9.2003 one Bijendra Singh (hereinafter referred to as the 
'deceased') was riding a scooter. Suddenly, the bus owned by 
\ 
the present appellant-Corporation dashed against it. T

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