Revised Compensation in Fatal Accident Case: Supreme Court Enhances Claim to Rs. 11.25 Lakh.


07 August 2024 Civil Appeals >> Civil & Consumer Law   |   Motor Accident >> Family Law  

The Supreme Court, in this case, considered appeals filed by the claimant-appellants against the judgment and orders passed by the Allahabad High Court and the Motor Accident Claims Tribunal (MACT) in a motor accident claim.

In the incident, the claimant-appellant, Prem Lal Anand, and his wife were traveling on a motorcycle when they collided with two rashly driven tractors. The claimant suffered severe injuries, including a broken jaw and leg fractures, while his wife tragically died at the scene. The claimants filed for compensation, stating that their joint business suffered significant losses due to the wife's death.

 
 

The Tribunal, after examining the case, held that both the claimant and the respondent were equally responsible for the accident, attributing 50% contributory negligence to each party. The claim was partially allowed, and the claimant was awarded a compensation of Rs. 1,01,250 with a 12% interest rate.

Dissatisfied with the Tribunal's decision, the claimant-appellants approached the High Court, seeking an enhancement of the compensation. The High Court found an error in the application of the multiplier for compensation calculation and directed a revision using a multiplier of 14 instead of 9.

Despite this, the claimants filed a Civil Misc. Recall Application against the High Court's order, which was dismissed. The case was then brought before the Supreme Court, where the Court found the finding of contributory negligence against the claimant-appellant to be unjustified, as he was merely overtaking a slow-moving vehicle when the second tractor acted recklessly.

The Court also addressed the misapplication of the multiplier by the Tribunal and found that a multiplier of 15 should apply, as per the guidelines in Sarla Verma vs. Delhi Transport Corporation (2009). Additionally, the Court granted 25% future prospects on the deceased's income, in line with Pranay Sethi (2017), for a fair compensation calculation.
Ultimately, the Supreme Court revised the compensation amount to Rs. 11,25,000, while maintaining the Tribunal’s other directions but reducing the interest rate to 8%. The appeal was allowed, and the compensation was modified accordingly.

  Motor Vehicles Act, 1988