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Head Note

Motor Vehicles Act,1988  - Section 168 , Section 173

Quantum - Fatal - Determination of just compensation - Deceased aged 39 years, officiating Executive Engineer - Claimants Wife and 3 children - Gross salary of deceased on date of accident was Rs. 2,680/- p.m. - Tribunal assessed contribution to family as Rs. 2,260/- p.m., applied multiplier of 18, assessed pecuniary damages at Rs. 4,75,000/-, deducted 1/3rd against lump sum payment and awarded Rs. 2,76,800/- On appeal High Court held claimants entitled to Rs. 4,70,000/- Whether High Court was in error in reducing by 1/3rd the compensation assessed after ascertainment of multiplicand capitalized with multiplier of 16 ? - Held - (Yes) - Deceased at the time of accident had stable job and had fair chance of regular promotion to post of Executive Engineer and Superintending Engineer in due course of service - He had about 18 years of service - Having regard to prospects of advancement and future career, High Court assumed income of deceased at Rs. 5,400/- p.m., deducted 1/3rd towards personal expenses, assessed family contribution as Rs. 3,600/-p.m. - High Court took into consideration guidelines laid down in Susamma Thomas case which warrants no interference - However multiplier of 16 is on higher side it should be 14 - Claimants entitled to Rs. 6,04,800/- High Court clearly by 1/3rd the compensation assessed after ascertainment of multiplicand- Compensation awarded by High Court enhanced from Rs. 4,70,000/- to Rs. 6,04,800/- with interest at 9% p.a. - Principles discussed base on case laws.

Topic(s)-Determination of just compensation

Important Decision(s)- Applied multiplier - Guidelines laid down in Susamma Thomas case.