Summary
A 28-year-old man died in a road accident in 2012. The Tribunal's award to his widow, minor daughter, father and sister was cut by the Punjab and Haryana High Court, which reduced his notional income, ignored future prospects, awarded sums for consortium and for 'love and affection', and lowered interest from 9% to 6%. The Supreme Court partly allowed the claimants' appeals. Accepting the High Court's notional income, it added 40% for future prospects as Pranay Sethi requires, deducted one-third for personal expenses and applied a multiplier of 17. Following Pranay Sethi and Janabai, it awarded Rs 40,000 each for spousal, parental and filial consortium and Rs 30,000 under the conventional heads. Given the year of death, interest was fixed at 7.5% a year from the date of the claim petition.
Issues
- Whether the High Court erred in omitting future prospects and in its treatment of consortium, conventional heads and interest when reducing compensation for a death in a motor accident.
Provisions considered
- Section 166, Motor Vehicles Act, 1988Compensation for death was re-computed by adding 40% future prospects for a deceased aged 28, deducting one-third for personal expenses and applying the multiplier of 17. (¶ 4)
Held
- Under Pranay Sethi, future prospects at 40% must be added even to notional income for a self-employed or non-salaried deceased of this age; the High Court erred in not adding any future prospects. (¶ 4)
- Following Pranay Sethi and Janabai, Rs 40,000 each is payable as parental consortium to the minor child, spousal consortium to the wife and filial consortium to the father, with Rs 30,000 under the conventional heads of funeral expenses and loss of estate. (¶ 4)
- The reduction of interest to 6% was erroneous; having regard to the year of death, interest at 7.5% per annum from the date of the claim petition is appropriate. (¶¶ 4, 5)
Result
Appeals partly allowed; the High Court's judgment modified, compensation re-computed as above with 7.5% interest from the date of the claim petition till realisation; no costs.