While considering motor accident claim relating to 54-yr-old deceased, applying two multipliers was clearly erroneous as his age had to be considered for determining suitable multiplier: SC

Read Judgment: R. Valli & Ors. V. Tamil Nadu State Transport Corporation Ltd. 

Pankaj Bajpai

New Delhi, February 11, 2022: While relying on the decision in case of Sarla Verma (Smt.) & Ors. vs. Delhi Transport Corporation & Anr, (2009) 6 SCC 121, which was affirmed in National Insurance Company Limited v. Pranay Sethi & Ors, (2017) 16 SCC 680, the Supreme Court has observed that the suitable multiplier would be 11 since the deceased was 54 years of age on the date of incident.  

A Division Bench of Justice Hemant Gupta and Justice V. Ramasubramanian found that the method of determination of compensation applying two multipliers was clearly erroneous and ran counter to the judgment of Constitution Bench in Pranay Sethi’s Case (Supra). 

Going by the background of the case, the deceased was riding a two-wheeler when a bus belonging to TNSTC (Respondent) dashed into his vehicle, and the deceased suffered head injuries and died instantly. On the basis of his income and age, the Motor Accident Claim Tribunal, Chennai (MACT) awarded a compensation of Rs.13,82,628/-, holding that the accident occurred due to rash and negligent driving of the bus driver. 

On appeal, the High Court affirmed the findings recorded by the MACT in respect of multiplier of 3 up-to the date of superannuation and thereafter multiplier of 8 keeping in view the dependency of life for 10 years. The High Court maintained the amount of compensation on account of dependency but enhanced the compensation under the conventional heads, so as to award a sum of Rs.15,12,628. Hence, present appeal was filed by the legal heirs of the deceased. 

After considering the submissions, the Top Court noted that in Pranay Sethi’s Case (Supra), this Court held that the age of the deceased is the basis for applying suitable multiplier and that the compensation is to be determined keeping in view the future prospects. 

The future prospects were held in case of Pranay Sethi to be 15% in respect of a deceased between the ages of 50 to 60 years, added the Court. 

Thus, the Apex Court declared that the appellants were entitled to compensation of Rs. 24,33,064  with interest @ 9% from the date of filing of the claim application till realization.