MOTOR VEHICLES ACT, 1988:
Motor vehicle accident - Compensation awarded by
Tribunal - Enhanced by High Court - On appeal, Held:
Income of the deceased towards future prospects could be
taken into account - Standardization thereof - Deduction towards personal and living expenses - Guidelines given -
Selection of multiplier - Criteria laid down - Computation of
compensation taking into account future pay revisions. if claimants delay the proceedings they can rely upon revised
higher pay scales that may come into effect during such pendency - However, promptness cannot be punished in this
manner - Hence revision in pay scale subsequent to death
and before final hearing cannot be taken into account for
determining the income for calculating compensation -
Personal and living expenses determined - Enhancement of compensation and interest thereon allowed - Enhanced
compensation awarded to be taken by the widow exclusively.
The appeal has been filed against the High Court
judgment. It sought higher compensation. On the basis
of the contentions raised by the appellants and respondents, the following questions arose for
consideration:
(i) Whether the future prospects can be taken into account for determining the income of the deceased ? If Aso, whether pay revisions that occurred during the
pendency of the claim proceedings or appeals therefrom
should be taken into account ?
(ii) Whether the deduction towards personal and living expenses of the deceased should be less than onefourth (1/4th) as contended by the appellants, or should
be one-third (1/3rd) as contended by the respondents ?
(iii) Whether the High Court erred in taking the multiplier as 13 ?
(iv) What should be the compensation ?