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NATIONAL INSURANCE COMPANY LIMITED vs. PRANAY SETHI AND ORS.

SCR Citation: [2017] 13 S.C.R. 100
Year/Volume: 2017/ Volume 13
Date of Judgment: 31 October 2017
Petitioner: NATIONAL INSURANCE COMPANY LIMITED
Disposal Nature: Referred Issue Answered
Neutral Citation: 2017 INSC 1068
Judgment Delivered by: Hon'ble Mr. Justice Dipak Misra
Respondent: PRANAY SETHI AND ORS.
Case Type: SPECIAL LEAVE PETITION (CIVIL) /25590/2014
Order/Judgment: Judgment
1. Headnote

Motor Vehicles Act, 1988

ss.163-A, 166 and 168 - Computation of compensation - Determination of multiplicand - Determination of income of deceased - Determination of reasonable figures on conventional heads - Held: s. 168 deals with concept of just compensation and the same is to be decided on the foundation of fairness, reasonableness and equitable on acceptable legal standard - The determination hasto he on the foundation of evidence as regards the age and income of deceased and thereafter apposite multiplier to be applied - Formula relating to multiplier would he as indicated in *Sarla Verma case and approved in **Reshma Kumari case - For grant of just compensation principle of standardization is approved so that a specific and certain multiplicand is determined for applying the multiplier on the basis of age - The principle would include in its ambit addition of future prospects on the proven income at present - The principle of standardization will also apply to the self-employed or a person having fixed salary and determination of income would include future prospects - While determining income of deceased having permanµnt Joh. an addition of 50% of actual salary to the income towards future prospects where the deceased was below age of 40 years: addition of 30% if the age of deceased was between 40 and 50 years and addition of 15% would be made if the deceased was between the age of 50 to 60 years - If the deceased is selF employed or on fixed salary addition of income towards future prospects would be 40% of income where deceased was he/ow 40 years of age; 25% where deceased was between 40 and 50 years of age and 10% where the deceased was between 50 and 60 years of age would he regarded as necessary method of computation - Conventional and Traditional heads namely loss of estate, loss of consortium and funeral expenses cannot be determined on percentage basis - Reasonable figures on conventional heads should be Rs.15000/-, Rs.40000/- and Rs.15000/- respectively to be enhanced at the rate of 10% in every three years.

Judicial Discipline:

A co-ordinate Bench of the same strength cannot take a contrary view than what has been held by another co-ordinate Bench - Earlier decision of co-equal Bench binds the Bench of same strength - Precedent - Constitution of India - Art. 141.

Judgment:

Judgment per incuriam - A decision or judgment can be per incuriam any provision in a statute, rule or regulation, which was not brought to the notice of the court - A judgment can also be per incuriam if it is not possible to reconcile its ratio with that of a previously pronounced judgment of a co-equal or a larger Bench.

2. Case referred
3. Act
      No Data Found!!!!!
4. Keyword
  • Motor Vehicles Act
5. Equivalent citation
    Citation(s) 2017 AIR 5157 = 2017 (16) SCC 680 = 2017 (16) Suppl. SCC 680 = 2017 (10) JT 450 = 2017 (10) Suppl. JT 450 = 2017 (13) SCALE 12