Case: Arati Bezbaruah Vs. Dy Director Gen.Geo.Survey Of India &amp;Anr

The husband of the appellant herein late (Dr.) Ramani Kanta Bezbaruah met with a fatal accident on 13th November, 1990 while he was proceeding on a scooter whence a jeep bearing registration No. MLK-5548 dashed against it. The claimant claimed compensation for a sum of Rs. 27,46,000/- before the Motor Accidents Claims Tribunal. The Tribunal, however, having regard to the deceaseds salary which at the relevant point of time was Rs. 3500/- per month, calculated the monthly dependency at Rs. 1700/-. The Tribunal calculated the life expectancy of the deceased to be 65 years, and the age of the deceased at the time of accident being 40 years, applied 15 as multiplier. However, from the said amount, 20% was directed to be deducted towards uncertainty of life as well as 10% for getting the lump sum amount and thus on that basis of the amount of compensation which would have otherwise come to Rs. 3,06,000/- was reduced to Rs. 2,14,200/-. A sum of Rs. 3,000/- was, however, awarded as expenses incurred by the family for the treatment of the deceased, and travelling expenses etc. A further sum of Rs. 3,000/- was awarded by way of loss of consortium, Rs. 6000/- towards the expenses of cremation, Rs. 3,000/- for loss of love and affection. On the said basis a total compensation of Rs. 2,50,200/- was awarded. It was further directed that the awarded amount be paid to the claimants with interest at the rate of 6% per annum. The High Court in appeal, however, held that having regard to the income of the deceased, which was Rs. 3500/- per month, the loss of dependency should be enhanced to the tune of Rs. 2,000/- per month. So far as rate of interest is concerned, the same was also directed to be enhanced to 8% per annum from the date of filing of the claim till the date of the receipt of the awarded amount.

Court's reasoning:
9. We are of the opinion that the amount of interest should, having regard to the facts and circumstances of the case, be paid at the rate of 9% per annum.10. The structured formula base has been set out in the Second Schedule to the Motor Vehicles Act.The victim at the relevant time was 40 years of age. The Tribunal and the High Court, therefore, cannot be said to have committed an error in applying the multiplier of 15. The only question which is required to be considered now is as to how the multiplicand should be arrived at.13. The deceased at the time of accident was a young man. He had a stable job. A reasonably liberal view of his future prospects should have, therefore, been taken into consideration by the High Court as well as by the Tribunal.14. Having regard to the prospects and advancement of the future career, a higher estimate of the yearly income at Rs. 45,000/- would not be out of place. From the said amount, one-third of the gross income towards personal living expenses should be deducted. The amount of Rs. 30,000/- should, thus be determined as the loss of dependency. The said sum should be capitalized by applying the multiplier of 15, which comes to Rs.