Gau HC | Deceased being below 40 years of age the future prospects shall be held at 40%; HC allows appeal against enhanced compensation in motor accident case

Gauhati High Court

Gauhati High Court: Parthivjyoti Saikia, J., addressed the instant appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award dated 30-08-2016 which had been filed for enhancement of award.

The facts of the case were such that on 07-07-2013, one Bimal Kr. Saikia (the deceased) was waiting for a bus on NH-37. He was standing left side of the road in order to take the bus ride back home when the vehicle bearing registration No. AS-01/K-8766 knocked down the deceased. The deceased was immediately shifted to Civil Hospital at Nagaon but he succumbed to his injury there. It was alleged that the accident took place because of the rash and negligent driving of the aforesaid vehicle.

On the basis of the Income Tax return for the financial year 2013-14, the Tribunal had assessed the monthly income of the deceased as Rs 12,619 only and the age of the deceased had been stated as 40 years. The applicant contended that the future prospect of the deceased should have been held at 40% only by the Tribunal and not 50%. Regarding the consortium, funeral expenses, loss of care and guidance for children, the appellant had relied on the decision of Supreme Court in National Insurance Company Limited v. Praynay Sethi, (2017) 16 SCC 680, the appellant submitted that on the aforesaid heads the claimant was entitled to Rs 70,000 only.

The Bench opined that the monthly income of the deceased had been rightly assessed at Rs 12,619. The Court reiterated,

“Being beneficial legislation, in a claim case under the Motor Vehicle Act strict proof of Income Tax Return may not be mandatory in all circumstances.

Holding that the Tribunal had committed an error because, the deceased being below 40 years of age, only 40% should have been added as future prospect. Regarding compensation under the loss of consortium head, financial expenses head and loss of care and guidance for children head, the Bench held that all together for these three heads the claimants were entitled to Rs 70,000 only.

Hence, the Court held that the claimant was entitled to Rs 21,90,040 only. The appeal was allowed and the appellant was directed to pay Rs 21,90,04 only to the claimant.[Oriental Insurance Co. Ltd. v. Nitanjali Devi Saikia, 2021 SCC OnLine Gau 648, decided on 18-03-2021]


Kamini Sharma, Editorial Assistant has reported this brief.


Appearance before the Court by:

For the Petitioner: Adv. R D Mozumdar

For the Respondent: Adv. A J Sarma

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