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IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL  NO 2697  OF 2018

BHARTIBEN NAYABHA KER AND ORS   ..Appellants  

VERSUS

SIDABHA PETHABHA MANKE AND ORS ..Respondents

CORRIGENDUM

1 After the judgment was delivered on 5 April 2018, the matter has been

mentioned for correcting certain typographical mistakes in the judgment.  We

accordingly correct the judgment dated 5 April 2018 to the following extent:

(i) The last sentence of paragraph 4 shall stand corrected to read as

follows:

“Second,  it  has  been  urged  that  there  was  no

justification for the High Court to reduce the award of

interest from 12% p.a. to  9% p.a.”

REPORTABLE

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(ii) Paragraph  6  of  the  judgment  shall  stand  substituted  with  the

following paragraph:

“We find no reason to interfere with the award of interest at 9%

p.a. by the High Court.”

...........................................CJI           [DIPAK MISRA]

                                                   ...........................................J           [A M KHANWILKAR]

                                                   ...........................................J           [Dr D Y CHANDRACHUD]

New Delhi; April 06, 2018

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IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL  NO 2697  OF 2018 (Arising out of SLP(C)No 2927 of 2017)

BHARTIBEN NAYABHA KER AND ORS   ..Appellants  

VERSUS

SIDABHA PETHABHA MANKE AND ORS ..Respondents

J U D G M E N T  

Dr D Y CHANDRACHUD, J

1 The present appeal arises from a judgment of a learned Single Judge

dated 15 March 2016, in a first appeal from the decision of the Motor Accident

Claims Tribunal (MACT), Jamnagar.   

2 The appellants are heirs and legal representatives of Nayabha Mapbha

Ker  who died as a  result  of  a  motor  accident  on 18 July  1993.   He was

travelling in a jeep bearing Registration No GBI-7896 which was being driven

REPORTABLE

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by  the  fourth  respondent  towards  Mithapur.   At  about  3.00  am  the  first

respondent  who was  driving  a  truck  bearing  Registration  No.GJ-10-T-747,

came from the opposite direction and dashed against the jeep.  Nayabha was

seriously injured and died during the course of the accident. His heirs filed a

claim petition under Section 166 of the Motor Vehicles Act, 1988 before the

MACT, Jamnagar seeking compensation in the amount of Rs 13 lakhs.  By its

award dated 19 July 1999 the Tribunal allowed the claim in the amount of Rs

7,78,000 together with interest at the rate of  12 % per annum.  The appellants

filed a first appeal before the High Court of Gujarat.  The High Court, by its

impugned judgment, allowed an additional  amount of  Rs 33,000 under the

head of loss of life, expenses and consortium but reduced the rate of interest

from 12 % p.a. to 9% p.a.  Aggrieved by the judgment of the High Court, the

claimants are in appeal.

3 The deceased was 41 years old at the time of the accident.  He had

acquired a B.A. and B.Ed. qualification. For seven years, he had served as

President of  the Taluka Panchayat.  The deceased owned agricultural  land.

The  Tribunal  assessed  the  annual  income  of  the  deceased  at  Rs.81,000

comprised of his agricultural income and income from other sources.  Applying

a multiplier of 12, the Tribunal computed an amount of Rs.  7.56 lakhs towards

the  loss  of  dependency.   A total  amount  of  Rs  7.78  lakhs  was  awarded

inclusive  of  conventional  heads.   In  appeal,  the  High  Court  came  to  the

conclusion that the total income would work out to Rs 92,000 out of which one

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fourth would be deducted for personal expenses.  Applying a multiplier of 14,

the High Court awarded an additional amount of Rs 33,000.  However, the

rate of interest has been reduced to 9% per annum.

4 Basically two submissions have been urged on behalf of the appellants.

First, it has been urged that the High Court did not allow for future prospects

for which provision has to be made in view of the law settled by a Constitution

Bench  of  this  Court  in  National  Insurance  Company  Limited v  Pranay

Sethi1.  Second, it has been urged that there was no justification for the High

Court to reduce the award of interest from 9% p.a. to 6% p.a.

5 The High Court has computed the total income of the deceased at Rs

91,800 (Rs 55,000 being the income from agriculture and Rs 36,800 being the

income from salary).   In  view of the decision of  the Constitution Bench in

Pranay Sethi (supra), an addition of 25% is warranted, on account of future

prospects having regard to the age of the deceased.  The total income, after

accounting for future prospects at 25% would work out to Rs 1,14,000 per

annum.  An amount of one fourth would have to be reduced on account of

personal expenses. The net income would work out to Rs 85,500.  Applying a

multiplier  of  14  the  total  compensation  would  work  out  to  Rs  11,97,000.

Adding a further amount of Rs 70,000 under conventional heads as stipulated

1 (2017) 13 SCALE 12

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in  the  judgment  in  Pranay  Sethi (supra),  the  total  compensation  payable

would work out to Rs 12,67,000.   

6 We find no reason or justification for the High Court to reduce the award

of interest to 6% p.a..  The rate of interest of 9% p.a. fixed by the Tribunal is

restored.

7 The  appeal  is  accordingly  allowed  by  directing  that  the  quantum of

compensation shall stand enhanced to Rs 12,67,000 on which interest shall

be payable at 9% p.a. from the date of the claim petition.  There shall be no

order as to costs.

...........................................CJI           [DIPAK MISRA]

                                                   ...........................................J           [A M KHANWILKAR]

                                                   ...........................................J           [Dr D Y CHANDRACHUD]

New Delhi; April 05, 2018