Courts Below Haven’t Granted Any Amount Towards Future Prospects: SC While Enhancing Compensation By 15% In 1994 Motor Accident Case

The Supreme Court has allowed an addition of 15% in compensation towards future prospects in a motor accident case saying that the courts below did not grant any amount towards future prospects.

The two-Judge Bench comprising Justice B.R. Gavai and Justice Vikram Nath held, “Both the Courts below have not granted any amount towards future prospects. The law is now well settled by the Constitution Bench judgment in case of Pranay Sethi (supra) that future prospects should be added with the income depending upon the age of the deceased. If the deceased was between the age of 50- 60 years which is the present case, there should be an addition of 15% towards future prospects. We accordingly allow an addition of 15% towards future prospects.”

The Bench said that as the dependent family members are at least 4, the deduction should have been 1/4th.

Advocate Anjani Kumar Jha appeared on behalf of the appellant while Advocates Satyendra Kumar, Binay Kumar Das, and Anand Dilip Landge appeared on behalf of the respondents.

Factual Background -

An appeal was preferred by the injured/claimant against the judgment passed by the High Court whereby it awarded a compensation of Rs. 8,66,787/- over and above the compensation of Rs. 7,21,895/- awarded by the Motor Accident Claims Tribunal. The Tribunal awarded Rs. 5 lakhs as overall compensation and in addition, actual medical expenses incurred Rs. 2,21,895/- making a total figure of Rs.7,21,895/- and on an appeal, the High Court enhanced the overall compensation to Rs. 10,71,000/-.

The appellant being aggrieved by the same, sought compensation under several heads where no amount was awarded by the Tribunal or the High Court and also for enhancement of the amounts awarded under different heads. The appellant in 1994 had suffered severe injuries resulting in permanent disability to the extent of 60% as held by the High Court and 85% as declared under the Right to Disability Act, 2016.

The Supreme Court in view of the facts and circumstances of the case noted, “If the family members are 2 or 3, then 1/3rd deduction is justified, however, where the dependent family members were 4 to 6, the deduction should be 1/4th and in case of more than 6 dependent family members, the deduction should be 1/5th. In the present case, as the dependent family members are at least 4, the deduction should have been 1/4th. We hold accordingly.”

The Court, therefore, awarded an amount of Rs. 40,000/- each to each of the four dependents towards loss of consortium.

“The Tribunal had awarded Rs.2,500/- towards loss of estate and Rs.2,000/- towards funeral expenses. The High Court had awarded a consolidated amount of Rs.70,000/- under all conventional heads, which we have already set aside above. We are of the view that the amount awarded for loss of estate and loss of funeral expenses is too less and accordingly increase the same to Rs.15,000/- under both the heads separately”, observed the Court.

The Court further directed that the Tribunal will calculate the amount afresh in accordance with the amounts awarded by its order within a month of production of the order before it.

“Interest on the additional amount payable would be 7.5% from the date of filing of the claim petition(s). The amount so quantified shall be deposited within two months of its determination by the Tribunal and paid to the dependent/appellants according to law”, also directed the Court.

Accordingly, the Apex Court allowed the appeal.

Cause Title- Rahul Ganpatrao Sable v. Laxman Maruti Jadhav (Dead) Through LRS and Ors. (Neutral Citation: 2023INSC608)

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