In a significant legal development, the court examined the assessment of notional income in a fatal accident case, highlighting the importance of accurately determining the earning potential of young professionals. The analysis sheds light on the factors considered by the court in enhancing compensation for the deceased, emphasizing the need for a comprehensive evaluation of future earnings in such cases.
Facts
- S. Sathiyanarayan was travelling on a motorcycle when a bus owned by M/s Adhiparasakthi Engineering College collided with him from the backside.
- The accident resulted in the death of S. Sathiyanarayan on the spot.
- The parents of the deceased filed a claim petition for compensation before the Motor Accident Claims Tribunal.
- The Tribunal awarded compensation of Rs. 7,48,052/- to the parents, considering the deceased’s age, student status, and notional monthly income.
- High Court enhanced the compensation from Rs. 7,48,052/- to Rs. 16,27,000/-
- High Court increased the notional income to Rs. 10,000/- per month due to the meagre amount fixed by the Tribunal
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Arguments
- Appellant argues that the notional monthly income of the deceased should be enhanced to Rs. 42842/-, citing the case of Kurvan Ansari Alias Kurvan Ali vs Shyam Kishore Murmu.
- Respondents argue that the assessment of notional income at Rs. 7000/- and Rs. 10000/- per month by the Tribunal and High Court respectively was correct, as the deceased was a second-year MBA student.
- Appellant No. 1 highlighted that the deceased’s classmates were earning Rs. 39869/- and Rs. 44588/- per month in well-known companies, a fact overlooked by the Tribunal and High Court.
- The affidavit mentioned the deceased’s young age and his classmates’ employment prospects, indicating that the deceased would have secured a similar salary had he not met with the accident.
- It is mentioned that the deceased, a qualified engineering graduate pursuing an MBA, was likely to have landed well-paying jobs given his qualifications and age.
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Analysis
- The monthly income calculated by the High Court is considered inadequate.
- The deceased was the only child of the appellants.
- Compensation for the death of S. Sathiyanarayan to be worked out by enhancing his monthly income to Rs. 30,000/-
- 50% of the compensation amount to be deducted for personal and living expenses since he was the only child of the appellants
- Referencing paragraphs (31) and (32) of the judgment in the case of Sarla Varma v. Delhi Transport Corporation and National Insurance Company v. Pranay Sethi
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Decision
- Compensation awarded for loss of consortium: Rs. 40,000/-
- Total compensation awarded: Rs. 46,11,000/-
- Enhanced compensation from MACT: Rs. 38,62,948/-
- Enhanced compensation from HC: Rs. 29,84,000/-
- Payment of enhanced compensation with interest within three months
- Reassessment of compensation for the deceased S. Sathiyanarayan
Case Title: S. VASANTHI Vs. M/S ADHIPARASAKTHI ENGG. COLLEGE (2022 INSC 1062)
Case Number: C.A. No.-007180-007180 / 2022
