U.P. STATE ROAD TRANSPORT CORPORATION versus SHANTI DEVI AND ORS.

U.P. STATE ROAD TRANSPORT CORPORATION versus SHANTI DEVI AND ORS.

In determining compensation under s. 166 Motor Vehicles Act, in absence of specific evidence as to income, a reasonable guess may be made, but should reflect reality. In this case, an appropriate multiplier is 11, monthly income taken as Rs.1500/-, annual income Rs.18,000/-, one-third deduction for personal expenses, resulting in Rs.12,000/- annual dependency and total compensation of Rs.1,32,000/- with 6% interest from the date of application.

Parties
Appellant: U.P. State Road Transport Corporation; Respondents: Shanti Devi and Ors.
Jurisdiction
India
Judgment Date
03 February 2009
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal partly allowed
Legal Topics
Compensation, Multiplier Determination, Personal Expenses Deduction
Motor Accident Claims Tort Law Compensation Multiplier Determination Personal Expenses Deduction

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Parties

U.P. State Road Transport Corporation

Appellant

Shanti Devi and Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 What is the appropriate multiplier to be applied in assessing compensation under s. 166 of the Motor Vehicles Act, 1988 for a deceased aged 45 years?
  2. 2 How should the annual income and personal expense deductions be determined in the absence of material evidence?

Ratio Decidendi

In determining compensation under s. 166 Motor Vehicles Act, in absence of specific evidence as to income, a reasonable guess may be made, but should reflect reality. In this case, an appropriate multiplier is 11, monthly income taken as Rs.1500/-, annual income Rs.18,000/-, one-third deduction for personal expenses, resulting in Rs.12,000/- annual dependency and total compensation of Rs.1,32,000/- with 6% interest from the date of application.

Court Disposition

Appeal partly allowed

Orders

  • Compensation to be Rs.1,32,000/- with 6% interest from the date of application
  • Balance amount to be deposited with MACT within four weeks