NDLI: Malarvizhi & Ors. Vs. United India Insurance Company Limited & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1988 s.166 compensation Motor Vehicles Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Motor Vehicles Act, 1988 (59 of 1988)
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Motor Vehicles Act, 1988 – s.166 – Person died in motor accident – Survived by the appellants (his wife and four daughters) – Appellants contended that the deceased derived income from many sources including business, agricultural land admeasuring 36.76 acres (sold in recovery proceedings after his death) and was also wholesale dealer of cement and owned wine shops – Sought compensation in the amount of Rs.99,90,000/- – Tribunal allowed the claim in the amount of Rs.59,04,000/- with interest @ 7.5% p.a. – High Court reduced the compensation to Rs.33,55,000/- – Held: Tribunal proceeded to determine the agricultural income arising from 36.76 acres of land on the basis of two judgments of the High Court, arrived at two different figures and determined the agricultural income on an average of the two amounts – It superimposed a possible value of income from agricultural land despite clear indication in the income tax returns of the income from agricultural land – Such method not sustainable in law – Determination must proceed on the basis of the income tax return, where available, a statutory document on which reliance may be placed to determine the annual income of the deceased – To the benefit of the appellants, the High Court proceeded on the basis of the income tax return for the assessment year 1997-98 and not 1999-2000 & 2000-01 which reflected reduction in the annual income of the deceased – Tax return indicates annual income of Rs.2,11,131/- in the relevant assessment year – In the peculiar circumstances of the case, Rs. 1,04,987/-, payment for prepaid license fee to the Tamil Nadu Government having been paid upfront and for a future period is added to the annual income of the deceased – Thus, the net annual income of the deceased is Rs.3,16,118/- – In accordance with Sarla Verma case, the multiplier applied is 13, appellant being 49 at the time of accident– Loss of dependency is at Rs.3,16,118 X 13= Rs.41,09,534/- – In accordance with Pranay Sethi case, Rs.15,000, 15,000 and 40,000 added for funeral expenses, loss of estate and loss of consortium respectively – Rs.50,000/- for loss of love and affection – Thus, total compensation payable to the appellants is Rs.42,29,534/- with interest @ 9% p.a. from the date of filing of the application till the date of its payment of the appellants.
Judge	Hon'ble Dr. Justice D.Y. Chandrachud
Neutral Citation	2019 INSC 1341
Petitioner	Malarvizhi & Ors.
Respondent	United India Insurance Company Limited & Anr.
SCR	[2019] 16 S.C.R. 1086
Judgement Date	2019-12-09
Case Number	9196

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