IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.7736 OF 2009 (Arising out of S.L.P. (C) No.3289 of 2008)

Baby Radhika Gupta and Ors.                ...Appellant(s)

Versus

Oriental Insurance Co. Ltd. and Ors.      ...Respondent(s)

O  R  D  E  R

Leave granted.

Heard learned counsel for the parties.

This appeal is directed against the judgment of the  

Delhi High Court delivered in Motor Accident Claims Appeal  

No.239 of 2004 on 9th July, 2007.  

On 19th May, 1995, Pankaj Gupta, aged 32 years, died  

in vehicular accident.  The Motor Accident Claims Tribunal  

gave compensation of Rupees forty five lakhs to his wife,  

minor  daughter  and  his  parents.   The  Oriental  Insurance  

Company [for short, `the Insurance Company'], being aggrieved  

by the said judgment, filed an appeal before the High Court.  

The  High  Court  reduced  the  compensation  to  Rs.5,82,132/-.  

Aggrieved  thereby,  the  dependents  of  the  deceased  have  

preferred this appeal by way of special leave.

According to the appellants, the High Court has erred  

in applying the multiplier of 14, when, according to the  

second schedule to the Motor Vehicles Act, 1988, the correct  

multiplier ought to be 17, because at the time of death, the  

deceased was 32 years' of age.  The learned counsel appearing  

for the appellants also submitted that, out of the total  

income, the High Court deducted two-third of the amount as  

personal expenditure of the deceased; whereas, according to  

the  settled legal  position crystallised in number of cases,

....2/-

- 2 -

it should be one-third.  We find substance in the contentions  

of  the  learned  counsel  for  the  appellants  and  deem  it  

appropriate to modify the order.  If we deduct one-third as  

personal expenditure from the annual income of Rs.1,18,314/-  

of  the  deceased,  then  it  comes  to  Rs.39,438/-  and  the  

remaining  amount  would  be  Rs.78,876/-  and  if  it  is  

multiplied  by  17,  then  the  amount  would  work-out  to  be  

Rs.13,40,892/-.   

The deceased was 32 years' of age when the accident  

took  place  and  looking  to  the  peculiar  facts  and  

circumstances of the case, we deem it appropriate to grant  

Rupees  two  lakhs  on  account  of  future  prospects.   The  

appellants would also be entitled to the amount of Rupees  

five  thousand,  given  by  the  High  Court,  towards  funeral  

expenses and Rupees twenty five thousand towards loss of love  

and affection.   

With this modification, the civil appeal is disposed  

of.  In case the Insurance Company desires to recover this  

amount from the owner of the vehicle, it would be at liberty  

to do so in accordance with law.   

We direct the Insurance Company to pay the balance  

amount to the appellants within four weeks from today with  

interest at the rate of nine per cent per annum.

In  the  facts  and  circumstances  of  the  case,  the  

parties to bear their own costs.

......................J.               [DALVEER BHANDARI]

......................J.               [A.K. PATNAIK]

New Delhi, November 24, 2009.