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In this case of Malarvizhi & Ors. Versus United India Insurance Company Limited & Anr. A civil appeal was filed in the Supreme Court of India by the Malarvizhi & Ors, arising from a judgment of a Division Bench of the Madras High Court dated 20 July 2018 in a first appeal and cross-objection from the decision of the Motor Accident Claims Tribunal, Ranipet. In this case the deceased was travelling in his ambassador car with one of his friends and a Tata car coming from the opposite direction dashed into the car of the deceased, the deceased was seriously injured and lost his life in the course of the accident, the deceased left behind his wife and his four daughters. Further an appeal was filed in the tribunal by the appellants demanding compensation of Rs 99,90,000. But the tribunal after hearing the case and scrutinizing the facts decided that the appellants should be paid a compensation of Rs 59,04,000 together with interest at the rate of 7.5% per annum from the date of filing the claim petition till the date of realization of the decreed amount. The appellants thereby filed there first appeal in the High Court of Madras challenging the decision of the tribunal. The high court instead of increasing the amount of compensation decreased the amount of compensation on the basis of Income Tax Return filed by the deceased. The High Court estimated the income of the deceased at a reduced figure of Rs 2,50,000 per annum from Rs 4,48,790.55. The total compensation awarded was thus reduced from Rs 59,04,000 to Rs 33,55,000. Whereas the tribunal assessed, the annual income of the deceased at Rs 4,60,298. 30% was added to this towards future prospects bringing the annual income to Rs 5,98,387.40. After a deduction of 1/4th of the total income towards living expenses, the Tribunal used a multiplier of 13 to arrive at a compensation of Rs.58,34,277.
The appellants subsequently filed an appeal in the Supreme Court challenging the decision of the Madras High Court. The supreme court after hearing the case came to the conclusion that “In accordance with the judgment of this Court in Sarla Verma, the multiplier to be applied when the deceased is between the age group 46 to 50 is 13. The loss of dependency is calculated at Rs 3,16,118 X 13 = Rs 41,09,534. In accordance with the judgment of this Court in Pranay Sethi, Rs 15,000, 15,000 and 40,000 must be added for funeral expenses, loss of estate and loss of consortium respectively. Therefore total compensation payable to the appellants is Rs 42,29,534 with interest at 9% per annum from the date of filing of the application till the date of payment of the compensation to the appellants. The appeals are partly allowed to the extent indicated above. There shall be no order as to costs. Pending application(s), if any, shall stands disposed of.”
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