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ISSUES PRESENTED and CONSIDERED
The core legal issues considered in this judgment were: 1. Whether the accident was caused due to rash and negligent driving by the driver of the Scorpio Car. 2. Whether the appellants (claimants) have the right to receive compensation, and if so, the appropriate amount. 3. Whether the driver of the Scorpio Car had a valid driving license at the time of the accident. 4. Whether the vehicle was being driven in violation of the terms and conditions of the insurance policy. 5. Determination of relief and costs. ISSUE-WISE DETAILED ANALYSIS Issue 1: Rash and Negligent Driving The Tribunal affirmed that the accident was caused due to rash and negligent driving by the driver of the Scorpio Car. This conclusion was based on the oral evidence presented by the appellants, including the testimony of the 1st Appellant and another passenger in the Maruti Swift Car, supported by documentary evidence such as the police report. Issue 2: Right to Compensation and Quantum The Tribunal considered the dependency of the appellants on the deceased, Ritesh Bhanu Shali. It was determined that the parents were dependents, but the sister was not, as she was married by the time of the hearing. The Tribunal applied a 50% deduction for personal and living expenses of the deceased, as he was a bachelor, and used a multiplier of 17 based on the deceased's age, in line with the precedent set in "Sarla Verma v. Delhi Transport Corporation". The compensation was initially set at Rs. 8,66,000/-. However, the High Court reduced this to Rs. 6,68,000/- by applying a multiplier of 13, which the Supreme Court later found to be incorrect. Issue 3: Valid Driving License The owner of the Scorpio Car claimed that the driver held a valid license, and this was supported by evidence from the Regional Transport Officer. The license was not seized during the accident investigation, but details were later obtained. The Tribunal did not find any evidence to the contrary. Issue 4: Violation of Insurance Policy Terms The owner presented the original insurance policy, and the insurance company had already paid for vehicle damages. There was no evidence of policy violation presented. Issue 5: Relief and Costs The relief was initially determined by the Tribunal and modified by the High Court. The Supreme Court ultimately adjusted the compensation and interest to align with legal precedents. SIGNIFICANT HOLDINGS The Court reaffirmed the principles established in "Sarla Verma v. Delhi Transport Corporation" regarding the deduction for personal and living expenses and the selection of the multiplier based on the deceased's age. The Supreme Court corrected the High Court's error in applying a multiplier of 13 instead of 17, which was appropriate for the deceased's age of 26 years. Verbatim Quotes of Crucial Legal Reasoning: "The selection of multiplier is based on the age of the deceased and not on the basis of the age of dependent." "The Tribunal rightly restricted the 'personal and living expenses' of the deceased to 50% and contribution to the family was required to be taken as 50% as per the decision of this Court in the case of Sarla Verma (supra)." Core Principles Established: The judgment reinforced the application of standardized deductions for personal and living expenses based on the deceased's marital status and dependency structure, as well as the use of a multiplier based on the deceased's age for calculating compensation in motor accident claims. Final Determinations on Each Issue: The Supreme Court set aside the High Court's judgment, reinstating the Tribunal's multiplier of 17 and adjusting the compensation to Rs. 9,54,000/-, with interest at 6% per annum from the date of filing the claim petition. The decision emphasized adherence to established legal standards for calculating compensation in motor accident cases.
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