Judgment :- 1. By consent, the main appeal itself is taken up for disposal at the time of admission. 2. The appeal is preferred by the claimants against the judgment and decree dated 23.09.2005 made in MCOP No.554 of 2004 on the file of the Motor Accident Claims Tribunal and Chief Judicial Magistrate, Thiruvannamalai. 3. Background facts in a nutshell are as follows: On 15.08.2002 at about 6.30 a.m., the deceased Kothandaraman met with motor vehicle accident. While he was travelling in a Mini Van bearing Registration No.TN32 X 0790 as a loadman, belonging to the 2nd respondent. When the said vehicle was proceeding on Polur-Thiruvannamalai Road, at that time, the lorry bearing Registration No.TNT 3589 belonging to the first respondent and insured with the third respondent, came in a rash and negligent manner and also at high speed and hit the van. Due to the said impact, the deceased sustained fatal injuries and was immediately admitted in the Government Hospital, Thiruvannamalai and died on 19.08.2002. The claimants are mother, brother and sister. They claimed a compensation of Rs.20,00,000/-. The said lorry was insured with the third respondent Company, who resisted the claim. On pleadings the Tribunal framed the following issues:- "1. Whether the accident had occurred due to the negligent driving of the driver of the 1st respondent or due to the negligent driving of the driver of the 2nd respondent? 2. Whether the claimants are entitled to the compensation as claimed or not?" After considering the oral and documentary evidence, the Tribunal held that the accident had occurred only due to the rash and negligent driving of the driver of the lorry and awarded a compensation of Rs.4,21,832/-with interest at 7.5% per annum from the date of petition and the details of the same are as under:- Loss of dependency Rs.4,19,832/- Funeral expenses Rs. 2,000/- Total... Rs.4,21,832/- Aggrieved by that award, the claimants have filed the present appeal for enhancement. 4. The learned counsel appearing for the claimants/appellants submitted that the compensation awarded by the Tribunal is very meager and the award passed by the Tribunal is without basis and justification. The Tribunal ought to have awarded compensation as claimed by the appellants and the Tribunal has not considered the relevant materials and has also not followed the principles of assessment before passing the award. The Tribunal ought to have awarded compensation as claimed by the appellants and the Tribunal has not considered the relevant materials and has also not followed the principles of assessment before passing the award. Therefore, he submitted that the order passed by the Tribunal is not accordance with law and it is a fit case for enhancement. 5. The learned counsel appearing for the 3rd respondent/ Insurance Company submitted that the Tribunal has considered all the relevant materials and evidence on record and came to the right conclusion and awarded a just, fair and reasonable compensation. Hence, the order of the Tribunal is in accordance with law and the same has to be confirmed. 6. Heard the learned counsel on either side and perused the documents on record. On the side of the claimants, P.Ws.1 and 2 were examined and documents Exs.P1 to P9 were marked. On the side of the respondents, R.W.1, one Ganesan was examined and also marked the copy of the Policy as Ex.R1. P.W.1 is the mother of the deceased. PW2-Mr.Velmurugan is an eye witness to the occurrence. Ex.P1 is the certified copy of the First Information Report. Ex.P2 is the certified copy of the Motor Vehicle Inspection Report. Ex.P3 is the certified copy of the Motor Vehicle Inspection Report. Ex.P4 is the certified copy of the Postmortem Report. Ex.P5 is the certified copy of the final report. Ex.P6 is the copy of the Judgment. Ex.P7 is the certified copy of the Transfer Certificate. Ex.P8 is the certified copy of the LR Certificate. Ex.P9 is the certified copy of the Salary Certificate. After considering the above oral and documentary evidence, the Tribunal has given a categorical finding that the accident had occurred due to the rash and negligent driving of the driver of the lorry and the finding is based on valid materials and evidence. 7. In the case of SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows: "7. Before considering the questions arising for decision, it would be appropriate to recall the relevant principles relating to assessment of compensation in cases of death. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows: "7. Before considering the questions arising for decision, it would be appropriate to recall the relevant principles relating to assessment of compensation in cases of death. Earlier, there used to be considerable variation and inconsistency in the decisions of Courts Tribunals on account of some adopting the Nance method enunciated in Nance V. British Columbia Electric Rly. Co. Ltd. (1951) AC 601 and some adopting the Davies method enunciated in Davies V. Powell Duffryn Associated Collieries ltd., (1942) AC 601. The difference between the two methods was considered and explained by this Court in General Manager, Kerala State Road Transport Corporation Vs. Susamma Thomas AIR 1994 SC 1631 : (1994) 2 SCC 176 . After exhaustive consideration, this Court preferred the Davies method to Nance method. We extract below the principles laid down in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra). "In fatal accident action, the measure of damage is the pecuniary loss suffered and is likely to be suffered by each dependent as a result of the death. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables, e.g., the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have live or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether." "The manner of arriving at the damages is to ascertain the net income of the deceased available for the support of himself and his dependants, and to deduct therefrom such part of his income as the deceased was accustomed to spend upon himself, as regards both self-maintenance and pleasure, and to ascertain what part of his net income the deceased was accustomed to spend for the benefit of the dependants. Then that should be capitalised by multiplying it by a figure representing the proper number of year’s purchase." "The multiplier method involves the ascertainment of the loss of dependency or the multiplicand having regard to the circumstances of the case and capitalizing the multiplicand by an appropriate multiplier. The choice of the multiplier is determined by the age of the deceased (or that of the claimants whichever is higher) and by the calculation as to what capital sum, if invested at a rate of interest appropriate to a stable economy, would yield the multiplicand by way of annual interest. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed-up over the period for which the dependency is expected to last." "It is necessary to reiterate that the multiplier method is logically sound and legally well-established. There are some cases which have proceeded to determine the compensation on the basis of aggregating the entire future earnings for over the period the life expectancy was lost, deducted a percentage therefrom towards uncertainties of future life and award the resulting sum as compensation. This is clearly unscientific. For instance, if the deceased was, say 25 years of age at the time of death and the life expectancy is 70 years, this method would multiply the loss of dependency for 45 years — virtually adopting a multiplier of 45 — and even if one-third or one-fourth is deducted therefrom towards the uncertainties of future life and for immediate lump sum payment, the effective multiplier would be between 30 and 34. This is wholly impermissible." In UP State Road Transport Corporation V. Trilok Chandra (1996) 4 SCC 362 , this Court, while reiterating the preference to Davies method followed in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra), stated thus: "In the method adopted by Viscount Simon in the case of Nance also, first the annual dependency is worked out and then multiplied by the estimated useful life of the deceased. This is generally determined on the basis of longevity. But then, proper discounting on various factors having a bearing on the uncertainties of life, such as, premature death of the deceased or the dependent, remarriage, accelerated payment and increased earning by wise and prudent investments, etc., would become necessary. This is generally determined on the basis of longevity. But then, proper discounting on various factors having a bearing on the uncertainties of life, such as, premature death of the deceased or the dependent, remarriage, accelerated payment and increased earning by wise and prudent investments, etc., would become necessary. It was generally felt that discounting on various imponderables made assessment of compensation rather complicated and cumbersome and very often as a rough and ready measure, one-third to one-half of the dependency was reduced, depending on the life span taken. That is the reason why courts in India as well as England preferred the Davies formula as being simple and more realistic. However, as observed earlier and as pointed out in Susamma Thomas case, usually English courts rarely exceed 16 as the multiplier. Courts in India too followed the same pattern till recently when tribunals/courts began to use a hybrid method of using Nance method without making deduction for imponderables..... Under the formula Advocated by Lord Wright in Davies, the loss has to be ascertained by first determining the monthly income of the deceased, then deducting therefrom the amount spent on the deceased, and thus assessing the loss to the dependants of the deceased. The annual dependency assessed in this manner is then to be multiplied by the use of an appropriate multiplier" (emphasis supplied) 8. In the case of SYED BASHEER AHAMED AND OTHERS VS. MOHAMMED JAMEEL AND ANOTHER reported in (2009) 2 Supreme Court Cases 225, the Apex Court has held as follows: "13. Section 168 of the Act enjoins the Tribunal to make an award determining “the amount of compensation which appears to be just”. However, the objective factors, which may constitute the basis of compensation appearing as just, have not been indicated in the Act. Thus, the expression “which appears to be just” vests a wide discretion in the Tribunal in the matter of determination of compensation. Nevertheless, the wide amplitude of such power does not empower the Tribunal to determine the compensation arbitrarily, or to ignore settled principles relating to determination of compensation. 14. Similarly, although the Act is a beneficial legislation, it can neither be allowed to be used as a source of profit, nor as a windfall to the persons affected nor should it be punitive to the person(s) liable to pay compensation. 14. Similarly, although the Act is a beneficial legislation, it can neither be allowed to be used as a source of profit, nor as a windfall to the persons affected nor should it be punitive to the person(s) liable to pay compensation. The determination of compensation must be based on certain data, establishing reasonable nexus between the loss incurred by the dependants of the deceased and the compensation to be awarded to them. In a nutshell, the amount of compensation determined to be payable to the claimant(s) has to be fair and reasonable by accepted legal standards. 15. In Kerala SRTC v. Susamma Thomas, M.N. Venkatachaliah, J. (as His Lordship then was) had observed that: (SCC p.181, para 5) “5. … The determination of the quantum must answer what contemporary society ‘would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his neighbours and say with their approval that he has done the fair thing’. The amount awarded must not be niggardly since the ‘law values life and limb in a free society in generous scales’.” At the same time, a misplaced sympathy, generosity and benevolence cannot be the guiding factor for determining the compensation. The object of providing compensation is to place the claimant(s), to the extent possible, in almost the same financial position, as they were in before the accident and not to make a fortune out of misfortune that has befallen them. 18. The question as to what factors should be kept in view for calculating pecuniary loss to a dependant came up for consideration before a three-Judge Bench of this Court in Gobald Motor Service Ltd. v. R.M.K. Veluswami, with reference to a case under the Fatal Accidents Act, 1855, wherein, K. Subba Rao, J. (as His Lordship then was) speaking for the Bench observed thus: (AIR p.1) “In calculating the pecuniary loss to the dependants many imponderables enter into the calculation. Therefore, the actual extent of the pecuniary loss to the dependants may depend upon data which cannot be ascertained accurately, but must necessarily be an estimate, or even partly a conjecture. Therefore, the actual extent of the pecuniary loss to the dependants may depend upon data which cannot be ascertained accurately, but must necessarily be an estimate, or even partly a conjecture. Shortly stated, the general principle is that the pecuniary loss can be ascertained only by balancing on the one hand the loss to the claimants of the future pecuniary benefit and on the other any pecuniary advantage which from whatever source comes to them by reason of the death, that is, the balance of loss and gain to a dependant by the death must be ascertained.” 19. Taking note of the afore extracted observations in Gobald Motor Service Ltd. in Susamma Thomas it was observed that: (Susamma Thomas case, SCC p.182, para 9) “9. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables e.g. the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have lived or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether.” 20. Thus, for arriving at a just compensation, it is necessary to ascertain the net income of the deceased available for the support of himself and his dependants at the time of his death and the amount, which he was accustomed to spend upon himself. This exercise has to be on the basis of the data, brought on record by the claimant, which again cannot be accurately ascertained and necessarily involves an element of estimate or it may partly be even a conjecture. The figure arrived at by deducting from the net income of the deceased such part of income as he was spending upon himself, provides a datum, to convert it into a lump sum, by capitalising it by an appropriate multiplier (when multiplier method is adopted). An appropriate multiplier is again determined by taking into consideration several imponderable factors. The figure arrived at by deducting from the net income of the deceased such part of income as he was spending upon himself, provides a datum, to convert it into a lump sum, by capitalising it by an appropriate multiplier (when multiplier method is adopted). An appropriate multiplier is again determined by taking into consideration several imponderable factors. Since in the present case there is no dispute in regard to the multiplier, we deem it unnecessary to dilate on the issue." After considering the principles enunciated in the judgments cited supra, let me consider the facts of the present case. 9. At the time of the accident, the deceased was aged about 25 years and he was working in the Tamil Nadu Civil Supplies Corporation and during holidays he was working as a loadman in the van belonging to the 2nd respondent. In the evidence of the P.W.1, it is stated that the deceased was earning a sum of Rs.10,000/- p.m. She further stated that the deceased was receiving a sum of Rs.4,260/- p.m. as salary and was also earning a sum of Rs.6,000/-p.m. by way of doing part time work. Ex.P9 is the salary slip given by the employer in which it is stated that the gross salary of the deceased was Rs.4,260/- and after deduction, the net salary was Rs.3,086/-. The Tribunal instead of taking the gross salary, only taken the net salary of Rs.3,086/- per month and deducted 1/3 towards personal expenses and computed the loss of income at Rs.4,19,696/- (Rs.3,086 x 12 x 17 – 1/3). But the Tribunal has awarded a sum of Rs.4,19,832/-. There is an error in totalling. Hence, the award amount is taken as Rs.4,19,696/-. The learned counsel appearing for the appellant vehemently contended that the Tribunal has correctly fixed the age of the deceased as 25 years at the time of the accident. In respect of monthly income, the Tribunal ought to have taken the gross salary of Rs.4,260/-. But the Tribunal wrongly taken the net income of Rs.3,086/-. Out of the gross salary of Rs.4,260/-, if 1/3 rd of Rs.1420/- was deducted, the balance sum of Rs.2,840/- is taken as the monthly contribution to the family of the deceased and the annual income works out to Rs.34,080/-. But the Tribunal wrongly taken the net income of Rs.3,086/-. Out of the gross salary of Rs.4,260/-, if 1/3 rd of Rs.1420/- was deducted, the balance sum of Rs.2,840/- is taken as the monthly contribution to the family of the deceased and the annual income works out to Rs.34,080/-. In the present case, the Tribunal adopted multiplier of 17 on the basis of the age of deceased, which is without basis and justification. Therefore, the correct multiplier to be adopted in the present case is ‘14’ on the basis of the age of the mother. Accordingly, the loss of income is determined as follows: Rs.4,260 x 12 x 14 – 1/3 = Rs.4,77,120/-. The appellants / claimants are entitled to a sum of Rs.4,77,120/- as against Rs.4,19,696/- awarded by the Tribunal. The Tribunal has not awarded compensation towards future prospects as the age of the deceased was 25 years old at the time of the accident. In this case, the claimant would have earned more if there was no accident. A reading of the judgment of the Apex Court in the case of SARLA VERMA cited supra, I am of the view that it is reasonable to award a sum of Rs.30,000/- towards future prospects. The Tribunal has awarded only a sum of Rs.2,000/- towards funeral expenses and the same is very meager. Hence, it is reasonable to award a sum of Rs.5,000/- towards funeral expenses as against Rs.2,000/- awarded by the Tribunal. The Tribunal has not awarded any sum towards transport charges and therefore, it is reasonable to award a sum of Rs.2,500/- under this head. It is also seen from the records that the Tribunal has not awarded any sum towards loss of love and affection to the claimants. The claimants are mother, brother and sister. Therefore, it is reasonable to award a sum of Rs.20,000/- towards love and affection. The Tribunal has not awarded any sum towards loss of estate. Therefore, it is reasonable to award a sum of Rs.5,000/- towards loss of estate. The Tribunal has awarded interest at the rate of 7.5% per annum. Considering the prevailing rate of interest at the time of accident and the date of award, the interest awarded by the Tribunal is very reasonable and the same is confirmed. Therefore, it is reasonable to award a sum of Rs.5,000/- towards loss of estate. The Tribunal has awarded interest at the rate of 7.5% per annum. Considering the prevailing rate of interest at the time of accident and the date of award, the interest awarded by the Tribunal is very reasonable and the same is confirmed. The details of the modified compensation as per the above discussion are as under: Loss of income - Rs.4,77,120/- Funeral Expenses - Rs. 5,000/- Transporation - Rs. 2,500/- Love and affection - Rs. 20,000/- Loss of Estate - Rs. 5,000/- Future prospectus - Rs. 30,000/- Total - Rs.5,39,620/- Rounded off - Rs.5,40,000/- Already awarded - Rs.4,21,696/- Enhances amount - Rs.1,18,304/- Rounded off - Rs.1,18,300/- Therefore, the claimant is entitled to the enhanced compensation of Rs.1,18,300/-with interest at 7.5% from the date of petition. 10. The 3rd respondent/Insurance Company is directed to deposit the enhanced compensation of Rs.1,18,300/- with interest at the rate of 7.5% from the date of petition within a period of six weeks from the date of receipt of a copy of this order. On such deposit, the appellants-claimants are permitted to withdraw the same on proper application. 11. With the above modification, the Civil Miscellaneous Appeal is disposed of. No costs.