Court On Its Own Motion vs State Of Himachal Pradesh And Others on 2 January
compute the loss of
earning capacity according to the multiplier method. The Supreme
Court further held that the whole idea of compensation ... able to lead a normal life.
The Court held that the multiplier method ensures the just
compensation while making for uniformity and certainty of awards
loss or loss of dependency Supreme Court has repeatedly held that multiplier method should be applied. The said method is based upon the principle that ... dependants, if the deceased had lived and earned. The multiplier method is based upon the assessment that yearly loss of dependency should be equal
Tribunal did not
apply the multiplier method, which is the standard practice to calculate
loss of income, but instead did so based on an estimate ... interest.
19. The Learned Advocate for the Appellant contended that the multiplier
method ought not to be applied in the present case and brought before
multiplier method of determining loss of dependency as the most appropriate method to be applied in claims arising out of motor accidents. That method ... multiplier having regard to the legal position stated by it in Mrs. Susamma Thomas ' case (supra) and other decisions. While reiterating that multiplier method
indisputable that learned Tribunal has applied the
multiplier method, which is well recognized for
computing the amount of compensation payable to the
legal representatives/dependents ... loss of dependency'. Core
question thus arising is, whether multiplier method has
been correctly applied by the learned Tribunal. This in
turn would automatically
Supreme Court held that there should be no departure from the multiplier method on the ground that payment being made is just compensation ... that the multiplier method must be accepted method for determining and ensuring payment of just compensation as it is the method which brings uniformity
determination of compensation in fatal
accident cases and endorsed that the multiplier method is logically
sound and legally well established. The following observations
were made ... taken into account. ......
16. It is necessary to reiterate that the multiplier method
is logically sound and legally well-established. There are
some cases which
award
just and reasonable compensation on the basis of the multiplier
method. The Supreme Court referred to the report in Gobald Motor
Service ... supra), the Supreme Court observed as under:-
"13. The multiplier method involves the ascertainment of
the loss of dependency or the multiplicand having regard
award just and reasonable compensation on
the basis of the multiplier method. The Supreme Court referred
to the report in Gobald Motor Service ... supra), the Supreme Court observed as under:-
"13. The multiplier method involves the ascertainment
of the loss of dependency or the multiplicand having
regard