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2022 Supreme(SC) 1093

SUPREME COURT OF INDIA
M.R. SHAH, M.M. SUNDRESH, JJ.
Shiv Kumar & Ors. – Appellants
Versus
Gainda Lal & Ors. – Respondents
Civil Appeal No. 7629 of 2022
Decided On : 21-10-2022

Advocates appeared:
For the Appellant(s) : Mr. Vikas Kumar, Adv. Mr. Manish Paliwal, Adv. Ms. Parul Mankal, Adv. For M/s Corporate Legal Partners, AOR
For the Respondent(s): Ms. Sakshi Mittal, AOR

IMPORTANT POINT
Death in motor accident – As per settled position of law while considering loss of dependency 40% of income is required to be added towards future prospects.

Headnote:

Motor Vehicles Act, 1988 – Sections 168 and 173 – Death in motor accident – Enhanced compensation of Rs.29,34,000/- awarded by High Court – Claim for more compensation – Deceased was a housewife aged 25 years only and there was contribution of wife in family and she was also doing tuition work – High Court ought to have considered income of deceased at least Rs.7,500/-per month – High Court has also not considered future prospects – As per settled position of law while considering loss of dependency 40% of income is required to be added towards future prospects – Claimants shall be entitled to sum of Rs.1 lakh each instead of Rs.50,000/- as awarded by High Court for loss of foetus – Claimants-husband and minor son shall also be entitled to Rs.40,000/- each towards loss of consortium or loss of love and affection – Compensation of Rs.32,82,000/- with 7.5% interest awarded. (Paras 5, 5.1, 5.2 and 6)

Facts of the case:

Wife of appellant no.1 died in a vehicular accident. At the relevant time, deceased was aged 25 years and was a housewife. Motor Accident Claim Tribunal awarded Rs.19,12,200/- with the interest at the rate of 7.5% towards the compensation under different heads. In an appeal at the instance of the original claimants, by the impugned judgment and order the High Court has enhanced the amount of compensation at Rs.29,34,000/- under different heads.

Findings of Court:

Impugned judgment and order passed by the High Court is hereby modified and it is directed that appellants-original claimants shall be entitled to a total sum of Rs.32,82,000/- with interest at the rate of 7.5% per annum.

Result : Appeal allowed.

JUDGMENT :

M.R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 07.03.2019 passed by the High Court of Punjab and Haryana at Chandigarh in First Appeal No.854 of 2014, the original claimants have preferred the present appeal to enhance the amount of compensation.

2. That the wife of the appellant no.1 died in a vehicular accident. At the relevant time, the deceased was aged 25 years and was a housewife. The Motor Accident Claim Tribunal awarded Rs.19,12,200/- with the interest at the rate of 7.5% towards the compensation under different heads. The Learned Tribunal awarded the loss of dependency at Rs.3,24,000/- considering the income of the deceased at Rs.1,500/-per month. As at the relevant time the deceased was pregnant, the learned Tribunal also awarded Rs.50,000/- for foetus. Learned Tribunal awarded Rs.19,12,200/- under different heads :

Head of Claim

MACT

Income

1500/-­pm

Future Prospect

-

Loss of Dependency

(Annual Income after adjusting deductions and future prospects *Multiplier)

Rs.3,24,000/­-

Medical expenses

Rs.15,18,000/-

For Fetus

Rs.50,000/-

Loss of Consortium

Or

Loss of Love and affection

10,000 + 10,000

Conventional Head

(Funeral Expense and Loss of Estate)

20,000

Award

19,12,200 @ 7.5%

2.1 In an appeal at the instance of the original claimants, by the impugned judgment and order the High Court has enhanced the amount of compensation at Rs.29,34,000/- under different heads :

Head of Claim

MACT

High Court

Income

1500/-pm

6000/-­pm notional

Future Prospect

-

-

Loss of Dependency

(Annual Income after adjusting deductions and future prospects *Multiplier)

Rs.3,24,000/­-

Rs.12,96,000/­-

Medical expenses

Rs.15,18,000/­-

Rs.15,18,000/­-

For Fetus

Rs.50,000/-

Rs.50,000/­-

Loss of Consortium

Or

Loss of Love and affection

10,000 + 10,000

-

Conventional Head

(Funeral Expense and Loss of Estate)

20,000

70,000

Award

19,12,200 @ 7.5%

29,34,000 @ 7.5%

2.2 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court, the original claimants have preferred the present appeal.

3. Learned counsel appearing on behalf of the appellants-original claimants has vehemently submitted that the High Court has committed a serious error in awarding the loss of dependency considering the income of the deceased at Rs.6,000/-per month only. It is submitted that even the minimum wages payable to the skilled worker was much more than Rs.6,000/-per month. It is submitted that even otherwise while awarding the loss of dependency, future prospect has not been taken into consideration at all.

3.1 It is submitted that the High Court has also erred in awarding Rs.50,000/- towards foetus. It is submitted that the claimants shall be entitled to a sum of Rs.40,000/- each towards loss of consortium or loss of love and affection. Therefore, it is prayed to allow the present appeal.

4. Shri Vishnu Mehra, learned counsel appearing on behalf of the contesting respondents – Insurance Company has submitted that in the facts and circumstances of the case and more particularly when the deceased was only a housewife, it cannot be said that the High Court has committed any error in awarding the loss of dependency considering the income of the deceased at the rate of Rs.6,000/-per month. However, has fairly conceded that the High Court ought to have awarded the loss of dependency considering future prospects.

5. Having heard learned counsel appearing on behalf of the respective parties and considering the fact that at the relevant time the deceased was a housewife aged 25 years only and there was contribution of the wife in the family and there is evidence that she was also doing the tuition work, we are of the opinion that the High Court ought to have

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