SUPREME COURT OF INDIA
Sanjay Karol, Prashant Kumar Mishra, JJ.
Seema Rani & Ors. – Appellants
Versus
The Oriental Insurance Co. Ltd. & Ors. - Respondents
Civil Appeal No. 2323 of 2025 (Arising out of SLP(C)No. 444 of 2025)
Decided On : 11-02-2025
| Table of Content |
|---|
| 1. accident details and claim (Para 2 , 3) |
| 2. claim petition filed (Para 4 , 5 , 6) |
| 3. high court's decision (Para 7 , 8 , 9 , 10) |
| 4. legal right of dependents (Para 11 , 12) |
ORDER :
| Time taken for disposal of the claim petition by MACT | Time taken for disposal of the appeal by the High Court | Time taken for disposal of the appeal in this Court |
| 1 year | 6 years 9 months | 4 months |
Leave granted.
2. This appeal is directed against the judgment and order dated 27th April, 2023 in FAO No.995/2017 passed by the High Court of Punjab & Haryana at Chandigarh, which in turn was preferred against the judgment and order dated 9th November, 2016 passed in MACT Case No.44 of 28.10.2015 by the Motor Accident Claims Tribunal, Bathinda.
3. The brief facts giving rise to this appeal are that on 13th May, 2015, the deceased, namely, Dev Raj, aged 50 years, was travelling on his scooter bearing registration No.PB 44A-0962, from his house to village Bhodipura. Near the house of one Mohinder Singh Nambardar, the offending bus bearing registration No.PB 04M-9953 collided with the deceased in a rash and negligent manner. Dev Raj died on the spot. The vehicle was being driven by Respondent No.3, Narinder Singh, who fled from the spot.
4. A claim petition was filed by the Appellants (Wife, daughter and two sons of the deceased) before the Tribunal seeking compensation to the tune of Rs.50,00,000/- submitting that the deceased was employed in the Punjab State Power Corporation Limited, earning more than Rs.50,000/- per month.
5. The Tribunal vide its order, awarded the Appellants an amount of Rs.24,36,155/- along with interest @ 7% per annum, taking the income of the deceased as Rs.23,345/- per month. The Tribunal further held that all the four Appellants are dependants of the deceased.
6. All the Claimant-Appellants and Respondent No.1 - Insurance Company preferred separate appeals before the High Court. The Claimant-Appellants were aggrieved by the amount of compensation awarded, stating that the Tribunal has not granted any amount under the head ‘future prospects’. The Insurance Company was aggrieved by the quantum, stating that Claimant Nos.2 to 4 are major children of the deceased and, therefore, would not be dependents for the purpose of compensation. Consequently, a 50% deduction should have been made instead of 1/4th.
7. The High Court, vide the impugned order, partly allowed both the appeals. The contention of the Claimants for awarding future prospects @ 30% came to be accepted. On the other hand, the Court accepted the contention of the Insurance Company that the major sons and the married daughter of the deceased were not dependent on the deceased for sustenance, and therefore, a deduction of 50% is to be made. The High Court awarded the Appellants an amount of Rs.24,44,183/-.
8. Dissatisfied, the Claimant-Appellants are now before us. The significant point of challenge is that the High Court erred in excluding Appellants herein as dependants of the deceased.
9. We have heard the learned counsel for the Appellants. We are unable to agree with the view taken by the Tribunal on the dependents of the deceased. This Court in National Insurance Company Limited v. Birender & Ors., (2020) 11 SCC 356, had expounded that major married and earning sons of the deceased, being legal representatives, have a right to apply for compensation, and the Tribunal must consider the application, irrespective of whether the representatives are fully dependent on the deceased or not. The Court went on to conclude that since the sons, in that case, were earning merely Rs.1,50,000/- per annum, they were largely dependent on the earnings of the deceased and were staying with her.
10. Adverting to the facts at hand, on a perusal of the statement of Shashi Kumar, the son of the deceased (Appellant No.2 herein), annexed as Annexure P6, was working at a petrol pump, while the other son was involved in temporary employment opportunities on
Major married and earning sons of a deceased can claim compensation irrespective of dependency status, affirming their legal right as representatives.
The court established that compensation for loss of dependency must consider the deceased's potential income and appropriate deductions based on the number of dependents, affirming a broader interpre....
Death in motor accident – While awarding loss of dependency, future prospects and rise in income ought to have been considered.
Legal representatives, including major children, are entitled to claim compensation regardless of dependency; the Tribunal erred in limiting the compensation amount based on dependency status.
It is settled that legal representatives of deceased have a right to apply for compensation.
Future prospects of the deceased should be considered for determining loss of dependency in motor accident compensation cases.
The Motor Vehicles Act requires consideration of all dependents in compensation claims following a vehicular death, affirming broader interpretative criteria for determining legal representatives.
Major children can claim compensation as dependents of a deceased parent, regardless of their financial independence.
Legal heirs are entitled to compensation under the Motor Vehicles Act regardless of their dependency status at the time of the accident.
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