The Supreme Court held that the notional income for a deceased minor must reflect potential familial contributions, leading to an enhancement of overall compensation for the claimants.

JUDGMENT :

1. Leave granted.

2. The appellants-claimants are aggrieved by the order dated 31st January, 2018 passed by the High Court of Judicature at Allahabad allowing the appeal¹[First Appeal from Order No.358 of 2004] filed by them for enhancing the compensation awarded by the Motor Accident Claims Tribunal²[For short ‘the Tribunal’] vide order dated 24th November, 2003 whereby, the Tribunal awarded a sum of Rs.75,000/- (Rupees Seventy five thousand only) in favour of the claimants as compensation for the loss of their nine year old daughter, a student studying in Class IV on the date of the accident i.e. 17th December, 1981, by assessing the notional income of the deceased at Rs.15,000/- (Rupees Fifteen thousand only) p.a.

3. Under the impugned judgment, the High Court has enhanced the compensation payable to the appellants-claimants to a sum of Rs.1,56,000/- (Rupees One lakh fifty six thousand only) and awarded simple interest @ 9% p.a. from the date of filing of the claim petition till the date of the award and thereafter, reduced the interest to 4% p.a. till the amount is deposited by the respondent No.1-Insurance Company.

4. Citing the decision of this Court in Kishan Gopal and Another vs. Lala and Others, (2014) 1 SCC 244, learned counsel for the appellants-claimants submits that in the said case, the minor child of the claimants was 10 years old and was assisting his parents in their agricultural occupation. The accident in the said case had occurred in the year 1992. Noting that the value of rupee had come down drastically from the year 1992 onwards and further noticing that had the deceased boy been alive, he would have contributed towards the family’s income, this Court had assessed his notional income at Rs.30,000/- (Rupees Thirty thousand only) p.a. and awarded a sum of Rs.4,50,000/- (Rupees Four lakhs fifty thousand only) to the claimants therein. Besides that, a sum of Rs.50,000/- (Rupees Fifty thousand only) was awarded under conventional heads towards loss of love and affection, funeral expenses and last rites of the deceased with simple interest @ 9% p.a. The appellant-claimants seek enhancement of interest based on the above decision.

5. We have heard learned counsel for the parties and perused the records.

6. In the present case, the date of the accident was 17th December, 1981, when the minor daughter of the appellants-claimants was 9 years old; she was the only child of the appellants-claimants at that point in time and was studying in Class IV.

7. Given the aforesaid facts, the notional income of 15,000/- (Rupees Fifteen thousand only) per month assessed for the deceased victim appears to be on the lower side. This court is of the opinion that a sum of Rs.1,00,000/- (Rupees One lakh only) ought to be awarded in favour of the appellant-claimants over and above Rs.1,56,000/- (Rupees One lakh fifty six thousand only) awarded by the High Court towards notional income of the victim. Further, we may observe that no amount has been awarded in favour of the appellants – claimants under conventional heads. It is deemed appropriate to award a lump sum amount of Rs.70,000/- (Rupees Seventy thousand only) towards conventional heads. The interest component as awarded by the High Court is also modified and it is directed that the entire amount payable by the respondent-Insurance Company shall carry simple interest @ 9% from the date of filing of the claim petition, till realization.

8. The impugned order stands modified on the aforesaid terms. The respondent-Insurance Company shall recalculate the amount payable to the appellants-claimants and deposit the same with the Tribunal within six weeks from today, after deducting the amount already paid. The said amount shall be relea