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IN THE HIGH COURT OF DELHI
J.R. Midha, J.
Sukhdev Prasad - Appellant
Versus
Sunil Kumar - Respondent
MAC. APP. 1075 of 2018
Decided On : 25-05-2021




Parents are entitled to loss of dependency compensation for children under the principle that they will become financially dependent on their children in later life, regardless of their dependency at the time of the accident.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for loss of dependency - Appellant challenged the award of Rs.4,49,004.48 granted by the Claims Tribunal. The deceased, aged 25, was survived by his father who claimed compensation. Tribunal took minimum wages of Rs.9,568 as income and awarded compensation. (Paras 1-2)

(B) Dependency of Parents - Court reiterated that parents are legally considered dependent on children for support. The mother is entitled to compensation for loss of dependency under principles established in various Supreme Court judgments including Pranay Sethi, Magma General Insurance, and Indrawati. (Paras 3-7)

(C) Principles for Calculation of Compensation - The court utilized a formula considering wages, future prospects, deductions for personal expenses, and applied a multiplier to determine loss of dependency, which amounted to Rs.14,46,681.6, with additional amounts for loss of estate and funeral expenses enhancing total compensation to Rs.15,17,000. (Paras 8-9)

Table of Content
1. challenge to compensation awarded by claims tribunal. (Para 1 , 2)
2. arguments regarding dependency and compensation entitlement. (Para 3 , 4)
3. legal obligations of children to maintain parents. (Para 5)
4. ratios for determining parental dependency and compensation. (Para 6 , 7 , 8)
5. enhancement of compensation and procedural directives. (Para 9 , 10 , 11 , 12 , 13 , 14)

JUDGMENT (Oral)

1. The petitioner has challenged the award dated 02nd August, 2018 passed by the Claims Tribunal whereby the Claims Tribunal awarded compensation of Rs.4,49,004.48 along with interest @ 9% per annum to the appellant.

2. The accident dated 16th April, 2016 resulted in death of Avdhesh Kumar. The deceased was aged 25 years at the time of accident and was survived by his father who claimed compensation. According to the claimant, the deceased was earning Rs.15,000/- per month. However, in the absence of any documentary proof of income, the Claims Tribunal took the minimum wages of Rs.9,568/per month as income of the deceased, added 40% towards future prospects and deducted 85% towards personal expenses. The Claims Tribunal awarded 15% towards loss to the estate to the appellant on the ground that the father was not dependent upon the deceased. The Claims Tribunal assessed the loss of estate as Rs.4,34,004.48. The Claims Tribunal awarded Rs.15,000/- towards funeral expenses. The total compensation is Rs.4,49,004.48 along with interest @ 9% per annum.

3. Learned counsel for the appellant submits that the appellant was dependent upon the deceased and entitled to loss of dependency according to principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. Reliance is placed on Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130 in which the Supreme Court awarded the compensation to the parents of the deceased according to the principles laid down in Pranay Sethi (supra). Reliance is also placed on the recent judgment of this Court in Indrawati v. Ranvir Singh, (2021) 276 DLT 415.

4. Learned counsel for the respondent submits the compensation awarded by the Claims Tribunal is just, fair and reasonable.

5. This case is squarely covered by the recent judgment of this Court in Indirawati (supra) in which this Court had held that the parents of the deceased are considered in law as dependent on their children, considering that the children are bound to support their parents in their old age, when the parents would be unable to maintain themselves and the law imposes a responsibility on the children to maintain their parents. Even if the parents are not dependent on their children at the time of the accident, they will certainly be dependent, both financially and emotionally, upon their children at the later stage of their life, as the children were dependent upon their parents in their initial years. It would be unfair as well as inequitable to deny compensation for loss of dependency to a parent, who may not be dependent on his/her child at the time of accident per se but would become dependent at his/her later age. Relevant portion of the said judgment is reproduced hereunder:

"11. The first question arises for consideration is whether appellant No. 1 (mother of the deceased) is entitled to compensation for death of her son. Appellant No. 1 is the mother of the deceased and she has no independent source of income. She deposed that she was dependent upon the deceased as well as on her husband.

12. This Court is of the view that the parents of the deceased are considered in law as dependent on their children, considering that the children are bound to support their parents in their old age, when the parents would be unable to maintain themselves and the law imposes a responsibility on the children to maintain their parents. Even if the parents are not dependent on their children at the time of the accident, they will certainly be dependent, both financially and emotionally, upon their chil

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