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IN THE HIGH COURT OF DELHI
J.R. Midha, J.
Amir Bano - Appellant
Versus
Dhara Singh - Respondent
MAC.APP. 1150 of 2018 and MAC.APP. 1153 of 2018
Decided On : 28-05-2021




The court held that future prospects must be factored into compensation calculation, ensuring realistic assessments based on minimum wages.

Headnote:(A) Motor Vehicles Act - Compensation - The appellants challenged the award dated 05th June 2018 granting ₹13,91,632 for Atiq Alam and ₹3,45,340 for Abdul Aziz. The claims tribunal used minimum wage figures for unskilled persons to calculate compensation, with additional amounts for future prospects and consortium, ultimately enhancing compensation on appeal. (Paras 1-12)

(B) Legal Principles - Future prospects should be considered in calculating compensation. Courts must ensure compensation is just and based on realistic income assessments. (Paras 5, 8)

Facts of the case:
Two individuals died in a road accident on 01st November 2015, leading to claims by their relatives for compensation based on their income as calculated by the Claims Tribunal.

Findings of Court:
The total compensation was determined as ₹21,61,000 for Atiq Alam and ₹4,56,000 for Abdul Aziz, with 9% interest awarded.

Issues: The main issues included calculation of future prospects and the justification for using minimum wages for compensation calculations.

Ratio Decidendi: The court upheld the application of minimum wages and added allowances for future prospects, stating the importance of ensuring fair compensation.

Result: Appeals allowed; the award was enhanced.

Table of Content
1. compensation awarded for deaths in an accident. (Para 1 , 2 , 3 , 4)
2. arguments for higher compensation and skilled income. (Para 5 , 6 , 7)
3. court's rationale for calculating enhanced compensation. (Para 8 , 9 , 10)
4. awards enhanced and interest mandated. (Para 11 , 12)
5. directive for payment disbursement. (Para 13 , 14)

JUDGMENT (Oral)

1. The appellants have challenged the award dated 05th June, 2018 whereby compensation of Rs.13,91,632/- has been awarded in respect of death of Atiq Alam and compensation of Rs.3,45,340/- has been awarded in respect of Abdul Aziz.

2. The accident dated 01st November, 2015 resulted in the death of Atiq Alam and Abdul Aziz. Atiq Alam was aged 39 years at the time of accident and was survived by his widow and six children who claimed compensation. Atiq Alam was running a meat shop in front of his house. Abdul Aziz was aged 80 years at the time of accident and was survived by widow who claimed compensation. Abdul Aziz was running a tea shop in front of his house.

3. In MAC.APP.1150/2018, the Claims Tribunal took the minimum wages of a unskilled person i.e. Rs.9,178/- per month as income, deducted 1/5th towards personal expenses and applied multiplier of 15 to compute the loss of dependency as Rs.13,21,632/-. The Claims Tribunal awarded Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses. The total compensation awarded to the legal representatives of Atiq Alam is Rs.13,91,632/-.

4. In MAC.APP.1153/2018, the Claims Tribunal took the minimum wages of unskilled person i.e. Rs.9,178/- per month as income, deducted 1/2 towards personal expenses and applied multiplier of 5 to compute the loss of dependency as Rs.2,75,340/-. The Claims Tribunal awarded Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses. The total compensation awarded to the legal representatives of Abdul Aziz is Rs.3,45,340/-.

5. Learned counsel for the appellants submits that in MAC.APP.1150/2018, the appellants are entitled to addition of 40% towards future prospects.

6. Learned counsel for the appellants, in both the appeals, submits that the minimum wages of a skilled person were Rs.11,154/- as on the date of the accident which should be taken as the income of both the victims. Reliance is placed on judgment titled Vidya Devi v. Dharampal, FAO No. 369/1999, dated 20th March, 2007. Learned counsel for the appellants further submits in the appellants are entitled to spousal consortium, parental and filial consortium to the tune of Rs.40,000/- each in terms of United India Insurance Co. v. Satinder Kaur, 2020 ACJ 2131 SC.

7. Learned counsel for the Insurance Company submits that the butcher has been shown as unskilled person in the notification of minimum wages.

8. This Court is of the view that Claims Tribunal has rightly taken the minimum wages of Rs.9,178/- per month in respect of an unskilled person as income of the deceased. However, 40% is added towards the future prospects. The claimants are entitled to loss of consortium of Rs.40,000/- per claimant.

9. In MAC.APP. 1150/2018, taking the income of deceased Rs.9178/- per month, adding 40% towards future prospects, deducting 1/5th towards personal expenses and applying the multiplier of 15, adding Rs.2,80,000/- (Rs.40,000 per claimant) towards loss of consortium, Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses, total compensation is computed as Rs.21,61,000/- (Rs.21,60,284.8 rounded of).

10. In MAC. 1153/2018, taking the minimum wages of Rs.9178/- per month as income of the deceased, adding 40% towards future prospects, deducting 1/2 towards the personal expenses, and applying the multiplier of 5, adding Rs.40,000/- towards loss of consortium, Rs.15,000/- towards loss of estates, added Rs.15,000/- funeral expenses, total compensation is computed as Rs.4,56,000/- (Rs.4,55,476/- rounded of

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