2025:DHC:1455
IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA, J.
Rakesh Sharma @ Rakesh S/o Shri Balbir – Appellant
Versus
Ashok S/o Ram – Respondent
MAC. APP. No. 282 of 2022
Decided On : 04-03-2025
Advocates Appeared :
For the Appellant : Jatinder Kamra
For the Respondent : Suman Bagga
| Table of Content |
|---|
| 1. claim for compensation due to road accident (Para 1 , 2 , 3 , 4) |
| 2. arguments on calculation of compensation (Para 5 , 6) |
| 3. assessment method for notional income (Para 7 , 8 , 9) |
| 4. precedents on notional income valuation (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 5. transition from notional income to minimum wage (Para 18 , 19 , 20) |
| 6. minimum wage as standard for child compensation (Para 21 , 22 , 23) |
| 7. verification of deceased's educational qualifications (Para 24 , 25 , 26) |
| 8. future prospects considered in compensation (Para 27 , 28) |
| 9. deduction for personal expenses (Para 29 , 30 , 31) |
| 10. multiplier application for compensation calculation (Para 32 , 33 , 34) |
| 11. total loss of dependency calculation (Para 35 , 36) |
| 12. non-pecuniary heads of compensation (Para 37 , 38 , 39) |
| 13. final compensation awarded to applicants (Para 41 , 42 , 43 , 44) |
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. Appeal under Section 173 of the Motor Vehicles Act, 1988 has been filed by the Appellants/parents of the child, Harsh Sharma, aged about 14 years 10 months, who died in the road accident on 28.09.2017, to seek enhancement of compensation in the sum of Rs.10,20,000/- along with interest @ 6% per annum, granted vide Award dated 26.05.2022.
2. Briefly stated, on 28.09.2017 at about 11:15 p.m. Sh. Satyendra along with his friend, Ajay was going on a Scooty, while Chanden with Harsh as the pillion rider, was driving the Motorcycle to Chattarpur Temple, Delhi. As they climbed down from Naraina Flyover, the Motorcycle driven by Chanden slightly hit another Motorcycle, and lost its balance and fell. At this point, the Offending Truck bearing No.RJ-52GA-2449 being driven by Respondent No.1 in a rash and negligent manner, came from behind and hit Harsh Sharma/pillion rider on the Motorcycle causing him injuries. Subsequently, Harsh Sharma (hereinafter referred to as “deceased”) was taken to DDU Hospital where he was declared “Brought Dead.”
3. The FIR No.219/17 under Section 279/304-A of the Indian Penal Code, 1860 was registered at Police Station Naraina. Subsequently, Detailed Accident Report was filed by the Investigating Officer, which was treated as the Claim Petition for determination of Compensation.
4. After trial, the learned Tribunal granted a compensation in the sum of Rs.10,20,000/- along with interest @ 6% per annum to the Claimants on account of fatal injuries suffered by their son/Harsh Sharma.
5. The main ground for seeking enhancement of Compensation is that the child was in Class 11th and was a Matriculate and therefore, the compensation should have been calculated by taking the Minimum Wages of a Matriculate.
6. Learned counsel on behalf of Insurance Company, however, has submitted that the child was below 15 years and, therefore, the calculation of compensation has been done correctly and the Award does not warrant any interference.
7. Submissions heard and record perused Loss of Dependancy:-
Assessment of Notional Income:-
8. The Appellant/Claimants have challenged the calculation of Loss of Income of the deceased which has been determined on the basis of the “inflation correction method/formula” by taking the Notional Income of the deceased as per the Second Schedule of the MV Act, 1988, as prescribed in the case of Chetan Malhotra vs. Lala Ram , MAC. APP. No. 554/2010 decided on 13.05.2016.
9. The core issue herein is what should be the principle for determination of Loss of Income in case of demise of the child in a road accident.
10. In the landmark judgment of R.K. Malik vs. Kiran Pal , (2009) 14 SCC 1 , the Apex Court, while considering the Claims arising on account of demise of 29 children in a road accident in November 1997, succinctly observed that in motor accident cases, the goal is to return the dependents or claimants to the pre-accident state. The Apex Court deemed it appropriate to refer to the notional income mentioned in the Second Schedule, to determine the pecuniary loss of the claimants/dependants.
11. Thus, tradi
Kajal vs. Jagdish Chand & Ors.
Master Ayush vs. Branch Manager, Reliance General Insurance Co. Ltd.
National Insurance Company Limited v. Pranay Sethi & Ors.
Smt. Sarla Verma & Ors. vs. Delhi Transport Corporation & Anr.
United India Insurance Co. Ltd. vs. Satinder Kaur alias Satwinder Kaur & Ors.
Post deletion of the Second Schedule, compensation for child victims of accidents must be based on Minimum Wages and include future prospects and proper deductions for personal expenses.
The main legal point established in the judgment is the application of the multiplier method and the use of minimum wages for determining notional income in cases of motor accidents involving the dea....
The court established that in compensation claims for the death of a minor, the notional income should be based on minimum wages, especially after the omission of the Second Schedule to the Motor Veh....
Under MV Act, there is no restriction that Tribunal/Court cannot award compensation exceeding amount so claimed – Tribunal/Court ought to award ‘just’ compensation.
(1) Death in motor accident – Objective of awarding compensation is to ensure “just and reasonable compensation” to victim or dependants of deceased.(2) Notional income of engineering student cannot ....
The court established that the notional income for a non-earning child should be set at Rs.30,000 per annum, applying a multiplier of 15 for calculating compensation, considering inflation and emotio....
Compensation for wrongful death must consider educational qualifications and future earning potential over minimum wage assessments, ensuring fairness and reasonableness in calculations.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.