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2025 Supreme(Del) 834

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

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.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal for enhancement of compensation following a fatal road accident - Tribunal initially granted Rs.10,20,000/-; appeal sought recalculation based on Minimum Wages for matriculates - Court emphasized that, post Second Schedule deletion, Minimum Wages for skilled workers should be applied for compensation calculation, including Future Prospects (Paras 10, 20, 41).

(B) Calculation principles - Notional income for minor victims should use Minimum Wages; loss calculation must include Future Prospects and appropriate deduction for personal expenses (Paras 26, 29).

Facts of the case:
Deceased, 14 years old at the time of accident involving a truck while riding a motorcycle; the compensation sought was enhancement from the tribunal's earlier award (Paras 2, 4).

Findings of Court:
Total revised compensation of Rs.25,68,000/- awarded at 6% interest (Paras 42).

Issues: Determination of correct basis for calculating loss due to minor's death and method of calculating notional income.

Ratio Decidendi: The court highlighted that compensation for child victims post-Second Schedule deletion must consistently derive from Minimum Wages, with adjustments for inflation and future prospects (Paras 10, 20).

Result: Appeal allowed; compensation revised to Rs.25,68,000/-.

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

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