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2025 Supreme(P&H) 191

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
Sulindra Devi and another - Appellants
Versus 
Yusuf and others - Respondents
FAO-4291-2022 (O&M)
Decided on : 22-08-2025

Advocates Appeared:
For the Appellant :Mr. Naveen Batra, Advocate,
For the Respondent:Mr. Aman Kumar, Advocate, Mr. Abhimanyu Kalsy, Advocate

Compensation for death in motor accidents must consider reasonable future prospects and deduct personal expenses appropriately, following established legal principles.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Death in motor accident - Appeal for enhancement of compensation - Tribunal awarded Rs. 12,79,600/- for death of Ravi Kumar; appeal allowed enhancing compensation to Rs. 16,44,000/- with interest at 9% per annum - Monthly income assessed at Rs. 10,000/-; future prospects taken into account - Deduction towards personal expenses correctly applied at 1/2; other heads of damages were inadequate - Court's findings were based on established legal principles regarding calculation of compensation for death cases, including deduction for personal expenses and application of appropriate multipliers. (Paras 6, 9, 12, 16)

Facts of the case:
The deceased, a 24-year-old Clerk, was involved in a fatal accident on 28.11.2018; appeal arose to challenge the inadequate compensation awarded by the Tribunal.

Findings of Court:
The court modified the award for enhanced compensation reflecting proper application of legal standards.

Issues: The key issue was the quantum of compensation, particularly the assessment of income and applicable deductions.

Ratio Decidendi: The court emphasized the adherence to legal standards in calculating compensation, particularly emphasizing on how to appropriately reflect future prospects and reasonable conventionals heads of damages.

Result: Appeal allowed; compensation enhanced.

Table of Content
1. application for delay condonation (Para 1 , 2)
2. arguments for appeal and compensation enhancement (Para 3 , 4)
3. settled law on compensation assessment (Para 6 , 7 , 8)
4. court's evaluation of income and deductions (Para 9 , 10 , 11)
5. final judgment on compensation modification (Para 12 , 13 , 14 , 15)

JUDGMENT :

SUDEEPTI SHARMA, J.

CM-11834-CII-2022

1. The present application has been filed under Section 5 of the LIMITATION ACT , 1963, for condonation of delay of 88 days in filing the present appeal.

2. For the reasons mentioned in the application, the same is allowed and the delay of 88 days in filing the present appeal is condoned.

FAO- 3858 - 2022 (O&M)

1. The present appeal has been preferred against the award dated 27.11.2019 passed in the claim petition filed under Section 166 of the MOTOR VEHICLES ACT , 1988 by the learned Motor Accident Claims Tribunal, Rupnagar (for short, 'the Tribunal') for enhancement of compensation, granted to the claimants/appellants to the tune of Rs.12,79,600/- along with interest at the rate of 7% per annum, on account of death of Ravi Kumar in a Motor Vehicular Accident, occurred on 28.11.2018.

2. As sole issue for determination in the present appeal is confined to quantum of compensation awarded by the learned Tribunal, a detailed narration of the facts of the case is not reproduced and is skipped herein for the sake of brevity.

SUBMISSIONS OF THE LEARNED COUNSELS FOR THE PARTIES

3. The learned counsel for the appellants/claimants contends:-

i) that the compensation assessed by the learned Tribunal is on the lower side and deserves to be enhanced.

ii) that deceased-Ravi Kumar was 24 years old stated to be working as Clerk/Munshi in Mannat enterprises Agampur and was earning about Rs.18,000/- per month as a salary and also earning Rs.10,000/- from dairy and agriculture work.

iii) that the learned Tribunal has wrongly deducted 1/2 instead of 1/3rd towards personal expenses.

iv) that the amount granted by the learned Tribunal towards loss of consortium, funeral expenses, loss of estate and future prospects is also on lower side.

Therefore, he prays that the present appeal be allowed and amount of compensation be enhanced, as per latest law.

4. Per contra, learned counsel for the respondent Nos.2 & 3, however, vehemently argues on the lines of the award and contends that the amount of compensation as assessed by the learned Tribunal has rightly been granted. Therefore, he prays for dismissal of the appeal.

5. I have heard learned counsel for the parties and perused the whole record of this case.

SETTLED LAW ON COMPENSATION

6. Hon’ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation and Another [(2009) 6 Supreme Court Cases 121] laid down the law on assessment of compensation and the relevant paras of the same are as under:-

30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having a considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely t



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