PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
ALKA SARIN, J.
Sankeshiya Devi And Others – Appellant
Versus
Kulwinder Singh And Others – Respondent
FAO-3282-2021 (O&M)
Decided on : 08-05-2025
JUDGMENT :
ALKA SARIN, J. (Oral)
1. Present appeal has been preferred by the claimant-appellants aggrieved by the quantum of compensation awarded by the Motor Accident Claims Tribunal, Chandigarh (hereinafter referred to as the 'Tribunal') vide award dated 25.02.2021 on account of death of Anhoti Yadav (hereinafter referred to as the 'deceased').
2. Since the facts, as recorded in the impugned award passed by the Tribunal, are not in dispute, the same are not being reproduced herein for the sake of brevity.
3. The Tribunal in the present case had awarded the following compensation :
Sr. No. | Heads | Compensation Awarded |
1 | Monthly income | Rs. 6,682/- |
2 | Annual income | [Rs. 6,682 x 12] = Rs. 80,184/- |
3 | Future prospects @ 40% | [Rs. 80,184 x 32073] = Rs. 1,12,257/- |
4 | Deduction - 1/4th | [Rs. 1,12,257 - 28,064] = Rs. 84,193/- |
5 | Multiplier -16 | [Rs. 84,193 x 16] = Rs. 13,47,088/- |
6 | Loss of estate | Rs. 15,000/ |
7 | Funeral expenses | Rs. 15,000/- |
8 | Loss of consortium @ ?40,000/- each | [Rs. 40,000 x 5] = Rs. 2,00,000/- |
Total compensation | Rs. 15,77,088/- | |
Interest | 7.5% per annum |
4. Learned counsel for the parties are ad idem that before the Daily Lok Adalat, the Insurance Company had agreed that the deceased be treated as a skilled worker. Learned counsel for the claimant-appellants has contended that though the Tribunal has rightly applied a deduction of 1/4th, multiplier of 16 and future prospects @ 40%, however, the amounts awarded under the conventional heads as well as under the head 'loss of consortium' are not in accordance with the law. In support of his contentions, he has relied upon the judgments of the Hon'ble Supreme Court in the cases of National Insurance Company Ltd. vs. Pranay Sethi & Ors. [(2017) 16 SCC 680], Magma General Insurance Company Limited vs. Nanu Ram alias Chuhru Ram & Ors. [(2018) 18 SCC 130] and N. Jayasree & Ors. vs. Cholamandalam M.S General Insurance Company Ltd. [2021(4) RCR (Civil) 642].
5. Per contra learned counsel for respondent No.3-Insurance Company would contend that sufficient amount has already been awarded and there is no scope of any enhancement.
6. Heard.
7. In the present case, no appeal has been filed by respondent No.3-Insurance Company. Since there is no challenge to the deduction, multiplier and the addition towards loss of future prospects as assessed by the Tribunal, the same are accordingly maintained. The Insurance Company had agreed before the Lok Adalat that the deceased be treated as a skilled worker and hence, as observed in order dated 25.01.2023 passed by the Lok Adalat, the deceased is treated as a skilled worker. The minimum wages for a skilled worker prevailing at the relevant point of time were Rs. 9,854/- per month and hence, the income of the deceased is assessed as Rs. 9,854/- per month. The amounts awarded under the conventional heads as well as the under the 'loss of consortium' are also not in accordance with the law inasmuch as an amount of Rs. 30,000/- has been awarded towards loss of estate and funeral expenses and .2,00,000/- under the head 'loss of consortium' and hence, as per the law laid down by the Hon'ble Supreme Court in the cases of Pranay Sethi (supra), Magma General Insurance Company Limited (supra) and N. Jayasree (supra), the claimant-appellants would be entitled to Rs. 18,000/- (Rs.15,000+20% increase) towards loss of estate and Rs.18,000/- (Rs.15,000+20% increase) towards funeral expenses. The claimant-appellants would also be entitled to Rs.48,000/- each (Rs.40,000+20% increase) towards loss of consortium.
8. Accordingly, the reworked compensation is as under :
Sr. No. | Heads | Compensation Awarded |
1 | Monthly Income | Rs. 9,854/ |
2 | Annual Income | Rs. 1,18,248/- [Rs. 9,854 x 12] |
3 | Deduction - 1/4th | Rs. 88,686/- [Rs. 118248 - 29562] |
4 | Future Prospects - 40% | Rs. 1,24,161/- [Rs. 88686 + 35475] |
5 | Multiplier - 16 | Rs. 19,86,576/- [Rs. 124161 x 16] |
6 | Loss of estate | Rs. 18,000/- |
7 | Funeral expenses | Rs. 18,000/- |
8 | Loss of consortium (i) Parental [Rs. 48,000/- x 2] (ii) Filial [Rs. 48,000/- x 2] (iii) Spousal's | Rs. 96,000/- Rs. 96,000/- Rs. 48,000/- (Tota |
The court established that compensation calculations must accurately reflect the deceased's age and include future prospects, modifying the award to Rs. 8,40,000/-.
The court established that the multiplier for compensation must reflect the deceased's age and future earning potential, ensuring all relevant compensation heads are adequately addressed.
The court established that compensation for loss of dependency must consider minimum wages, future prospects, and appropriate multipliers, ensuring just compensation for claimants.
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