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2021 Supreme(P&H) 1747


IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
YASHVIR SINGH RATHOR, J.
Sunita And Another – Appellants
Versus
Vikrant Saklani And Others – Respondents
FAO-2104-2021
Rajesh Kapoor – Appellant
Versus
Vikrant Saklani And Others – Respondents
FAO-2654-2021
Rajesh Kapoor – Appellant
Versus
Vikrant Saklani And Others – Respondents
FAO-3296-2021
Decided On : 16-04-2026

Advocates appeared:
For the appellant(s) :Mr. Ashwani Arora, Advocate
For respondent No.3-Insurance Company:Mr. Vinod Chaudhari, Advocate

In motor accident claims involving the death of a child or student, compensation must be assessed by adopting the minimum wage of a skilled worker as the base income, incorporating future prospects, and applying the appropriate multiplier to ensure the award is just and reasonable.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Death in motor accident - Quantum of compensation - Assessment of just compensation - In case of death of a child or student, income should be assessed based on minimum wages payable to a skilled worker in the relevant region, as this reflects the minimum earning potential upon attaining majority. (Paras 16, 17, 33, 34)

(B) Compensation - Future prospects - In accordance with settled principles, 40% of the assessed income must be added towards future prospects for deceased individuals, followed by a 50% deduction for personal and living expenses in the case of bachelors or minors. (Paras 18, 19, 26, 27, 35, 36)

(C) Conventional heads - Claimants are entitled to compensation under conventional heads, including loss of consortium, loss of estate, and funeral expenses, in addition to the loss of dependency calculated using the appropriate multiplier. (Paras 21, 29, 38)

Facts of the case:
These appeals were filed by the legal representatives of three deceased individuals, seeking enhancement of the compensation awarded by the Tribunal for deaths resulting from a motor vehicle accident. The appellants contended that the Tribunal’s assessment of income was on the lower side and failed to account for future prospects and appropriate conventional heads as per established legal precedents.

Findings of Court:
The court found that the Tribunal had erred in its assessment of income. By applying the minimum wage rates for skilled workers, adding 40% for future prospects, deducting 50% for personal expenses, and applying a multiplier of 18, the court recalculated the loss of dependency and added the requisite amounts for conventional heads to arrive at a just compensation figure.

Issues: The main issues were whether the compensation awarded by the Tribunal was just and whether the income assessment, future prospects, and conventional heads were calculated in accordance with settled legal principles.

Ratio Decidendi: The court held that for the death of a child or student, the income should be pegged to the minimum wages of a skilled worker, and future prospects must be added to ensure the compensation is just and reflects the potential earning capacity of the deceased, while maintaining a reasonable nexus between the loss incurred and the amount awarded.

Result: Appeals partly allowed; compensation enhanced with interest at 9% per annum from the date of filing the claim petitions.

Table of Content
1. procedural history and factual foundation of the motor accident claims. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. determination of 'just compensation' principles and scope of appeal. (Para 11 , 13 , 14)
3. assessment of compensation for death of child using skilled minimum wage criteria. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
4. determination of compensation for deceased student based on potential future earnings. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
5. application of uniform compensation assessment methodology for child deaths. (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40)
6. final adjudication, ordering enhanced compensation and administrative compliance. (Para 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48)

JUDGMENT

YASHVIR SINGH RATHOR. J.(Oral)

1. The aforesaid three appeals have been instituted against the Award dated 04.01.2020 passed by Motor Accident Claims Tribunal, Chandigarh (for short “Tribunal”) in the petitions under Section 166 of Motor Vehicles Act, 1988, filed by the appellants seeking enhancement of compensation on account of deaths of Piyush, Ranjana Kapoor and Harshita in a motor vehicular accident due to the rash and negligent driving on the part of respondent No.1-Vikrant Saklani, while driving the offending Volvo Bus No.HR38-Y-0099 (hereinafter referred to as offending vehicle), owned by respondent No.2 and insured with respondent No.3-Insurance Company.

2. Claim petition No.64 of 2019 in FAO-2104-2021, titled ‘Sunita and another Versus Vikrant Saklani and others’, was instituted by the parents of deceased-Piyush, aged 5 years, for grant of compensation on account of death of their son.

3. Claim petition No.70 of 2019 in FAO-2654-2021, titled ‘Rajesh Kapoor Versus Vikrant Saklani And others’, was instituted by the father of deceased-Ranjana Kapoor, aged 18 years, for grant of compensation on account of death of his daughter.

4. Claim petition No.60 of 2019 in FAO-3296-2021, titled ‘Rajesh Kapoor Versus Vikrant Saklani And others’, was instituted by father of deceased- Harshita, aged 9 years, for grant of compensation on account of death of his daughter.

5. From the pleadings of parties, following issues were framed by learned Tribunal in MACP-64-2019:-

1. Whether Mr. Piyush has died in a road side accident due to sole rash and negligent driving of Bus bearing registration no.HR38-Y-0099 by respondent no.1? OPP

2. Whether the claimant is entitled to compensation, if so to what amount and from whom? OPP

3. Whether respondent no.1 was not having a valid and effective driving license at the time of accident? OPR-3.

4. Relief.

6. The following issues were framed by learned Tribunal in the claim petition No.MACP-70-2019:-

1. Whether Ms. Ranjana Kapoor has died in a road side accident due to sole rash and negligent driving of Bus bearing registration no. HR38-Y-0099 by respondent no.1? OPP

2. Whether the claimant is entitled to compensation, if so to what amount and from whom? OPP

3. Whether respondent no.1 was not having a valid and effective driving license at the time of accident? OPR-3.

4. Relief.

7. The following issues were framed by learned Tribunal in the claim petition No.MACP-60-2019:-

1. Whether Ms. Harshita has died in a road side accident due to sole rash and negligent driving of Bus bearing registration no.HR38-Y-0099 by respondent no.1? OPP

2. Whether the claimant is entitled to compensation, if so to what amount and from whom? OPP

3. Whether respondent no.1 was not having a valid and effective driving license at the time of accident? OPR-3.

4. Relief.

8. Thereafter, the parties led evidence in support of their case.

9. After hearing the parties and going through the material on the file, learned Tribunal awarded a sum of Rs.4,65,000/- as compensation for the death of Piyush, Rs.11,10,000/- for the death of Ranjana Kapoor and Rs.4,65,000/- for the death of Harshita along with interest @ 7.5% per annum from the date of filing of the claim petitions till realization payable by respon

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