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2026 Supreme(P&H) 711

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
Urmila Devi – Appellant
Versus
Lokesh Kumar and Others – Respondents
FAO No. 2359 of 2015
Decided On : 08-04-2026

Advocates Appeared:
For the Appellant : Vipul Sharma
For the Respondents: Saurabh Bhardwaj, D.S. Adalakha

Compensation for a homemaker must account for their invaluable economic contribution, functional disability, and future prospects. Appellate courts must ensure compensation is just and reasonable by applying the multiplier method and assessing the actual impact of injuries on earning capacity, rather than relying solely on medical disability percentages.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Motor accident - Injury - Quantum of compensation - Enhancement - Notional income of homemaker - Functional disability - Future prospects - Multiplier method - Interest rate. (Paras 1, 9, 11, 13, 15)

(B) Compensation - Assessment - Homemaker - Economic value of services - Contribution of a homemaker is invaluable and must be factored into compensation assessment - Notional income cannot be disregarded - Functional disability must be evaluated based on impact on earning capacity rather than mechanical medical assessment - Future prospects must be added to income - Multiplier method is the standard for calculating loss of earning capacity. (Paras 10, 11, 14, 15)

Facts of the case:
The appellant, a homemaker, sustained injuries in a motor vehicle accident and sought enhancement of compensation awarded by the tribunal. The tribunal had awarded a minimal amount, failing to account for the claimant's role as a homemaker, future prospects, and the actual functional impact of the disability on her earning capacity.

Findings of Court:
The court held that the tribunal erred in law by not computing loss of earning capacity for a homemaker and failing to apply the multiplier method and future prospects. The court determined that the economic contribution of a homemaker is significant and must be reflected in the compensation amount.

Issues: Whether the compensation awarded by the tribunal was just and reasonable, and whether the tribunal erred in its assessment of the claimant's income, functional disability, and the exclusion of future prospects.

Ratio Decidendi: The economic contribution of a homemaker is invaluable and must be recognized in compensation assessments. Functional disability must be assessed by the impact on the victim's ability to perform daily tasks and earn, rather than relying solely on medical disability percentages. Future prospects and appropriate multipliers must be applied to ensure the award is just and reasonable.

Result: Appeal allowed; compensation enhanced with 9% interest per annum from the date of filing the claim petition.

Table of Content
1. procedural context and identification of the relief sought. (Para 1 , 2)
2. summary of rival contentions regarding quantum of compensation. (Para 3 , 4)
3. applicable legal principles for assessing disability compensation and damages. (Para 5 , 6 , 7 , 8)
4. recognizing the economic contribution of homemakers in compensation assessment. (Para 9 , 10 , 11 , 12)
5. assessment of functional disability and loss of future earnings. (Para 13 , 14 , 15 , 16 , 17)
6. final order for enhanced compensation and interest payment terms. (Para 18 , 19 , 20 , 21)

JUDGMENT :

SUDEEPTI SHARMA, J.

1. The present appeal has been preferred against the award dated 16.08.2014 passed by the learned Motor Accident Claims Tribunal, Panchkula (for short 'the Tribunal’) in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 for enhancement of compensation granted to the claimant to the tune of Rs.25,000/- along with interest @ 7.5% per annum, on account of injury suffered by her in a Motor Vehicular Accident, occurred on 09.11.2011.

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 required to be reproduced and is skipped herein for the sake of brevity.

SUBMISSIONS OF THE LEARNED COUNSELS FOR THE PARTIES

3. The learned counsel for the appellant/claimant contends that the compensation awarded by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present appeal be allowed and the compensation awarded to the appellant/claimant be enhanced, as per latest law.

4. Per contra, learned counsel for the respondents, however, vehemently argues on the lines of the award and contends that the amount of compensation as assessed by learned Tribunal, has rightly been granted to the appellant/claimant. Therefore, they pray for dismissal of the present appeal.

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

SETTLED LAW ON COMPENSATION

6. Hon’ble Supreme Court has settled the law regarding grant of compensation with respect to the disability. The Apex Court in the case of Raj Kumar Vs. Ajay Kumar and Another , (2011) 1 SCC 343, has held as under:-

General principles relating to compensation in injury cases

5. The provision of the Motor Vehicles Act, 1988 ('Act' for short) makes it clear that the award must be just, which means that compensation should, to the extent possible, fully and adequately restore the claimant to the position prior to the accident. The object of awarding damages is to make good the loss suffered as a result of wrong done as far as money can do so, in a fair, reasonable and equitable manner. The court or tribunal shall have to assess the damages objectively and exclude from consideration any speculation or fancy, though some conjecture with reference to the nature of disability and its consequences, is inevitable. A person is not only to be compensated for the physical injury, but also for the loss which he suffered as a result of such injury. This means that he is to be compensated for his inability to lead a full life, his inability to enjoy those normal amenities which he would have enjoyed but for the injuries, and his inability to earn as much as he used to earn or could have earned. (See C.K. Subramonia Iyer v. T. Kunhikuttan Nair, AIR 1970 Supreme Court 376, R.D. Hattangadi v. Pest Control (India) Ltd., 1995 (1) SCC 551 and Baker v. Willoughby, 1970 AC 467).

6. The heads under which compensation is awarded in personal injury cases are the following :

Pecuniary damages (Special Damages)

(i) Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure.

(ii) Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising :

(a) Loss of earning during the period of treatment;

(b)

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