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FAO No. 1576 of 2003(O&M) 1

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

(215) FAO No. 1576 of 2003(O&M)

Date of decision: 22.12.2025

Salochna Devi and others … Appellants

Versus

Karam Singh Subedar and others … Respondents

CORAM: HON’BLE MR. JUSTICE VIRINDER AGGARWAL

Present: Mr. Kuldip Sanwal, Advocate,

for the appellants.

Mr. Neeraj Khanna, Advocate with

Mr. Ravinder Arora, Advocate,

for the Respondent No.4.

*****

VIRINDER AGGARWAL, J.(Oral)

1. The present appeal has been filed by the claimants-appellants seeking

enhancement of compensation awarded by the Motor Accident Claims Tribunal,

Gurdaspur, vide award dated 18.11.2002, whereby a sum of ₹2,52,000/- along

with interest at rate of 9% per annum was awarded on account of the death of

Sunit Singh in a motor vehicular accident.

BACKGROUND FACTS

2. Briefly stated, the facts are that on 06.07.1997, Sunit Singh, aged about

36 years, while travelling in Tempo No. PAG-7064, met with a fatal accident

near Phangoli Chowk, Jugial, due to collision with Truck No. HP-38-2962. He

sustained serious injuries and succumbed to the same on the very day. The

deceased was employed as a Class-IV employee in the office of the Ranjit

Sagar Dam, Jugial, and was the sole breadwinner of the family, leaving behind

SAURAV PATHANIA

2025.12.24 13:12

I attest to the accuracy and

integrity of this document

FAO No. 1576 of 2003(O&M) 2

his widow and two minor sons. Thereafter, the claim petition was filed under

Section 163-A of the Motor Vehicles Act, 1988, claiming compensation to the

tune of ₹7,00,000/-. The learned Tribunal assessed the monthly income of the

deceased at ₹1,500/- after deducting family pension and applied a multiplier of

14, awarding a total compensation of ₹2,52,000/-.

CONTENTIONS

3. Learned counsel for the appellants submits that the compensation awarded

by the learned Tribunal is inadequate and contrary to the benevolent object of

the Motor Vehicles Act. It is contended that the appellants are entitled to

compensation under Section 164 of the Motor Vehicles Act, 1988, which

provides for fixed compensation on a no-fault basis and deserves to be applied

retrospectively in favour of the claimants. Learned counsel places reliance upon

the judgment of the Hon’ble Supreme Court in Ram Murti and others v.

Punjab State Electricity Board 2022 (4) TAC 738, wherein the benefit of

Section 164 was extended to the claimants notwithstanding the fact that the

accident had occurred prior to the amendment. Consequently, it is prayed that

the impugned award be modified accordingly.

4. Learned counsel for respondent No.4 submits that the claim having been

filed under Section 163-A of the Motor Vehicles Act, compensation is to be

determined strictly as per the structured formula, and no enhancement is

permissible. It is contended that the learned Tribunal has rightly assessed the

compensation. Hence, no interference is warranted by this court.

OBSERVATIONS AND FINDINGS

5. I have heard learned counsel for the parties and perused the complete

records. On due consideration of the findings recorded by the learned Tribunal,

SAURAV PATHANIA

2025.12.24 13:12

I attest to the accuracy and

integrity of this document

FAO No. 1576 of 2003(O&M) 3

particularly on the issue of occurrence of the accident, negligence and fastening

of liability, I find no reason to take a different view. The findings on those

aspects are accordingly affirmed. However, the principal issue which arises for

consideration in the present appeal relates to the correctness of the computation

of compensation, especially with respect to the application of the relevant

provision of the Motor Vehicles Act, and thereafter, the determination of the

income of the deceased to assess the compensation.

6. At the outset, a careful perusal of the judgment relied upon by learned

counsel for the appellants shows that the same is clearly distinguishable and,

therefore, of no assistance to the appellants. In the said case, the claim petition

had been filed under Section 166 of the Motor Vehic