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2026 Supreme(Online)(P&H) 1313

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Alka Sarin, J
SUDHIR & ORS. – Appellant
Versus
SANJAY & ORS. – Respondent
FAO-7364-2010 (O&M)|FAO-3370-2011 (O&M)



Advocates:
For the Appellants/Petitioners: Sumit Sangwan, Madhur Jangra
For the Respondents: Sumit Sangwan, Madhur Jangra, D.P. Gupta

Notional income for homemakers should be assessed based on minimum wages of skilled workers, and recovery rights for insurers cannot be granted based on mere presumption of 'hire' without cogent evidence.

Headnote:The case involves appeals against a Motor Accident Claims Tribunal award concerning the death of a homemaker. The Tribunal had granted recovery rights to the Insurance Company based on a witness statement suggesting the vehicle was used for hire and awarded compensation based on an assessed age of 54 years and a monthly income of ₹4,000. The appellants challenged the recovery rights and the quantum of compensation, citing the postmortem report for age and seeking minimum wages for a skilled worker. The court addressed whether recovery rights could be granted based on mere presumption and how notional income for homemakers should be calculated. It held that the Insurance Company failed to discharge the onus of proving the vehicle was used for hire, and that in the absence of documentary evidence, the postmortem report is the reliable source for age. The court reasoned that the contribution of a homemaker should be recognized by assessing income based on minimum wages for skilled workers and applying appropriate future prospects and multipliers. In view of the above discussion, the award passed by the Tribunal is modified and both the appeals filed by the claimants as well as owner of the offending vehicle stand allowed accordingly.

Table of Content
1. summary of accident facts and the initial compensation award by the tribunal. (Para 1 , 2 , 3 , 4)
2. recovery rights cannot be granted based on mere presumption of hire without cogent evidence. (Para 5 , 7 , 9)
3. adjustment of future prospects, multiplier, and consortium based on supreme court guidelines. (Para 6 , 13 , 14 , 15 , 16)
4. postmortem report is the primary evidence for age in the absence of documentary proof. (Para 10)
5. notional income for homemakers should be based on skilled worker minimum wages. (Para 11 , 12)
6. final calculation of enhanced compensation and modification of the tribunal's award. (Para 17 , 18 , 19 , 20)

ALKA SARIN, J. (Oral)

1. This order shall dispose off the above-captioned two appeals. The appeal being FAO-7364-2010 has been filed by the claimants aggrieved by the quantum of compensation awarded by the Motor Accident Claims Tribunal, Bhiwani (hereinafter referred to as the ‘Tribunal’) vide award dated 14.08.2010 on account of death of Maya Devi (hereinafter referred to as the ‘deceased’) while the appeal being FAO-3370-2011 has been filed by the owner of the Tempo bearing registration No.HR-19E-0515 (hereinafter referred to as the ‘offending vehicle’) aggrieved by the recovery rights, which have been given to the Insurance Company. The parties are being referred to as the claimants, owner and driver of the offending vehicle and the Insurance Company for the sake of clarity.

2. The brief facts relevant to the present lis are that on 12.01.2009 at about 12.00 noon, Ajit Singh alongwith his wife Maya Devi (deceased) was waiting for transport at bus stand of village Pentawas Kalan to go to Bhiwani. In the meantime, the offending vehicle, which was being driven by its driver, namely, Sanjay in a rash and negligent manner and at a high speed, came from the side of Dadri and by coming on the wrong side of the road, struck against the deceased. As a result of accident, the deceased suffered injuries on her legs and other parts of the body. The driver of the offending vehicle, after leaving the offending vehicle, fled from the spot. The deceased was taken to General Hospital, Bhiwani where she succumbed to her injuries on the next day i.e. 13.01.2009. FIR No.26 dated 12.01.2009 for offences under Sections 279 and 337 of the Indian Penal Code, 1860 was registered at Police Station Sadar Charkhi Dadri.

3. The Tribunal relying on the statement of PW-1 Ajit Singh i.e. husband of the deceased, held that a number of passengers were travelling in the offending vehicle which was not a passenger vehicle. Since the offending vehicle was being used for transporting passengers on hire, as such the same was being driven in violation of terms and conditions of the insurance policy and thus the Insurance Company was granted the recovery rights.

4. The Tribunal had awarded the following compensation :

Sr. No. Heads Compensation Awarded
1 Monthly Income ₹4,000/-
2 Annual Income ₹48,000/- [₹4,000 x 12]
3 Deduction - 50% ₹24,000/- [₹48,000 - ₹24,000]
4 Multiplier - 9 ₹2,16,000/- [₹24,000 x 9]
5 Funeral expenses ₹5,000/-
6 Loss of consortium ₹5,000/-
Total Compensation ₹2,26,000/
Interest 6%

5. Learned counsel appearing on behalf of the owner of the offending vehicle would contend that merely on the statement of PW-1 that there were some passengers travelling in the offending vehicle, the Tribunal has returned the finding that the passengers were being carried for hire. Learned counsel for the owner of the offending vehicle has further contended that issue No.7, which was framed by the Tribunal, was specifically as to whether the offending vehicle was being driven in violation of the terms and conditions of the insurance policy and the onus was cast upon the Insurance Company. The Insurance Company failed to lead even an iota of evidence in this regard that the passengers, if at all, were travelling in the offending vehicle were travelling on payment. It is fu

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