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251

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

FAO-268-2020 (O&M)

Date of Decision : 04.02.2026

Kavita and Others ... Appellants

Versus

Surender Kumar and Others ... Respondents

251-1 FAO-7049-2019 (O&M)

Reliance General Insurance Company Ltd.

... Appellant

Versus

Kavita and Others ... Respondents

CORAM : HON'BLE MRS. JUSTICE ALKA SARIN

Present : Mr. Sahil Khunger, Advocate (Legal Aid Counsel) and

Ms. Jyotsna Saini, Advocate for

Mr. Ashish Yadav, Advocate

for the appellants in FAO-268-2020 and

for respondent Nos.1 to 4 in FAO-7049-2019.

Mr. Nigam K. Bhardwaj, Advocate

for the appellant in FAO-7049-2019 and

for respondent No.3 in FAO-268-2020.

ALKA SARIN, J. (Oral)

1. This order shall dispose off the above-captioned two appeals.

The appeal being FAO-268-2020 has been filed by the claimants and the

appeal being FAO-7049-2019 has been filed by the Insurance Company

aggrieved by the quantum of compensation awarded by the Motor Accident

Claims Tribunal, Rewari (hereinafter referred to as ‘Tribunal’) on account of

death of Sandeep (hereinafter referred to as the ‘deceased’) vide impugned

JITENDER KUMAR

2026.02.05 09:56

I attest to the accuracy and

integrity of this document

Chandigarh

FAO-268-2020 -2-

award dated 02.09.2019. The parties are being referred to as the claimants and

the Insurance Company for the sake of clarity.

2. Since the factum of the accident is not in dispute, the facts are

not being adverted to 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 ₹10,700/-

2 Annual Income ₹1,28,400/- [₹10,700 x 12]

3 Deduction - 1/4th ₹96,300/- [₹1,28,400 - ₹32,100]

4 Multiplier - 17 ₹16,37,100/- [₹96,300 x 17]

5 Loss of estate ₹15,000/-

6 Funeral expenses ₹15,000/-

7 Loss of consortium ₹40,000/-

Total Compensation ₹17,07,100/

Interest 7.5%

4. Learned counsel for the claimants would contend that the income

of the deceased has wrongly been assessed as ₹10,700/- per month inasmuch

as the deceased was running a mobile shop under the name and style of M/s

Kabir Communication at Bus Stand Nangal Mundi and was earning ₹25,000/-

per month and ₹10,000/- from agricultural work. Learned counsel for the

claimants would further contend that the Tribunal has not made any addition

towards loss of future prospects, which ought to have been 40%. It is further

the contention that the Tribunal has applied a multiplier of ‘17’. The age of

the deceased at the time of accident was 25 years 06 months i.e. below the age

of 26 years, therefore, a multiplier of ‘18’ ought to have been applied instead

of ‘17’. It is further the contention that the compensation awarded under the

conventional heads as well as under the head ‘loss of consortium’ is not in

JITENDER KUMAR

2026.02.05 09:56

I attest to the accuracy and

integrity of this document

Chandigarh

FAO-268-2020 -3-

accordance with the law laid down by the Hon’ble Supreme Court. In support

of his contentions, he has relied upon the judgments of the Hon’ble Supreme

Court in the cases of Sarla Verma & Ors. vs. Delhi Transport Corporation

& Anr. [(2009) 6 SCC 121], 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 the Insurance Company has

contended that the income of the deceased has rightly been assessed as

₹10,700/- per month. He has further contended that the Tribunal has wrongly

applied a deduction of 1/4^th in the present case considering father of the

deceased as a dependent which ought to have been 1/3^rd. Learned counsel for

the Insurance Company has further contended that sufficient amount has

already been awarded as compensation in the present case and that there is no

scope of any enhancement.

6. Heard.

7. The argument of learned counsel for the claimants that income

of the deceased has