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2026 Supreme(Online)(P&H) 77739

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Dev Raj – Appellant
Versus
Gurjant Singh – Respondent
FAO-4881-2010



Advocates:
For the Appellants/Petitioners: Gurdeep Kaur, P.K. Ganga, P.P.S.Duggal
For the Respondents: Sahej Mahajan

In motor accident injury claims, where specific income proof is absent, notional income must be assessed based on social status, and compensation for permanent disability is distinct from future loss of income, requiring both to be awarded to ensure just and reasonable compensation for the claimant.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor accident injury case - Quantum of compensation - Principles of assessment of pecuniary and non-pecuniary damages - Reconsideration of notional income in absence of concrete evidence - Application of multiplier based on age - Independent allowance for pain and suffering and permanent disability - Enhancement of compensation to reflect fair and just restitution. (Paras 6-8, 11-13)

(B) Appellate Jurisdiction - Scope of enhancement - Power to rectify errors in calculation of notional income and application of multipliers - Ensuring interest rate compliance with settled judicial precedents. (Paras 10, 20-21)

Facts of the case:
The appellant sought enhancement of compensation awarded by the Motor Accident Claims Tribunal for injuries sustained in a motor vehicular accident on 03.09.2007. The Tribunal had awarded Rs.1,57,000/-, which the appellant contended was on the lower side.

Findings of Court:
The court observed that the Tribunal failed to properly assess notional income and ignored established multiplier methods. The court reassessed the income, applied a multiplier of 5 based on the age of the claimant, and enhanced the compensation to Rs.3,31,000/-, granting 9% interest on the enhanced amount.

Issues: Whether the motor accident claim compensation awarded by the Tribunal was just and adequate in light of the claimant's income, disability, and injuries sustained.

Ratio Decidendi: The court affirmed that in the absence of precise income proof, notional income should be assessed based on social status and employment nature. It further held that compensation for permanent disability is a distinct head from loss of future income and that appellate courts must enhance compensation if it is found to be meager and contrary to settled principles. Result : Appeal allowed; compensation enhanced.

Table of Content
1. introduction of claim and scope of appeal. (Para 1 , 2)
2. submissions and judicial perusal of record. (Para 3 , 4 , 5)
3. settled law on compensation heads and calculation methods. (Para 6 , 7 , 8)
4. assessment of specific compensation components and evidentiary review. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
5. final relief and calculation of enhanced compensation. (Para 20 , 21 , 22)

SUDEEPTI SHARMA J.

1. The present appeal has been preferred against the award dated 05.04.2010 passed by the learned Motor Accident Claims Tribunal, Sirsa (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.1,57,000/- along with interest @ 8% per annum, on account of injury suffered by him in a Motor Vehicular Accident, occurred on 03.09.2007.

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 respondent No. 3-Insurance Company, 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, he prays 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 Supreme Court Cases 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) Loss of future earnings on account of permanent disability.

(iii) Future medical expenses. Non-pecuniary d

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