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2026 Supreme(Online)(P&H) 77838

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Rajwanti – Appellant
Versus
Sandeep Kumar – Respondent
FAO-6243-2016



Advocates:
For the Appellants/Petitioners: Raghav Bali, Pankaj Bali
For the Respondents: Vinod Chaudhri, Jayant Singh Chauhan

In motor accident claims, the court may adopt a reasonable estimate of income exceeding minimum wage notifications based on the deceased's occupation, and the definition of a 'legal representative' entitled to compensation extends to all family members suffering loss, regardless of their dependency status.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Quantum of compensation - Enhancement of - Deceased aged 42 at the time of accident - Tribunal assessed income based on minimum wages - High Court held this was on the lower side and reassessed income as Rs.10,000 per month considering professional background - Major sons held eligible for compensation as dependents - Following established principles, total compensation enhanced to Rs.15,50,112/- with interest @ 9% per annum. (Paras 9, 11, 12, 14, 16)

Facts of the case:
Appellants, being legal representatives of deceased Jasmer, challenged the Tribunal award of Rs.8,39,424/- on the ground of inadequacy. Claimants sought enhancement of compensation for the death of the deceased in a motor vehicle accident that occurred on 16.12.2014.

Findings of Court:
The court observed that the Tribunal's assessment of income was insufficient and that legal representatives, including major sons, are entitled to compensation regardless of being considered independent, provided they suffer loss of dependency.

Issues: Whether the compensation awarded by the Tribunal was adequate and whether major sons of the deceased are entitled to compensation.

Ratio Decidendi: Minimum wage notifications are a yardstick but not absolute; guesswork based on the deceased's occupation is permissible in the interest of justice. Legal representation for compensation purposes extends to all who suffer due to the deceased's death, not just spouses, children, or parents.

Result: Appeal allowed; enhanced compensation of Rs.7,10,688/- granted with 9% interest.

Table of Content
1. nature of the appeal filed for enhancement of compensation. (Para 1 , 2)
2. summary of submissions and initial judicial review. (Para 3 , 4 , 5)
3. principles for assessing income, multiplier, and future prospects. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. entitlement of major children as legal representatives. (Para 12 , 13 , 14)
5. calculation of enhanced compensation and disposal of the appeal. (Para 15 , 16 , 17 , 18 , 19)

1. The present appeal has been preferred against the award dated 16.05.2016 passed in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 (in short ‘1988 Act’), by the learned Motor Accident Claims Tribunal, Panipat (in short ‘the Tribunal’) for enhancement of compensation, granted to the appellants/claimants to the tune of Rs.8,39,424/- along with interest @9% per annum on account of death of deceased Jasmer in a Motor Vehicular Accident, occurred on 16.12.2014.

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 LEARNED COUNSEL FOR THE PARTIES

3. The learned counsel for the appellants/claimants 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 appellants/claimants be enhanced, as per latest law.

4. Per contra, learned counsel for the respondent No.3-Insurance Company vehemently argues on the line of award. Therefore, he prays that present appeal be dismissed.

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 in the case of Sarla Verma Vs. Delhi Transport Corporation and Another [(2009) 6 Supreme Court Cases 121], laid down the law on assessment of compensation and the relevant paras of the same are as under:-

“30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having a considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependant. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father.

32. Thus even if the deceased is survived by parents and siblings, only d the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where the family of the bachelor is large and dependent on the income of the deceased, as in a case where he has a widowed mother and large number of younger non-earning sisters or

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