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2026 Supreme(Online)(P&H) 78402

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Reliance General Insurance Company Limited – Appellant
Versus
Sheela Devi – Respondent
FAO-3419-2015



Advocates:
For the Appellants/Petitioners: Shubham Gupta, Raj Kumar Bashamboo, Sumit Sharma
For the Respondents: Sumit Sharma, Preeti Singh

Amounts received as compassionate assistance by dependants of a deceased government employee under specific state rules are deductible from the compensation awarded under the Motor Vehicles Act, 1988, to prevent double enrichment, and major children are considered legal representatives entitled to compensation.

Headnote:(A) Motor Vehicles Act, 1988 - S. 166 - Compensation - Deduction of compassionate assistance - Amounts received by dependents of deceased government employees under the Haryana Compassionate Assistance to the Dependants of Deceased Government Employees Rules, 2006, must be deducted from compensation awarded under the Motor Vehicles Act, 1988, to prevent double benefit. (Paras 9-12)

(B) Motor Vehicles Act, 1988 - S. 166 - Legal Representative - Major children of the deceased are entitled to compensation as they are legal representatives and dependents upon the deceased’s salary. (Paras 13-14)

Facts of the case:
An appeal was filed by the Insurance Company against a tribunal award granting compensation for a motor vehicle accident. The main contention was that the compensation did not account for the deduction of financial assistance received by the claimants under the Haryana Compassionate Assistance to the Dependants of Deceased Government Employees Rules, 2006. Cross-appeals were filed by claimants seeking enhancement.

Findings of Court:
The Court held that amounts received as compassionate assistance from the employer must be deducted from the total compensation calculation to avoid double benefits. Furthermore, the Court recognized the major children of the deceased as dependents entitled to compensation under the Act, and recalculated the total compensation including future prospects, consortium, and interest at 9% p.a.

Issues: Whether the amount received under the Haryana Compassionate Assistance Rules, 2006, is deductible from the compensation awarded under the Motor Vehicles Act, 1988, and whether major children are entitled to compensation.

Ratio Decidendi: Following the precedent in Shashi Sharma, the Court reasoned that equitable principles forbid double recovery of benefits for the same cause of loss (death in harness/accident). It also extended the interpretation of 'legal representative' to include all dependents who suffer a loss due to the death regardless of age.

Result: Appeal allowed; compensation recalculated to Rs.12,72,328/-.

Table of Content
1. nature of appeal against motor accident compensation award. (Para 1 , 2)
2. parties' contentions regarding compassionate assistance deduction and compensation enhancement. (Para 3 , 4)
3. settled guidelines for assessing compensation, multiplier, and consortium. (Para 6 , 7 , 8)
4. deductibility of compassionate assistance payments from claim awards. (Para 9 , 10 , 11 , 12)
5. entitlement of major children and recalculation of compensation. (Para 13 , 14 , 15 , 16 , 17)

SUDEEPTI SHARMA , J.

1. The present appeal has been preferred by Insurance Company against the award dated 27.01.2015 passed by the learned Motor Accident Claims Tribunal, Bhiwani (for short, 'the Tribunal’) in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 on quantum of compensation granted to the claimants to the tune of Rs.17,88,536/- along with interest @ 6% per annum, on account of death of Mulayam Singh in a Motor Vehicular Accident, occurred on 11.03.2013 on the ground that compensation awarded is on higher side.

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 here for the sake of brevity.

SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES

3. The learned counsel appearing for the appellant–Insurance Company contends that the learned Tribunal has erred in law by failing to deduct the amount received by the dependants of the deceased under the Haryana Compassionate Assistance to the Dependants of Deceased Government Employees Rules, 2006 . He further contends that in view of the settled legal position, the said amount is liable to be deducted while computing compensation under the Motor Vehicles Act, 1988, and consequently, the awarded compensation deserves to be reduced. Therefore, he prays for dismissal of the appeal.

4. Per contra, learned counsel for the respondent Nos.1 to 4 contends that compensation awarded is on the lower side. He furthermore contends that they have preferred separate appeal bearing No.- FAO-3705-2015 seeking enhancement of compensation. He, therefore, prays that the present appeal be dismissed.

5. I have heard learned counsel for the parties and perused the whole record of this case with his 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

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