2026 Supreme(Online)(P&H) 82448
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Neelam – Appellant
Versus
Kuldeep – Respondent
FAO-2478-2019
For the Appellants/Petitioners: Namit Sharma
For the Respondents: Navjot Kaur, Deepak Jindal
The court established that in motor accident death claims, compensation for conventional heads like loss of consortium and estate must be consistently quantified using standardized thumb rules to avoid variations and ensure just compensation, with future prospects added based on age and employment status.
Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Enhancement of compensation - Deceased aged 33 years - Monthly income based on salary slip - Multiplier of 16 correctly applied - Deduction of 1/4th towards personal expenses and 40% future prospects held correct - Inadequacy in conventional heads identified - Interest enhanced from 7.5% to 9% per annum from the date of filing the claim. (Paras 1, 9, 10, 11, 13)
(B) Consortium - Enhancement of compensation - Loss of consortium encompasses spousal, parental, and filial consortium - Amount awarded under this head requires upward revision in line with established legal principles. (Para 8, 11, 12)
Facts of the case:
The appellants challenged the award of the Motor Accident Claims Tribunal, which granted compensation of Rs.23,59,216/- for the death of Jasvinder in a motor vehicle accident. The appellants sought enhancement of the awarded compensation, contending that the computation was on the lower side.
Findings of Court:
The court found that while the multiplier and income assessment were correct, the conventional heads were undervalued. The total enhanced compensation was fixed at Rs.24,79,216/- with interest at 9% p.a.
Issues: Whether the compensation awarded by the Tribunal was adequate and whether the conventional heads were correctly quantified.
Ratio Decidendi: The determination of compensation for conventional heads must not be arbitrary; it should follow the standardized principles laid down by the apex court, including 40% future prospects for individuals in private employment below 40 years and appropriate consortium amounts for family members.
Result: Appeals allowed; compensation enhanced.
| Table of Content |
|---|
| 1. overview of the appeal against the tribunal award. (Para 1 , 2) |
| 2. summary of rival contentions regarding compensation enhancement. (Para 3 , 4 , 5) |
| 3. application of established precedents for damage assessment. (Para 6 , 7 , 8) |
| 4. analysis of tribunal award and requirement for reconsideration. (Para 9 , 10 , 11) |
| 5. final calculation of enhanced compensation and interest. (Para 12 , 13 , 14 , 15) |
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SUDEEPTI SHARMA J.
1. The present appeal has been preferred against the award dated 19.09.2018 passed by the learned Motor Accident Claims Tribunal, Panipat (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 claimants to the tune of Rs.23,59,216/- along with interest @7.5% per annum, on account of death of Jasvinder in a Motor Vehicular Accident, occurred on 07.04.2017.
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 for the claimants-appellants contends that the amount assessed by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present appeal be allowed and compensation be enhanced as per latest law.
4. Per contra, learned counsel for respondent No. 3-Insurance Company however, vehemently argues that the award has rightly been passed and the amount of compensation, as assessed by the learned Tribunal has rightly been granted. Therefore, they prays for dismissal of the appeal.
5. I have heard learned counsel for the parties and perused the whole record of this case.
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]4, 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 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 brothers,