Punjab-Haryana High Court
Seema Rani Etc vs Mangal Singh Etc on 11 November, 2025
Author: Sudeepti Sharma
Bench: Sudeepti Sharma
FAO-5328-2011 1
IN THE HIGH COURT OF PUNJAB & HARYANA
AT CHANDIGARH
FAO-5328-2011 (O&M)
Date of Reserve: 31/10/2025
Date of Pronouncement:-11.11.2025
Seema Rani and anr. ......Appellants
vs.
Mangal Singh and ors. ......Respondents
CORAM: HON'BLE MRS. JUSTICE SUDEEPTI SHARMA
Present: Mr. Satinder Khanna, Advocate
for the appellant.
Mr. R.K. Verma, Advocate
for respondent No. 1 and 2.
Mr. Gaurav Gupta, Advocate
for respondent No. 3.
****
SUDEEPTI SHARMA J.
1. The present appeal has been preferred against the award dated 02.02.2011 passed by the learned Motor Accident Claims Tribunal, Ludhiana in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 (for short, 'the Tribunal') for enhancement of compensation granted to the claimants/appellants to the tune of Rs.2,84,500/- along with interest @6% per annum, on account of death of Even Kumar Verma in a Motor Vehicular Accident, occurred on 13.04.2009.
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 1 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 2 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-Insurance Company, however, vehemently argues that the compensation awarded to the claimants is on the higher side and the appeal deserves to be dismissed.
5. Learned counsel for respondent Nos. 1 and 2 submits that the amount assessed by the learned Tribunal is on the higher side and the present appeal deserves to be dismissed.
6. I have heard learned counsel for the parties and perused the whole record of this case.
SETTLED LAW ON COMPENSATION
7. 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 2 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 3 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 brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.
* * * * * *
42. We therefore hold that the multiplier to be used should be as mentioned in Column (4) of the table above (prepared by applying Susamma Thomas³, Trilok Chandra and Charlie), which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for 26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-
3 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 4 14 for 41 to 45 years, and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years.
8. Hon'ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] has clarified the law under Sections 166, 163-A and 168 of the Motor Vehicles Act, 1988, on the following aspects:-
(A) Deduction of personal and living expenses to determine multiplicand;
(B) Selection of multiplier depending on age of deceased; (C) Age of deceased on basis for applying multiplier; (D) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses, with escalation; (E) Future prospects for all categories of persons and for different ages: with permanent job; self-employed or fixed salary.
The relevant portion of the judgment is reproduced as under:-
"52. As far as the conventional heads are concerned, we find it difficult to agree with the view expressed in Rajesh². It has granted Rs.25,000 towards funeral expenses, Rs 1,00,000 towards loss of consortium and Rs 1,00,000 towards loss of care and guidance for minor children. The head relating to loss of care and minor children does not exist. Though Rajesh refers to Santosh Devi, it does not seem to follow the same. The conventional and traditional heads, needless to say, cannot be determined on percentage basis because that would not be an acceptable criterion. Unlike determination of income, the said heads have to be quantified. Any quantification must have a 4 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 5 reasonable foundation. There can be no dispute over the fact that price index, fall in bank interest, escalation of rates in many a field have to be noticed. The court cannot remain oblivious to the same. There has been a thumb rule in this aspect. Otherwise, there will be extreme difficulty in determination of the same and unless the thumb rule is applied, there will be immense variation lacking any kind of consistency as a consequence of which, the orders passed by the tribunals and courts are likely to be unguided. Therefore, we think it seemly to fix reasonable sums. It seems to us that reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs.15,000, Rs.40,000 and Rs.15,000 respectively. The principle of revisiting the said heads is an acceptable principle. But the revisit should not be fact-centric or quantum-centric. We think that it would be condign that the amount that we have quantified should be enhanced on percentage basis in every three years and the enhancement should be at the rate of 10% in a span of three years. We are disposed to hold so because that will bring in consistency in respect of those heads.
* * * * * 59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 5 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 6 years, the addition should be 15%. Actual salary should be read as actual salary less tax.
59.4. In case the deceased was self-employed (or) on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.
59.5. For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paras 30 to 32 of Sarla Verma⁴ which we have reproduced hereinbefore.
59.6. The selection of multiplier shall be as indicated in the Table in Sarla Verma¹ read with para 42 of that judgment. 59.7. The age of the deceased should be the basis for applying the multiplier.
59.8. Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years."
9. Hon'ble Supreme Court in the case of Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Others [2018(18) SCC 130] after considering Sarla Verma (supra) and Pranay Sethi (Supra) has 6 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 7 settled the law regarding consortium. Relevant paras of the same are reproduced as under:-
"21. A Constitution Bench of this Court in Pranay Sethi² dealt with the various heads under which compensation is to be awarded in a death case. One of these heads is loss of consortium. In legal parlance, "consortium" is a compendious term which encompasses "spousal consortium", "parental consortium", and "filial consortium". The right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual relations with the deceased spouse.
21.1. Spousal consortium is generally defined as rights pertaining to the relationship of a husband-wife which allows compensation to the surviving spouse for loss of "company, society, cooperation, affection, and aid of the other in every conjugal relation".
21.2. Parental consortium is granted to the child upon the premature death of a parent, for loss of "parental aid, protection, affection, society, discipline, guidance and training".
21.3. Filial consortium is the right of the parents to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime.
7 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 8 Children are valued for their love, affection, companionship and their role in the family unit.
22. Consortium is a special prism reflecting changing norms about the status and worth of actual relationships. Modern jurisdictions world-over have recognised that the value of a child's consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions therefore permit parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded to the parents is a compensation for loss of the love, affection, care and companionship of the deceased child.
23. The Motor Vehicles Act is a beneficial legislation aimed at providing relief to the victims or their families, in cases of genuine claims. In case where a parent has lost their minor child, or unmarried son or daughter, the parents are entitled to be awarded loss of consortium under the head of filial consortium. Parental consortium is awarded to children who lose their parents in motor vehicle accidents under the Act. A few High Courts have awarded compensation on this count. However, there was no clarity with respect to the principles on which compensation could be awarded on loss of filial consortium.
24. The amount of compensation to be awarded as consortium will be governed by the principles of awarding compensation under "loss of consortium" as laid down in Pranay Sethi². In the present case, we deem it appropriate to award the father 8 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 9 and the sister of the deceased, an amount of Rs 40,000 each for loss of filial consortium.
10. A perusal of the record shows that the deceased-Even Kumar Verma was a B Com graduate and was 23 years of age at the time of accident. The deceased was stated to be working at Swami Textile Ltd. which is supported by the testimony of the Seema Rani PW1. Seema Rani PW1 in her testimony categorically deposed that deceased-Even Kumar Verma used to earn Rs10,000/- per month. She was cross examined however nothing was elicited in her cross examination to dispute the factum of income of the deceased. Further the claimant has placed on record Ex P3 bank statement of the deceased-Even Kumar Verma which shows that the deceased was getting his salary credited at regular intervals and was earning Rs.13701/- per month. However the learned tribunal has ignored oral as well as documentary evidence and has wrongly assessed the notional income of the deceased as Rs.3500.- in view of facts and circumstances of the case. The Hon'ble Apex Court in its latest judgment of SHARAD SINGH (DEAD) THROUGH LR. v. H.D. NARANG, 2025 INSC 1164 has observed that academic qualifications should also be considered while assessing the income of the deceased while calculating just compensation as mandated under the Motor Vehicles Act. The relevant extract of the same is reproduced as under:-
"5. We were not convinced that the minimum wages would be determined on the basis of the educational qualification alone without reference to the nature of work carried on. The learned Counsel after further verification submitted that minimum wages adopted is of the year 2001 applicable to a skilled worker. We are not convinced that even that can be adopted for a graduate who was in the process of sitting for the Chartered Accountant examination which would have placed him in a 9 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 10 good employment with immense prospects. The aspirations of the young man were shattered by the accident which left him paraplegic and fighting for breath, which also prompted the parents to relocate to another part of the country. We are of the opinion that even if he had not obtained the certificate as a Chartered Accountant, upon graduation, he could have been employed as an Accountant, who would have, on any reasonable estimate, received an amount of Rs.5,000/- as monthly income in the year 2001."
11. In view of the above judgment and after careful consideration of all the documentary and oral evidences. It is difficult to deviate from the conclusion that the deceased was a B.Com graduate and the unimpeached testimony of PW1 Seema Rani reveals that the deceased was working with swami textiles ltd. Further, the bank statement (Ex P3) clearly shows that the deceased was getting his salary credited at regular interval and was earning Rs.13701/- monthly, which was not disputed by the respondent-insurance company in cross examination. Therefore this Court deems it appropriate to assess the monthly income of the deceased as Rs.14000/- per month.
13. A further perusal of the award shows that the learned Tribunal has failed in not awarding any amount for future prospects and loss of consortium. Moreover, the learned Tribunal has also erred in law in deducting 1/3rd towards personal expenditure which should be 1/2 as per the settled law.
14. Furthermore, the learned Tribunal has erred in applying the multiplier of 10 instead of 18, as per settled law. Moreover, the amount awarded under the head of loss of estate is on the lower side and deserves to be enhanced. Therefore, the award requires indulgence of this Court.
10 of 12 ::: Downloaded on - 12-11-2025 21:05:33 ::: FAO-5328-2011 11 CONCLUSION
15. In view of the law laid down by the Hon'ble Supreme Court in the above referred to judgments, the present appeal is allowed. The award dated 02.02.2011 passed by the learned Tribunal, Ludhiana is modified accordingly. The claimants are entitled to enhanced amount of compensation as per the calculations made here-under:-
Sr. Heads Compensation Awarded
No.
1 Monthly Income Rs.14000/-
2 Future prospects @ 40% Rs.5600/- (40% of 14000)
3 Deduction towards personal Rs.9800/- (19600X 1/2)
expenditure 1/2
4. Total Income Rs.9800/-(19600-9800)
4 Multiplier 18
5 Annual Dependency Rs.21,16,800/- (9800X12X18)
6 Loss of Estate Rs.18,150/-
7 Funeral Expenses Rs.18,150/-
8 Loss of Consortium Rs.96,800/-
Filail : Rs. 48,400/-x2
Total Compensation Rs.22,49,900/-
Deduction Rs.2,84,500/-
Amount Awarded by the Tribunal
Enhanced amount Rs.19,65,400/- (2249900-248500)
16. So far as the interest part is concerned, as held by Hon'ble Supreme Court in Dara Singh @ Dhara Banjara Vs. Shyam Singh Varma 2019 ACJ 3176 and R.Valli and Others VS. Tamil Nandu State Transport Corporation (2022) 5 Supreme Court Cases 107, the appellants-claimants are granted the interest @ 9% per annum on the enhanced amount from the date of filing of claim petition till the date of its realization.
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17. Respondent-Insurance Company is directed to deposit the enhanced amount of compensation along with interest with the Tribunal within a period of two months from the receipt of copy of this judgment. The Tribunal is directed to disburse the enhanced amount of compensation along with interest in the accounts of the claimants, as per award dated 02.02.2011. The claimants are directed to furnish their bank account details to the Tribunal.
18. Pending applications, if any, also stand disposed of.
(SUDEEPTI SHARMA)
11.11.2025 JUDGE
Gaurav Arora
Whether speaking/non-speaking : Yes/No
Whether reportable : Yes
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