On 21st October 2022, the Supreme Court in a Division bench comprising of Justice M.R. Shah and Justice M.M. Sundresh observed that while considering the loss of dependency 40% of the income is required to be added towards future prospects (Shiv Kumar & Ors. Vs. Gainda Lal & Ors.)
Facts of the case:
The wife of appellant No.1 died in a vehicular accident. At the relevant time, the deceased was aged 25 years and was a housewife. The Motor Accident Claim Tribunal awarded Rs.19,12,200/¬ with the interest at the rate of 7.5% towards the compensation under different heads. The Learned Tribunal awarded the loss of dependency at Rs.3,24,000/ considering the income of the deceased at Rs.1,500/¬ per month. At that time the deceased was pregnant so, the learned Tribunal also awarded Rs.50,000/¬ for foetus. An appeal was filed by the original complainant in the High Court where the compensation was enhanced at Rs.29,34,000/.¬ Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court, the original claimants have preferred the present appeal.
Contentions of the Appellants:
The counsel for the appellants submitted that “the High Court has committed a serious error in awarding the loss of dependency considering the income of the deceased at Rs.6,000/¬ per month only. Even the minimum wages payable to the skilled worker was much more than Rs.6,000/¬ per month. Even otherwise while awarding the loss of dependency, future prospect has not been taken into consideration at all. The High Court has also erred in awarding Rs.50,000/¬ towards foetus. The claimants shall be entitled to a sum of Rs.40,000/ each towards loss of consortium or loss of love and affection.”
Contentions of the Respondents:
The counsel for the respondents submitted that “in the facts and circumstances of the case and more particularly when the deceased was only a housewife, it cannot be said that the High Court has committed any error in awarding the loss of dependency considering the income of the deceased at the rate of Rs.6,000/- per month.” However, has fairly conceded that the High Court ought to have awarded the loss of dependency considering future prospects.
Observations and Judgement of the Court:
The hon’ble court observed that “the deceased was a housewife aged 25 years only and there is evidence that she was also doing the tuition work, we are of the opinion that the High Court ought to have considered the income of the deceased at least Rs.7,500/¬ per month. The HC has also not considered the future prospects. As per the settled position of law while considering the loss of dependency 40% of the income is required to be added towards future prospects. We are of the opinion that the claimants shall be entitled to a sum of Rs.1 lakh each instead of Rs.50,000/¬ as awarded by the High Court for loss of foetus. The claimants – husband and the minor son shall also be entitled to Rs.40,000/- each towards loss of consortium or loss of love and affection.” The impugned judgment and order passed by the High Court is modified and enhanced to a total sum of Rs.32,82,000/- with interest at the rate of 7.5% per annum. Therefore, allowing the present appeal.
Case: Shiv Kumar & Ors. Vs. Gainda Lal & Ors.
Citation: Civil Appeal No. 7629 Of 2022
Bench: Justice M.R. Shah and Justice M.M. Sundresh
Date: October 21, 2022
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