Punjab-Haryana High Court
The Oriental Insurance Co.Ltd vs Parvinderjit Kaur And Ors on 6 December, 2022
FAO-1565-2018 (O&M) & FAO-2159-2018 (O&M)
219
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
Reserved on: 29.11.2022
Pronounced on: 06.12.2022
FAO No.1565 of 2018
Oriental Insurance Company Limited .........Appellant
vs.
Smt. Parvinderjit Kaur and others .......Respondents
FAO No.2159 of 2018
Smt. Parvinderjit Kaur and another .........Appellants
vs.
Harjinder Singh and others .......Respondents
CORAM: HON'BLE MR. JUSTICE HARKESH MANUJA
Present:- Mr. R.K. Bashamboo, Advocate,
for the appellant/ Insurance Co.
Mr. Yogesh Gupta, Advocate,
for the claimants.
*******
HARKESH MANUJA, J (Oral)
This order of mine shall dispose of two appeals i.e.FAO
No.1565 of 2018 and FAO No.2159 of 2018 filed at the instance of
Insurance Company and claimants respectively, impugning the award
dated 28.08.2017 passed by the Court of learned MACT, Mohali
(hereinafter referred to as "the Tribunal"). For convenience, facts are
taken from FAO No. 1565 of 2018.
Respondents No.1 & 2-claimants being parents of the
deceased, filed a claim petition alleging rash and negligent driving on
the part of respondent No.3 involving the offending vehicle i.e. the
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FAO-1565-2018 (O&M) & FAO-2159-2018 (O&M)
truck/tipper number PB-46-F-9550. The learned Tribunal vide impugned
award dated 28/08/2017 awarded a sum of Rs. 11,59,000/- as
compensation payable in favour of respondent No.1 & 2/ claimants
along with interest @ 6% per annum from the date of filing the claim
petition till its realization (9% in case awarded amount is not paid within
3 months from date of award) after holding respondent No.3 to be rash
and negligent while driving the offending vehicle. The aforementioned
compensation has been awarded in the following manner:-
Sr.No. Particulars Amount (Rs.)
1. Annual Income of deceased (Rs.7,000x12) Rs.84,000/-
2. Add 50% of Future prospects Rs.42,000/-
3. Total Income Rs.1,26,000/-
4. Deduction (1/2nd) Rs.63,000/-
5. Multiplier of 18 as per age of 16 years Rs.11,34,000/-
(Rs.63,000 x 18)
6. Funeral Expenses Rs.25,000/-
Total Compensation Rs.11,59,000/-
It is the aforesaid award, which has been impugned by way
of present appeals. Learned counsel for the appellant/ Insurance
Company contends that considering the fact that deceased was a non-
earning member, her notional income was considered on the higher side
while awarding compensation. He further contends that learned Tribunal
erred in taking notional income of the deceased @Rs.84,000/- per
annum, instead, it should have been taken as Rs.30,000/- per annum.
He again contends that in view of settled proposition of law rendered by
the Hon'ble Apex Court in "National Insurance Company Ltd. Vs.
Pranay Sethi and others", 2017(4) RCR (Civil) 1009, since the age of
deceased was 16 years at the time of her death, future prospects should
have been awarded @40% instead of @50%.
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FAO-1565-2018 (O&M) & FAO-2159-2018 (O&M)
On the other hand, learned counsel for respondent No.1 & 2-
claimants contends that as the deceased was a meritorious student of
10 +1(non-medical) class at the time of her death, notional income
should have been assessed at least @ Rs.15,000/- per month. In this
regard, he also places reliance upon the judgment of Hon'ble Supreme
Courtin the case of "V. Mekala vs M.Malathi and another", reported as
2014(2) RCR(Civil) 880. Learned counsel also submits that
compensation awarded under the conventional heads is also required to
be re-assessed.
Having heard learned counsel for the parties and gone through
the paper-book, I am unable to accept the contention raised on behalf of
learned counsel for appellant/ Insurance Company on the issue of
notional income of deceased. It is very difficult to quantify the notional
income of a minor child as it is to a great extent based upon the
sentiments and loss of a child can have devastating effect on the family
which can be easily visualised and understood. Though, no amount of
money could bring back the joy in life of parents of deceased, but
Section 168 of Motor Vehicle Act, 1988, provides for just and reasonable
compensation to the claimants. In the peculiar facts and circumstances
of the present case, wherein the deceased was 16 years old and was a
student of 10+1(non-medical) class in International Public School,
Kurali, having scored 9.4 (out of 10) grade point in her matric
examination being a bright and meritorious student, it is more than clear
that had the deceased been alive, she would have certainly contributed
substantially to the family by working hard. Further, it would also be
incumbent to consider minimum wages applicable in the State of Punjab
w.e.f 01.03.2016, which were Rs.7210/- per month at that point of time
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FAO-1565-2018 (O&M) & FAO-2159-2018 (O&M)
i.e. higher than notional income assessed by learned Tribunal.
Furthermore, in "V. Mekala's case (supra), Hon'ble Supreme Court has
assessed the notional income of a child studying in 11th standard as
Rs.10,000/- per month as she was a brilliant student at the time of
accident. In view of the aforesaid reasons, it would be just and
reasonable to assess notional income of deceased @ Rs. 10,000/- per
month.
Learned counsel for the parties are ad- idem on the issue of
future prospects, thus, the same should be reduced to @40%.
Besides this, the claimants are entitled for a sum of
Rs.16,500/- as funeral expense (instead of Rs.20,000/-) and a further
sum of Rs.16,500/- for loss of estate (not granted by learned Tribunal).
Also, loss of filial consortium is to be awarded to the tune of Rs.88,000/-
(44,000 X 2) as there are two dependents.
No other argument has been raised.
Thus, in view of the discussion made hereinabove,
appellants/ claimants are entitled for the compensation, as detailed in
the table given hereunder:-
Sr.No. Particulars Amount (Rs.)
1. Annual Income of deceased (Rs.10,000x12) Rs.1,20,000/-
2. Add 40% of Future prospects Rs. 48,000/-
3. Total Income Rs.1,68,000/-
nd
4. Deduction (1/2 ) Rs.84,000/-
5. Multiplier of 18 as per age of 16 years Rs.15,12,000/-
(Rs.84,000 x 18)
6. Funeral Expenses Rs.16,500/-
7. Loss of Consortium Rs.88,000/-
8. Loss of estate Rs.16,500/-
Total Compensation Rs.16,33,000/-
Amount Awarded by the Tribunal Rs.11,59,000/-
Enhanced Amount Rs.4,74,000/-
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FAO-1565-2018 (O&M) & FAO-2159-2018 (O&M)
The grant of interest @6% per annum is not just in view of
facts and circumstances of the present case; rather as per the
observations made by the Hon'ble Supreme Court in "Smt. Supe Dei
and others Vs. National Insurance Company Limited and other",
reported as 2009(4) SCC 513, approved in a subsequent judgment titled
as "Puttamma and others Vs. K.L.Narayana Reddy and another",
reported as 2014 (1) RCR (Civil) 443, interest is enhanced to 9% per
annum on the amount of compensation awarded to the claimants from
the date of institution of claim petition till its realization.
The present appeals are disposed of in the manner, indicated
hereinabove.
Pending miscellaneous application(s), if any, shall also stand
disposed of.
( HARKESH MANUJA )
Decided on: 06.12.2022 JUDGE
anil
Whether speaking/reasoned Yes/No
Whether Reportable Yes/No
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