Citation : 2022 Latest Caselaw 1566 P&H
Judgement Date : 14 March, 2022
FAO-5129-2018 (O&M) -1-
261 IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
(through video conferencing)
FAO-5129-2018 (O&M)
Decided on : 14.03.2022
Manjit Kaur ...... Appellant
Versus
Harjit Singh and others ...... Respondents
CORAM : HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL
Present : Mr. Jaideep Verma, Advocate
for the appellant.
Mr. Vinod Gupta, Advocate
for Insurance Company.
****
Manjari Nehru Kaul, J.(Oral)
The appellant-claimant is seeking enhancement of
compensation awarded by Motor Accidents Claim Tribunal, Rupnagar
(hereinafter referred as 'the Tribunal') with regard to the death of her son
Sandeep Singh, aged 27 years, in a motor vehicular accident, which took
place on 15.04.2016. The Tribunal awarded compensation to the tune of
Rs.50,93,280/- along with interest @ 6% per annum from the date of filling
of petition till its actual realization. The amount awarded by the Tribunal
was assessed as follows:
Sr. Heads of claim Amount awarded
No.
1 Income taken per month Rs.37,900/-
2 Future prospects @ 40% per month Rs.15,160/-
3 Total income Rs.53,060/-
4 Multiplicand (annualized) Rs.53,060 x 12 = Rs.6,36,720/-
1 of 4
FAO-5129-2018 (O&M) -2-
Sr. Heads of claim Amount awarded
No.
5 Deduction of Income Tax Rs.41,039/-
6 Income after deducting tax Rs.5,95,681/-
5 Deduction 1/2 towards personal living Rs.2,97,840/-
7 Total Rs.50,63,280/-
8 Loss to the estate Rs.15,000/-
9 Funeral expenses Rs.15,000/-
Total Rs.50,93,280/-
The respondents were held liable to pay the amount of
compensation jointly and severely.
Learned counsel for the appellant-claimant has challenged the
award primarily on the ground that though the deceased had a permanent
job in the Police Department, however, the Tribunal had wrongly assessed
his future prospects at 40% instead of 50%. It is also submitted that under
the conventional heads the amount of compensation also needed to be
reassessed and enhanced to Rs.70,000/- from Rs.30,000/-, which had been
erroneously not assessed by the Tribunal. In support, learned counsel has
placed reliance upon National Insurance Co. vs. Pranay Sethi, 2017 SCC
270.
On being put to notice, learned counsel for respondent-
insurance company has opposed the submissions made by learned counsel
for the appellant by urging that the compensation awarded was adequate and
in consonance with the settled law and hence, did not require any
interference.
After hearing learned counsel for the parties and perusing the
case file, this Court is of the opinion that the compensation awarded by the
2 of 4
FAO-5129-2018 (O&M) -3-
Tribunal requires to be reassessed inconsonance with the judgment rendered
by the Supreme Court in Pranay Sethi's case(supra).
The deceased in the present case was below 40 years of age and
was employed on a fixed salary being a Govt. Employee. Thus, 50% of his
proved income (i.e. income (-) tax component) is added towards loss of
future prospects. The Hon'ble Apex Court in Pranay Sethi's case(supra)
has quantified the amount in the sum of Rs.15,000/-, Rs.15,000/- and
Rs.40,000/-to be awarded under conventional heads i.e. loss of estate,
funeral expenses and loss of consortium respectively. Still further, it has
been held that the aforesaid amounts would be further subject to 10%
enhancement after every three years. Therefore, the claimant would be
entitled to 10% enhancement as was also held and reassessed by Hon'ble
Apex Court in Rasmita Biswal and others vs. Divisional Manager,
National Insurance Co. Ltd. and another, 2022(1) RCR(Civil) 344 as per
the ratio laid down in Pranay Sethi's case(supra).
Resultantly, the compensation is re-assessed as follows:
Sr. Heads of claim Amount awarded
No.
1 Income taken per month Rs.37,900/-
2 Multiplicand (annualized) Rs.4,54,800/-
3 Income Tax Rs.15,945/-
4 Net income(Rs.4,54,800/- (-) Rs.15,945/-) Rs.4,38,855/-
4 Future prospects @ 50% per month Rs.2,19,427/-
5 Total Income(Rs.4,38,855/- (+) Rs.2,19,427/-) Rs.6,58,282/-
6 Deduction ½ towards personal living Rs.3,29,141/-
8 Total Rs.55,95,397/-
9 Loss of estate Rs.16,500/-
10 Funeral expenses Rs.16,500/-
3 of 4
FAO-5129-2018 (O&M) -4-
Sr. Heads of claim Amount awarded
No.
11 Loss of filial consortium Rs.44,000/-
12 Total Rs.56,72,397/-
The respondents are held liable to pay enhanced amount of
compensation jointly and severely. The rate of interest is also enhanced
from 6% to 9% from the date of filing of petition till its realization.
With these modifications, the present appeal stands disposed of
in above terms.
(MANJARI NEHRU KAUL)
JUDGE
14.03.2022
sonia
Whether speaking/reasoned: Yes/No
Whether reportable : Yes/No
4 of 4
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!