Thursday, 21, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

M/S Garg Traders And Anr vs Ujagar Singh And Ors
2022 Latest Caselaw 10606 P&H

Citation : 2022 Latest Caselaw 10606 P&H
Judgement Date : 7 September, 2022

Punjab-Haryana High Court
M/S Garg Traders And Anr vs Ujagar Singh And Ors on 7 September, 2022
FAO-247-2004 and other connected matter                                   -1-


     IN THE HIGH COURT OF PUNJAB AND HARYANA
                    AT CHANDIGARH

320 (2 cases)
                                      FAO-247-2004
                                      Date of Decision: 07.09.2022


M/s Garg Traders and another                       ......... Appellants


                                  Versus


Ujagar Singh and others                            ......... Respondents


2.                                    FAO-284-2004


Ujagar Singh                                       ......... Appellant


                                  Versus


M/s Garg Traders and others                        ......... Respondents



CORAM: HON'BLE MR. JUSTICE JAGMOHAN BANSAL

Present:- None for the appellant (s).              .

           Mr.Satpal Dhamija, Advocate
           for the Insurance Company.              .

              ****
JAGMOHAN BANSAL, J. (Oral)

1. By this common order, the above said two appeals which

are arising from the same incident and award dated 16.10.2003

passed by the Motor Accident Claims Tribunal, Rupnagar (for short

'Tribunal') are hereby adjudicated.

2. Nobody has appeared on behalf of M/s Garg Traders-

1 of 5

FAO-247-2004 and other connected matter -2-

owner of vehicle as well as claimants. However, as the matter is

very old and quantum of compensation stands settled by Hon'ble

Supreme Court, the matter is adjudicated with the assistance of

learned counsel for the Insurance Company.

3. The brief facts emerging from record and arguments of

learned counsel for insurer are that Amrik Singh, a 36 years old man,

while standing on road was hit by truck bearing registration No.PB-

12D-7731 owned by M/s Garg Traders, Industrial Area, SAS Nagar,

Mohali. Amrik Singh died in the aforesaid accident. The dependants

of deceased filed claim petition under Section 166 of Motor Vehicles

Act before learned Tribunal which vide order dated 16.10.2003

awarded a sum of Rs.2,18,600/- under following heads :-

(a) Compensation on account of loss of 1400X12X12= dependency to Ujagar Singh claimant Rs.2,01,600.00

(b) Pain and shock Rs.5,000.00 (c ) Funeral expenses Rs.10,000.00

(d) Transportation charge of dead body Rs.2000.00 Total Rs.2,18,600.00

4. Learned Tribunal while granting compensation has held

that Insurance Company would be at liberty to get refund of the

claimed amount from owner of the truck.

5. The owner of truck i.e M/s Garg Traders has filed FAO-

247-2004 before this Court seeking quashing of award to the extent

Insurance Company has been permitted to recover compensation

from owner of the truck.

6. In appeal FAO No.284 of 2004 Ujagar Singh-claimant is

2 of 5

FAO-247-2004 and other connected matter -3-

seeking enhancement of compensation on the ground that deceased

was supplying 60-70 kgs of milk daily and in this way he was earning

more than Rs.24,000/- per month whereas learned Tribunal has

considered his income Rs.70/80 per day and dependency of

appellant is determined Rs.1400 per month. The deceased was 36

years old, thus multiplier of 12 has been wrongly applied.

7. With the able assistance of learned counsel for the

Insurance Company-respondent, I have perused the paper-books

and find that owner of vehicle has been held liable on the ground that

driver was not holding a valid licence. Learned Tribunal has

concluded that licence was not issued by licencing authority,

Banglore, however, learned Tribunal has failed to notice that licence

was renewed by licencing authority, Ambala. There is nothing on

record to indicate that renewal of licence was fake. As soon as

licence is renewed by licencing authority, Ambala, it cannot be held

that licence was fake on the date of the accident.

8. Learned counsel for the Insurance Company expressed

his inability to show any judgment holding that Insurance Company is

not liable where there is no dispute qua renewal of licence. In the

case in hand, licence was duly renewed by licencing authority,

Ambala, thus, owner of the vehicle cannot be held responsible for

compensation arising on account of accident. FAO-247-2003 filed

by owner of vehicle deserves to be allowed and accordingly order of

learned Tribunal qua granting liberty to Insurance Company to

recover compensation amount from owner of truck is hereby set

3 of 5

FAO-247-2004 and other connected matter -4-

aside.

9. The claimants are seeking enhancement of

compensation on the ground that monthly income of the deceased

has been wrongly considered Rs.2100/-. Learned Tribunal has

noticed that there is no solid proof that deceased was running a dairy

or selling milk and in this way, he was earning Rs.25,000/- per

month. Learned Tribunal has considered deceased as ordinary

unskilled labourer and assessed his income Rs.2100/- per month in

view of settled law. In the absence of concrete evidence of income,

the income notified under Minimum Wages Act needs to be

considered. The accident took place on 16.08.2001 and as per

available record, the minimum income of a labourer on the aforesaid

date was Rs.2100/-. After considering income of deceased

Rs.2100/- the amount of compensation needs to be determined in

accordance with the judgements of Hon'ble Supreme Court in

National Insurance Company vs. Pranay Sethi and others 2017

(16) SCC 680 and Smt. Sarla Verma and others vs. Delhi

Transport Corporation and another 2009 (6) SCC 121.

10. In view of the above cited judgements of Hon'ble

Supreme Court, the claimants are entitled to compensation as

below:-

              Particulars                    Income (in Rs.)
              Annual income of the
              deceased             25200
              Future prospects               40.00%
              Income after addition of
              future prospects         35280



                                    4 of 5

 FAO-247-2004 and other connected matter                          -5-


              Deduction on account of 1/3rd
              personal expenses
              Assessed income                 23520
              Multiplier (15)                 3,52,800
              Loss of estate                  16500
              Loss of consortium              44000
              Funeral expenses                16500
              Total                           4,29,800


11. In view of above findings, the appeal filed by owner of

truck (FAO-247-2004) is allowed and appeal of claimant (FAO-284-

2004) is partly allowed. It is made clear that claimants shall be

entitled to interest as assessed by learned Tribunal.

12. The respondent No.3-Insurance Company is directed to

make entire payment within a period of eight weeks from today after

excluding payment already made.

13. The appeals are disposed of in the above terms.


                                       ( JAGMOHAN BANSAL )
                                              JUDGE
07.09.2022
anju


              Whether speaking/reasoned            Yes/No
                 Whether Reportable                Yes/No




                                     5 of 5

 

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : MAIMS

 
 
Latestlaws Newsletter