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Punjab-Haryana High Court
Ram Niwas And Anr vs Raj Kumar Mandal And Ors on 1 December, 2025
Author: Alka Sarin
Bench: Alka Sarin
283
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
FAO-2615-2021 (O&M)
Date of Decision : 01.12.2025
Ram Niwas and Anr ... Appellants
Versus
Raj Kumar Mandal and Ors ... Respondents
CORAM : HON'BLE MRS. JUSTICE ALKA SARIN
Present : Mr. Pranav Arora, Advocate for
Mr. Aditya Sanghi, Advocate for the appellants.
Mr. Mayank Gupta, Advocate for
Mr. Vinod Gupta, Advocate for respondent No.3.
ALKA SARIN, J. (Oral)
CM-11392-CII-2021
1. This is an application for condonation of delay of 452 days in
filing the appeal.
2. For the reasons stated in the application, delay of 452 days in
filing the appeal is condoned. CM stands disposed off. However, the claimant-
appellants shall not be entitled to any interest for the period of delay in filing
the appeal.
FAO-2615-2021 (O&M)
3. Present appeal has been preferred by the claimant-appellants
aggrieved by the quantum of compensation awarded by the Motor Accident
Claims Tribunal, Narnaul (hereinafter referred to as 'Tribunal') vide the
impugned award dated 01.10.2019 on account of death of Rahul (hereinafter
referred to as the 'deceased') in a motor vehicle accident which occurred on
14.09.2018.
4. Since the factum of the accident is not in dispute, the facts are
not being adverted to for the sake of brevity.
5. The Tribunal in the present case had awarded the following
compensation :
Sr. No. Heads Compensation Awarded
1 Notional Income ₹30,000/- per annum
2 Multiplier - 14 ₹4,20,000/- [₹30,000 x 14]
3 Loss of estate ₹15,000/-
4 Funeral expenses ₹15,000/-
5 Loss of filial consortium ₹80,000/-
6 Loss of love and affection ₹1,00,000/-
Total Compensation ₹6,30,000/-
Interest 6%
6. Learned counsel for the claimant-appellants would contend that
the compensation awarded by the Tribunal is on the lower side. Learned
counsel for the claimant-appellants would further contend that the Tribunal
has assessed the notional income of the deceased as only ₹30,000/- per annum
and has applied a multiplier of '14', which ought to have been as per the
minimum wages applicable to a skilled worker with a multiplier of '18'.
Learned counsel for the claimant-appellants would further contend that the
Tribunal has not made any addition towards loss of future prospects, which
ought to have been 40%. In support of his contentions, he has relied upon
judgments of the Hon'ble Supreme Court in the cases of Baby Sakshi Greola
vs. Manzoor Ahmad Simon & Anr. [2025 (1) RCR (Civil) 238], Kajal vs.
Jagdish Chand & Ors. [2020 (2) RCR (Civil) 27], Karuna Parmar vs.
Prakash Sinha & Ors. [Civil Appeal No.2317 of 2025 arising out of SLP
(C) No.6428 of 2023 decided 11.02.2025] and Hitesh Nagjibhai Patel vs.
Bababhai Nagjibhai Rabari & Anr. [2025 INSC 1070]. It is further the
contention that the compensation awarded under the conventional heads is not
in consonance with the law laid down by the Hon'ble Supreme Court in the
cases of National Insurance Company Ltd. vs. Pranay Sethi & Ors.
[(2017) 16 SCC 680], Magma General Insurance Company Limited vs.
Nanu Ram alias Chuhru Ram & Ors. [(2018) 18 SCC 130] and N.
Jayasree & Ors. vs. Cholamandalam M.S General Insurance Company
Ltd. [2021(4) RCR (Civil) 642].
7. Per contra learned counsel for respondent No.3 would contend
that though the Tribunal has rightly assessed the notional income of the
deceased as ₹30,000/- per annum with multiplier of '14', however, the
compensation awarded towards filial consortium as also towards loss of love
and affection is not in consonance with the law laid down by Hon'ble Supreme
Court in case of Pranay Sethi (supra), Magma General Insurance
Company Limited (supra) and N. Jayasree (supra).
8. I have heard the learned counsel for the parties.
9. In the present case, the deceased was 16 years of age, and the
claimants are his parents. Vide the impugned award the Tribunal has awarded
a compensation of ₹6,30,000/- by notionally assessing the income of the
deceased as ₹30,000/- per annum and applying a multiplier of '14' which, in
the opinion of this Court, is on the lower side keeping in view the fact that the
Motor Vehicles Act, 1988 is a welfare legislation. Hon'ble Supreme Court in
the case of Karuna Parmar (supra), while relying on the judgment in the case
of Baby Sakshi Greola (supra), awarded compensation in the case of a 6
years' old child who had died in an accident which occurred on 07.03.2014 as
per the minimum wages applicable for a skilled worker in the year 2014.
Further, in the case of Hitesh Nagjibhai Patel (supra) Hon'ble Supreme
Court has held as under :
"9. On the aspect of monthly income of the minor
appellant, we are inclined to interfere with the judgment
and order of the Courts below. In the present case, it is
evident that the Courts below have failed to take into
account the monthly income of the appellant while
determining the quantum of compensation. It is now a
well-entrenched and consistently reiterated principle of
law that a minor child who suffers death or permanent
disability in a motor vehicle accident, cannot be placed in
the same category as a non-earning individual for the
purposes of assessing the amount of compensation
because the child was not engaged in gainful employment
at the time of the accident. In such a case, the computation
of compensation under the head of loss of income ought to
be made by adopting, at the very least, the minimum wages
payable to a skilled workman as notified for the relevant
period in the respective State where the cause of action
arises. The said observation was rendered by this Court,
in Kajal Vs. Jagdish Chand & Ors. [2020 (2) RCR (Civil)
27], and of Baby Sakshi Greola Vs. Manzoor Ahmad
Simon & Anr. [2025 (1) RCR (Civil) 238]."
10. Their Lordships in the above referred cases assessed the income
of the deceased as per the minimum wages applicable to a skilled worker by
applying a multiplier of '18' besides granting future prospects and
compensation under the other heads. Taking a cue from the afore-referred
judgments, this Court deems it appropriate to assess the income of the
deceased in the present case as per the minimum wage for a skilled worker as
applicable in the State of Haryana at the time of accident, which took place on
14.09.2018, which were ₹10,382/- per month and a multiplier of '18' would
be applicable.
11. Further, since no addition has been made by the Tribunal towards
loss of future prospects, an addition of 40% would be made and keeping in
view the age of the child, 50% deduction would also be applicable. Further,
the compensation awarded by Tribunal under the conventional heads is not as
per the law laid down by the Hon'ble Supreme Court in the cases of Pranay
Sethi (supra), Magma General Insurance Company Limited (supra) and N.
Jayasree (supra), hence, the claimant-appellants would be entitled to
₹18,000/- (₹15,000+20% increase) towards loss of estate and ₹18,000/-
(₹15,000+20% increase) towards funeral expenses.
12. The argument of learned counsel for respondent No.3-Insurance
Company that the compensation awarded by the Tribunal towards filial
consortium as also towards loss of love and affection is not in accordance with
the law, deserves to be accepted. Hon'ble Supreme Court in the cases of
Pranay Sethi (supra), Magma General Insurance Company Limited vs.
Nanu Ram alias Chuhru Ram & Ors. (supra) and N. Jayasree (supra) has
only awarded ₹48,000/- (₹40,000+20% increase) towards loss of consortium.
Hence, the claimant-appellants would only be entitled to ₹48,000/- each
towards loss of consortium. Accordingly, the reworked compensation is as
under :
Sr. No. Heads Compensation Awarded
1 Monthly Income ₹10,382/-
2 Annual Income ₹1,24,584/- [₹10,382 x 12]
3 Deduction - 50% ₹62,292/- [₹1,24,584 - ₹62,292]
4 Future Prospects - 40% ₹87,209/- [₹62,292 + ₹24,917]
5 Multiplier - 18 ₹15,69,762/- [₹87,209 x 18]
6 Loss of estate ₹18,000/-
7 Funeral expenses ₹18,000/-
8 Loss of consortium
(i) Filial [₹48,000/- x 2] ₹96,000/-
(Total ₹96,000/-)
Total Compensation ₹17,01,762/-
13. The amount in excess of and over and above the amount awarded
by the Tribunal shall also attract interest @ 7.5% per annum from the date of
filing of the claim petition till the realization of the entire amount. However,
the claimant-appellants shall not be entitled to any interest for the period of
delay in filing the appeal.
14. In view of the decision by the Hon'ble Supreme Court in
Parminder Singh vs. Honey Goyal & Ors. [AIR 2025 SC 1713 = 2025 SCC
OnLine SC 567], after calculation of the enhanced amount, the same be
transferred by the Insurance Company in the bank account(s) of the claimants
within six weeks from today and the apportionment thereof shall be as per the
percentage directed by the Tribunal. The particulars of the bank account(s)
alongwith the requisite documents(s) in support thereof shall be furnished by
the claimant-appellants to the Insurance company within a period of two
weeks from the date of this order and needful shall be done by the Insurance
Company after verification thereof within four weeks thereafter alongwith up-
to-date interest. The compliance shall be reported by the Bank to the
Tribunal concerned.
15. In view of the above discussion, the present appeal is allowed
and the award passed by the Tribunal stands modified accordingly. Pending
applications, if any, also stand disposed off.
01.12.2025 ( ALKA SARIN )
jk JUDGE
NOTE: Whether speaking/non-speaking: Speaking
Whether reportable: YES/NO
