Kajal And Others v. Deen Mohd And Others

-1IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH KAJAL AND OTHERS.

......Appellants Vs.

DEEN MOHD AND ORS.

......Respondents

Reserved on: 15.05.2026

Pronounced on: 18.05.2026 Uploaded on : 21.05.2026 Whether only the operative part of the judgment is pronounced? NO Whether full judgment is pronounced?

YES CORAM: HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present:

Mr. Manish Jain, Advocate Mr. Ketan Antil, Advocate for the appellants.

None for respondents No.1 and 2.

Mr. Punit Jain, Advocate for respondent No.3-Insurance Company.

**** SUDEEPTI SHARMA J.

1.

The present appeal has been preferred against the award dated 09.10.2023 passed in the claim petition filed under Section 166 and 140 of the Motor Vehicles Act, 1988 (in short '1988 Act'), by the learned Motor Accident Claims Tribunal, Rewari (for short, 'the Tribunal') for enhancement of compensation granted to the claimants to the tune of Rs.1,34,79,760/- along with interest @ 7 % per annum, on account of death of Sarvesh Mudgal in a Motor Vehicular Accident, occurred on 16.05.2022. 2.

As sole issue for determination in the present appeal is confined to quantum of compensation awarded by the learned Tribunal, a detailed

-2narration of the facts of the case is not required to be reproduced here for the sake of brevity.

SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES 3.

The learned counsel for the claimants-appellants contends that the amount assessed by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present appeal be allowed and amount of compensation be enhanced as per latest law. 4.

Per contra, learned counsel for respondent No.3-Insurance Company contends as under:- i.

That while awarding compensation to the appellants-claimants vide the impugned Award, learned Tribunal erred in ignoring the fact that the appellants-claimants were the permanent residents of the District Alwar in Rajasthan and the accident in question also took place in the area falling within the above-said State. ii.

That the claim petition was not maintainable before learned Tribunal as learned Tribunal does not have jurisdiction to decide the same.

iii.

That learned Tribunal has also not taken the factum of the deceased having contributed in causing the said accident by way of driving his Car on the wrong side on the road, into consideration.

iv.

That Insurance Company has filed a separate appeal bearing FAO-6703-2023, titled as Cholamandalam MS General Insurance Company Ltd. Vs. Kajal and others, challenging award passed by the learned Tribunal. Therefore, he prays for dismissal of the appeal.

-35.

I have heard learned counsel for the parties and perused the whole record of this case with their able assistance. SETTLED LAW ON COMPENSATION 6.

Hon'ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation and Another [(2009) 6 Supreme Court Cases 121], laid down the law on assessment of compensation and the relevant paras of the same are as under:- "30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having a considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to

-4the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependant. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father.

32. Thus even if the deceased is survived by parents and siblings, only d the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where the family of the bachelor is large and dependent on the income of the deceased, as in a case where he has a widowed mother and large number of younger non-earning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.

* * * * * *

42. We therefore hold that the multiplier to be used should be as mentioned in Column (4) of the table above (prepared by applying Susamma Thomas3, Trilok Chandra and Charlie), which starts with an operative multiplier of 18 (for the age groups of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for

-526 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years, and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years. 7.

Hon'ble Supreme Court in the case of National Insurance Company Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] has clarified the law under Sections 166, 163-A and 168 of the Motor Vehicles Act, 1988, on the following aspects:- (A) Deduction of personal and living expenses to determine multiplicand;

(B) Selection of multiplier depending on age of deceased;

(C) Age of deceased on basis for applying multiplier; (D) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses, with escalation;

(E) Future prospects for all categories of persons and for different ages: with permanent job; self-employed or fixed salary.

The relevant portion of the judgment is reproduced as under:- "52. As far as the conventional heads are concerned, we find it difficult to agree with the view expressed in Rajesh2. It has granted Rs.25,000 towards funeral expenses, Rs 1,00,000 towards loss of consortium and Rs 1,00,000 towards loss of care and guidance for minor children. The

-6head relating to loss of care and minor children does not exist. Though Rajesh refers to Santosh Devi, it does not seem to follow the same. The conventional and traditional heads, needless to say, cannot be determined on percentage basis because that would not be an acceptable criterion. Unlike determination of income, the said heads have to be quantified. Any quantification must have a reasonable foundation. There can be no dispute over the fact that price index, fall in bank interest, escalation of rates in many a field have to be noticed. The court cannot remain oblivious to the same. There has been a thumb rule in this aspect.

Otherwise, there will be extreme difficulty in determination of the same and unless the thumb rule is applied, there will be immense variation lacking any kind of consistency as a consequence of which, the orders passed by the tribunals and courts are likely to be unguided. Therefore, we think it seemly to fix reasonable sums. It seems to us that reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs.15,000, Rs.40,000 and Rs.15,000 respectively. The principle of revisiting the said heads is an acceptable principle. But the revisit should not be fact-centric or quantum-centric.

-7rate of 10% in a span of three years. We are disposed to hold so because that will bring in consistency in respect of those heads.

* * * * * 59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax. 59.4. In case the deceased was self-employed (or) on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.

59.5. For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paras 30 to 32 of Sarla Verma4 which we have reproduced hereinbefore.

-859.6. The selection of multiplier shall be as indicated in the Table in Sarla Verma1 read with para 42 of that judgment.

59.7. The age of the deceased should be the basis for applying the multiplier.

59.8. Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years."

8.

Hon'ble Supreme Court in the case of Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Others [2018(18) SCC 130] after considering Sarla Verma (supra) and Pranay Sethi (Supra) has settled the law regarding consortium. Relevant paras of the same are reproduced as under:- "21. A Constitution Bench of this Court in Pranay Sethi2 dealt with the various heads under which compensation is to be awarded in a death case. One of these heads is loss of consortium. In legal parlance, "consortium" is a compendious term which encompasses "spousal consortium", "parental consortium", and "filial consortium". The right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual relations with the deceased spouse.

-921.1. Spousal consortium is generally defined as rights pertaining to the relationship of a husband-wife which allows compensation to the surviving spouse for loss of "company, society, cooperation, affection, and aid of the other in every conjugal relation".

21.2. Parental consortium is granted to the child upon the premature death of a parent, for loss of "parental aid, protection, affection, society, discipline, guidance and training".

21.3. Filial consortium is the right of the parents to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. Children are valued for their love, affection, companionship and their role in the family unit.

22. Consortium is a special prism reflecting changing norms about the status and worth of actual relationships. Modern jurisdictions world-over have recognised that the value of a child's consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions therefore permit parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded

-10to the parents is a compensation for loss of the love, affection, care and companionship of the deceased child.

23. The Motor Vehicles Act is a beneficial legislation aimed at providing relief to the victims or their families, in cases of genuine claims. In case where a parent has lost their minor child, or unmarried son or daughter, the parents are entitled to be awarded loss of consortium under the head of filial consortium. Parental consortium is awarded to children who lose their parents in motor vehicle accidents under the Act. A few High Courts have awarded compensation on this count. However, there was no clarity with respect to the principles on which compensation could be awarded on loss of filial consortium.

24. The amount of compensation to be awarded as consortium will be governed by the principles of awarding compensation under "loss of consortium" as laid down in Pranay Sethi2. In the present case, we deem it appropriate to award the father and the sister of the deceased, an amount of Rs 40,000 each for loss of filial consortium. 9.

A perusal of the award shows that the deceased was 45 years of age at the time of the accident. Since the factum of age is not in dispute, therefore, the learned Tribunal has rightly considered his age as 45 years by placing reliance on the post mortem report (Ex.P-21) and the learned Tribunal has rightly applied the multiplier of 14.

10.

A perusal of the impugned award reveals that the deceased, Sarvesh Mudgal, was employed as an Assistant General Manager (AGM)

-11with Munjal Auto, Dharuhera, and was allegedly drawing a monthly salary of ₹1,50,000/-. In order to substantiate the said income, the claimants examined Pradeep Sharma, Assistant Manager, who produced on record the salary slips Ex. P-17 to Ex. P-21 along with the appointment letter Ex. P-1. 11.

However, the learned Tribunal rightly declined to place reliance upon the aforesaid salary slips, as the same pertained to the Covid period and did not reflect the regular and stable earnings of the deceased. Instead, the Tribunal assessed the income of the deceased on the basis of the last drawn ₹ salary of 84,475/- exhibited as P-22.

12.

The approach adopted by the learned Tribunal is just, proper, and based on cogent evidence available on record. Accordingly, the income of the deceased has been correctly assessed, and no interference is warranted in this regard.

13.

A further perusal of the award reveals that the learned Tribunal has erred in adding 25% towards future prospects. Therefore, considering the age of the deceased and the fact that he was a permanent employee 30% is to be added as future prospects. Furthermore, the learned Tribunal has rightly deducted 1/4 for personal expenditure of the deceased. 14.

A further perusal of the award reveals that the amount granted by learned Tribunal under the heads of loss of estate, funeral expenses and loss of consortium are on lower side. Therefore, the award requires indulgence of this Court.

CONCLUSION 15.

In view of the law laid down by the Hon'ble Supreme Court in the above referred to judgments, the present appeal is allowed. The award

-12dated 09.10.2023 is modified accordingly. The appellants-claimants are entitled to enhanced compensation as per the calculations made hereunder:- Sr.

No.

Heads Compensation Awarded Monthly Income Rs.84,475/- Future prospects @ 30% Rs.25,342/- (30% of 84,475) Deduction towards personal expenditure 1/4 Rs.27,454/- (109817 X 1/4) Total Income Rs.82,363/- (109817-27454) Multiplier Annual Dependency Rs.1,38,36,984/- (82363 X 12 X 14) Loss of Estate Rs.18,150/- Funeral Expenses Rs.18,150 /- Loss of Consortium Parental : 2 x 48,400 Spousal : 1 x 48,400 Filial : 1 x 48,400 Rs.1,93,600/- Total Compensation Rs.1,40,66,884/- Deduction Amount Awarded by the Tribunal Rs.1,34,79,760/- Enhanced amount Rs.5,87,124/- (14066884-13479760) 16.

So far as the interest part is concerned, as held by Hon'ble Supreme Court in Dara Singh @ Dhara Banjara Vs. Shyam Singh Varma 2019 ACJ 3176 and R.Valli and Others VS. Tamil Nadu State Transport Corporation (2022) 5 Supreme Court Cases 107, the appellants-claimants are granted the interest @ 9% per annum on the enhanced amount from the date of filing of claim petition till the date of its realization. 17.

The respondent No.3 is directed to deposit the enhanced amount along with interest at the rate of 9% with the Tribunal within a period of two months from the date of receipt of copy of this judgment. The Tribunal is directed to disburse the same to the appellants-claimants in their bank

-13accounts. The appellants-claimants are directed to furnish their bank account details to the Tribunal.

18.

Pending application (s), if any, also stand disposed of. 18.05.2026 (SUDEEPTI SHARMA) Ayub/Saahil JUDGE Whether speaking/non-speaking :

Yes/No Whether reportable :

Yes