PALVI v. ISLAM ALI AND ORS
Case Details
117 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO-3933-2019 (O&M) Date of Decision : 17.09.2025 PALVI .... Appellant VERSUS ISLAM ALI AND ORS .... Respondents CORAM : HON’BLE MRS. JUSTICE ALKA SARIN Present : Mr. Shourya Mehra, Advocate for Mr. Shobit Phutela, Advocate for the appellant. Mr. Nigam K. Bhardwaj, Advocate for respondent No.3. ALKA SARIN, J. (ORAL) CM-13279-CII-2019 1. This is an application for condonation of delay of 430 days in filing the appeal. 2. For the reasons stated in the application, the same is allowed and the delay of 430 days in filing the appeal is condoned. However, the appellant and the proforma respondents No.4 and 5 shall not be entitled to any interest for the period of delay in filing the appeal. FAO-3933-2019 3. The present appeal has been preferred by the appellant aggrieved by the quantum of compensation awarded by the Motor Accident Claims AMAN JAIN 2025.09.18 09:20 I attest to the accuracy and integrity of this order/judgment FAO-3933-2019 (O&M) -2- Tribunal, Kurukshetra (hereinafter referred to as the ‘Tribunal’) vide award dated 02.12.2017. 4. Since the factum of the accident is not in dispute, the facts, as recorded in the impugned award passed by the Tribunal, are not being adverted to herein for the sake of brevity. 5. The Tribunal in the present case had awarded the following compensation : Sr. No. Heads Compensation Awarded 1. Monthly income ₹8,000 2. 3. 4. Annual income Deduction 1/3rd [₹8,000 x 12] = ₹96,000 [₹96,000 - ₹32,000] = ₹64,000 Future prospects @ 40% [₹64,000 + ₹25,600] = ₹89,600 5. Multiplier of 17 [₹89,600 x 17] = ₹15,23,200 6. 7. 8. Funeral expenses Loss of estate Loss of consortium ₹15,000 ₹15,000 ₹40,000 Total Compensation ₹15,93,200 Interest @7.5% per annum 6.
Legal Reasoning
Learned counsel for the appellant would contend that though the appellant does not challenge the income as assessed, the deduction, the addition made towards the future prospects and the multiplier as applied by the Tribunal however, the amounts awarded under the conventional heads i.e. funeral expenses and loss of estate and under the head loss of consortium are not in accordance 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. AMAN JAIN 2025.09.18 09:20 I attest to the accuracy and integrity of this order/judgment FAO-3933-2019 (O&M) -3- 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, the learned counsel for respondent No.3-Insurance Company has vehemently argued that sufficient amount has already been awarded as compensation in the present case and that there is no scope of any enhancement. 8. 9. Heard. In the present case, since there is no challenge to the income as assessed, the deduction, the addition made towards the future prospects and the multiplier as applied by the Tribunal, the same are accordingly maintained. The amounts awarded under the conventional heads and under the head loss of consortium are not in consonance with the law laid down by the Hon’ble Supreme Court. Hence, 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), the appellant would be entitled to ₹18,000 (₹15,000 + 20% increase) towards loss of estate and ₹18,000 (₹15,000 + 20% increase) towards funeral expenses. The appellant and proforma respondents No.4 and 5, being the widow, the mother and the brother of the deceased, would also be entitled to ₹48,000 each (₹40,000 + 20% increase) under the heads spousal and filial consortium. 10. Accordingly, the reworked compensation to which the appellant is entitled is as under : AMAN JAIN 2025.09.18 09:20 I attest to the accuracy and integrity of this order/judgment FAO-3933-2019 (O&M) -4- Sr. No. Heads Compensation Awarded 1. Monthly income ₹8,000 2. 3. 4. Annual income Deduction 1/3rd [₹8,000 x 12] = ₹96,000 [₹96,000 - ₹32,000] = ₹64,000 Future prospects @ 40% [₹64,000 + ₹25,600] = ₹89,600 5. Multiplier of 17 [₹89,600 x 17] = ₹15,23,200 6. 7. 8. Funeral expenses Loss of estate Loss of consortium Spousal (i) (ii) Filial ₹18,000 ₹18,000 ₹48,000 [₹48,000 x 2] = ₹96,000 Total = ₹1,44,000 Total Compensation ₹17,03,200 11. 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. The amount shall be apportioned between the appellant and the proforma respondents No.4 and 5 as directed by the Tribunal. However, the appellant and the proforma respondents No.4 and 5 shall not be entitled to any interest for the period of delay in filing the appeal. 12. In view of the decision by the Hon’ble Supreme Court in Parminder Singh vs. Honey Goyal & Ors. [AIR 2025 SC 1713], after calculation of the enhanced amount, the same be transferred by respondent No.3-Insurance Company in the bank account(s) of the appellant and the proforma respondents No.4 and 5 within a period of six weeks from today. The particulars of the bank account(s) along with the requisite documents in support thereof shall be furnished by the appellant to respondent No.3- Insurance company within a period of two weeks from today and needful shall AMAN JAIN 2025.09.18 09:20 I attest to the accuracy and integrity of this order/judgment FAO-3933-2019 (O&M) -5- be done by respondent No.3-Insurance Company after verification thereof within a period of four weeks thereafter along with up-to-date interest. The compliance shall be reported by the Bank to the Tribunal concerned. 13. In view of the above discussion, the present appeal is allowed and the award passed by the Tribunal is modified accordingly. Pending
Decision
applications, if any, also stand disposed off. 17.09.2025 Aman Jain (ALKA SARIN) JUDGE NOTE: Whether speaking/non-speaking: Speaking Whether reportable: Yes/No AMAN JAIN 2025.09.18 09:20 I attest to the accuracy and integrity of this order/judgment