IGARH v. UDEEPTI SHARMA

Judgment

1. The present appeal has been preferre The referred by the claimants/appellants f lants for enhancement of nt of compensation awarded by the the learned Motor Accident Claim Claims Tribunal, Rupnag upnagar (for short, 'the Tribunal') vid vide award dated 22.07.2006 und Section 166 of th of the Motor Vehicles Act, 1988, w , whereby, the claimants/appellan pellants were awarded a ded a compensation of Rs.3,14,000/ ,000/- along with interest @ 6% annum. FACTS NOT IN T IN DISPUTE

2. Brief facts of the case are that on 21 Brief

21.9.2004 Ram Sharma was comin coming on scooter No.PB No.PB-32-4010 from Banga to Nurpur urpur Bedi with his wife Geeta Sharm Sharma his niece Pooja S ooja Sharma to meet her relations. T ions. The scooter was being driven b riven by Ram Sharma at n a at normal speed. The cousin of Ra of Ram Sharma namely Sham Sharm Sharma was also followin ollowing them on another motor cycl r cycle alongwith Jatinder Sharma. A rma. At about 4.30 p.m, p.m, when they reached in the re the revenue limits of Nalhoti, Tehs , Tehsil AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -2- Anandpur Sahib o ahib on Nurpur Bedi Garhshanker roa ker road, in the meanwhile, Tata Temp Tempo bearing No.PB- -12B-5346 came from Garhsha arhshanker side towards Nurpur Be ur Bedi which was being being driven by its driver responde pondent No.2 in a rash and neglige egligent manner at a very very high speed and without blowing lowing any horn. The driver of tempo empo in question after tak ter taking pass from Sham Sharma an ma and Jatinder Sharma, hit the scoot scooter from the back sid ack side as a result of which Ram Sha m Sharma, his wife Geeta Sharma an rma and other occupant o pant of the scooter fell on the pacc pacca road and the offending temp crushed them and m and they died at the spot. The acc he accident took place due to rash an ash and negligent driving riving of respondent No.2. It is all is alleged that at the time of deat f death, deceased Ram Sh am Sharma was aged 40 years, runni running a sweet shop and was earnin earning Rs.15,000/ p.m. p.m. and Rs.50,000 were spent on tra on transportation, funeral and last rit last rites of the deceased

ased. FIR No.56 dated 21.9.2004 un 04 under sections 279,304-A/427 IP 427 IPC was registered at at PS Nurpur Bedi against respond spondent No.2.

3. Upon notice of the claim petition, Upon ition, respondents appeared and denie denied the factum of com of compensation. From the pleading of the parties, th From ties, the Tribunal framed the followin llowing “1. Whether the death of of Ram Sharma was caused b ed by respondent No.2 while drivin riving Tata Tempo -407 No.PB-12 12B- 5346 in a rash and negligen ligent manner on 21.9.2004 at abo

4.30 p.m in the area of village lage Nalhoti? OPP

2. Whether the claimants are the legal representatives ves of PP deceased Ram Sharma ? OPP

3. Whether the respondent N nt No.2 was not holding a valid an id and effective driving licence at the t the time of alleged accident ? OPR PR 3

4. issues:- AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -3-

4. Whether the claimants are are entitled to compensation if so f so to what amount and from whom? om? OPP

5. Relief.”

5. After taking into consideration the After on the pleadings and the evidence o ence on record, the learne learned Tribunal awarded compensa pensation to the tune of Rs.3,14,000 00/- alongwith interes interest @ 6% per annum. Hence t ence the claimants/appellants filed th iled the present appeal for eal for enhancement of compensation sation awarded by the Tribunal. SUBMISSIONS IONS OF THE COUNSELS FOR T OR THE PARTIES

6. The learned counsel for the claima The claimants-appellants contends that th that the amount assessed essed by the learned Tribunal is on th on the lower side. He further contend ontends that the learned T rned Tribunal erroneously applied mu ed multiplier of 13 instead of 18 and n and no amount has been s been granted for future prospects, lo , loss of consortium and for loss o r loss of estate. He furthe further contends that the compensati pensation for funeral expenses was o was on lower side. He fu He further contends that tribunal has al has wrongly assessed the dependenc endency of the claimant mant appellants to the extent of 2/3 2/3rd whereas it should have bee ve been assessed as 3/4th th.

7. Per contra, learned for the respo Per respondents argues that the learne learned Tribunal vide a ide award dated 22.07.2006 has r has rightly assessed the amount o ount of compensation and on and, therefore, the appeal is liable t iable to be dismissed.

8. I have heard learned counsel for th I hav for the parties and perused the who record of this case is case.

9. A perusal of the award indicates that A pe es that the Tribunal has rightly assesse assessed the income of th of the deceased at Rs.3000/- per m month. However, no amount w unt was calculated for fut future prospects, loss of consortiu nsortium and for loss of estate and and the AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -4- sum awarded for ed for funeral expenses is also on the on the lower side. Therefore, the awa e award requires indulgen ulgence of this Court. SETTLED LAW LAW ON COMPENSATION

10. Hon’ble Supreme Court in the ca Hon’ the case of Sarla Verma Vs. Del Delhi Transport Corpo orporation and Another [(2009) 6 S 9) 6 Supreme Court Cases 121], la , laid down the law on aw on assessment of compensation an tion and the relevant paras of the sam he same are as under:-

30. Though in some cases the “30 the deduction to be made towar personal and living expenses is c is calculated on the basis of uni indicated in Trilok Chandra, the the general practice is to app standardised deductions. Having a ng a considered several subseque equent decisions of this Court, we are of of the view that where the decease ceased was married, the deduction towards ards personal and living expenses ses of the deceased, should be one-third third (1/3rd) where the number ber of dependent family members is 2 to 2 to 3, one-fourth (1/4th) where th re the number of dependent family membe mbers is 4 to 6, and one-fifth (1/5t (1/5th) where the number of dependent fami family members exceeds six.

31. W . Where the deceased was a bac bachelor and the claimants are th re the parents, the deduction follows a d a different principle. In regard ard to bachelors, normally, 50% is ded deducted as personal and livin living expenses, because it is assumed tha that a bachelor would tend to spen more on himself. Even otherwise, t se, there is also the possibility of h of his getting married in a short time, in w in which event the contribution to th to the parent(s) and siblings is likely to be to be cut drastically. Further, subje ubject AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -5- to evidence to the contrary, the fathe to ev father is likely to have his own incom and will not be considered as a dep dependant and the mother alone w e will be considered as a dependant. In be c . In the absence of evidence to th to the contrary, brothers and sisters will n ill not be considered as dependant dants, because they will either be indepen ependent and earning, or married, ied, or be dependent on the father. be de

32. Thus even if the deceased is s 32 is survived by parents and sibling blings, only d the mother would be conside nsidered to be a dependant, and 50 d 50% would be treated as the personal an l and living expenses of the bachel chelor and 50% as the contribution to the f the family. However, where the fami family of the bachelor is large and depende of th endent on the income of the decease eased, as in a case where he has a widow as in idowed mother and large number ber of younger non-earning sisters or br r brothers, his personal and livin living expenses may be restricted to one-th third and contribution to the fami family will be taken as two-third. * * * * * *

42. We therefore hold that the mu 42. multiplier to be used should be be as mentioned in Column (4) of the ta e table above (prepared by applyin plying Susamma Thomas³, Trilok Chandra Susa ndra and Charlie), which starts wi s with an operative multiplier of 18 (for the an o r the age groups of 15 to 20 and 21 21 to 25 years), reduced by one unit for ev 25 ye or every five years, that is M-17 for 2 for 26 to 30 years, M-16 for 31 to 35 year to 30 years, M-15 for 36 to 40 years, M M-14 for 41 to 45 years, and M-13 for 46 for 4 r 46 to 50 years, then reduced by tw by two AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -6- units for every five years, that is, M s, M-11 for 51 to 55 years, M-9 for 5 for 56 to 60 years, M-7 for 61 to 65 years a to 60 ars and M-5 for 66 to 70 years.

11. Hon’ble Supreme Court in the case Hon’ case of National Insurance Compa Ltd. Vs. Pranay nay Sethi & Ors. [(2017) 16 SCC SCC 680] has clarified the law und w under Sections 166, 163 6, 163-A and 168 of the Motor Veh r Vehicles Act, 1988, on the followi ollowing aspects:- AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh (A) Deduction of personal and (A) l and living expenses to determin termine multiplicand; (B) Selection of multiplier depend (B) epending on age of deceased; (C) Age of deceased on basis for a (C) is for applying multiplier; (D) Reasonable figures on conv (D) conventional heads, namely, loss o loss of estate, loss of consortium and funera funeral expenses, with escalation; (E) Future prospects for all categ (E) categories of persons and for differe ifferent ages: with permanent job; self-emplo ages: employed or fixed salary. The relevant portion of the judgment The gment is reproduced as under:- “52. As far as the conventio ntional heads are concerned, we fin e find it difficult to agree with the v the view expressed in Rajesh². It ha It has granted Rs.25,000 towards rds funeral expenses, Rs 1,00,00 0,000 towards loss of consortium a um and Rs 1,00,000 towards loss oss of care and guidance for minor c nor children. The head relating to lo to loss of care and minor children do n does not exist. Though Rajesh refe refers to Santosh Devi, it does no s not seem to follow the same. Th e. The conventional and traditional nal heads, needless to say, cannot b not be determined on percentage ba e basis because that would not be a be an acceptable criterion. Unlike d ike determination of income, the sa e said FAO-4578-20 2006 (O&M) -7- heads have to be quantified. fied. Any quantification must have ave a reasonable foundation. There here can be no dispute over the fa e fact that price index, fall in ban bank interest, escalation of rates tes in many a field have to be no e noticed. The court cannot rema oblivious to the same. There here has been a thumb rule in th in this aspect. Otherwise, re will be extreme difficulty determination of the same and and unless the thumb rule is applie plied, there will be immense variatio iation lacking any kind of consisten stency as a consequence of which, th h, the orders passed by the tribuna bunals and courts are likely to be be unguided. Therefore, we think ink it seemly to fix reasonable sum sums. It seems to us that reasonab onable figures on conventional head heads, namely, loss of estate, loss oss of consortium and funeral e l expenses should be Rs.15,00 5,000, Rs.40,000 and Rs.15,000 r 0 respectively. The principle le of revisiting the said heads is is an acceptable principle. But th ut the revisit should not be fact-cent centric or quantum-centric. We thin that it would be condign gn that the amount that we ha quantified should be enhance anced on percentage basis in eve three years and the enhancem ncement should be at the rate of 10 f 10% in a span of three years. We We are disposed to hold so becau ecause that will bring in consistency i ncy in respect of those heads. * * * * *

59.3. While determining the the income, an addition of 50% 0% of actual salary to the income ome of the deceased towards futu future prospects, where the decease eased had a permanent job and wa d was AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -8- below the age of 40 years, sho , should be made. The addition shou should be 30%, if the age of the dece deceased was between 40 to 50 year years. In case the deceased was betw between the age of 50 to 60 years, th rs, the addition should be 15%. Actual salary should be read a ad as actual salary less tax.

59.4. In case the deceased w ed was self-employed (or) on a fixe salary, an addition of 40% of of the established income should b uld be the warrant where the decease ceased was below the age of 40 year years. An addition of 25% where the e the deceased was between the age age of 40 to 50 years and 10% whe where the deceased was between th en the age of 50 to 60 years shoul hould be regarded as the necessa essary method of computation. The The established income means th ns the income minus the tax compone ponent.

59.5. For determination of th of the multiplicand, the deduction fo on for personal and living expenses, ses, the tribunals and the courts sha s shall be guided by paras 30 to 32 o 32 of Sarla Verma⁴ which we ha e have reproduced hereinbefore.

59.6. The selection of multip ultiplier shall be as indicated in th in the Table in Sarla Verma¹ read wi d with para 42 of that judgment.

59.7. The age of the deceased ased should be the basis for applyin plying the multiplier.

59.8. Reasonable figures on co on conventional heads, namely, loss loss of estate, loss of consortium an and funeral expenses should be R be Rs 15,000, Rs 40,000 and Rs 15 s 15,000 respectively. The aforesa resaid AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -9- amounts should be enhanced ced at the rate of 10% in every thr years.”

12. Hon’ble Supreme Court in rt in the case of Magma Gener eneral Insurance rance Company Limited Vs. Nan am & . Nanu Ram alias Chuhru Ram & Others [20 rs [2018(18) SCC 130] after conside onsidering Sarla Verma (supra) an Pranay Se y Sethi (Supra) has settled the law he law regarding consortium. Releva elevant paras of the of the same are reproduced as under: nder:- “21. A Constitution Bench of h of this Court in Pranay Sethi² dea ² dealt with the various heads unde under which compensation is to b to be awarded in a death case. se. One of these heads is loss oss of consortium. In legal parlance ance, "consortium" is a compendio ndious term which encompasses " es "spousal consortium", "parent rental consortium", and "filial cons consortium". The right to consortiu ortium would include the company, any, care, help, comfort, guidan dance, solace and affection of the the deceased, which is a loss to h to his family. With respect to a s a spouse, it would include sexu relations with the deceased sp d spouse.

21.1. Spousal consortium is generally defined as righ rights pertaining to the relationship ship of a husband-wife which allow allows compensation to the survivin viving spouse for loss of "compan pany, society, cooperation, affectio ction, and aid of the other in eve conjugal relation".

21.2. Parental consortium is granted to the child upon th on the premature death of a pare parent, for loss of "parental ai l aid, AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -10- - protection, affection, society, discipline, guidance an training".

21.3. Filial consortium is is the right of the parents ts to compensation in the case of a of an accidental death of a child. A ild. An accident leading to the death ath of a child causes great shock an ck and agony to the parents and fam family of the deceased. The greate reatest agony for a parent is to lose lose their child during their lifetim fetime. Children are valued for thei their love, affection, companionsh onship and their role in the family un y unit.

22. Consortium is a special cial prism reflecting changing norm about the status and worth rth of actual relationships. Mode jurisdictions world-over have have recognised that the value of e of a child's consortium far excee exceeds the economic value of th of the compensation awarded in the the case of the death of a child. Mo . Most jurisdictions therefore per permit parents to be awarde compensation under loss of co of consortium on the death of a chil child. The amount awarded to the p he parents is a compensation for lo r loss of the love, affection, care an e and companionship of the decease ceased child.

23. The Motor Vehicles Act is ct is a beneficial legislation aimed ed at providing relief to the victim ictims or their families, in cases ses of genuine claims. In case whe where a parent has lost their min child, or unmarried son or da r daughter, the parents are entitled tled to be awarded loss of consor nsortium under the head of fili filial consortium. Parental consort sortium is awarded to children wh n who AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -11- - lose their parents in motor ve or vehicle accidents under the Act. Act. A few High Courts have award warded compensation on this coun count. However, there was no clarity larity with respect to the principles o les on which compensation could uld be awarded on loss of fili filial consortium.

24. The amount of compensat nsation to be awarded as consortiu ortium will be governed by the prin principles of awarding compensatio sation under "loss of consortium" as " as laid down in Pranay Sethi². In th In the present case, we deem it app appropriate to award the father an er and the sister of the deceased, an a , an amount of Rs 40,000 each for lo or loss of filial consortium. ION CONCLUSION

13. In view of the law laid down by th In vi by the Hon’ble Supreme Court in th rt in the above referred to rred to judgments, the present appe t appeal is allowed. The award date d dated

22.07.2006 is m is modified accordingly. The app e appellants-claimants are entitled titled to enhanced compen ompensation as per the calculations ma ons made here-under:- Sr. No. Heads Compensation Awarded 1 Mo Monthly Income Rs.3000/- 2 Future prospects @ 25% Fut Rs.750/- (25% of 3000) Deduction 3 De expenditure towards personal Rs.938/- [1/4 of (3000+750 750)]

4. Tot Total Income Rs.2812/- (3750-938) 4 Mu Multiplier 15 5 An Annual Dependency Rs.5,06,160/- (Rs.2812/- x 12 x 15) 6 Loss of Estate Los Rs.18,000/- AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh FAO-4578-20 2006 (O&M) -12- - 7 8 Funeral Expenses Fun Los Loss of Consortium Par Parental : Rs.48,000/- x 3 Filal: Rs.48,000/-x1 Fil Rs.18,000/- Rs.1,92,000/- Total Compensation To Rs. 7,34,160/- Amount Awarded by the Tribuna Am ribunal Rs.3,14,000 /- Enhanced amount En Rs.4,20,160/-

14. So far as the interest part is concern So fa oncerned, as held by Hon’ble Suprem upreme Court in Dara Sin a Singh @ Dhara Banjara Vs. Shya Shyam Singh Varma 2019 ACJ 317 J 3176 and R.Valli and O and Others VS. Tamil Nandu State tate Transport Corporation (2022) 2022) 5 Supreme Court ourt Cases 107, the appellants-claim erest @ claimants are granted the interest @ 9% per annum on um on the enhanced amount from the m the date of filing of claim petition t ition till the date of its real its realization.

15. The Insurance Company is directed t The ected to deposit the enhanced amount ount of compensation alo on along with interest with the Tribun Tribunal within a period of two month months from today. The . The Tribunal is further directed to ed to disburse the enhanced amount ount of compensation alo on along with interest in the accounts ounts of the claimants/appellants as p ts as per ratio settled in th in the award dated 22.07.2006. The . The claimants/appellants are directe directed to furnish their ba heir bank account details to the Tribun ribunal.

17. Disposed of accordingly. Disp Pending applications, if any, also sta Pend lso stand disposed of.

07.11.2024 A.Kaundal ( (SUDEEPTI SHARMA) JUDGE Whether sp Whether re eaking ther speaking/non-speaking : Speaking ther reportable : Yes/No AMIT KAUNDAL 2024.11.14 16:39 I attest to the accuracy and integrity of this document Chandigarh