✦ High Court of India · 18 Oct 2024

COUNSELS FOR THE PARTIES SUBMISSIONS OF LEARNED COUNSELS FOR THE PARTIES 3 v. Delhi Hon’ble Supreme Court in the case of Sarla Verma Vs. Delhi & Ors.

Case Details High Court of India · 18 Oct 2024
Court
High Court of India
Decided
18 Oct 2024
Bench
Not available
Length
6,235 words

Acts & Sections

Cited in this judgment

seemly to fix reasonable sums. It seems to us that reasonable seemly to fix reasonable sums. It seems to us that reasonable seemly to fix reasonable sums. It seems to us that reasonable figures on conventional heads, namely, loss of estate, loss of figures on conventional heads, namely, loss of estate, loss of figures on conventional heads, namely, loss of estate, loss of um and consortium and um and funeral expenses should be Rs.15,000, funeral expenses should be Rs.15,000, funeral expenses should be Rs.15,000, Rs.40,000 and Rs.15,000 respectively. The principle of Rs.40,000 and Rs.15,000 respectively. The principle of Rs.40,000 and Rs.15,000 respectively. The principle of revisiting the said heads is an acceptable principle. But the revisiting the said heads is an acceptable principle. But the revisiting the said heads is an acceptable principle. But the revisit should not be fact-centric or quantum centric. We think centric or quantum-centric. We think t the amount that we have that it would be condign that the amount that we have that it would be condign tha quantified should be enhanced on percentage basis in every quantified should be enhanced on percentage basis in every quantified should be enhanced on percentage basis in every three years and the enhancement should be at the rate of 10% three years and the enhancement should be at the rate of 10% three years and the enhancement should be at the rate of 10% RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment (O&M) -6- in a span of three years. We are disposed to hold so because in a span of three years. We are disposed to hold so because in a span of three years. We are disposed to hold so because that will bring in consistency in respect of those heads. that will bring in consistency in respect of tho * * * * * . While determining the income, an addition of 50% of 59.3. While determining the income, an addition of 50% of . While determining the income, an addition of 50% of actual salary to the income of the deceased towards future actual salary to the income of the deceased towards future actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was prospects, where the deceased had a permanent job and was prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition below the age of 40 years, should be made. The addition 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 should be 30%, if the age of the deceased was between 40 to 50 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. In case the deceased was between the age of 50 to 60 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be years, the addition should be 15%. Actual salary should be years, the addition should be 15%. Actual salary should be read as actual salary less tax.

59.4. In case the deceased was employed (or) on a fixed . In case the deceased was self-employed (or) on a fixed salary, an addition of 40% of the established income should be salary, an addition of 40% of the established income should be salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. the warrant where the deceased was below the age of 40 years. the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of An addition of 25% where the deceased was between the age of An addition of 25% where the deceased was between the age of d was between the 40 to 50 years and 10% where the deceased was between the 40 to 50 years and 10% where the decease age of 50 to 60 years should be regarded as the necessary age of 50 to 60 years should be regarded as the necessary age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the method of computation. The established income means the method of computation. The established income means the income minus the tax component. income minus the tax component. . For determination of the multiplicand, the deduction for 59.5. For determination of the multiplicand, the deduction for . For determination of the multiplicand, the deduction for the tribunals and the courts shall personal and living expenses, the tribunals and the courts shall the tribunals and the courts shall be guided by paras 30 to 32 of Sarla Verma which we have be guided by paras 30 to 32 of Sarla Verma which we have be guided by paras 30 to 32 of Sarla Verma which we have reproduced hereinbefore.

59.6. The selection of multiplier shall be as indicated in the The selection of multiplier shall be as indicated in the The selection of multiplier shall be as indicated in the Table in Sarla Verma¹ read with para 42 of that judgment. Table in Sarla Verma¹ read with para 42 of that judgment. the deceased should be the basis for applying 59.7. The age of the deceased should be the basis for applying the deceased should be the basis for applying the multiplier.

59.8. Reasonable figures on conventional heads, namely, loss . Reasonable figures on conventional heads, namely, loss . Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs of estate, loss of consortium and funeral expenses should be Rs of estate, loss of consortium and funeral expenses should be Rs 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid hould be enhanced at the rate of 10% in every three amounts should be enhanced at the rate of 10% in every three hould be enhanced at the rate of 10% in every three years.” RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment (O&M) -7-

9. Hon’ble Supreme Court in the case of Magma General Hon’ble Supreme Court in the case of Magma General Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Others [2018(18) SCC 130] after considering Others [2018(18) SCC 130] after considering Sarla Verma (supra) and has settled the law regarding consortium. Pranay Sethi (Supra) has settled the law regarding consortium. has settled the law regarding consortium. Pranay Sethi (Supr Relevant paras of the same are reproduced as under:- Relevant paras of the same are reproduced as under: Relevant paras of the same are reproduced as under: . A Constitution Bench of this Court in Pranay Sethi² dealt “21. A Constitution Bench of this Court in Pranay Sethi² dealt . A Constitution Bench of this Court in Pranay Sethi² dealt with the various heads under which compensation is to be with the various heads under which compensation is to be with the various heads under which compensation is to be heads is loss of awarded in a death case. One of these heads is loss of awarded in a death case. One of these consortium. In legal parlance, "consortium" is a compendious consortium. In legal parlance, "consortium" is a compendious consortium. In legal parlance, "consortium" is a compendious term which encompasses "spousal consortium", "parental term which encompasses "spousal consortium", "parental term which encompasses "spousal consortium", "parental consortium", and "filial consortium". The right to consortium consortium", and "filial consortium". The right to consortium consortium", and "filial consortium". The right to consortium would include the company, care, help, comfort, guidance, would include the company, care, help, comfort, guidance, would include the company, care, help, comfort, guidance, lace and affection of the deceased, which is a loss to his solace and affection of the deceased, which is a loss to his lace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual family. With respect to a spouse, it would include sexual family. With respect to a spouse, it would include sexual relations with the deceased spouse. relations with the deceased spouse. is generally defined as rights 21.1. Spousal consortium is generally defined as rights is generally defined as rights wife which allows pertaining to the relationship of a husband-wife which allows pertaining to the relationship of a husband compensation to the surviving spouse for loss of "company, compensation to the surviving spouse for loss of "company, compensation to the surviving spouse for loss of "company, society, cooperation, affection, and aid of the other in every society, cooperation, affection, and aid of the other in every society, cooperation, affection, and aid of the other in every conjugal relation".

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

21.3. Filial consortium is the right of the parents to is the right of the parents to is the right of the parents to tal death of a child. An compensation in the case of an accidental death of a child. An compensation in the case of an acciden accident leading to the death of a child causes great shock and accident leading to the death of a child causes great shock and accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony to the parents and family of the deceased. The greatest agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. agony for a parent is to lose their child during their lifetime. agony for a parent is to lose their child during their lifetime. RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment (O&M) -8- ction, companionship Children are valued for their love, affection, companionship Children are valued for their love, affe and their role in the family unit. and their role in the family unit. . Consortium is a special prism reflecting changing norms 22. Consortium is a special prism reflecting changing norms . Consortium is a special prism reflecting changing norms about the status and worth of actual relationships. Modern about the status and worth of actual relationships. Modern about the status and worth of actual relationships. Modern over have recognised that the value of a jurisdictions world-over have recognised that the value of a over have recognised that the value of a ar exceeds the economic value of the child's consortium far exceeds the economic value of the ar exceeds the economic value of the compensation awarded in the case of the death of a child. Most compensation awarded in the case of the death of a child. Most compensation awarded in the case of the death of a child. Most jurisdictions jurisdictions jurisdictions therefore permit parents therefore permit parents therefore permit parents to be awarded to be awarded to be awarded compensation under loss of consortium on the death of a child. compensation under loss of consortium on the death of a child. compensation under loss of consortium on the death of a child. ompensation for loss The amount awarded to the parents is a compensation for loss The amount awarded to the parents is a c of the love, affection, care and companionship of the deceased of the love, affection, care and companionship of the deceased of the love, affection, care and companionship of the deceased child. . The Motor Vehicles Act is a beneficial legislation aimed at 23. The Motor Vehicles Act is a beneficial legislation aimed at . The Motor Vehicles Act is a beneficial legislation aimed at providing relief to the victims or their families, in cases of providing relief to the victims or their families, in cases of providing relief to the victims or their families, in cases of t has lost their minor genuine claims. In case where a parent has lost their minor genuine claims. In case where a paren child, or unmarried son or daughter, the parents are entitled to child, or unmarried son or daughter, the parents are entitled to child, or unmarried son or daughter, the parents are entitled to be awarded loss of consortium under the head of filial be awarded loss of consortium under the head of filial be awarded loss of consortium under the head of filial consortium. Parental consortium is awarded to children who consortium. Parental consortium is awarded to children who consortium. Parental consortium is awarded to children who e Act. A lose their parents in motor vehicle accidents under the Act. A lose their parents in motor vehicle accidents under th few High Courts have awarded compensation on this count. few High Courts have awarded compensation on this count. few High Courts have awarded compensation on this count. However, there was no clarity with respect to the principles on However, there was no clarity with respect to the principles on However, there was no clarity with respect to the principles on which compensation could be awarded on loss of filial which compensation could be awarded on loss of filial which compensation could be awarded on loss of filial consortium. . The amount of compensation to be awarded as consortium 24. The amount of compensation to be awarded as consortium . The amount of compensation to be awarded as consortium ill be governed by the principles of awarding compensation will be governed by the principles of awarding compensation ill be governed by the principles of awarding compensation under "loss of consortium" as laid down in Pranay Sethi². In under "loss of consortium" as laid down in Pranay Sethi². In under "loss of consortium" as laid down in Pranay Sethi². In the present case, we deem it appropriate to award the father the present case, we deem it appropriate to award the father 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 and the sister of the deceased, an amount of Rs 40,000 each for and the sister of the deceased, an amount of Rs 40,000 each for loss of filial consortium. RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment (O&M) CONCLUSION CONCLUSION -9-

10. In view of the law laid down by the Hon’ble Supreme Court in In view of the law laid down by the Hon’ble Supreme Court in 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 the above referred to judgments, the present appeal is allowed. The award the above referred to judgments, the present appeal is allowed. The award the above referred to judgments, the present appeal is allowed. The award dated 04.05.2006 passed by the Motor Accident Claims Tribunal, 04.05.2006 passed by the Motor Accident Claims Tribunal, passed by the Motor Accident Claims Tribunal, Sonepat is is modified. The appellants-claimants are entitled to enhanced claimants are entitled to enhanced compensation as per the calculations made here-under:- compensation as per the calculations made here compensation as per the calculations made here Sr. No. Heads Compensation Awarded (In ) Monthly Income 1. Monthly Income

2. Future prospects @ Future prospects @ 30% Deduction towards personal 3. Deduction towards personal expenditure (1/5th) expenditure (1/ Total Income 4. Total Income Multiplier 5. Multiplier 7,704 2,311 2,003 (7,704+2,311x1/5) 8,012 (7,704+2,311-2,003) 14 Annual Dependency 6. Annual Dependency 13,46,016 (8,012x12x14) Loss of Estate 7. Loss of Estate Funeral Expenses 8. Funeral Expenses Loss of Consortium 9. Loss of Consortium Parental : Rs.48000 Parental : Rs.48000/- x 4 Spousal : Rs.48000/- x 1 Spousal : Rs.48000 Filial : Rs.48000/- x 2 Filial Total Compensation Total Compensation Deduction Deduction Awarded by the Tribunal Awarded by the Tribunal Enhanced Compensation Enhanced Compensation 18,000 18,000 3,36,000 17,18,016 7,00,000 (17,18,016-7,00,000) 10,18,016/-

10. So far as the interest part is concerned, as held by Hon’ble So far as the interest part is concerned, as held by Hon’ble So far as the interest part is concerned, as held by Hon’ble Dara Singh @ Dhara Banjara Vs. Shyam Singh Supreme Court in Dara Singh @ Dhara Banjara Vs. Shyam Singh Dara Singh @ Dhara Banjara Vs. Shyam Singh Supreme Court in Varma 2019 ACJ 3176 R.Valli and Others VS. Tamil Nandu State 2019 ACJ 3176 and R.Valli and Others VS. Tamil Nandu State R.Valli and Others VS. Tamil Nandu State Transport Corporation (2022) 5 Supreme Court Cases 107, Transport Corporation (2022) 5 Supreme Court Cases 107, the appellant- 9% per annum on the claimant is granted the interest @ 9% per annum on the -claimant is granted the interest @ RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment (O&M) he date of filing of claim petition till the date of enhanced amount from the date of filing of claim petition till the date of he date of filing of claim petition till the date of enhanced amount from t -10- its realization. its realization. The Insurance Company is directed to deposit the enhanced The Insurance Company is directed to deposit the enhanced The Insurance Company is directed to deposit the enhanced amount of compensation along with interest with the Tribunal within a amount of compensation along with interest with the Tribunal within a amount of compensation along with interest with the Tribunal within a amount of compensation along with interest with the Tribunal within a period of two months from the date of receipt of certified copy of this period of two months from the date of receipt of certified copy of this period of two months from the date of receipt of certified copy of this period of two months from the date of receipt of certified copy of this he amount of judgment. The Tribunal is further directed to disburse the amount of judgment. The Tribunal is further directed to disburse t judgment. The Tribunal is further directed to disburse t . The compensation along with interest as per its award dated 04.05.2006. The compensation along with interest as per its award dated compensation along with interest as per its award dated claimants/appellants are directed to furnish their bank accounts details to claimants/appellants are directed to furnish their bank accounts details to claimants/appellants are directed to furnish their bank accounts details to claimants/appellants are directed to furnish their bank accounts details to the Tribunal. the Tribunal.

14. Disposed of accordingly. Pending application(s), if any, also stand disposed of. Pending application(s), if any, also stand disposed of. RAJ KUMAR 2024.12.14 13:30 I attest to the accuracy and integrity of this document/judgment

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