Deepak Singh Alias Deepak Chauhan vs Mukesh Kumar
- Neutral2025 INSC 179
Ratio decidendi
The rule this decision rests on
When determining the notional income of a student who sustains permanent disability due to a motor accident, the income cannot be equated to minimum wages payable to an unskilled worker; instead, a reasonable notional income should be assessed based on the student's educational qualifications and prospective earning capacity, taking into account actual campus placement standards or, where such evidence is absent, a conservative but fair estimate reflecting the student's potential. Interest on motor accident compensation awards should be calculated from the date of filing the claim petition before the tribunal, excluding any period of delay in preferring an appeal before the appellate court.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
DEEPAK SINGH ALIAS … APPELLANT(S) DEEPAK CHAUHAN
VERSUS
MUKESH KUMAR & ORS. … RESPONDENT(S)
JUDGMENT
SANJAY KAROL, J.
Delay condoned.
Leave Granted.
2. This appeal is at the instance of the claimant-appellant, who is aggrieved
by the order and judgment of the High Court of Punjab and Haryana at
Chandigarh in FAO No.4651 of 2014 (O&M) dated 9 th January, 2020. The
appeal before the High Court was drawn against the judgment and order dated
Motor Accident Claims Tribunal, Gurgaon, in MACT Case No.3 of 8 th January,
2013, passed on 25th September, 20131.
1 Hereafter, “MACT”
1 | SLP(C)D.No.236/2024
3. The facts giving rise to the present appeal are as follows:-
On 12th October 2012, the claimant-appellant namely, Deepak along with
his friend Bhagwan Singh were riding a motorcycle bearing No.HR-26-AJ-
5496, being driven by the latter, heading to Kulana, when they collided with a
Scorpio, which was being driven at a fast pace, rashly and negligently, from the
wrong side.
Bhagwan Singh succumbed to the injuries on the spot while the claimant-
appellant suffered grievous injuries. FIR No.213 under Sections 279, 337, 304-
A and 427 of the Indian Penal Code, dated 13th October, 2012, was registered.
The Claimant-Appellant filed the claim petition on 7th January, 2013.
4. The learned MACT framed four issues for consideration, concerning the
rashness and negligence of respondent No.1; entitlement of the claimant-
appellant to compensation; liability of respondent No.3-insurer, to pay
compensation; and the validity of the respondent’s driving license.
Having considered the evidence before it, the conclusion arrived at by the
Tribunal is as below : -
“ Relief :
24. In view of findings of this Tribunal returned on the issues under adjudication, the petition is partly allowed with costs. A sum of Rs.7,09,303/- is awarded as compensation to the petitioner along with interest @7.5% per annum from the date of filing of the petition till realization, out of which 50% shall, however, be paid to him in cash but the same shall be deposited in his bank account and remaining 50% shall be deposited for three years in fixed deposit account of any nationalized bank.
2 | SLP(C)D.No.236/2024 25. All the respondents being driver, owner and insurer of the offending vehicle are jointly and severally liable to pay the compensation amount to the claimants. However, respondent No.3 insurance company being the main stakeholder would pay the entire amount of compensation to the claimant.
26. Lawyer's fee is assessed at Rs.11,000/-. Memo of cost be prepared accordingly and file be consigned to record room after due compliance.” (Emphasis supplied)
5. Feeling dissatisfied and aggrieved by the compensation awarded, the
claimant-appellant appealed before the High Court. A perusal of the impugned
judgment reveals that the Court relied on a judgment of this Court in Raj
Kumar v. Ajay Kumar2 and the testimony of Dr. Arvind Mehra - PW6, along
with the discharge summary(s). The total compensation as enhanced by the
Court was Rs.23,90,719/- and the interest part remained undisturbed.
6. Further aggrieved, an appeal has been preferred before us. In advancing
arguments, learned counsel for the claimant-appellant took issue with the High
Court’s reliance on minimum wages to calculate compensation. This, he did
while placing reliance on an order dated 13 th January, 2020 of this Court passed
in Civil Appeal No.278 of 2020 titled Navjot Singh v. Harpreet Singh. We
find force in this submission of the claimant-appellant.
7. While dealing with the claim of compensation of a similarly placed
individual, i.e., a student in his twenties, this Court in Harpreet Singh (supra)
2 (2011) 1 SCC 343
3 | SLP(C)D.No.236/2024 took exception to equating the notional income of an Engineering student to
that of an unskilled worker the following terms -
“13. But we do not think that the notional income of a student undergoing a Degree course in Engineering from a premier institute should be taken to be equivalent to the minimum wages admissible to an unskilled worker. Students recruited through campus interviews are atleast offered a sum of Rs.20,000/- per month. Even if we do not go on the said basis, the High Court could have fixed the notional income atleast at Rs.10,000/- per month.
14. Therefore, in the facts and circumstances of the case, and by exercising our power under Article 142 of the Constitution of India, we take the notional monthly income of the appellant as Rs.10,000/ per month.”
8. In the present facts, the accident took place in the year 2012. Hence,
reliance can be placed on Harpreet Singh (supra). In the attending facts,
taking the notional income to be Rs.10,000/- per month, the compensation to
be awarded would be recomputed in the following terms :-
Heads Final compensation Income Rs.10,000/-
Annual income Rs.1,20,000/-
70% of annual income Rs.84,000/- (permanent disability) Annual income after adding 40% Rs.1,17,600/- (84,000 + 33,600) future prospects
Multiplier 18
Loss of income Rs.21,16,800/-
Medical expenses Rs.5,69,303/-
Attendant charges Rs.50,000/-
4 | SLP(C)D.No.236/2024 Loss of amenities/prospects of Rs.5,00,000/- marriage
Pain and suffering Rs,2,00,000/-
Special diet Rs.20,000/-
Disability -
Enhancement Rs.10,65,384/-
Total Rs.34,56,103/- @ 7.5%
9. The total amount comes to Rs.34,56,110/- as also interest @ 7.5% per
annum shall be awarded from the date of filing of the claim petition before the
learned Tribunal, but will exclude the 642 days delay period, in preferring the
appeal before this Court.
10. The appeal is allowed as aforesaid. Pending application(s), if any, shall
stand disposed of accordingly.
……………………J. [SANJAY KAROL]
……………………J. [MANMOHAN] February 10, 2025;
New Delhi.
5 | SLP(C)D.No.236/2024
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