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Shiv Kumar vs Gainda Lal

Supreme Court21 October 2022M.M. Sundresh · M.R. Shah

Ratio decidendi

The rule this decision rests on

When assessing loss of dependency in a motor accident claim where the deceased is a housewife with evidence of supplementary income-generating activity (such as tuition work), the court may estimate a notional monthly income based on that evidence, even where formal documentation of such income is absent. In calculating loss of dependency, a deduction of 40% must be added to the assessed income to account for future prospects of earning capacity, as part of settled law. Where a motor accident victim was pregnant at the time of death, compensation for loss of the foetus should be assessed at Rs. 1 lakh rather than Rs. 50,000. In a motor accident claim, the claimants (husband and minor son) are entitled to claim Rs. 40,000 each as compensation for loss of consortium or loss of love and affection in addition to other heads of compensation.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLEIN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTIONCIVIL APPEAL NO. 7629 of 2022Shiv Kumar & Ors. … AppellantsVersusGainda Lal & Ors. …RespondentsJUDGMENTM. R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 07.03.2019 passed by the High Court of Punjab and Haryana at Chandigarh in First Appeal present appeal to enhance the amount of compensation.

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2. That the wife of the appellant no.1 died in a vehicular accident. At the relevant time, the deceased was aged 25 years and was a housewife. The Motor Accident Claim Tribunal awarded Rs.19,12,200/­ with the interest at the rate of 7.5% towards the compensation under different heads. The Learned Tribunal awarded the loss of dependency at Rs.3,24,000/­ considering the income of the deceased at Rs.1,500/­ per month. As at the relevant time the deceased was pregnant, the learned Tribunal also awarded Rs.50,000/­ for foetus. Learned Tribunal awarded Rs.19,12,200/­ under different heads:

Head of Claim MACT

Income 1500/­pm

Future Prospect ­ Loss of Dependency (Annual Income after adjusting deductions and Rs.3,24,000/­ future prospects *Multiplier)

Medical expenses Rs.15,18,000/­

For Fetus Rs.50,000

Loss of Consortium 10,000 + 10,000

Or

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Loss of Love and affection Conventional Head 20,000 (Funeral Expense and Loss of

Estate)

Award 19,12,200 @ 7.5%

2.1 In an appeal at the instance of the original claimants, by the impugned judgment and order the High Court has enhanced the amount of compensation at Rs.29,34,000/­ under different heads:

Head of Claim MACT High Court Income 1500/­pm 6000/­pm

notional

Future Prospect ­ ­ Loss of Dependency Rs.12,96,000/­ (Annual Income after adjusting Rs.3,24,000/­ deductions and future prospects *Multiplier)

Medical expenses Rs.15,18,000/­ Rs.15,18,000/­ For Fetus Rs.50,000 Rs.50,000/­ Loss of Consortium ­ Or Loss of Love and 10,000 + 10,000 affection

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Conventional Head 20,000 70,000 (Funeral Expense and Loss of Estate)

Award 19,12,200 @ 29,34,000 @

7.5% 7.5%

2.2 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court, the original claimants have preferred the present appeal.

3. Learned counsel appearing on behalf of the appellants ­original claimants has vehemently submitted that the High Court has committed a serious error in awarding the loss of dependency considering the income of the deceased at Rs.6,000/­ per month only. It is submitted that even the minimum wages payable to the skilled worker was much more than Rs.6,000/­ per month. It is submitted that even otherwise while awarding the loss of dependency, future prospect has not been taken into consideration at all.

3.1 It is submitted that the High Court has also erred in awarding Rs.50,000/­ towards foetus. It is submitted that the claimants shall be entitled to a sum of Rs.40,000/­ each

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towards loss of consortium or loss of love and affection.

Therefore, it is prayed to allow the present appeal.

4. Shri Vishnu Mehra, learned counsel appearing on behalf of the contesting respondents – Insurance Company has submitted that in the facts and circumstances of the case and more particularly when the deceased was only a housewife, it cannot be said that the High Court has committed any error in awarding the loss of dependency considering the income of the deceased at the rate of Rs.6,000/­ per month. However, has fairly conceded that the High Court ought to have awarded the loss of dependency considering future prospects.

5. Having heard learned counsel appearing on behalf of the respective parties and considering the fact that at the relevant time the deceased was a housewife aged 25 years only and there was contribution of the wife in the family and there is evidence that she was also doing the tuition work, we are of the opinion that the High Court ought to have considered the income of the deceased at least Rs.7,500/­ per month. The

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High Court has also not considered the future prospects. As per the settled position of law while considering the loss of dependency 40% of the income is required to be added towards future prospects.

5.1 We are of the opinion that the claimants shall be entitled to a sum of Rs.1 lakh each instead of Rs.50,000/­ as awarded by the High Court for loss of foetus.

5.2 The claimants – husband and the minor son shall also be entitled to Rs.40,000/­ each towards loss of consortium or loss of love and affection.

5.3 To the aforesaid extent the impugned judgment and order passed by the High Court is required to be modified.

6. In view of the above and for the reason stated above, present appeal is allowed. The impugned judgment and order passed by the High Court is hereby modified and it is directed that the appellants ­ original claimants shall be entitled to a

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total sum of Rs.32,82,000/­ with interest at the rate of 7.5% per annum.

Present appeal is accordingly allowed to the aforesaid extent. However, in the facts and circumstances of the case there shall be no order as to costs.

………………………………….J.

[M.R. SHAH]

NEW DELHI; ….…………………………….J.

OCTOBER 21, 2022. [M.M. SUNDRESH]

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