Holding

Under Sections 166 and 168 of the Motor Vehicles Act, 1988, compensation must include 50% of the deceased’s actual salary as future prospects, use the age‑appropriate multiplier of 16, award Rs 15,000 each for loss of estate and funeral expenses, disallow the head of ‘loss of love and affection’, limit loss of consortium to Rs 40,000 per child, and therefore fix the total enhanced compensation at Rs 10,29,260.

Summary

The wife and children of a deceased Head Constable filed a claim under Sections 166 and 168 of the Motor Vehicles Act, 1988 seeking Rs 50 lakh after a bus in which he was a passenger fell into the Chenab River. The Motor Accidents Claims Tribunal awarded Rs 17,73,704 and the Punjab & Haryana High Court enhanced it to Rs 20,68,704. On appeal, the Supreme Court held that the Tribunal and High Court failed to consider the deceased’s future prospects, did not add 50% of his actual salary to the income, and mis‑applied the heads of compensation. The Court directed that 50% of the salary be added, the multiplier of 16 (age 30‑35) be retained, Rs 15,000 each be awarded for loss of estate and funeral expenses, the head of ‘loss of love and affection’ be disallowed, and loss of consortium be limited to Rs 40,000 per child, resulting in a revised total compensation of Rs 10,29,260 payable by the State Road Transport Corporation.

Issues considered

Whether future prospects of the deceased should be factored in the multiplicand for loss of dependency under the Motor Vehicles Act.
Whether 50% of the deceased’s actual salary must be added to the income for compensation calculation.
Whether the multiplier of 16 is appropriate for a deceased aged 32 years.
Whether compensation for loss of estate and funeral expenses is payable.
Whether the head of ‘loss of love and affection’ is permissible when loss of consortium is claimed.
What is the correct quantum of compensation for loss of consortium and parental consortium.
Whether the enhanced compensation awarded by the High Court should be adjusted.

Legislation cited

Motor Vehicles Act, 1988s. 166, s. 168

Subjects

Motor Vehicles ActCompensationLoss of DependencyFuture ProspectsMultiplicandMultiplierLoss of EstateFuneral ExpensesLoss of ConsortiumLoss of Love and AffectionVicarious LiabilityMotor Accident Claims Tribunal

Judgment

[2022] 14 S.C.R. 1031 1031

RAJ BALA & ORS. A
v.
RAKEJA BEGAM & ORS.
(Civil Appeal No. 7604 of 2022)
OCTOBER 18, 2022 B
[B. R. GAVAI AND C. T. RAVIKUMAR, JJ.]
Motor Vehicles Act, 1988: s.166 – Compensation,
determination of – Compensation under head of ‘love and affection’,
‘loss of spousal consortium to wife and ‘loss of parental consortium
C
to children’ – A bus fell into a river in which victim-deceased was a
passenger and he drowned in the river – Appellants, wife and
children of the deceased filed claim petition under s.166 of the Act
seeking compensation of Rs.50 lakhs, under different heads –
Tribunal found that the accident had occurred due to rash and
negligent driving and awarded Rs.17,73,704/- with interest at the D
rate of 6 % p.a. – High Court enhanced compensation to Rs.
20,68,704/- – On appeal, held: Future prospects were not taken
into account while fixing the multiplicand – Evidence on record
revealed that the deceased was aged 32 years at the time of his
death and he was working as a Head Constable in the RPF – There
E
was absolutely no justification for not reckoning the future prospects
which he would have had but for his untimely death – The contention
of appellants that 50% of the actual salary of the deceased is to be
added while determining the income for calculation purpose is
accepted – Taking into account the multiplicand and multiplier with
reference to the age group of deceased, the appellants are entitled F
to get an enhanced amount of Rs. 8,84,160/- under the head of
‘loss of dependency’ – Rs. 15,000/- each is awarded to the appellants
under the head ‘loss of estate’ and the ‘funeral expenses which was
not granted by Tribunal as well as High Court – In the light of
precedents of this court, appellant would be entitled to get
G
Rs.40,000/- under the head of ‘loss of consortium’ – The amount
granted by High Court to appellants under the head of ‘love and
affection’ to be adjusted against ‘parental consortium’ – Thus,
appellants are entitled to enhanced compensation of Rs.10,29,260/
- which shall be paid by respondent no.4 within 8 weeks.
H
1031
1032 SUPREME COURT REPORTS [2022] 14 S.C.R.

A Partly allowing the appeal, the Court
HELD: 1. Future prospects were not taken into account by
the Tribunal and High Court while fixing the ‘multiplicand’. The
evidence on record would reveal that the deceased was aged 32
years at the time of his death and he was working as a Head
B Constable in the Railway Protection Force. When that be the
circumstances, there is absolutely no justification for not
reckoning the future prospects which he would have had but for
his untimely death. In the said circumstances, this Court upheld
the contention of the Appellants that 50% of the actual salary of
the deceased is to be added while determining the income for
C calculation purpose. [Paras 8, 9][1035-G-H; 1036-A, D]
National Insurance Co. Ltd. v. Pranay Sethi and Others
2017 ACJ 2700 (SC); Sarla Verma and Ors. v. Delhi
Transport Corporation and Anr. (2009) 6 SCC 121 –
relied on.
D
2. Evidently, the Tribunal as also the High Court had
correctly identified the ‘multiplier’ with reference to the age group
of the deceased viz., between 30 and 35 years as 16. On re-
assessing the compensation for ‘loss of dependency’, taking into
account the multiplicand and the multiplier as stated above it
E would be Rs. 26,52,864/-. The Tribunal has granted only an amount
of Rs. 17,68,704/-, virtually, under the head ‘total loss of income’
after applying the multiplier method and the same was confirmed
by the High Court. Hence, under the head of ‘loss of dependency’
the Appellants are entitled to get an enhanced amount of Rs.
F 8,84, 160/- (26,52,864 – 17,68,704). Further, no amount was
granted towards ‘loss of estate’ and ‘funeral expenses’ by the
Tribunal as also by the High Court. Going by the decision of this
Court Rs. 15,000/- each is awarded to the Appellants under the
head ‘loss of estate’ and the ‘funeral expenses. [Paras 12,
13][1037-B-E]
G
3. In the instant case, compensation towards ‘loss of
consortium’ Rupees One lakh was awarded by the High Court
besides granting an amount of Rs. 2 lakhs (Rupees one lakh each
to the minor children) under the head of ‘loss of love and

H
RAJ BALA & ORS. v. RAKEJA BEGAM & ORS. 1033

affection’. In the light of the binding decision of the Constitution A
Bench, interference is required with the grant of excess amount
in respect of the compensation under the head ‘loss of consortium’
and the grant of compensation under the non-existing head of
‘love and affection’. Hence, the Appellants are entitled only to
get an additional compensation of Rs. 35,000/-. In other words,
B
an amount of Rs. 65,000/- granted in excess under the said head
and to be deducted. [Paras 17, 18][1039-D-F]
4. While considering the question of interference with the
compensation granted by the High Court under the head of ‘love
and affection’, it was observed that compensation under the head
of ‘love and affection’ is impermissible when compensation for C
‘loss of spousal consortium to wife and ‘loss of parental consortium
to children’ are admissible. In the said circumstances, the amount
of Rupees One lakh each granted by the High Court to Appellants
2 & 3 under the head ‘love and affection’ require to be deducted
and at the same time, Rs. 40,000/- each, out of it can be granted, D
rather, adjusted against ‘parental consortium’ grantable to the
minor children. Thus, an amount of Rs. 80,000/- has to be adjusted
and can be granted to the minor children viz., Appellants No. 2 &
3 and the balance amount of Rs.1,20,000/- has to be deducted.
[Paras 19, 20][1039-G; 1040-B, C-D]
E
Jana Bhai and Ors. v. ICICI Lombard General Ins. Co.
Ltd. 2022 ACJ 203; Magma General Ins. Co. Ltd. v.
Nanu Ram 2018 ACJ 2782 – referred to.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7604
of 2022. F
From the Judgment and Orders dated 24.08.2017 of the High
Court of Punjab and Haryana at Chandigarh in F.A.O. No. 5948 of
2013.
Rakesh Kumar Yadav, Rameshwar Prasad Goyal, Advs. for the
Appellants. G
Ashok Mathur, Adv. for the Respondents.

H
1034 SUPREME COURT REPORTS [2022] 14 S.C.R.

A The Judgment of the Court was delivered by
C. T. RAVIKUMAR, J.
1. Leave granted.
2. This instant Appeal arises out of the final judgment and order
B dated 24.08.2017 in F.A.O. No.5948 of 2013 passed by the Punjab and
Haryana High Court at Chandigarh. The Appellants- claimants who are
respectively the wife and children of the victim of a motor vehicle accident
are dissatisfied with and aggrieved by the said judgment and order and
they filed this Appeal seeking enhancement of the quantum of
compensation.
C
3. The brief facts necessary for the disposal of this Appeal are as
follows: -
On 11.08.2009, the deceased-Sudesh Kumar was amongst the
passengers in a bus bearing registration No. JK-01Y-0432 of Jammu and
D Kashmir State Road Transport Corporation, driven by the deceased
husband of the first Respondent, on its trip from Jammu to Srinagar. By
about 13:20 hrs the bus fell into river Chenab and Shri Sudesh Kumar
drowned in the river. The Appellants alleged that the accident had
occurred due to the rash and negligent driving and the consequential loss
of control of the bus. He was working as a Head Constable in the
E Railway Protection Force (for short ‘the RPF’) and was then aged 32
years. Claiming the monthly income of the deceased as Rs.20,000/- the
Appellants filed the claim petition under Section 166 of the Motor Vehicles
Act, 1988 (for short ‘the MV Act’) seeking a total compensation of
Rs.50 lakhs, under different heads.
F 4. On appreciation of the evidence, the Motor Accidents Claims
Tribunal (hereinafter, ‘the Tribunal’) at Rewari found that the accident
had occurred due to the rash and negligent driving of Mohd. Rasid, the
deceased husband of the first Respondent. On the principle of vicarious
liability, the 4th Respondent – State Road Transport Corporation the owner
of the bus was held jointly and severely liable with Mohd. Rasid, the
G
husband of first Respondent, to satisfy the award, quantified as
Rs.17,73,704/- with interest at the rate of 6 % per annum from the date
of filing of the petition till realization of the amount.
5. The inadequacy of the compensation granted by the Tribunal
was assailed by the Appellants herein before the High Court of Punjab
H
RAJ BALA & ORS. v. RAKEJA BEGAM & ORS. 1035
[C. T. RAVIKUMAR, J.]

and Haryana in F.A.O. No.5948 of 2018. As per the impugned judgment, A
the High Court re- assessed the compensation and granted an additional
compensation of Rs.2,95,000/-. In fact, the total compensation was re-
assessed by the High Court as Rs.20,68,704/- and the amount awarded
by the Tribunal was deducted by the High Court to arrive at the said
figure of Rs.2,95,000/-. The enhanced amount of compensation viz.
B
Rs.2,95,000/- was ordered to carry interest at the rate of 9% per annum
from the date of the claim petition till its realization. The Appellants still
feel that they are deprived of just compensation to be awarded under
Section 168 of the MV Act. Hence, the captioned Appeal.
6. Heard the learned counsel for the Appellants and the learned
counsel for the Respondent No.4, the Jammu and Kashmir State Road C
Transport Corporation.
7. According to the Appellants the High Court had erred in not
adhering to what are recorded as conclusions in the decision of a
Constitution Bench of this Court in National Insurance Co. Ltd., v.
Pranay Sethi and Others1, inasmuch as the future prospects of the D
deceased was not taken into account while quantifying the amount
payable under the ‘loss of dependency’ and also in deciding the other
heads of compensation payable. It is contended that no amount
whatsoever was granted under the head ‘loss of estate’ and towards
‘funeral expenses’. Per contra, the learned counsel appearing for the E
Respondent No. 4 would contend that the High Court, in the Appeal, has
granted just compensation contemplated under Section 166 of the MV
Act and, therefore, no further enhancement of compensation is
warranted. It is further contended that compensation under the head
‘loss of love and affection’ is impermissible and under the head ‘loss of
consortium’ only an amount of Rs. 40,000/- is permissible, going by the F
decision in Pranay Sethi’s case (supra).
8. We have carefully gone through the award passed by the
Tribunal and the judgment of the High Court whereby the quantum of
compensation was enhanced by Rs. 2,95,000/-, on re-assessment. They
would reveal that future prospects were not taken into account while G
fixing the ‘multiplicand’. The evidence on record would reveal that the
deceased was aged 32 years at the time of his death and he was working
as a Head Constable in the RPF. When that be the circumstances,

1
2017 ACJ 2700 (SC) H
1036 SUPREME COURT REPORTS [2022] 14 S.C.R.

A there is absolutely no justification for not reckoning the future prospects
which he would have had but for his untimely death, in the light of the
decision of this Court in Pranay Sethi’s case (supra). In this context it is
worthy to extract conclusion No. (iii) in the said decision. It, in so far as
it is relevant, reads thus: -
B “While determining the income, an addition of 50% of actual
salary to the income of the deceased towards future prospects,
where the deceased had a permanent job and was below the
age of 40 years, should be made.”
9. True that the impugned judgment and order is dated 24.08.2017
C and the decision in Pranay Sethi’s case (supra) was rendered only on
31.10.2017. But then, the fact is that conclusion No. (iii), as extracted
above, is nothing but approval of the position exposited in the decision in
Sarla Verma and Ors. v. Delhi Transport Corporation and Anr. 2 In
the said circumstances, we have no hesitation to uphold the contention of
the Appellants that 50% of the actual salary of the deceased is to be
D added while determining the income for calculation purpose.
10. The monthly income of the deceased was taken as
Rs.13,817/- though the salary certificate for the month of July, 2009
would reveal that he was drawing Rs.16,194/-. Obviously, the income
was taken as Rs.13,817/- after deducting allowances like TPT, ration
E money, hill allowance and washing allowance. The Appellants did not
specifically state as to which among the said components was wrongly
deducted in the matter of such fixation.
11. Thus, going by the decision in Pranay Sethi’s case (supra),
when the deceased was below the age of 40 years and was having a
F permanent job for the purpose of determination of income 50 % of his
actual salary viz., Rs.13,817/- ought to have been added to the actual
income. At the same time, taking into account the number of dependents
in the family viz., three, 1/3rd of the monthly income was to be deducted
towards the personal and living expenses of the deceased. This is to be
G done so, in view of the Constitution Bench decision in Pranay Sethi’s
case (supra) directing that for determination of multiplicand, the deduction
for personal and living expenses shall be guided by paragraphs 30 to 32
of Sarla Verma’s case (supra). After such deduction and re-assessment,

2
H (2009) 6 SCC 121
RAJ BALA & ORS. v. RAKEJA BEGAM & ORS. 1037
[C. T. RAVIKUMAR, J.]

the contribution to the family (dependents) would be Rs.1,65,810/- per A
annum.
12. Evidently, the Tribunal as also the High Court had correctly
identified the ‘multiplier’ with reference to the age group of the deceased
viz., between 30 and 35 years as 16. This was done evidently, in terms
of the decision in Sarla Verma’s case (supra). This is only to be upheld B
in view of conclusion number ‘(vi)’ recorded in Pranay Sethi’s case
(supra) whereunder it was held that determination of the multiplier shall
be as indicated in Sarla Verma’s case (supra) read with paragraph 42
of the judgment. On re-assessing the compensation for ‘loss of
dependency’, taking into account the multiplicand and the multiplier as
stated above it would be Rs. 26,52,864/-. The Tribunal has granted only C
an amount of Rs. 17,68,704/-, virtually, under the head ‘total loss of
income’ after applying the multiplier method and the same was confirmed
by the High Court. Hence, under the head of ‘loss of dependency’ the
Appellants are entitled to get an enhanced amount of Rs. 8,84,160/-
(26,52,864 – 17,68,704). D
13. Obviously, no amount was granted towards ‘loss of estate’
and ‘funeral expenses’ by the Tribunal as also by the High Court. Going
by the decision in Pranay Sethi’s case (supra) under the conventional
heads compensation at the rate of Rs. 15,000/- each, is awardable
towards ‘loss of estate’ and ‘funeral expenses’. Accordingly, E
Rs. 15,000/- each is awarded to the Appellants under the head ‘loss of
estate’ and the ‘funeral expenses.
14. It is a fact that no appeal or cross-objection has been filed by
the 4th Respondent despite the fact that the High Court as per the
impugned judgment and order granted an amount of Rupees One lakh F
towards ‘loss of consortium’ as against Rs. 5,000/- granted under that
head by the Tribunal and a further amount of Rs. 2 lakhs (Rupees One
lakh each to Appellants 2 and 3) under the head ‘loss of love and
affection’. Normally, in the absence of appeal or cross- objection, grant
of compensation under any head need not be considered at the instance
such a Respondent. But, in this case such a course is not advisable. This G
is because, we have reassessed compensation under the head ‘loss of
dependency’ and further granted compensation for ‘loss of estate’ and
‘funeral expenses’, which are denied by the Tribunal and the High Court,
referring to the Constitution Bench decision of this Court in Pranay
Sethi’s case (supra). When the said decision was relied on for the grant H
1038 SUPREME COURT REPORTS [2022] 14 S.C.R.

A of/enhancement of compensation under the aforesaid heads, we cannot
lose sight of any glaring violation of the said Constitution Bench. In short,
we would not be justified in ignoring the conclusions, issued in the form
of directions by the Constitution Bench in respect of a grant of
compensation under the head ‘loss of consortium’ as also regarding the
impermissibility of granting compensation under the head ‘loss of love
B
and affection’.
15. In this contextual situation, we think it only appropriate to refer
to the following observations made by the Constitution Bench in
paragraph 57 of the decision in Pranay Sethi’s case (supra):-
C “Section 168 of the Act deals with the concept of “just
compensation” and the same has to be determined on the
foundation of fairness, reasonableness and equitability on
acceptable legal standard because such determination can
never be in arithmetical exactitude. It can never be perfect.
The aim is to achieve an acceptable degree of proximity to
D arithmetical precision on the basis of materials brought on
record in an individual case. The conception of “just
compensation” has to be viewed through the prism of fairness,
reasonableness and non- violation of the principle of
equitability. In a case of death, the legal heirs of the claimants
E cannot expect a windfall. Simultaneously, the compensation
granted cannot be an apology for compensation. It cannot
be a pittance”.
16. In the light of the observations thus made and taking note of
the fact that the Constitution Bench in the said decision took note of the
F decision in Rajesh and Ors. v. Rajbir Singh and Ors. 3 of a three
Judge Bench holding that towards ‘funeral expenses’ and ‘loss of
consortium’ and ‘loss of care and guidance’ for minor children
Rs. 25,000/-, Rupees One lakh and Rupees One lakh each, are to be
granted and held the decision in Rajesh’s case (supra) as not a binding
precedent the matter requires further consideration. In Pranay Sethi’s
G case (supra), the Constitution Bench further held that towards ‘loss of
consortium’ and ‘funeral expenses’ compensation only at the rate of Rs.
40,000/- and Rs. 15,000/- respectively is grantable. So also, it was
specifically held therein that the head ‘loss of care and guidance’ for
minor children did not exist as a head of compensation. As per the
3
H (2013) 9 SCC 54
RAJ BALA & ORS. v. RAKEJA BEGAM & ORS. 1039
[C. T. RAVIKUMAR, J.]

impugned judgment of the High Court, in place of Rs. 5,000/- granted by A
the Tribunal towards ‘loss of consortium’, an amount of Rupees One
lakh was granted. Under the head ‘loss of love and affection’, which
again falls under the general head ‘loss of care and guidance’ of minor
children the Tribunal did not grant any amount. However, the High Court
has granted Rupees One lakh each, to the minor Appellants 2 & 3
B
under the head ‘loss of love affection’. In the contextual situation
obtained in view of Pranay Sethi’s case (supra) it is only appropriate to
refer to the decision of this Court in M.A. Murthy v. State of Karnataka
and Ors.4 It was held therein that normally the decision of the Supreme
Court enunciating a principle of law is applicable to all cases irrespective
of the stage of pendency thereof, because it should be assumed that C
what is enunciated by the Supreme Court is, in fact, the law from
inception.
17. In the instant case compensation towards ‘loss of consortium’
Rupees One lakh was awarded by the High Court besides granting an
amount of Rs. 2 lakhs (Rupees one lakh each to the minor children) D
under the head of ‘loss of love and affection’. We are of the considered
view that in the light of the binding decision of the Constitution Bench,
which is already relied on by us to grant benefits in favour of the
Appellants, we are bound to interfere with the grant of excess amount in
respect of the compensation under the head ‘loss of consortium’ and the
grant of compensation under the non-existing head of ‘love and affection’. E

18. We have already noted that towards ‘loss of consortium’ an
amount of Rs. 5,000/- was granted by the Tribunal. Hence, in the light of
the decision in Pranay Sethi’s case (supra) over and above the said
amount, the Appellants are entitled only to get an additional compensation
of Rs. 35,000/-. In other words, an amount of Rs. 65,000/- granted in F
excess under the said head and that has to be deducted.
19. While considering the question of interference with the
compensation granted by the High Court under the head of ‘love and
affection’ it is only appropriate to refer to a two Judge-Bench decision
of this Court in Jana Bhai and Ors. v. ICICI Lombard General Ins. G
Co. Ltd.5 Evidently, the two Judge Bench took note of the fact that the
Constitution Bench in Pranay Sethi’s case (supra), has recognized only
three conventional heads where compensation are awardable viz., ‘loss
4
(2003) 7 SCC 517
5
2022 ACJ 203 H
1040 SUPREME COURT REPORTS [2022] 14 S.C.R.

A of estate’, ‘loss of consortium’ and the ‘funeral expenses’. Then, the
two Judge-Bench referred to the decision of this Court in Magma
General Ins. Co. Ltd. v. Nanu Ram 6, which, in turn, had virtually
followed by three Judge Bench of this Court in United Ins. Co. Ltd. v.
Satinder Kaur7. It was held therein that as held in Magma’s case (supra)
though compensation under the head of ‘love and affection’ is
B
impermissible compensation for ‘loss of spousal consortium to wife and
‘loss of parental consortium to children’ are admissible.
20. After having held thus, it was further held in Jana Bhai’s
case (supra) that the amount to be awarded for ‘loss of parental
consortium’ should be in uniformity with the amount fixed by the
C Constitution Bench in Pranay Sethi’s case (supra). In other words, the
amount payable under the said head ‘parental consortium’ shall not
exceed Rs. 40,000/- qua a single child. In the said circumstances, the
amount of Rupees One lakh each granted by the High Court to Appellants
2 & 3 under the head ‘love and affection’ require to be deducted and at
D the same time, Rs. 40,000/- each, out of it can be granted, rather, adjusted
against ‘parental consortium’ grantable to the minor children. Thus, an
amount of Rs. 80,000/- has to be adjusted and can be granted to the
minor children viz., Appellants No. 2 & 3 and the balance amount of
Rs.1,20,000/- has to be deducted.
21. In the light of the aforesaid findings and conclusions the
E compensation on account of the death of Shri Sudesh Kumar is re-
assessed as under: -

F
rd

G

6
2018 ACJ 2782
H 7
2020 ACJ 2131
RAJ BALA & ORS. v. RAKEJA BEGAM & ORS. 1041
[C. T. RAVIKUMAR, J.]

A

B

compensation
granted by the Tribunal and the High C
of to
Court and after deducting the excess
compensation granted by the High Rs. 10,29,260/-
Court and effecting consequential
adjustment towards other grantable
heads.

22. As a result, this Appeal is allowed in part as follows: - D
(I) The Appellants are entitled to an enhanced amount of
compensation of Rs.10,29,260/-.
(II) The enhanced amount shall be paid by the 4th Respondent
within a period of 8 weeks from today and in case of failure,
the enhanced amount will carry interest at the rate of 6% per E
annum from the date of filing of this appeal till the date of
realisation.
23. There will be no order as to costs. Pending application (s), if
any, shall stand disposed of.
F

Devika Gujral Appeal partly allowed.
(Assisted by : Shevali Monga, LCRA)

G

H