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Supreme Court of India

SHIV KUMAR & ORSversusGAINDA LAL & ORS.

Citation
2022 INSC 1130
Decided
21 October 2022
Disposal
Appeal(s) allowed

Holding

The Court held that loss of dependency must be calculated on a notional income of at least Rs 7,500 per month with 40% added for future prospects, foetus compensation is Rs 1 lakh each, and loss of consortium is Rs 40,000 each, leading to a total award of Rs 32,82,000.

Summary

The Supreme Court heard an appeal by the original claimants seeking enhancement of compensation awarded under the Motor Vehicles Act, 1988 for the death of a 25‑year‑old housewife who was also engaged in tuition work and was pregnant at the time of a vehicular accident. The Motor Accident Claim Tribunal had awarded Rs 19,12,200, basing loss of dependency on a notional monthly income of Rs 1,500 and a foetus compensation of Rs 50,000. The High Court increased the award to Rs 29,34,000, using a notional income of Rs 6,000 per month but failed to consider future prospects. The Supreme Court held that the appropriate notional income for the deceased should be at least Rs 7,500 per month and that 40% of that income must be added for future prospects; it also increased the foetus compensation to Rs 1 lakh each and awarded Rs 40,000 each for loss of consortium/love and affection. Consequently, the total compensation was modified to Rs 32,82,000 with interest at 7.5% per annum. The appeal was allowed and the High Court order was modified.

Issues considered

  • Whether the notional monthly income of a housewife should be Rs 6,000 or higher for loss of dependency under the Motor Vehicles Act, 1988.
  • Whether future prospects should be factored into the loss of dependency calculation and at what percentage.
  • Whether the compensation for loss of a foetus should be Rs 50,000 or Rs 1 lakh.
  • Whether loss of consortium/love and affection is payable and, if so, the appropriate quantum.

Legislation cited

Subjects

Motor Vehicles Actcompensationloss of dependencyfuture prospectsnotional incomeloss of foetusloss of consortiumhousewifeSupreme Court

Judgment

1042                     [2022] REPORTS
                SUPREME COURT   14 S.C.R. 1042              [2022] 14 S.C.R.


 A                           SHIV KUMAR & ORS.
                                         v.
                             GAINDA LAL & ORS.
                          (Civil Appeal No. 7629 of 2022)
 B                             OCTOBER 21, 2022
                 [M. R. SHAH AND M. M. SUNDRESH, JJ.]
              Motor Vehicles Act, 1988: Fatal accident – Compensation –
       Enhancement of – Death of housewife aged 25 years in a vehicular
       accident – Award of compensation of Rs. 19,12,200/- with interest
 C
       under different heads by the tribunal, enhanced to Rs.29,34,000/-
       with interest at the rate of 7.5 per cent by the High Court – On
       appeal, held: Deceased was a housewife aged 25 years and was
       taking tuition, the High Court ought to have considered her income
       at least Rs 7,500/- – High Court did not consider the future aspect
 D     and while considering the loss of dependency 40% of the income is
       to be added towards future prospects – Thus, claimants entitled to
       Rs 1 lakh instead of Rs. 50,000 for loss of foetus, Rs.40,000/- each
       towards loss of consortium or loss of love and affection – Claimant
       entitled to compensation at Rs.32,82,000/- with interest at the rate
       of 7.5 % per annum – Order passed by the High Court modified.
 E
             CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7629
       of 2022.
             From the Judgment and Orders dated 07.03.2019 of the High
       Court of Punjab and Haryana at Chandigarh in FAO No. 854 of 2014.
 F          Vikas Kumar, Manish Paliwal, Ms. Megha Yadav, Ms. Himanshi
       Kaushik, M/s Corporate Legal Partners, Advs. for the Appellants.
             Vishnu Mehra, Ms. Sakshi Mittal, Advs. for the Respondents.
             The Judgment of the Court was delivered by
 G           M. 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 No.854 of 2014, the original
       claimants have preferred the present appeal to enhance the amount of
 H     compensation.
                                        1042
         SHIV KUMAR & ORS. v. GAINDA LAL & ORS.                               1043
                    [M. R. SHAH, J.]

       2. That the wife of the appellant no.1 died in a vehicular accident.   A
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
                                                                              B
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:


                                                                              C




                                                                              D




                                                                              E




      2.1 In an appeal at the instance of the original claimants, by the      F
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
                                                                              G
         Future Prospect                  -                   -


       Loss of Dependency                              Rs.12,96,000/-
  (Annual Income after adjusting
  deductions and future prospects   Rs.3,24,000/-
           *Multiplier)                                                       H
1044            SUPREME COURT REPORTS                          [2022] 14 S.C.R.


 A




 B




 C

             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.

 D            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
 E     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 towards loss of consortium or loss
 F     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
 G     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
 H     respective parties and considering the fact that at the relevant time the
             SHIV KUMAR & ORS. v. GAINDA LAL & ORS.                            1045
                        [M. R. SHAH, J.]

deceased was a housewife aged 25 years only and there was contribution         A
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 High Court has also not considered the future prospects. As per the
settled position of law while considering the loss of dependency 40% of
                                                                               B
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    C
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        D
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 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.           E
However, in the facts and circumstances of the case there shall be no
order as to costs.


Nidhi Jain                                                   Appeal allowed.
                                                                               F




                                                                               G




                                                                               H


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