Uttar Pradesh State Road Transport Corporation vs Seema Rustagi

$~14
* IN THE HIGH COURT OF DELHI AT NEW DELHI
th
% Date of decision: 13 May, 2026


+ MAC.APP. 923/2014 & CM APPL. 16955/2014

UTTAR PRADESH STATE ROAD TRANSPORT
CORPORATION .....Appellant
Through: Mr. Shadab Khan, Advocate.

versus

SEEMA RUSTAGI .....Respondent
Through: Mr. Manu Bansal and Mr. Sandeep
Chhabra, Advocates.

CORAM:
HON'BLE MR. JUSTICE ANISH DAYAL
JUDGMENT

ANISH DAYAL, J (ORAL)
th

1. This appeal has been filed assailing impugned award dated 8 August
2014 passed by Motor Accidents Claims Tribunal [‘ MACT/Tribunal ’], East
District, Karkardooma Courts, in MACP No. 377/2013 whereby,
compensation of Rs. 49,95,000 alongwith interest at 9% per annum, has been
awarded to the respondent/claimant in respect of an accident which occurred
rd
on 23 July 2013.
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2. On 23 July 2013, a DD No. 52B regarding a road accident which
occurred near the Municipal Corporation of Delhi (‘ MCD ’) toll tax, Gazipur
was received at Police Station Gazipur, where a girl (hereinafter, ‘ deceased ’)
was found lying in a serious condition and was ‘ brought dead’ when she was
Signature Not Verified
Digitally Signed By:RAHUL
KUMAR CHOUDHARY
Signing Date:15.05.2026
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taken to the hospital, as per MLC No. 9565 of 2013. It was found that an
Uttar Pradesh (‘ UP ’) Roadways bus bearing registration UP-84T-2042
(hereinafter, ‘ offending vehicle/bus ’) was standing stationery near the spot
and a scooter was stuck under the front axle of the bus on the left side.
3. Mr. Shadab Khan , counsel appearing on behalf of Insurance
Company, has taken an objection to liability being fastened on the appellant/
Uttar Pradesh State Road Transport Corporation (‘ Corporation ’), which was
the owner and operator of the bus, basis the testimony of driver, Ram
Rakshpal , who deposed as R1W1 and stated that the scooter rider had come
from behind at high speed in a rash and negligent manner and hit the bus.
4. In cross examination R1W1 denied that the scooter was found beneath
the front left tyre of the bus and that he had stopped the bus after a distance
of about 100 metres from the place of accident. He admitted that he had left
the bus at the place of accident immediately after the accident took place and
did not inform the police authority.
5. These statements made by R1W1 are seriously belied upon a perusal
of the site plan which is extracted as under for reference:
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6. As per the site plan, Mark A was the place where the deceased was
found in an unconscious position, whereas, Mark B was the spot where the
bus was standing and Mark C was the place where the scooter was found
stuck under the front left tyre. The site plan also notes that the distance
between Mark A and Mark B was about 100 metres. It is noticed in the site
plan that the MCD toll tax was half way in between Mark A , Mark B and
Mark C .
7. It would be quite improbable to accept, as credible, the testimony
given by R1W1 , that the scooter after hitting the bus from behind resulted in
a situation, where the scooter was stuck under the front left side of the axle
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of the bus and the rider was lying unconscious 100 metres behind from where
the bus was finally found. It seems quite clear that the bus collided into the
scooter, the deceased victim’s body was left at that spot, and the scooter got
entangled under the bus which dragged it along the way through the MCD
toll tax till much further.
8. The assertion made by R1W1 that he had moved to the left towards
the MCD toll tax and the scooter rider came from behind and crashed into
the bus is further belied by the location of the deceased at Mark A , which
was approximately 50 metres behind the MCD toll tax, while the bus was
found to be standing about 50 metres ahead of the toll tax.
9. Moreover, FIR and charge sheet which form a part of the criminal
proceedings initiated against driver of the bus and appellant/Corporation has
not been challenged.
10. In these circumstances, assessment of MACT is not amiss and the plea
taken by appellant/Corporation is, therefore, rejected.
11. Aside from the above, Mr. Shadab Khan , counsel for
appellant/Corporation, has raised an issue on the quantum of compensation
on two counts. Firstly , notional income of deceased has been taken at Rs.
30,000/- who was a graduate of School of Planning and Architecture (‘ SPA’ )
in Delhi and was expected to get a reasonable job. In this regard, in order to
establish a notional benchmark income, claimant/respondent had placed on
record evidence of PW-2 , PW-3 and PW-4 who were the batchmates of
deceased and were studying with her in SPA, having completed their course
in 2013. All three witnesses provided pay slips where they had been placed
and were drawing an average salary of around Rs. 35,000/- per month.
12. This aspect has been fully assessed by the MACT and notional
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income of Rs. 30,000/- has been accorded as potential income for the purpose
of calculating dependency. Calculation of potential income of a
student/graduate who is about to get into the job market has been endorsed
by various decisions of the Supreme Court and this Court, inter alia Navjot
Singh v. Harpreet Singh , 2020 SCC OnLine SC 1562 where the monthly
income of injured claimant, who was a student pursuing Engineering and
suffered amputation of his right leg was assessed. Assessing his monthly
income at Rs. 10,000/-, the Supreme Court noted as under:
“ 12. Admittedly, the appellant was 21 years of age at the time
of the accident and he was pursuing a Degree course in Food
Technology from Sant Longowal Institute of Engineering and
Technology. Though the Tribunal did not believe the claim
made by the appellant that he was earning Rs. 10,000/- per
month even as a student by taking tuitions, and though the
High Court also did not go by the said claim, the High Court
arrived at the notional income of the appellant at Rs. 5,000/-
per month, on the ground that the minimum wages admissible
to an unskilled worker was Rs. 5,000/- per month.
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 at least 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 at least
at Rs. 10,000/- per month”
(emphasis added)

13. This view has further been endorsed by the Supreme Court in S.
Mohammed Hakkim v. National Insurance Co. Ltd. (2025) 10 SCC 263
where the Court noted that the claimant was a third-year engineering student
who had a bright future ahead. Placing reliance upon Navjot Singh ( supra ),
the Supreme Court observed as under:
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“ 11. In the above case, this Court was dealing with a case of
an accident that occurred in the year 2013. Although
considering the facts of that case, this Court had taken the
income of the claimant therein as Rs 10,000 per month, it was
noted that students, like the appellant in the present case,
would be at least earning the minimum of Rs 20,000 per
month. Thus, in our opinion, it would be in the interest of
justice if the notional income of the appellant were taken as
Rs 20,000…”
(emphasis added)

14. This Court in United India Insurance Co. Ltd. v. Rajneesh Singh ,
2023 SCC OnLine Del 7682 was dealing with a challenge filed by the
Insurance Company on the assessment of monthly income of Rs. 25,000/-
for injured/claimant, who was a B.Com graduate and had also been
appearing for final year examinations of Chartered Accountancy (CA). What
was pressed was that the process of becoming a Chartered Accountant is
arduous and only 8.26% of candidates are estimated to pass through the final
examinations. It was pleaded that assessment ought to have been done on the
basis of minimum wages prevalent at that time. Rejecting the contentions of
the Insurance Company, this Court upheld the view taken by the Tribunal.
Observations in this regard are extracted as under:
“ 14. In these facts and circumstance, this Court is of the view
that the possibility of him not clearing the Chartered
Accountancy Examination may not be so acutely relevant to
reduce his income assessment from Rs. 25,000/- (as assessed
by the Ld. MACT) to minimum wages prescribed at Rs.
9,282/- (as asserted by the appellant). It is evident from the
facts on record that not only was respondent No. 1, a B.Com.
Graduate but also had been successful in clearing his two
groups of papers for the CA Exam and most importantly had
already completed three years of Articleship. This coupled
with the fact that he was possibly providing tuition to students
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of class 12 for Accountancy and Mathematics (even though
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there was no documentary proof) would show that he was a
serious contender and not involved in the pursuit of CA as a
pastime or with a half-hearted approach. He was clearly a
serious student and even assuming against him that he was
not giving tuitions to earn livelihood, reasonable assessment
even in 2012 would be that he was a 24-year-old graduate, in
the hope of acquiring a professional degree and had
substantially travelled ahead on that path. Because an
accident occurred just before the final examinations of CA,
cannot reduce him to a minimum wages category. The
Hon'ble Supreme Court in Chandra alias Chanda alias
Chandraram (supra) held as under:
“In absence of salary certificate the minimum wage
notification can be a yardstick but at the same time
cannot be an absolute one to fix the income of the
deceased. In absence of documentary evidence on
record some amount of guesswork is required to be
done. But at the same time the guesswork for assessing
the income of the deceased should not be totally
detached from reality. Merely because the claimants
were unable to produce documentary evidence to show
the monthly income of Shivpal, same does not justify
adoption of lowest tier of minimum wage while
computing the income.”
(emphasis added)

15. Reliance may also be placed upon the decision of this Court in Raj
Bala and Another v. Sumit Dahiya & Ors. 2018 SCC OnLine Del 12086
where the deceased was a final year B.Tech student at Maharshi Dayanand
University, Rohtak. This Court calculated his earning capacity at Rs.
26,000/- per month, having regard to the fact that he had received a
placement offer of Rs. 3,20,000/- p.a. Reliance was placed upon a catena of
judgments with respect to the earning capacity of a student pursuing a
professional carrier. Relevant observations of the Court are extracted as
under:
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KUMAR CHOUDHARY
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“7. The law with respect to the earning capacity of a student
pursuing a professional course is well-settled that the Claims
Tribunal has to assess the earning capacity of the deceased
considering the nature of the professional course being
pursued by the deceased and the prospects of his income after
completing the course. The relevant judgments on this
principle are as under:

7.1. In Oriental Insurance Company Ltd. v. Deo Patodi,
(2009) 13 SCC 123, the accident dated 12th June, 2003
resulted in the death of a 22 year old brilliant student
who had completed Business Administration Course
and had a job offer from a US based company at the time
of the accident. The Claims Tribunal took his earning
capacity as Rs. 18,000/- per month. The Supreme Court
enhanced the earning capacity of the deceased from Rs.
18,000/- per month to Rs. 25,000/- per month.

7.2. In New India Assurance Company Limited v. Ganga
Devi, the accident dated 12th August, 2003 resulted in
the death of an MBBS graduate who was doing
internship and was getting a stipend of Rs. 5,000/- per
month. The Claims Tribunal took minimum wages of Rs.
3,543/- per month in respect of a graduate. This Court
rejected the principle of minimum wages applied by the
Claims Tribunal and took the earning capacity of the
deceased as Rs. 18,000/- per month and added 50%
towards future prospects. This Court enhanced the
compensation from Rs. 9,60,352/- to Rs. 21,36,000/-.
…
7.6. In United India Insurance Company
Limited v. Anita, 2017 SCC OnLine Del 11152, the
th
accident dated 16 June, 2009 resulted in the death of a
21 year old student of B.Tech. (Mechanical and
Automation Engineering). The Claims Tribunal
awarded Rs. 34,65,689/- by taking the earning capacity
of the deceased as Rs. 26,815/- per month and 50%
future prospects thereon, which was challenged by the
insurance company. This Court upheld the award of the
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KUMAR CHOUDHARY
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Claims Tribunal and dismissed the appeal…”
(emphasis added)

16. Therefore, the Court does not find anything amiss in Rs. 30,000/-
being taken as the benchmark income, which the deceased would have, at
the minimum, been potentially earning at the time of the accident.
17 . Secondly , the Tribunal has awarded 50% towards future prospects
which has been added to the monthly income. Mr. Shadab Khan , counsel for
appellant/Corporation, states that as per principles enunciated in National
Insurance Co. Ltd. v. Pranay Sethi , (2017) 16 SCC 680, future prospects
ought to have been taken as 40%, considering that the deceased was 22 years
of age on the date of accident.
18. The Supreme Court in Pranay Sethi ( supra ) has stated that 50%
towards future prospects can only be granted to assess the income of a
deceased, if they were employed in a permanent job. However, what needs
to be considered in this case is that, firstly , notional income was calculated
at a conservative figure of Rs. 30,000/-, rather than the average of Rs.
35,000/- which was being earned by the batchmates of deceased, as noted in
the impugned award; secondly , the deceased was 22 years of age on the date
of accident and considering that the deceased would have had a long
prospective career ahead of her, having graduated from one of the most
premier institutions in the country for architecture i.e. SPA, Delhi. Therefore,
it would be quite justified to assess the benchmark income along with an
increase of 50% towards future prospects as a special case.
19. This assessment is based on the essential principle that the Courts have
to award just and reasonable compensation. Both, the benchmark income
and future prospects are prospective in nature and have to be made on an
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KUMAR CHOUDHARY
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assessment of the facts and circumstances. Accordingly, the amount awarded
towards loss of dependency shall be sustained.
20. The Constitutional Bench of the Supreme Court in Pranay Sethi
( supra ) emphasised that “ just compensation ” under Section 168 of the Motor
Vehicle Act, 1988 must rest on fairness, reasonableness and equity, avoiding
both windfall gains and inadequate awards. The assessment must be
grounded in proven age and income, followed by application of the
appropriate multiplier as standardised in Sarla Verma v. DTC , (2009) 6 SCC
121 and affirmed in Reshma Kumari v. Madan Mohan , (2013) 9 SCC 65.
The Court stressed pragmatic and uniform computation, including future
prospects, to ensure proximity to real loss. Relevant paragraph is extracted
as under:
“55. 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
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 cannot expect a windfall. Simultaneously, the
compensation granted cannot be an apology for
compensation. It cannot be a pittance. Though the discretion
vested in the tribunal is quite wide, yet it is obligatory on the
part of the tribunal to be guided by the expression, that is,
“just compensation”. The determination has to be on the
foundation of evidence brought on record as regards the age
and income of the deceased and thereafter the apposite
multiplier to be applied. The formula relating to multiplier
has been clearly stated in Sarla Verma [Sarla Verma v. DTC,
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KUMAR CHOUDHARY
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(2009) 6 SCC 121 : (2009) 2 SCC (Civ) 770 : (2009) 2 SCC
(Cri) 1002] and it has been approved in Reshma Kumari
[Reshma Kumari v. Madan Mohan, (2013) 9 SCC 65 : (2013)
4 SCC (Civ) 191 : (2013) 3 SCC (Cri) 826] . The age and
income, as stated earlier, have to be established by adducing
evidence. The tribunal and the courts have to bear in mind
that the basic principle lies in pragmatic computation which
is in proximity to reality. It is a well-accepted norm that
money cannot substitute a life lost but an effort has to be
made for grant of just compensation having uniformity of
approach. There has to be a balance between the two
extremes, that is, a windfall and the pittance, a bonanza and
the modicum. In such an adjudication, the duty of the tribunal
and the courts is difficult and hence, an endeavour has been
made by this Court for standardisation which in its ambit
includes addition of future prospects on the proven income at
present. As far as future prospects are concerned, there has
been standardisation keeping in view the principle of
certainty, stability and consistency. We approve the principle
of “standardisation” so that a specific and certain
multiplicand is determined for applying the multiplier on the
basis of age.”
(emphasis added)

21. In Sarla Verma ( supra ), the Supreme Court underscored that “ just
compensation ” must be fair, equitable and consistent, and cannot vary
arbitrarily merely because different tribunals perceive different amounts as
just. It emphasised that compensation must be objectively assessed, guided
by uniform principles to avoid unpredictability and disparity. The Court
reiterated that similar facts must yield awards within a consistent range.
Relevant paragraphs are extracted as under:
“16. Compensation awarded does not become “just
compensation” merely because the Tribunal considers it to
be just. For example, if on the same or similar facts (say the
deceased aged 40 years having annual income of Rs 45,000
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leaving his surviving wife and child), one Tribunal awards Rs
10,00,000 another awards Rs 5,00,000, and yet another
awards Rs 1,00,000, all believing that the amount is just, it
cannot be said that what is awarded in the first case and the
last case is just compensation. “Just compensation” is
adequate compensation which is fair and equitable, on the
facts and circumstances of the case, to make good the loss
suffered as a result of the wrong, as far as money can do so,
by applying the well-settled principles relating to award of
compensation. It is not intended to be a bonanza, largesse or
source of profit.
17. Assessment of compensation though involving certain
hypothetical considerations, should nevertheless be
objective. Justice and justness emanate from equality in
treatment, consistency and thoroughness in adjudication, and
fairness and uniformity in the decision-making process and
the decisions. While it may not be possible to have
mathematical precision or identical awards in assessing
compensation, same or similar facts should lead to awards in
the same range. When the factors/inputs are the same, and
the formula/legal principles are the same, consistency and
uniformity, and not divergence and freakiness, should be the
result of adjudication to arrive at just compensation. In
Susamma Thomas [(1994) 2 SCC 176 : 1994 SCC (Cri) 335] ,
this Court stated: (SCC p. 185, para 16)
“16. … The proper method of computation is the
multiplier method. Any departure, except in exceptional
and extraordinary cases, would introduce inconsistency
of principle, lack of uniformity and an element of
unpredictability, for the assessment of compensation.”
(emphasis added)

22 . Loss of love and affection has been awarded at Rs. 1,00,000/- which
shall not be sustainable in view of the decision of Supreme Court in United
India Insurance Co. v. Satinder Kaur (2021) 11 SCC 780 and has been
subsumed under the head of loss of consortium which will be awarded at Rs.
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KUMAR CHOUDHARY
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40,000/-. Funeral expenses will be awarded at Rs. 15,000/-, loss of estate
will be awarded at Rs. 15,000/- in view of the alignment made in Pranay
Sethi ( supra ).
23. Therefore, revised compensation will be computed as under:
S.
No.
Heads Awarded by the
Tribunal
Awarded by this
Court
1 Income of deceased (A) Rs. 30,000/- Rs. 30,000/-
2 Add: Future Prospects (B) Rs. 15,000/- Rs. 15,000/-
3 Less: Personal expenses of
deceased (C)
Rs. 22,500/- Rs. 22,500/-
4 Loss of dependency (A+B)-C=D Rs. 22,500/- Rs. 22,500/-
5 Annual loss of dependency
(Dx12) = (E)
Rs. 2,70,000/- Rs. 2,70,000/-
6 Multiplier (F) 18 18
7 Total loss of dependency (E x
F)= (G)
Rs. 48,60,000/- Rs. 48,60,000/-
8 Compensation for loss of
consortium (H)
Nil Rs. 40,000/-
9 Compensation for loss of love
and affection (I)
Rs. 1,00,000/- Nil
10 Compensation for loss of estate
(J)
Rs. 10,000/- Rs. 15,000/-
11 Compensation towards funeral
expenses (K)
Rs. 25,000/- Rs. 15,000/-
12 Total compensation
(G+H+I+J=K)= L
Rs. 49,95,000/- Rs. 49,30,000/-
13 Rate of Interest Awarded 9% 9%

Conclusion
24. In view of the above computation, the compensation payable to
respondent/claimant has been reduced by Rs. 65,000/- as awarded by the
MACT.
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KUMAR CHOUDHARY
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th
25. By order dated 14 October 2014, this Court had directed the
appellant/Corporation to deposit the entire compensation amount before the
Registrar General of this Court and 50% amount was to be released as per
the directions of the impugned award. The balance amount was kept in a
fixed deposit with UCO Bank, Delhi High Court Branch for one year with
provision of renewal.
26. Accordingly, on the basis of the revised compensation, the balance
amount, along with the accrued interest, be released to the
respondent/claimant as lumpsum after liquidating the fixed deposit receipts
(‘ FDRs ’). Additionally, the excess amount, if any, deposited shall be
refunded, with accrued interest along with the statutory deposit to the
appellant/ Corporation by the Registrar General.
27. In view of above, the appeal stands disposed of.
28. Pending applications, if any, stand disposed of.
29. Judgment be uploaded on the website of this Court.


(ANISH DAYAL)
JUDGE
MAY 13, 2026/ab/ sp





Signature Not Verified
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