Parminder Singh vs. Honey Goyal

REPORTABLE


2025 INSC 361
IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION


CIVIL APPEAL NO………………….OF 2025
(Arising out of S.L.P. (C) No. 4484 OF 2020)


PARMINDER SINGH … Appellant(s)

VERSUS

HONEY GOYAL AND OTHERS … Respondent(s)



J U D G M E N T


Rajesh Bindal, J.

1. Leave granted.
1 2
2. Aggrieved by the order passed by the High Court in
3
appeal , the claimant is before this Court seeking enhancement of
compensation.
Signature Not Verified
Digitally signed by
ASHA SUNDRIYAL
Date: 2025.03.18
17:09:51 IST
Reason:

1
Dated 04.09.2019
2
High Court of Punjab and Haryana at Chandigarh
3
FAO No.3726 of 2017
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3. The brief facts are that the appellant met with an accident
on 03.06.2014 when he was hit by a car bearing registration No. PB-03-
X-0169 coming from the opposite direction. The appellant was driving
his motorcycle. A criminal case was registered against the driver of
the car. The appellant having suffered grievous injuries, resulting in
4
his disability filed claim petition . The age of the appellant at the time
of the accident was 21 years. He was aiming to become veterinary
doctor and pursuing his studies for that. The injuries suffered by him
5
resulted in quadriplegia . As a consequence of which he was declared
100% disabled as per the medical certificate issued by the Orthopedic
Surgeon, Civil Hospital, Bathinda. He had incurred medical expenses
of ₹ 2,66,000/- on his treatment. A lump sum amount of ₹ 2,00,000/- was
awarded to the appellant on account of his 100% disability. The
6
Tribunal in a very conservative estimate assessed the compensation
payable to the appellant at ₹ 5,16,000/-.
4. Aggrieved against the Award of the Tribunal, the appellant
preferred appeal before the High Court. The compensation was
enhanced from ₹ 5,16,000/- to ₹ 15,25,600/-. The High Court has taken
the income of the appellant as ₹ 5,600/- per month to assess the loss of

4
MACT File No.84 of 2014
5
Paralysis of all four limbs (according to Oxford English Dictionary)
6
Motor Accident Claims Tribunal, Bathinda
Page 2 of 18


income and applied the multiplier of 18. Under the head ‘Loss of
Income’, the High Court assessed the compensation as ₹ 12,09,600/- as
against ₹ 2,00,000/- awarded by the Tribunal and this was the only
modification by the High Court in the Award of the Tribunal. Still
dissatisfied, the appellant is before this Court.
5. Learned counsel for the appellant submitted that it is a case
in which as a result of an unfortunate accident the appellant had
suffered quadriplegia resulting in 100% disability. The income of the
appellant has been assessed on the lower side. He was aiming to
become a veterinary doctor for which he was pursuing his studies. He
was a State Level player in Volleyball and had also undergone various
other courses. The appellant was a young person of 21 years at the
time of the accident. Now he will have to spend his entire life with 100%
disability as a result of which he has to take special diet and also to
engage an attendant to look after him. The High Court had failed to
grant future prospects under the head ‘Loss of Income’.
6. On the other hand, learned counsel for respondent
no.3/United India Insurance Co. Ltd. submitted that already reasonable
amount of compensation has been awarded by the High Court. No
doubt the appellant had suffered disability but there is no ground made
out for further enhancement of compensation. In the absence of any
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proof of income, the High Court has already assessed the income of the
appellant at ₹ 5,600/- per month. There is no scope for further
enhancement.
7. Heard learned counsel for the parties and perused the
relevant referred record.
8. In the case in hand, basic undisputed facts on record are
that the appellant was a young boy of 21 years of age at the time of the
accident and having suffered quadriplegia the same resulted in his
100% permanent disability. In the affidavit filed in his examination-in-
chief, the appellant stated that he was learning the work for the
Veterinary Doctor at Village Romana Ajit Singh, District Bathinda. He
nd
participated in 52 International District School Games as a Volleyball
player in October, 2006 when he was under 17 years of age. He had
completed his course of pig farming from Punjab Agricultural
University. In our opinion, as the appellant had suffered 100%
permanent disability he will have to live his entire life with that
condition. As a result, he will require constant support of an attendant
and a special diet.
9. In our considered view, the income of the appellant has
been taken on the lower side, which deserves to be enhanced.
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Considering the aforesaid credentials of the appellant who was a good
sportsman and had certain technical qualification to his credit, in our
opinion, taking his income merely at ₹ 5,600/- per month will not be
appropriate. This was even less than the minimum wage for unskilled
worker, which at that time was ₹ 6,447.75 per month w.e.f. 01.03.2014.
For semi-skilled worker monthly minimum wage was ₹ 7,227.75 per
month. Hence, we assess the income of the appellant as ₹ 7,500/- per
month.
10. The High Court had rightly applied the multiplier of 18 but
failed to grant future prospects under the head ‘Loss of Income’, which
in the case of the appellant should be 40%. Hence, income after taking
into account future prospects would be ₹ 10,500/- per month
( ₹ 7,500x1.4). The appellant being 100% disabled also deserves to be
granted expense towards attendant, which in the case at hand has to
be assessed as ₹ 5,00,000/- in lumpsum and compensation towards
special diet is required to be enhanced from ₹ 25,000/- to ₹ 1,00,000/-.
Considering the significant impact of the disability on the life of
appellant, in our view, the amount towards pain and suffering is also
required to be enhanced from ₹ 15,000/- to ₹ 1,00,000/-. In addition,
looking to his condition, ₹ 2,00,000/- is awarded for future medical
expenses and ₹ 2,00,000/- for loss of marriage prospects.
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11. As far as the claim of the appellant regarding expenses
incurred by him on physiotherapy is concerned, he has produced the
receipts from one Dr. Satnam Saggu, who in his cross-examination was
not able to support the receipts issued by him by way of counterfoils or
the account books maintained by him. The Tribunal as well as the High
Court has not awarded the appellant any compensation on that count.
Though reliance on those receipts could not be placed in absence of
clinching evidence but we can take judicial notice of the fact that
physiotherapy would be required, therefore we deem it appropriate to
award him lumpsum amount of ₹ 50,000/- on that count. Hence, the
compensation awarded to the appellant is assessed in the following
terms:

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12. For the reasons mentioned above, the appeal is allowed.
The appellant is held entitled to receive total compensation of
₹ 36,84,000/-. The impugned award of the High Court is modified to that
extent. The amount so awarded shall carry interest at the same rate, at
which it was awarded by the High Court on the enhanced
compensation.
13. The respondent No.3/Insurance Company was held liable
to pay the compensation as there was a valid insurance policy. The
enhanced amount of compensation be calculated and transferred in the
bank account of the appellant by the respondent No.3/Insurance
Company within a period of six weeks from today. The particulars of
the bank account along with the requisite document(s) in support
thereof shall be furnished by the appellant with the respondent
No.3/Insurance Company within a period of two weeks from the date
of order. Needful shall be done by the respondent No.3/Insurance
Company after verification of the same within four weeks thereafter
along with up-to-date interest.
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14. Before parting with the order we wish to express our
concern regarding mode of payment of compensation in motor
accident cases. The process can be streamlined by directly
transferring the amount in the bank accounts of the claimants, so that
the Insurance Companies and the claimants are saved from hassles of
the court processes.
14.1 As per the information available on the website of the
Ministry of Road, Transport and Highways (Transport Research Wing),
Government of India, the number of accidents during 2018 to 2022 with
fatalities and persons injured are as follows:

With the figures of the aforesaid accidents, insofar as the
number of persons who died and injured is concerned, the claim
petitions filed before the Tribunals are corresponding. The figures of
filing of claim petitions and disposal thereof is neck to neck.
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14.2 As per response to an R.T.I. enquiry from Insurance
Regulatory Development Authority of India, towards the end of 2022-
23 there were 10,46,163 claim cases pending throughout the country
before the Tribunals (Source : Website of Press Trust of India). The
number of cases increased from 9,09,166 towards the end of 2019-20.
Meaning thereby that there was an increase of 1,36,997 cases in a span
of three years. This is besides the fact that large number of cases are
regularly filed and decided.
14.3 It is a matter of common knowledge that large number of
motor accident cases are settled in Lok Adalats at the stage of Tribunal
and some percentage at the appeal level. In the Lok Adalat recently
held in the Supreme Court some matters were disposed of.
14.4 As per the practice now followed, the cases in which
Insurance Companies are held liable to indemnify the insured and pay
compensation to the claimant(s), the amount is calculated and the same
is either deposited by these companies in the Tribunal or in some small
percentage of cases, transferred in the accounts of the claimants, if
directed by the Tribunal in the award. Some of the companies are
quick in depositing the compensation whereas some take time. In
some cases, there may be intimation to the claimants regarding the
deposit of the amount with the Tribunal, whereas in some there is no
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notice. The fact remains that these are the awards, which are not
challenged.
14.5 After the amount of compensation is deposited before the
Tribunal, when the claimant(s) come to know about the same, they
need to move an application for withdrawal of the same. Certainly,
such an application will take some time in processing as the amount,
which was deposited in the treasury has to be withdrawn from there.
On an average the entire process takes about 15-20 days. Besides this,
there may be delay in filing such application due to lack of knowledge
of deposit. This process is besides the expenses to be incurred by the
claimant(s). It is also a matter of common knowledge that with the
increase in income level, the amount of compensation awarded by the
Tribunal runs into lakhs of rupees and in some cases crores. The
aforesaid process will certainly result in loss of interest to the
claimant(s) for those 15-20 days and more in some cases, where the
claimants had no knowledge about deposit of amount. The process of
aforesaid disbursement by the Tribunal has its own risks of error or
omission, especially considering the huge amount involved therein.
Still there may be cases where the amount may remain with the
Tribunal because of lack of knowledge to the claimant and/ or non-
withdrawal thereof.
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14.6 Apparently, no uniform practice is followed regarding
deposit of the amount before the Tribunal, namely whether the amount
will remain in government treasury or will be transferred in bank to be
kept in interest bearing fixed deposit so that claimants do not suffer on
account of interest for any delay in disbursement after deposit in
Tribunal.
15. This is an era of technology, where now artificial
intelligence is taking over. For conducting any bank transactions
earlier we had to visit the bank branch in person and that too within the
banking hours. Now all transactions can be affected 24x7, either sitting
in the office or at home or even on mobile, while on the move.
Practically the bank is in your mobile. Even cheques deposited in the
banks for local clearance used to take couple of days. The outstation
cheques took weeks together. Now, debits and credits in the accounts
are instant with the help of technology.
15.1 Our country has done wonders in digital payment
transactions. As per the website of Ministry of Finance, Government of
India, starting in the F.Y. 2013-14 from 220 crores, the transactions have
increased to 18,592 crores in the F.Y. 2023-24. The value of the
₹ ₹
transaction has grown from 952 lakh crores to 3,658 lakh crores.
Unified Payment Interface (UPI) is an indigenous developed digital
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payment system, which is easy to operate on a mobile. The UPI
transactions have grown from 92 crores in the F.Y. 2017-18 to 13,116
7
crores in the F.Y. 2023-24 at CAGR of 129%. The UPI transactions are
likely to cross 20,000 crores in the F.Y. 2024-25. It is a matter of
common knowledge that now under various schemes of the
Government, funds are transferred to the beneficiaries directly in their
bank accounts. As per the rough estimate, about 80% of the adult
population in the country have bank accounts.
16. A lot of matters come to the Court in which the amount is
required to be paid to the litigants. Normal practice used to be, and
still prevalent is to deposit the amount in court and thereafter to be
withdrawn by the litigant. This process is not only followed in the cases
where huge amount is involved but it is also seen prevalent even in the
cases of payment of a small amount of maintenance to the wife, when
fixed by the court either under Section 125 Cr.P.C. or under Section 12
of the Domestic Violence Act, 2005 or any other statute. Withdrawal of
the amount deposited in the court by any litigant certainly needs time
and also expenses.

7
Cumulative Annual Growth Rate
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16.1 This Court in the case of Haryana State Industrial
8
Development Corporation v. Pran Sukh and others while
considering a matter pertaining to payment of enhanced amount of
compensation to the landowners, directed for transfering the same in
their bank accounts. Relevant paras thereof are extracted below:
“With a view to ensure that the land owners are not fleeced
by the middleman, we deem it proper to issue following
further directions:

(i) The Land Acquisition Collector shall depute
officers subordinate to him not below the rank of
Naib Tehsildar, who shall get in touch with all the
land owners and/or their legal representatives and
inform them about heir entitlement and right to
receive enhanced compensation.
(ii) The concerned officers shall also instruct the land
owners and/or their legal representatives to open
saving bank account in case they already do not
have such account.
(iii) The bank account numbers of the land owners
should be given to the land Acquisition Collector
within three months.
(iv) The Land Acquisition Collector shall deposit the
cheques of compensation in the bank accounts of
the land owners.”

8
(2010) 11 SCC 175.
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16.2 Referring to the aforesaid judgement of this Court
considering the fact that even at the stage of acquisition of land,
compensation is required to be paid to the landowners, High Court of
Punjab & Haryana in the case of Haryana State Industrial &
Infrastructure Development Corporation Ltd. V. Smt. Krishna Rani
9
& another directed that even that amount should also be transferred
in their bank accounts directly. Normal practice, which is followed in
that process is that the compensation amount is deposited in the
government treasury and the process of withdrawal is followed by the
land owners. The relevant paras of that judgment are extracted below:
“Taking lead from the aforesaid directions issued by
Hon'ble the Supreme Court and finding that harassment of the
land owners is not only at the stage when enhanced amount of
compensation is to be paid, rather, it is even at the stage when
the award by the Collector is announced as for the payment of
compensation, the land owners are to run after the Patwaris or
the officials in the office of the Collector.
xxx xxx xxx
…….. The land owners can be asked to furnish the
details of their bank accounts in response to the notices issued
to them under Section 9 of the Act and in all undisputed claims,
the amount should directly be transferred by the Collector in

9
R.F.A. No.1492 of 2008 dated 08.04.2011
Page 14 of 18


the bank accounts of the land owners immediately after
announcement of the award. This will not only save
harassment of the land owners but also time and energy of the
officials of the office of the Collector.
The aforesaid system should not only be restricted to
the State of Haryana, rather, the same system should be
followed even in the State of Punjab and Union Territory,
Chandigarh, where also the Collector at the time of issuance
of notices under Section 9 of the Act should ask the land
owners to furnish the details of their bank account particulars
and the Collector shall be duty-bound to directly transfer the
amount of compensation in their bank accounts in all the
undisputed cases.”
17. The case in hand pertains to the compensation awarded
under the Motor Vehicles Act. The general practice followed by the
insurance companies, where the compensation is not disputed, is to
deposit the same before the Tribunal. Instead of following that process,
a direction can always be issued to transfer the amount into the bank
account(s) of the claimant(s) with intimation to the Tribunal.
17.1 For that purpose, the Tribunals at the initial stage of
pleadings or at the stage of leading evidence may require the
claimant(s) to furnish their bank account particulars to the Tribunal
along with the requisite proof, so that at the stage of passing of the
award the Tribunal may direct that the amount of compensation be
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transferred in the account of the claimant and if there are more than
one then in their respective accounts. If there is no bank account, then
they should be required to open the bank account either individually
or jointly with family members only. It should also be mandated that,
in case there is any change in the bank account particulars of the
claimant(s) during the pendency of the claim petition they should
update the same before the Tribunal. This should be ensured before
passing of the final award. It may be ensured that the bank account
should be in the name of the claimant(s) and if minor, through
guardian(s) and in no case it should be a joint account with any person,
who is not a family member. The transfer of the amount in the bank
account, particulars of which have been furnished by the claimant(s),
as mentioned in the award, shall be treated as satisfaction of the award.
Intimation of compliance should be furnished to the Tribunal.
18. In some cases, where the compensation is awarded to
minor claimant(s) or otherwise, the Tribunal directs for keeping a
certain percentage of the amount in a fixed deposit. Such a direction
can always be issued in the award itself to be complied with by the
concerned bank. When the amount is transferred by the Insurance
Company in the account of the claimant(s), it shall be the responsibility
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of the bank to ensure that specified portion thereof is kept in the fixed
deposit. Compliance is to be reported by the bank(s) to the Tribunal.
19. It is also a fact that substantial amount of compensation in
motor accident cases remains deposited in the Tribunal as the
claimant(s) may not have approached the Tribunal for release thereof
for various reasons. Delay for any reason in release of compensation
in motor accident cases by the Tribunal to the claimant(s), where the
amount is deposited in Tribunal, as directed, results in loss of interest
to the claimant(s). In case the aforesaid process is followed, the gap
would be bridged. The real object of the beneficial legislation, namely
to compensate for the loss of earning member of the family or for the
injuries suffered by the claimant(s), will be achieved and
compensation can be disbursed without any delay.
20. We may add that directions are being issued for bank
transfer of the amount of compensation in motor accident cases, but the
Courts/Tribunals can always follow this process in any matter,
whenever any amount is to be paid by one party to another, however,
ensuring proper compliance.
21. The Registry is directed to send a copy of this order to (1)
the Registrars General of all the High Courts for placing the same
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before the Chief Justice of the High Court for further circulation and
compliance by the concerned Tribunals/Courts; and (2) the Directors
of the National Judicial Academy and the State Judicial Academies.
22. Pending interlocutory applications (if any) shall stand
disposed of.

……………….……………..J.
(J.K. MAHESHWARI)



……………….……………..J.
(RAJESH BINDAL)
New Delhi
March 18, 2025.
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