New India Assurance Company Ltd. vs Manpreet Kaur & Ors

FAO-5622-2014 and FAO-6101-2014 :1:
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
FAO-5622-2014 (O&M)
RESERVED ON:30.10.2026
PRONOUNCED ON:05.11.2026
UPLOADED ON: 05.11.2026
NEW INDIA ASSURANCE COMPANY LIMITED
... Appellant
VERSUS
MANPREET KAUR AND OTHERS
.... Respondents
FAO-6101-2014 (O&M)
MANPREET KAUR AND OTHERS
... Appellants
VERSUS
SURMUKH SINGH AND OTHERS

....Respondents
HON'BLE MR. JUSTICE
CORAM: DEEPINDER SINGH NALWA
Present: Mr. Jaideep Verma, Advocate
for the appellant in FAO-6101-2014 and
for respondents No.1 to 5 in FAO-5622-2014.
Mr. Abhinav Narang, Advocate
for the Insurance Company.
*
Deepinder Singh Nalwa, J.
1. Both the appeals, as noticed above, are being decided together
by way of this common judgment, as in both the appeals, the award dated
26.04.2014 passed by the Motor Accident Claims Tribunal, Ropar
(hereinafter referred to as 'the Tribunal') is under challenge. FAO-5622-2014
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FAO-5622-2014 and FAO-6101-2014 :2:
has been filed by the Insurance Company for setting aside the award dated
26.04.2014 passed by the Tribunal, whereas FAO-6101-2014 has been filed
by the claimants seeking enhancement of compensation.
2. Brief facts of the case are that on 05.10.2013, Satnam Singh and
Jasdeep Singh were going towards Chamkaur Sahib from their village
Raiyan on their motor cycle bearing registration No.PB-49-A-0621. Satnam
Singh was driving the motorcycle and Jasdeep Singh was pillion rider.
Satnam Singh was driving the motor cycle on slow speed on correct side of
the road by following all the traffic rules and taking all the precautionary
measures. At about 12:30 pm, when they reached near International School,
Chamkaur Sahib, an Indica car bearing registration No.HP-12-B-0052
(hereinafter referred to as the 'offending vehicle'), being driven by Surmukh
Singh, driver of the offending vehicle at a high speed, in a rash and negligent
manner came from Chamkaur Sahib side and without giving any horn
intentionally turned his car on wrong side and struck the motorcycle of
Satnam Singh. As a result of the accident, Satnam Singh and Jasdeep Singh
fell on the ground along with the motorcycle and received multiple grievous
injuries on their body. Satnam Singh succumbed to his injuries on the spot.
As the accident had taken place due to rash and negligent driving of
Surmukh Singh, driver of the offending vehicle, the widow, children and
parents of deceased-Satnam Singh filed a claim petition under Section 166
of the Motor Vehicles Act, 1988, before the Tribunal for grant of
compensation on account of death of Satnam Singh (since deceased) in a
motor vehicular accident.
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FAO-5622-2014 and FAO-6101-2014 :3:
3. In the abovesaid claim petition, the case of the appellants-
claimants was that Satnam Singh (since deceased) was 25 years of age and
was doing dairy farming and was earning approximately Rs.20,000/- per
month. It was further pleaded that Satnam Singh (since deceased) was also
working as driver of a school bus of one Avtar Singh and was getting a
salary of Rs.15,000/- per month. As per the appellants-claimants, the total
earning of Satnam Singh (since deceased) was around Rs.35,000 per month.
4. Upon notice, respondents No.1 and 2, the driver and owner of
the offending vehicle filed a written statement. It was a case of respondents
No.1 and 2 that the alleged accident never took place. It was averred that the
alleged offending vehicle has been falsely implicated in the case.
Respondent No.3-Insurance Company filed its separate written statement. It
was a case of Insurance Company that the claim petition was not
maintainable. It was averred by the Insurance Company in the written
statement that the driver of the offending vehicle was not having valid and
effective driving licence, fitness certificate and registration certificate at the
time of alleged accident, as such, the Insurance Company was not liable to
pay any compensation and the claim petition filed by the appellants-
claimants was liable to be dismissed.
5. The above said claim petition was decided in favour of the
appellants-claimants vide award dated 26.04.2014 passed by the Tribunal.
As per the abovesaid award dated 26.04.2014 passed by the Tribunal, the
appellants-claimants were held entitled to compensation of an amount of
Rs.12,43,400/- payable by the driver, owner and Insurance Company of the
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FAO-5622-2014 and FAO-6101-2014 :4:
offending vehicle. The appellants-claimants were also held entitled for
interest at the rate of 9% per annum on the awarded amount from the date of
institution of the claim petition till its realization. It was further directed that
the share of the minor appellants-claimants No.2 and 3 was to be deposited
in a nationalized bank in the shape of FDR till they attain the age of
majority.
6. A perusal of the award passed by the Tribunal would further
show that the monthly income of Satnam Singh (since deceased) was
assessed as Rs.6,000/- per month. An addition of 30% was made to the
actual income of the deceased for computing loss of future prospects. An
amount of Rs.5,000/- has been awarded under the heads of loss of
consortium and loss of estate separately and Rs.10,000/- has been awarded
under the head of funeral expenses.
7. Aggrieved against the award dated 26.04.2014 passed by the
Tribunal, the appellants-claimants in FAO-6101-2014 as well as the
Insurance Company in FAO-5622-2014 have preferred the present two
separate appeals.
FAO-5622-2014
8. Learned counsel appearing on behalf of appellant-Insurance
Company submits that a perusal of the facts of the case would show that
initially, the FIR was registered against an unknown vehicle and an unknown
driver. Learned counsel submits that as the FIR was initially registered
against an unknown vehicle and driver, an inference has to be drawn that the
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FAO-5622-2014 and FAO-6101-2014 :5:
vehicle in question was not involved in the alleged accident. As such, the
Insurance Company is not liable to pay any compensation.
9. In regard to the contention raised by the learned counsel
appearing on behalf of the Insurance Company is concerned, it is necessary
to bear in mind that the Motor Vehicles Act, 1988, is a beneficial piece of
social welfare legislation. The legislation intends to provide just and fair
compensation to the victims of motor vehicle accidents. The proceedings
before the Tribunal are based on the standard of pre-ponderance of
probabilities rather than the stringent standard of proof beyond reasonable
doubt applicable to criminal trials.
10. It is well settled law that non-mentioning of the registration
number of a vehicle or the name of the driver in the initial stage of
registration of FIR does not defeat the claim of the claimant. An FIR is
meant to set the criminal machinery in motion and is not required to provide
exhaustive details of the accident.
11. It is not in dispute that the challan has also been filed against
the driver of the offending vehicle. Once the offending vehicle has been
named in the challan and its involvement has been established during the
course of investigation, the involvement of the said vehicle in the accident
stands sufficiently established for the purposes of claim proceedings.
12. Even otherwise also, a perusal of the facts of the case would
show that Sajjan Singh, who appeared as an eye-witness, specifically stated
in his statement (Ex.P-11) that Surmukh Singh, driver of Indica car bearing
registration No.HP-12-B-0052 was driving the car, rashly and negligently,
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FAO-5622-2014 and FAO-6101-2014 :6:
in a zigzag manner and on the wrong side of the road, as a result of which
car struck the motor cycle of Satnam Singh (since deceased). A statement
made before the Tribunal by the eye witness and in the investigation
establishing involvement of offending vehicle and driver is sufficient to
sustain the claim of the claimant in claim proceedings.
13. Taking into consideration the above said facts and the evidence
led by the parties, it can be safely held that the vehicle bearing registration
No.HP-12-B-0052 was involved in the accident for the purpose of the claim
proceedings.
14. In view of above, the contention raised by the learned counsel
appearing on behalf of the appellant-Insurance Company that the offending
vehicle was not involved in the accident is liable to be rejected.
FAO-6101-2014
15. The learned counsel appearing on behalf of the appellants-
claimants submits that a perusal of the award passed by the Tribunal would
show that the Tribunal has taken into consideration the monthly income of
the deceased-Satnam Singh as Rs.6,000/- per month. Learned counsel
submits that the minimum wages fixed by the State at the time of accident
has to be taken into consideration for the purpose of assessing income of the
deceased. Learned counsel submits that at the time of accident, the minimum
wages fixed in the State of Punjab for an unskilled worker/labourer were
Rs.7,500/- per month.
16. Learned counsel further submits that taking into consideration
the age of Satnam Singh (since deceased) as 27 years, at the time of
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FAO-5622-2014 and FAO-6101-2014 :7:
accident, 40% addition has to be made to actual income of deceased for
computing loss of future prospects instead of 30%. Reliance is made to the
judgment passed by the Hon'ble Supreme Court of India in National
Insurance Company Limited Vs. Pranay Sethi and others, 2017 (4) RCR
(Civil) 1009.
17. Learned counsel lastly submits that the amounts awarded under
the heads of loss of consortium, loss of estate and funeral expenses are on
a lower side.
18. In regard to the contention raised by learned counsel appearing
on behalf of appellants-claimants that the income of Satnam Singh (since
deceased) has to be assessed as 7500/- per month instead of Rs.6000/- is
concerned, it is well settled law that when there is no documentary evidence
led by the parties, in regard to income/salary of deceased person, the
minimum wages fixed by the State at the time of accident has to be taken
into consideration for the purpose of assessing income/salary of the
deceased. It is not in dispute that at the time of accident, the minimum wages
fixed by the State of Punjab were Rs.7500/- per month in a case of unskilled
labourer/worker. Reliance is made to the judgment passed by this Court in
FAO No.1619 of 2002, titled as 'Paramjit Kaur and others Vs. Satpal and
others', decided on 08.08.2023 , wherein it was held that where no evidence
regarding income of deceased was adduced by the claimant, then for the
purpose of assessing the amount of compensation payable to the claimants,
minimum wages prevalent in the state at the time of the accident should be
considered to determine the monthly income of the deceased.
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FAO-5622-2014 and FAO-6101-2014 :8:
19. In view of above, it is held that income of Satnam Singh (since
deceased) is assessed as Rs.7500/- per month instead of Rs.6,000/-.
20. In regard to the contention raised by learned counsel appearing
on behalf of appellants-claimants that an addition of 40% has to be made to
the actual income of the deceased for computing loss of future prospects is
concerned, taking into consideration the fact that Satnam Singh (since
deceased) was below the age of 40 years and was self employed, in terms of
the judgment passed by Hon'ble the Supreme Court of India in National
Insurance Company Limited Vs. Pranay Sethi and others, 2017 (4) RCR
(Civil) 1009, an addition of 40% is to be made to the actual income of
Satnam Singh (since deceased) instead of 30%, while computing loss of
future prospects.
21. In regard to the last contention raised by the learned counsel for
appellants-claimants that the amounts paid under the heads of loss of
consortium, funeral expenses and loss of estate are on a lower side is
concerned, it is well settled law that compensation under the conventional
heads are to be assessed as per principles laid down in Pranay Sethi's case
(supra). All the appellants-claimants are entitled for compensation under the
head of loss of consortium. Reliance is made to the judgment passed by
Hon'ble the Supreme Court of India in Magma General Insurance Co.
Ltd. Vs. Nanu Ram @ Chuhru Ram and others, Civil Appeal No.9581
of 2018 (arising out of SLP (Civil) No.3192 of 2018.
22. In view of the facts of the case and the judgments referred
above, all the appellants-claimants are held entitled for compensation of
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FAO-5622-2014 and FAO-6101-2014 :9:
Rs.40,000/- individually under the head of loss of consortium. The
appellants claimants are also held entitled for Rs.15,000/- under the head
of funeral expenses and Rs.15,000/- under the head of loss of estate,
taking into consideration the date of accident of the deceased.
23. Taking into consideration the above said facts and judgments
referred above, appellants-claimants are held entitled to enhanced
compensation re-assessed as hereunder:-
Assessment
Date of Accident 05.10.2013
Age of deceased 27 years
Occupation Minimum wages fixed by Government
Claimants widow, children and parents
1. Monthly Income Rs.7500/-per month
(unskilled worker) (approx)
2. Annual Income Rs.90,000/-
Rs.7500/- X 12
3. Addition for future prospects @ 40% Rs.1,26,000/-
Rs.90,000/- (+) Rs.36000/-
4. Deduction for personal and living
th
expenses (1/4 )
Rs.1,26,000/- (-) Rs.31,500/-
Rs.94,500/-
5. Multiplier 17
6. Loss of Dependency Rs.16,06,500/-
Rs.94,500/- X 17
7. Loss of estate Rs.15,000/-
8. Funeral expenses Rs.15,000/-
9 Loss of consortium Rs.2,00,000/-
Rs.40,000/- X 5
10. Amount awarded by Tribunal Rs.12,43,400/-
11. Enhanced amount Rs.5,93,100/-
12. Final enhanced compensation Rs.18,36,500/-
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FAO-5622-2014 and FAO-6101-2014 :10:
24. In view of the above, the award dated 26.04.2014 passed by the
Tribunal is modified to an extent that appellants-claimants are held entitled
for final enhanced compensation of Rs.18,36,500/- along with interest @ 9%
per annum (as awarded by the Tribunal) from the date of filing of the claim
petition till the date of actual realization. .
25. The respondents No.1 to 3, being driver, owner and Insurance
Company are directed to deposit the final enhanced compensation as
determined above, jointly and severally, along with interest with the Tribunal
within a period of 2 months from the date of passing of this judgment.
26. The Tribunal is further directed to disburse the final enhanced
compensation, along with interest in the accounts of the appellants-claimants
as apportioned by the Tribunal in its award dated 26.04.2014. The
appellants-claimants are directed to furnish the bank accounts details to the
Tribunal. The share of appellants-claimants No.2 and 3 being minors, shall
be deposited in a nationalized bank in the shape of FDR fetching highest
interest till they attain the age of majority.
27. In view of above, the FAO-5622-2014 filed by the Insurance
Company is dismissed whereas FAO-6101-2014 filed by the appellants-
claimants is allowed in the above said terms.
28. Pending application(s), if any, shall also stand(s) disposed of
accordingly.
(DEEPINDER SINGH NALWA)
05.11.2026 JUDGE
Rimpal
Whether speaking/reasoned Yes/No
Whether Reportable : Yes/No
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