Safi Mohammad vs Shankar And Ors.

FAO-2886 of 2022 :1:
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
FAO-2886 of 2022 (O&M)
RESERVED ON:15.10.2026
PRONOUNCED ON:31.10.2026
UPLOADED ON: 31.10.2026
SAFI MOHAMMAD
...... Appellant
VERSUS
SHANKAR AND OTHERS ...... Respondents
CORAM : HON'BLE MR. JUSTICE DEEPINDER SINGH NALWA
*
Present :- Mr. Wazir Singh, Advocate
for the appellant.
Mr. Puneet Sharma, Advocate
for respondent No.3.
*
Deepinder Singh Nalwa, J.
1. The present appeal has been filed by the appellant-claimant
against the award dated 01.12.2021 passed by the Motor Accident Claims
Tribunal, Panipat (hereinafter referred to as 'the Tribunal'), seeking
enhancement of the compensation.
2. The brief facts of the case are that on 29.01.2019, Rukhsar,
along with her husband, Safi Mohammad, had gone to Sector-25, Panipat,
for collecting scrap, as they were scrap collectors by profession. Rukhsar
started searching for something valuable in garbage at Transport Nagar,
Panipat while, her husband went near a drain in search of scrap. After
sometime, Safi Mohammad realized that his wife, Rukhsar, was not there.
He started searching for her and reached near Fire Brigade, Transport Nagar,
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FAO-2886 of 2022 :2:
where he came to know that Rukhsar had met with an accident with a Truck
bearing registration No.HR-67-B-1102 (hereinafter referred to as 'the
offending vehicle') and had been taken to Government Hospital, Panipat. It
transpires that Rukhsar succumbed to the injuries sustained in the accident
on 29.01.2019. An FIR was registered on 29.01.2019 against the driver of
the offending vehicle.
3. On account of the death of Rukhsar (since deceased), her
husband, Safi Mohammad, filed a claim petition seeking compensation on
the ground that his wife Rukhsar (since deceased) died in an accident
caused by rash and negligent driving of the driver of the offending vehicle
on 29.01.2019. Notice was issued to the respondents i.e. driver, owner and
the Insurance Company. Respondents No.1 and 2, i.e. the driver and owner
of the offending vehicle, filed a joint written statement stating therein that
they had been falsely involved in the present case and that neither they nor
their vehicle was involved in the accident. It was also their case that as the
vehicle was insured with the respondent No.3-Insurance Company, the
Insurance Company is liable to pay the compensation if granted by the
Tribunal. The respondent No.3-Insurance Company also filed its written
statement contending that the driver of the offending vehicle did not possess
a valid and effective driving licence to drive the offending vehicle and that
the driver and owner of the offending vehicle had violated the terms and
conditions of the insurance policy, as such, the Insurance Company was not
liable to pay any compensation.
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4. The Tribunal decided the claim petition in favour of the
claimant, Safi Mohammad, vide award dated 01.12.2021 and awarded
compensation of an amount of Rs.9,34,000/-, along with the interest @ 6%
per annum from the date of the filing of the claim petition till its actual
realization. A perusal of the award dated 01.12.2021 passed by the Tribunal
would show that out of the total compensation to be paid to the claimant,
50% was to be paid in cash and the remaining 50% was to remain deposited
in an FDR for a period of 03 years. The respondent-Insurance Company was
held liable to pay the compensation amount. Being dissatisfied with the
amount of compensation awarded by the Tribunal, the claimant, Safi
Mohammad, husband of deceased, Rukhsar, has filed the present appeal
seeking enhancement of compensation.
5. Learned counsel appearing on behalf of appellant-claimant
submits that a perusal of the impugned award would show that no addition
to the actual income of the deceased has been made while computing future
prospects. Learned counsel submits that it is well settled law that while
granting compensation an addition has to be made to the actual income
under the head of future prospects. Reliance is made to the judgment passed
by Hon'ble the Supreme Court of India in National Insurance Company
Limited Vs. Pranay Sethi and others, 2017 INSC 1068. Learned counsel
further submits that the Tribunal has applied a deduction of one-half (1/2)
towards the personal and living expenses. He submits that, taking into
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consideration the facts of the case, a deduction of 1/3 should be applied
towards personal and living expenses. Reliance is placed to the judgment
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passed by the Co-ordinate Bench in FAO-3236 of 2007 decided on
17.08.2023 titled as Daya @ Dayawanti Vs. Arjun and others . Learned
counsel lastly submits that the compensation awarded by the Tribunal under
the conventional heads are on the lower side.
6. Learned counsel appearing on behalf of respondent No.3-
Insurance Company on the other hand submits that no addition can be made
to the actual income while computing future prospects taking into
consideration the facts of the case. Learned counsel further submits that
deduction of one-half towards the personal and living expenses as applied by
the Tribunal is in accordance with law. Reliance is made to the judgment
passed by Hon'ble the Supreme Court of India in the case titled as Sarla
Verma and others Vs. Delhi Transport Corporation and another., 2009 (3)
R.C.R. (Civil) 77. Learned counsel lastly submits that adequate
compensation has been awarded under the conventional heads. On the
strength of the above said contentions, learned counsel submits that the
present appeal is liable to be dismissed.
7. I have heard learned counsel for the parties and have gone
through the case file with their able assistance.
8. In regard to the contention raised by learned counsel appearing
on behalf of the appellant-claimant that addition has to be made to the
actual income while computing future prospects is concerned, it is well
settled law that addition has to be made to the actual income while
computing future prospects. Reliance is placed to the judgment passed by
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Hon'ble the Supreme Court of India in Pranay Sethi' case (supra). Relevant
extract of the judgment is reproduced hereunder:-
61. In view of the aforesaid analysis, we proceed to record
our conclusions:-
“(i) The two-Judge Bench in Santosh Devi should have been well
advised to refer the matter to a larger Bench as it was taking a
different view than what has been stated in Sarla Verma, a
judgment by a coordinate Bench. It is because a coordinate Bench
of the same strength cannot take a contrary view than what has
been held by another coordinate Bench.
(ii) As Rajesh has not taken note of the decision in Reshma
Kumari, which was delivered at earlier point of time, the decision
in Rajesh is not a binding precedent.
(iii) 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. The addition should be 30%, if the age
of the deceased was between 40 to 50 years. In case the deceased
was between the age of 50 to 60 years, the addition should be 15%.
Actual salary should be read as actual salary less tax.
(iv) In case the deceased was self-employed or on a fixed salary, an
addition of 40% of the established income should be the warrant
where the deceased was below the age of 40 years. An addition of
25% where the deceased was between the age of 40 to 50 years
and 10% where the deceased was between the age of 50 to 60
years should be regarded as the necessary method of computation.
The established income means the income minus the tax
component.”
9. In regard to the contention raised by learned counsel appearing
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on behalf of the appellant that a deduction of 1/3 should be applied for
personal and living expenses instead of one half is concerned, a perusal of
the judgment passed by Hon'ble the Supreme Court of India in Sarla
Verma's case (supra), would show that if a deceased was married with a
family of 2-3 persons, then the deduction towards personal and living
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FAO-2886 of 2022 :6:
expenses of a deceased should be 1/3rd. However, the judgment of Sarla
Verma's case (supra) is silent on how the deduction towards personal and
living expenses is to be applied in a case where the deceased was married
and the number of dependents is less than 2-3 persons.
10. Similar issue came up for consideration before the Co-ordinate
Bench of this Court in FAO-3411 of 2019 tilted as 'The New India
Assurance Company Ltd. Vs. Ramesh Kanta Sharma and another , decided
on 24.02.2020. In the above said case, the Insurance Company had
challenged the award of the Tribunal on the ground that in case of a
deceased who was married and had only one dependent, the Tribunal had
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wrongly applied a deduction of 1/3 for personal and living expenses while
calculating the loss of dependency of the claimant. The above said appeal
was dismissed by the Co-ordinate Bench of this Court after considering
Sarla Verma's case (supra) and it was held that a married person and who
was a dependent cannot be equated with a bachelor for the purpose of
determining the deduction towards personal and living expenses. The
relevant extract is reproduced below for reference:-
“2. The only point which has been raised in the present appeal is
that the Tribunal had erred in applying deduction of 1/3rd towards
personal expenses of the deceased. Learned counsel appearing on behalf
of the appellant-Insurance Company has submitted that in the present case
there was only one claimant, i.e., the wife of the deceased, who was stated
to be 73 years of age at the time of the accident. It was contended that in
view of the law laid down in Smt. Sarla Verma and others vs. Delhi
Transport Corporation and another, 2009(6) Supreme Court Cases 121,
since the claimants were less than two, therefore, half of the income of the
deceased ought to have been deducted for personal expenses while
assessing the dependency of the claimant.
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3. Per contra, the learned counsel for the claimantrespondent No.1
has submitted that there was no error in the award passed by the Tribunal
and that the Tribunal had rightly applied 1/3rd deduction while
calculating the dependency of the claimant.
4. Both the learned counsel, in support of their respective
arguments, have relied upon the case of Smt. Sarla Verma and others
(supra). In the said case of Smt. Sarla Verma and others, the Hon’ble Apex
Court, while dealing with the question of deduction for personal and living
expenses, has held in para Nos.14 and 15 as under:-
“14. Though in some cases the deduction to be
made towards personal and living expenses is calculated on the
basis of units indicated in Trilok Chandra [(1996) 4 SCC 362], the
general practice is to apply standardised deductions. Having
considered several subsequent decisions of this Court, we are of
the view that where the deceased was married, the deduction
towards personal and living expenses of the deceased, should be
one-third (1/3rd) where the number of dependent family members
is 2 to 3, one-fourth (1/4th) where the number of dependent family
members is 4 to 6, and one-fifth (1/5th) where the number of
dependent family members exceeds six. 15. Where the deceased
was a bachelor and the claimants are the parents, the deduction
follows a different principle. In regard to bachelors, normally, 50%
is deducted as personal and living expenses, because it is assumed
that a bachelor would tend to spend more on himself. Even
otherwise, there is also the possibility of his getting married in a
short time, in which event the contribution to the parent(s) and
siblings is likely to be cut drastically. Further, subject to evidence
to the contrary, the father is likely to have his own income and will
not be considered as a dependant and the mother alone will be
considered as a dependant. In the absence of evidence to the
contrary, brothers and sisters will not be considered as
dependants, because they will either be independent and earning,
or married, or be dependent on the father.”
A perusal of the above-reproduced relevant extract
from the judgment in the case of Smt. Sarla Verma and others
(supra) clearly reveals that the law has been settled by the Hon’ble
Apex Court that where the deceased was married and the number
of dependent family members is 2 to 3, 1/3 rd deduction is to be
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FAO-2886 of 2022 :8:
applied. In para 15 of the judgment in Smt. Sarla Verma and others
(supra), it has been held that where the deceased is unmarried
50% is to be deducted as personal and living expenses and the
reasoning for the same was that a bachelor would tend to spend
more on himself.
6. Applying the said analogy, this Court is of the considered
opinion that even where the claimant is one and the deceased was
married, 1/3rd deduction would be applied. Being a married man, he
would be contributing more to the household than a bachelor. There
cannot be a straight-jacket formula and a lot would depend on the facts
and circumstances of the case. In the present case, the wife, who is the
claimant, is 73 years of age, it cannot be presumed that the deceased
would be spending half of his income on himself. A married man cannot be
equated with a bachelor.
7. It is trite that the Motor Vehicles Act is a beneficial piece of
legislation enacted to give solace to the victims of motor vehicles
accidents who die untimely or suffer bodily injury. Though in a death case
no amount of compensation can compensate for the loss of a parent,
spouse, child or sibling, as the case may be, the Court is duty-bound to
award a just compensation.”
11. Reliance is also placed upon the judgment passed by the Co-
ordinate Bench of this Court in Daya @ Dayawanti's case (supra). In the
said case, although the claimant was a widow and was only dependent of the
deceased husband, this Court held that deduction towards personal and
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living expenses to an extent 1/3 was to be applied instead of 1/2. In light of
the judgments referred above and taking into consideration the facts of the
present case, deduction towards personal and living expenses in the case of
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Rukhsar (since deceased) has to be applied to an extent of 1/3 instead of
1/2 while assessing the loss of dependency of the appellant-claimant.
12. In regard to the last contention raised by learned counsel
appearing on behalf of the appellant-claimant that the compensation awarded
under the conventional heads are on a lower side is concerned, a perusal of
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the facts of the case would show that the accident took place on 29.01.2019.
Taking into consideration the date of accident and law laid down by Hon'ble
the Supreme Court of India in Pranay Sethi and others' case (supra),
adequate compensation has been granted by the Tribunal under the
conventional heads.
13. Taking into consideration the abovesaid facts and the
judgments referred above, the appellant-claimant is held entitled to
enhanced compensation reassessed as hereunder-
Assessment
Date of Accident:- 29.01.2019
Age of deceased:- 22 years
Income assessed:- as per minimum wages fixed by Government for
the year 2019
Claimant/appellant husband
1. Annual income Rs.96,000/- (Rs.8000/-
per month)
2. Future prospects @ 40% Rs.1,34,400/-
Rs.96,000/- (+) Rs.38,400/-
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3. Deduction (1/3 ) Rs.89,600/-
Rs.1,34,400/- (-) Rs.44,800/-
4. Multiplier 18
5. Loss of dependency Rs.16,12,800/-
Rs.89,600/- x 18
6. Loss of Estate Rs.15,000/-
7. Funeral expenses Rs.15,000/-
8. Loss of Consortium Rs.40,000/-
9. Amount awarded by Tribunal Rs.9,34,000/-
10. Enhanced amount Rs.7,48,800/-
11. Final enhanced compensation Rs.16,82,800/-
14. In view of the above, the award dated 01.12.2021 passed by the
Tribunal is modified to an extent that the appellant-claimant is held entitled
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FAO-2886 of 2022 :10:
to final enhanced compensation of Rs.16,82,800/- alongwith interest @ 6%
per annum (as awarded by the Tribunal) from the date of filing of claim
petition till realization.
15. The respondent No.3-Insurance company is directed to deposit
the above referred final enhanced compensation amounting of
Rs.16,82,800/- alongwith interest, with the Tribunal within a period of 2
months from the date of passing of this judgment.
16. The Tribunal is further directed to disburse the above referred
final enhanced compensation alongwith interest in the account of appellant-
claimant. The appellant-claimant is directed to furnish his bank account
details to the Tribunal.
17. In view of the above, the present appeal is allowed in above
said terms.
18. Pending application(s), if any, shall also stand(s) disposed of
accordingly.
(DEEPINDER SINGH NALWA)
JUDGE
31.10.2026
Rimpal
Whether speaking/reasoned Yes/No
Whether Reportable : Yes/No
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