IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I. FAO-1916-1993 Dalip Singh and Another . . . . Appellants Vs. Girdawari . . . . Respondent II. FAO-1550-1994 Girdawari . . . . Appellant Vs. Dalip Singh and Others . . . . Respondents III. FAO-592-1995 Jagdish . . . . Appellant Vs. Dalip Singh and Others . . . . Respondents **** Reserved on: 22.04.2026 Pronounced on: 27.04.2026 Pronounced fully/opera6ve part: Fully **** CORAM: HON’BLE MR JUSTICE DEEPAK GUPTA Argued by:- Mr. Santosh K. Maurya, Advocate for Mr. Ravi Kamal Gupta, Advocate for the appellants- driver and owner in FAO-1916-1993. Mr. Deepinder Singh Walia, Advocate for the appellants- claimants in FAO Nos.1550 of 1994 and 592 of 1995. Respondent- Insurance Company already ex parte. **** DEEPAK GUPTA, J. The present batch of three appeals arises out of a common award dated 04.11.1993 passed by the learned Motor Accident Claims Tribunal, Hisar, whereby three claim pe33ons filed under Sec3on 166 of the Motor Vehicles Act NEETIKA TUTEJA 2026.04.27 16:28 I attest to the accuracy and integrity of this document FAO-1916-1993 FAO-1550-1994 FAO-592-1995 were decided together. Two of the appeals have been preferred by the claimants seeking enhancement of compensa3on, whereas the third appeal has been filed by the driver and owner of the offending vehicle assailing the fasten- ing of liability upon them. 2. The factual posi3on emerging from the record is that on 02.10.1991 at about 01:30 PM, Balwant (since deceased), Naraini and Jagdish were travelling in Tata Cantor bearing registra3on No. HR-22-2557, which was being driven by respondent No.1 in a rash and negligent manner. Due to sudden applica3on of brakes, the vehicle turned turtle, resul3ng in injuries to all the occupants. Balwant succumbed to the injuries on 15.10.1991. The claim pe33on on account of his death was filed by his widow and son, whereas separate pe33ons were filed by the injured claimants. 3. The learned Tribunal, upon apprecia3on of the evidence, returned a categorical finding that the accident had occurred on account of rash and negligent driving of the offending vehicle. The said finding has remained unchallenged in substance, par3cularly as the appeal filed by the driver and owner has not been pursued. 4. Even otherwise, this Court, upon reappraisal of the material on record, finds no perversity in the said finding, which is based upon proper apprecia3on of evidence and thus calls for no interference. 5. The principal ques3on which arises for considera3on is with regard to the adequacy of compensa3on awarded to the claimants on account of death of Balwant. The Tribunal assessed the income of the deceased at ₹1,000/- per month. Though it has been contended that the deceased was earning ₹2,000/- per month as an agriculturist, no cogent evidence has been produced to substan3ate the same. Keeping in view the fact that the accident pertains to the year 1991 and the prevailing minimum wages at that 3me, the assessment of income at ₹1,000/- per month is maintained. The annual income, therefore, comes to ₹12,000/-. Page 2 of 5 NEETIKA TUTEJA 2026.04.27 16:28 I attest to the accuracy and integrity of this document FAO-1916-1993 FAO-1550-1994 FAO-592-1995 6. However, the Tribunal has erred in not making any addi3on towards future prospects. In view of the law laid down in Naonal Insurance Company Limited v. Pranay Sethi and ors. (2017) 16 SCC 680, an addi3on of 25% towards future prospects is warranted, considering that the deceased was 48 years of age. The annual income thus stands enhanced to ₹15,000/-. 7. Since there were two dependents, deduc3on of one-third towards personal expenses is appropriate. The annual loss of dependency, therefore, comes to ₹10,000/-. The Tribunal has applied an incorrect mul3plier. As per the judgment of the Hon’ble Supreme Court in Sarla Verma and ors. v. Delhi Transport Corporaon and anr. (2009) 6 SCC 121, the appropriate mul3plier for a person aged 48 years is 13. Accordingly, the total loss of dependency is assessed at ₹1,30,000/-. 8. The Tribunal has further failed to award just compensa3on under conven3onal heads. In view of the law laid down in Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram and ors. 2018 (18) SCC 130, the claimants are en3tled to consor3um. However, bearing in mind that the accident occurred as far back as October 1991, the claimants are held en3tled to compensa3on under the conven3onal heads as well. Accordingly, a sum of ₹15,000/- each is awarded towards spousal and parental consor3um to the two claimants. Further, a sum of ₹7,500/- each is awarded under the heads of funeral expenses and loss of estate. On such re-computa3on, the total compensa3on is determined at ₹1,75,000/-. 9. It has also come on record that an amount of ₹18,000/- was spent on treatment of the deceased prior to his death. The said amount deserves to be reimbursed. 10. Thus, the total compensa3on payable to the claimants is re- computed as under:
Loss of dependency : ₹1,30,000/-
Consor3um : ₹30,000/- NEETIKA TUTEJA 2026.04.27 16:28 I attest to the accuracy and integrity of this document FAO-1916-1993 FAO-1550-1994 FAO-592-1995
Funeral expenses : ₹7,500/-
Loss of estate : ₹7,500/-
Medical expenses : ₹18,000/-
Total : ₹1,93,000/- 11. AHer deduc3ng the amount of ₹1,05,000/- already awarded by the Tribunal, the enhanced compensa3on works out to ₹88,000/-. 12. The claimants shall be en3tled to the enhanced amount along with interest at the rate of 7.5% per annum from the date of filing of the claim pe33on 3ll realiza3on. The amount shall be shared equally between the claimants. 13. Coming to the appeal filed by the injured Jagdish, this Court finds that the compensa3on awarded by the Tribunal is wholly inadequate. Though there is no clear evidence of grievous injury or permanent disability, the nature of injuries, as reflected in the medico-legal report, clearly indicates that the claimant would have suffered pain and incurred some expenditure on treatment. 13. In the absence of precise documentary evidence, a reasonable assessment is required to be made. Accordingly, a sum of ₹10,000/- is awarded towards pain and suffering and ₹5,000/- towards medical expenses, making a total of ₹15,000/-. AHer deduc3ng ₹500/- already awarded by the Tribunal, the enhanced compensa3on comes to ₹14,500/-, payable along with interest at the rate of 7.5% per annum from the date of filing of the claim pe33on 3ll realiza3on. 14. As regards the issue of liability, the Tribunal has exonerated the insurance company on the ground that the claimants were travelling in a goods vehicle in viola3on of the policy condi3ons. However, the legal posi3on in this regard is now well seKled. In Sunita and ors. v. United India Insurance Company Ltd. and ors., 2025 SCC Online SC 1464, the Hon’ble Supreme Court has reiterated that even in cases of breach of policy condi3ons, the insurance company is liable to first sa3sfy the award and thereaHer recover the amount NEETIKA TUTEJA 2026.04.27 16:28 I attest to the accuracy and integrity of this document FAO-1916-1993 FAO-1550-1994 FAO-592-1995 from the owner of the vehicle. Similar view has been taken in Anu Bhanvara etc. v. IFFCO Tokio General Insurance Co. Ltd. and ors. (2020) 20 SCC 632, and Pu5appa and ors. v. Rama Naik and anr. 2018 SCC Online SC 3496. 15. In view of the aforesaid seKled legal posi3on, it is held that the insurance company shall pay the en3re compensa3on amount, including the enhanced compensa3on awarded by this Court, to the claimants in the first instance and shall thereaHer be en3tled to recover the same from the owner of the offending vehicle. 16. Consequently, the appeal filed by the claimants on account of death of Balwant (FAO No.1550 of 1994) is partly allowed to the extent indicated above, the appeal filed by the injured Jagdish (FAO No.592 of 1995) is allowed, and the appeal filed by the driver & owner (FAO No.1916 of 1993) is dismissed for non-prosecu3on. All the appeals stand disposed of accordingly. (DEEPAK GUPTA) JUDGE 27.04.2026 Nee ka Tuteja Whether speaking/reasoned? Yes/No Whether reportable? Yes/No Uploaded on.: 27.04.2026 NEETIKA TUTEJA 2026.04.27 16:28 I attest to the accuracy and integrity of this document