IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** FAO-4414-2002 (O&M) Paramjit Kaur and others . . . . Appellants Vs. Gurpreet Singh and others . . . . Respondents **** Reserved on:19.02.2026 Pronounced on: 23.02.2026 Pronounced Fully/Operative Part: Fully **** CORAM: HON’BLE MR JUSTICE DEEPAK GUPTA **** Present: - Mr. Ajaivir Singh and Mr. Gagandeep Singh, Advocates, for the appellants. Mr. Suvir Dewan, Advocate, for respondent No.3. **** DEEPAK GUPTA, J. (ORAL) The present appeal has been preferred by the claimants challenging the award dated 03.10.2001 passed by the learned Motor Accident Claims Tribunal, Jalandhar, limited to the ques-on of adequacy of compensa-on. 2. The facts, in brief, are that Kanwaljit Singh (deceased), originally a resident of Jalandhar, had shi1ed to Germany in the year 1979, where he was engaged in hotel business along with his wife. He had come to India to a6end the marriage ceremony of his brother solemnised on 16.10.1996. On 26.10.1996, while returning from Ludhiana to Jalandhar in Maru- Car No. PB-08J-6465, driven by respondent No.1, the car collided with the rear por-on of a truck, which suddenly took a right turn near Talwandi. The truck driver fled from the spot. The deceased sustained fatal injuries and was declared brought dead at Dayanand Medical College and Hospital, Ludhiana. 3. Alleging negligence of car driver in causing the accident, the claim pe--on was ini-ally filed by the widow, two minor children and the mother of VIVEK PAHWA 2026.02.24 09:17 I agree to specified portions of this document Chandigarh FAO-4414-2002 2026:PHHC:027827 the deceased, seeking compensa-on from driver, owner and insurer of offending car. During pendency, the mother expired and the widow gave birth to another child, who was impleaded as claimant. The claim thus survived at the instance of the widow and three minor children. 4.1 The Tribunal recorded a categorical finding that the accident occurred due to rash and negligent driving of respondent No.1. The said finding has a6ained finality and is not in dispute before this Court. 4.2 The Tribunal assessed the monthly income of the deceased at 4,170 Deutsche Marks (DEM) i.e. 50,040 DEM annually, deducted 1/3rd towards tax liability, and 1/3rd towards personal expenses, applied mul-plier 15, and awarded compensa-on of 2,50,200 DEM, which on conversion at ₹20 per DEM resulted in ₹50,04,000/-, without gran-ng compensa-on under conven-onal heads. 5. Submissions : Seeking enhancement, learned counsel for the appellants contends that the Tribunal failed to award future prospects, applied excessive deduc-on towards personal expenses, applied an incorrect mul-plier, and omi6ed conven-onal heads. Reliance is placed upon the principles laid down in Sarla Verma v. Delhi Transport Corporaon, (2009) 6 SCC 121, Naonal Insurance Co. Ltd. v. Pranay Sethi, 2017(4) RCR (Civil) 1009, and Magma General Insurance Co. Ltd. v. Nanu Ram, AIRONLINE 2018 SC 1249. 6. On the other hand, Learned counsel for the insurer, while suppor-ng the Tribunal award, argues that foreign income assessment involves uncertainty regarding taxa-on, business expenditure and currency fluctua-on, and therefore, the Tribunal adopted a reasonable and conserva-ve approach. It is further contended that absence of precise proof of German taxa-on and exchange rate jus-fied higher deduc-ons and a cau-ous mul-plier. However, Ld. Counsel has not disputed the monthly income of the deceased to be 4,170 DEM, i.e., 50,040 DEM per annum. The age of the deceased to be 35 years, at the relevant time, is also not disputed. VIVEK PAHWA 2026.02.24 09:17 I agree to specified portions of this document Chandigarh FAO-4414-2002 2026:PHHC:027827 7. Consideraon by the Court : It is well se6led that compensa-on under the Motor Vehicles Act must be “just, fair and reasonable”, neither conserva-ve nor windfall, as held in Sarla Verma v. Delhi Transport Corporaon (supra), and reaffirmed in Naonal Insurance Co. Ltd. v. Pranay Sethi (supra). 8. The annual income of the deceased at 50,040 DEM is admi6ed by the par-es and requires no interference. Though precise evidence regarding German tax liability has not been produced, both par-es agreed before this Court that deduc-on of 1/3rd towards tax may be adopted. It is also noteworthy that foreign taxa-on depends upon several variables including marital status and statutory deduc-ons. However, in absence of reliable material and in view of the consensus between the par-es, the said deduc-on is retained to avoid specula-ve assessment. 9. A1er deduc-on of 1/3rd, the annual income works out to 33,360 DEM. There being four dependents, deduc-on towards personal and living expenses is liable to be 1/4th in terms of Sarla Verma v. Delhi Transport Corporaon (supra), resul-ng in annual dependency of 25,020 DEM. 10. The deceased was aged 35 years. In view of Naonal Insurance Co. Ltd. v. Pranay Sethi (supra), addi-on of 40% towards future prospects is warranted, raising annual dependency to 35,028 DEM. 11. Applying mul-plier 16 as prescribed in Sarla Verma v. Delhi Transport Corporaon (supra), total loss of dependency comes to 5,60,440 DEM. 12. Foreign income conversion : In cases involving foreign income, courts have consistently held that reasonable conversion based on available material and party consensus is permissible so as to achieve just compensa-on, as emphasised in Lata Wadhwa v. State of Bihar 2001 (5) SCALE 286 and United India Insurance Co. Ltd. v. Patricia Jean Mahajan, (2003) 3 SCC 148, wherein assessment of overseas earnings was undertaken on pragma-c rather than pedan-c considera-ons. VIVEK PAHWA 2026.02.24 09:17 I agree to specified portions of this document Chandigarh FAO-4414-2002 2026:PHHC:027827 13. In the present case, though no documentary exchange rate has been produced, both par-es have accepted the rate of ₹20 per DEM, which was also adopted by the Tribunal. The said rate appears reasonable and is accordingly affirmed. 14. As such, the loss of dependency works out to ₹1,12,08,800/-. 15. Convenonal heads : Considering the accident occurred in 1996, a sum of ₹20,000/- each is awarded towards spousal and parental consor-um to the four claimants (₹80,000/-in total) in view of Magma General Insurance Co. Ltd. v. Nanu Ram (supra). A further sum of ₹10,000/- collec-vely (₹5,000/- each) is awarded towards loss of estate and funeral expenses. 16. The total compensa-on payable to the claimants is thus assessed at ₹1,12,98,800/-. 17. A1er deduc-ng the amount already awarded by the Tribunal, the claimants are en-tled to enhanced compensa-on of ₹62,94,800/-, payable jointly and severally by the respondents along with interest @ 7.5% per annum from the date of filing of the claim pe--on -ll realiza-on. 18. The appeal is accordingly allowed to the aforesaid extent (DEEPAK GUPTA) 23.02.2026 JUDGE
 Whether Speaking/reasoned Yes Whether reportable No Uploaded on: 24.02.2026 VIVEK PAHWA 2026.02.24 09:17 I agree to specified portions of this document Chandigarh