FAO-4181-2008 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 210 Reliance General Insurance Co. Ltd. Mamta Rani and others 2. FAO-863 Mamta Rani and others Rakesh Kumar and another CORAM : HON'BLE MR. JUSTICE Present: Mr. Subhash Goyal Mr. Vipul Sharma, Advocate for the appellant in FAO No.4181 of 2009 and for respondent No.2 in FAO No.863 of 2009. Mr. for appellants in FAO No.863 of 2009 and for respondents No.1 to 6 in FAO No.4181 of 2009. Mr. Mr. for respondent No.1 in FAO No.863 of 2009 and for respondent No.7 in FAO No.4181 of 2008. *** AMARINDER SINGH GREWAL, J. (ORAL) 1. This order shall dispose of two appeals, i.e. FAO Nos. 4181 of 2008 and FAO No. 863 of 2009 03.09.2008 passed by the learned Motor Accidents Claims Tribunal, Gurgaon (hereinafter referred to as ‘the Tribunal’) 2. FAO No. 4181 of 2008 has company, seeking setting aside of the impugned the learned Tribunal, 2008 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO Date of Decision:1 Reliance General Insurance Co. Ltd. Versus Mamta Rani and others 863-2009(O&M) Mamta Rani and others Versus Rakesh Kumar and another HON'BLE MR. JUSTICE AMARINDER SINGH GREWAL Mr. Subhash Goyal, Advocate Mr. Vipul Sharma, Advocate for the appellant in FAO No.4181 of 2009 and for respondent No.2 in FAO No.863 of 2009. Mr. Tanmoy Gupta, Advocate for appellants in FAO No.863 of 2009 and for respondents No.1 to 6 in FAO No.4181 of 2009. Mr. Ankur Malik, Advocate Mr. Y.P. Malik, Advocate for respondent No.1 in FAO No.863 of 2009 and for respondent No.7 in FAO No.4181 of 2008. *** AMARINDER SINGH GREWAL, J. (ORAL) This order shall dispose of two appeals, i.e. FAO Nos. 4181 of 2008 and FAO No. 863 of 2009, as they have arisen 03.09.2008 passed by the learned Motor Accidents Claims Tribunal, Gurgaon reinafter referred to as ‘the Tribunal’). FAO No. 4181 of 2008 has been preferred by the appellant company, seeking setting aside of the impugned the learned Tribunal, whereas, FAO No. 863 of 2009 has been IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH AO-4181-2008(O&M) Date of Decision:17.09.2025 ...Appellant ... Respondents ...Appellants ... Respondents AMARINDER SINGH GREWAL for the appellant in FAO No.4181 of 2009 and for respondent No.2 in FAO No.863 of 2009. for appellants in FAO No.863 of 2009 and for respondents No.1 to 6 in FAO No.4181 of 2009. for respondent No.1 in FAO No.863 of 2009 and for respondent No.7 in FAO No.4181 of 2008. AMARINDER SINGH GREWAL, J. (ORAL) This order shall dispose of two appeals, i.e. FAO Nos. 4181 of 2008 have arisen out of the same award dated 03.09.2008 passed by the learned Motor Accidents Claims Tribunal, Gurgaon been preferred by the appellant-insurance company, seeking setting aside of the impugned Award dated 03.09.2008 passed by FAO No. 863 of 2009 has been preferred by the IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ... Respondents ... Respondents This order shall dispose of two appeals, i.e. FAO Nos. 4181 of 2008 ward dated 03.09.2008 passed by the learned Motor Accidents Claims Tribunal, Gurgaon insurance dated 03.09.2008 passed by preferred by the PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) appellants-claimant aforesaid impugned from FAO No.4181 of 2008. 3. Succinctly, the facts of the case are that on Ram (deceased) was travelling on his motorcycle bearing registration No. HR 2045 and had stopped near Raj Nagar turn his colleague, Ramesh Dadwal, was waiting for a vehic 407 vehicle bearing registration No. HR “the offending vehicle”), being driven rashly, negligently and at a high speed by respondent No.7, came from Gurgaon side and hit the motorcycle from behind, resulting in death of Hazara Ram. Pursuant thereto, FIR No. 315 dated 19.08.2007 under Sections 279 and 304 Station Sadar, Gurgaon. The offending vehicle was owned by respondent No.7 himself and stood duly insured by the same, claim petition was preferred by legal representatives of the deceased where the learned Tribunal awarded compensation of Rs.7,46,800 No.1 to 6-claimants being widow, minor child payable by appellant Aggrieved by the same, 4. Learned counsel for the of 2008 and for respondent No.2 in FAO No.863 of 2009 award dated 03.09.2008 passed by the liability upon the that the learned the fact that the insured had obtained the cover note for the 2008 (O&M) -2- claimants, seeking enhancement of the impugned award. For the sake of convenience, facts are being enumerated 4181 of 2008. Succinctly, the facts of the case are that on Ram (deceased) was travelling on his motorcycle bearing registration No. HR d stopped near Raj Nagar turn on the Gurgaon his colleague, Ramesh Dadwal, was waiting for a vehic vehicle bearing registration No. HR-12-GA “the offending vehicle”), being driven rashly, negligently and at a high speed by respondent No.7, came from Gurgaon side and hit the motorcycle from behind, death of Hazara Ram. Pursuant thereto, FIR No. 315 dated 19.08.2007 under Sections 279 and 304-A of Indian Penal Code, 1860 was registered at Police Station Sadar, Gurgaon. The offending vehicle was owned by respondent No.7 himself and stood duly insured with the appellant by the same, claim petition was preferred by legal representatives of the deceased where the learned Tribunal awarded compensation of Rs.7,46,800 claimants being widow, minor child payable by appellant-insurance company and respondent No.7 Aggrieved by the same, aforesaid appeals have been preferred before this Court. Learned counsel for the appellant- insurance company and for respondent No.2 in FAO No.863 of 2009 award dated 03.09.2008 passed by the learned Tribunal liability upon the appellant, is wholly illegal and unsustainable in law. It is ur learned Tribunal has misread the pleadings and evidence and overlooked the fact that the insured had obtained the cover note for the , seeking enhancement of the compensation granted vide For the sake of convenience, facts are being enumerated Succinctly, the facts of the case are that on 19.08.2007, one Hazara Ram (deceased) was travelling on his motorcycle bearing registration No. HR- on the Gurgaon-Jaipur Highway, where his colleague, Ramesh Dadwal, was waiting for a vehicle. In the meantime, a Tata GA-0665 (hereinafter referred to as “the offending vehicle”), being driven rashly, negligently and at a high speed by respondent No.7, came from Gurgaon side and hit the motorcycle from behind, death of Hazara Ram. Pursuant thereto, FIR No. 315 dated 19.08.2007 A of Indian Penal Code, 1860 was registered at Police Station Sadar, Gurgaon. The offending vehicle was owned by respondent No.7 appellant-Insurance Company. Occasioned by the same, claim petition was preferred by legal representatives of the deceased where the learned Tribunal awarded compensation of Rs.7,46,800/- to respondents claimants being widow, minor children and parents of the deceased, ompany and respondent No.7 jointly and severally aforesaid appeals have been preferred before this Court. insurance company in FAO No.4181 and for respondent No.2 in FAO No.863 of 2009 submits that the impugned learned Tribunal, fastening joint and several , is wholly illegal and unsustainable in law. It is ur Tribunal has misread the pleadings and evidence and overlooked the fact that the insured had obtained the cover note for the offending vehicle compensation granted vide For the sake of convenience, facts are being enumerated 19.08.2007, one Hazara -26S- Jaipur Highway, where Tata- 0665 (hereinafter referred to as “the offending vehicle”), being driven rashly, negligently and at a high speed by respondent No.7, came from Gurgaon side and hit the motorcycle from behind, death of Hazara Ram. Pursuant thereto, FIR No. 315 dated 19.08.2007 A of Indian Penal Code, 1860 was registered at Police Station Sadar, Gurgaon. The offending vehicle was owned by respondent No.7 Insurance Company. Occasioned by the same, claim petition was preferred by legal representatives of the deceased respondents deceased, jointly and severally. aforesaid appeals have been preferred before this Court. AO No.4181 submits that the impugned , fastening joint and several , is wholly illegal and unsustainable in law. It is urged Tribunal has misread the pleadings and evidence and overlooked offending vehicle by PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) issuing a cheque towards premium, which was dishonored for insufficiency of funds. The appellant intimated the insured on 24.08.2007, prior to the award. Hence, in such circumstances, there existed no valid contract of insurance and consequently appellant-insurance company contended that fasteni consideration is contrary to settled principles of contract law and the Tribunal has erred in awarding compensation of insurance company passed by the learned Tribunal as well as dismissal of the cross respondent-claimants. 5. Learned counsel for the and for respondents No.1 to 6 in FAO No.4181 of 2009 learned Tribunal rightly held that the accident occurred on account of rash and negligent driving of respondent No. ₹7,46,800/- as compensation against the claim of learned Tribunal wrongly assessed t despite cogent evidence on record, including the salary certificate (Ex.P Income Tax Form as a Senior Operator with M/s Sunbeam Auto Ltd. It is further contended that the learned Tribunal applied a multiplier of 12 instead of 15, and made an excessive deduction of one deceased left behind a widow, aged parents and three minor children, the appropriate deduction could not be more than one Tribunal has failed to gran 2008 (O&M) -3- issuing a cheque towards premium, which was dishonored for insufficiency of appellant had, therefore, cancelled intimated the insured on 24.08.2007, prior to the award. Hence, in such circumstances, there existed no valid contract of insurance and consequently insurance company was not liable to indemnify the insured. It is further contended that fastening liability upon the insurance consideration is contrary to settled principles of contract law and the erred in awarding compensation of insurance company. Therefore, he prays for setting aside of the impugned award passed by the learned Tribunal as well as dismissal of the cross claimants. Learned counsel for the appellants and for respondents No.1 to 6 in FAO No.4181 of 2009 Tribunal rightly held that the accident occurred on account of rash and negligent driving of respondent No.7 but it gravely erred in aw as compensation against the claim of Tribunal wrongly assessed the income of the deceased at despite cogent evidence on record, including the salary certificate (Ex.P Income Tax Form-16 (Ex.P-7), which established his monthly earnings at as a Senior Operator with M/s Sunbeam Auto Ltd. It is further contended that the Tribunal applied a multiplier of 12 instead of 15, and made an excessive of one-third towards personal expenses, whereas, keeping in view that the deceased left behind a widow, aged parents and three minor children, the appropriate deduction could not be more than one failed to grant any compensation for loss of consortium, mental shock, issuing a cheque towards premium, which was dishonored for insufficiency of cancelled the policy ab initio and duly intimated the insured on 24.08.2007, prior to the award. Hence, in such circumstances, there existed no valid contract of insurance and consequently to indemnify the insured. It is further nsurance company despite absence of consideration is contrary to settled principles of contract law and the learned erred in awarding compensation of ₹7,46,800/- against the appellant Therefore, he prays for setting aside of the impugned award passed by the learned Tribunal as well as dismissal of the cross-appeal filed by the ts-claimants in FAO No.863 of 2009 and for respondents No.1 to 6 in FAO No.4181 of 2009 contends that though the Tribunal rightly held that the accident occurred on account of rash and it gravely erred in awarding only as compensation against the claim of ₹35,00,000/-. It is urged that the he income of the deceased at ₹7675/- per month despite cogent evidence on record, including the salary certificate (Ex.P-6) a 7), which established his monthly earnings at ₹16,239/ as a Senior Operator with M/s Sunbeam Auto Ltd. It is further contended that the Tribunal applied a multiplier of 12 instead of 15, and made an excessive third towards personal expenses, whereas, keeping in view that the deceased left behind a widow, aged parents and three minor children, the appropriate deduction could not be more than one-fifth. Additionally, the learned t any compensation for loss of consortium, mental shock, issuing a cheque towards premium, which was dishonored for insufficiency of and duly intimated the insured on 24.08.2007, prior to the award. Hence, in such circumstances, there existed no valid contract of insurance and consequently, the to indemnify the insured. It is further ompany despite absence of learned against the appellant- Therefore, he prays for setting aside of the impugned award appeal filed by the in FAO No.863 of 2009 that though the Tribunal rightly held that the accident occurred on account of rash and arding only . It is urged that the per month 6) and ₹16,239/- as a Senior Operator with M/s Sunbeam Auto Ltd. It is further contended that the Tribunal applied a multiplier of 12 instead of 15, and made an excessive third towards personal expenses, whereas, keeping in view that the deceased left behind a widow, aged parents and three minor children, the learned t any compensation for loss of consortium, mental shock, PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) agony and loss of companionship, thereby rendering the award contrary to settled principles of law computed at not less than 03.09.2008, thus case where the accident had occurred before cancellation of the policy, insurance company is liable to satisfy award of compensation and thus, prays for dismissal of the appeal preferred by the insurance company. 6. Having paper book with contentions raised on behalf of the appellant acceptance. The material on occurred on account of rash and negligent driving of respondent No.7, resulting in the death of Hazara Ram. The plea of the Insurance Company regarding dishonour of the cheque towards premium and con absolve it from position of law that statutory liability under the Motor Vehicles Act subsists notwithstanding Supreme Court in (2012) 5 SCC 234 payment of premium through cheque and the same dishonoured and the accident occurred before cancellation of the policy, insurance company is still liable to satisfy the award of compensation by reason of provisions of Sections 147(5) and 149 (1) of the Motor Vehicles Act, 1988. Thus, t fastening liability u 2008 (O&M) -4- agony and loss of companionship, thereby rendering the award contrary to settled of law. On a correct assessment, the compensation ought to have been computed at not less than ₹32,00,000/- with interest, and the award dated thus, deserves to be suitably modified. case where the accident had occurred before cancellation of the policy, insurance company is liable to satisfy award of compensation and thus, prays for dismissal of the appeal preferred by the insurance company. Having heard the learned counsel for the parties and after perusing the paper book with their able assistance, this Court is of the considered view that the contentions raised on behalf of the appellant acceptance. The material on record clearly establishes that the accident in question occurred on account of rash and negligent driving of respondent No.7, resulting in the death of Hazara Ram. The plea of the Insurance Company regarding dishonour of the cheque towards premium and consequent cancellation of the policy cannot from liability towards third-party claimants, in view of the settled position of law that statutory liability under the Motor Vehicles Act subsists notwithstanding inter se disputes between the insurer a Supreme Court in United India Insurance Co. Ltd. Vs. Laxmamma and others (2012) 5 SCC 234 has held that where the insurance policy was obtained on payment of premium through cheque and the same dishonoured and the accident red before cancellation of the policy, insurance company is still liable to satisfy the award of compensation by reason of provisions of Sections 147(5) and 149 (1) of the Motor Vehicles Act, 1988. Thus, t fastening liability upon the Insurance Company. agony and loss of companionship, thereby rendering the award contrary to settled . On a correct assessment, the compensation ought to have been with interest, and the award dated deserves to be suitably modified. It is also contended that in a case where the accident had occurred before cancellation of the policy, insurance company is liable to satisfy award of compensation and thus, prays for dismissal of heard the learned counsel for the parties and after perusing the able assistance, this Court is of the considered view that the contentions raised on behalf of the appellant-Insurance Company do not merit record clearly establishes that the accident in question occurred on account of rash and negligent driving of respondent No.7, resulting in the death of Hazara Ram. The plea of the Insurance Company regarding dishonour sequent cancellation of the policy cannot party claimants, in view of the settled position of law that statutory liability under the Motor Vehicles Act subsists disputes between the insurer and the insured. The Hon’ble United India Insurance Co. Ltd. Vs. Laxmamma and others has held that where the insurance policy was obtained on payment of premium through cheque and the same dishonoured and the accident red before cancellation of the policy, insurance company is still liable to satisfy the award of compensation by reason of provisions of Sections 147(5) and 149 (1) of the Motor Vehicles Act, 1988. Thus, the Tribunal was justified in pon the Insurance Company. agony and loss of companionship, thereby rendering the award contrary to settled . On a correct assessment, the compensation ought to have been with interest, and the award dated It is also contended that in a case where the accident had occurred before cancellation of the policy, insurance company is liable to satisfy award of compensation and thus, prays for dismissal of heard the learned counsel for the parties and after perusing the able assistance, this Court is of the considered view that the Insurance Company do not merit record clearly establishes that the accident in question occurred on account of rash and negligent driving of respondent No.7, resulting in the death of Hazara Ram. The plea of the Insurance Company regarding dishonour sequent cancellation of the policy cannot party claimants, in view of the settled position of law that statutory liability under the Motor Vehicles Act subsists The Hon’ble United India Insurance Co. Ltd. Vs. Laxmamma and others has held that where the insurance policy was obtained on payment of premium through cheque and the same dishonoured and the accident red before cancellation of the policy, insurance company is still liable to satisfy the award of compensation by reason of provisions of Sections 147(5) and justified in PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) 7. At the same time, this Court finds merit in the submissions of learned counsel for the of the deceased at (Ex.P-6) and Income Tax Form ₹16,239/-. The reasoning of the learned Tribunal that total emoluments of Rs.16,239/- included Rs.2303/ attendant, Rs.195/ allowance and Rs.640/ wholly erroneous. The Hon’ble Supreme Court in the judgment passed in Singh Matolya v. Hari Si “6. income. House rent allowance is paid for the benefit of the family members and not for the employee alone. What would constitute an income, albeit in a different fact situation, came up for consideration before this Court in Srivastava was held: (SCC p. 772, paras 19 “19 deceased by his employer by way of perks, should be included for computation of his monthly income as that would have been added to his monthly income by way of contribution to the family as contradistinguished t however, hasten to add that from the said amount of income, the statutory amount of tax payable thereupon must be deducted. 20 Lexicon ‘(iii money or not, obtained from a company either by a director or a person who has substantial interest in the company, and any sum paid by such company in respect of an 2008 (O&M) -5- At the same time, this Court finds merit in the submissions of learned counsel for the appellants-claimants that the Tribunal erred in assessing the income of the deceased at ₹7,675/- per month, ignoring the duly proved 6) and Income Tax Form-16 (Ex.P-7) reflecting his monthly income at The reasoning of the learned Tribunal that total emoluments of included Rs.2303/- as HRA, Rs.450/ t, Rs.195/- as washing allowance, Rs.940/ allowance and Rs.640/- as LTA, which cannot be treated as part of the income, is wholly erroneous. The Hon’ble Supreme Court in the judgment passed in Singh Matolya v. Hari Singh Malviya, (2009) 15 SCC 363 6. Dearness allowance, in our opinion, should form a part of the income. House rent allowance is paid for the benefit of the family members and not for the employee alone. What would constitute an income, albeit in a different fact situation, came up for consideration before this Court in National Insurance Co. Ltd. Srivastava [(2008) 2 SCC 763 : (2008) 1 SCC (Cri) 550] wherein it was held: (SCC p. 772, paras 19-21) 19. The amounts, therefore, which were required to be paid to the deceased by his employer by way of perks, should be included for computation of his monthly income as that would have been added to his monthly income by way of contribution to the family as contradistinguished to the ones which were for his benefit. We may, however, hasten to add that from the said amount of income, the statutory amount of tax payable thereupon must be deducted. 20. The term ‘income’ in P. Ramanatha Aiyar's Lexicon (3rd Edn.) has been defined as under: iii) the value of any benefit or perquisite whether convertible into money or not, obtained from a company either by a director or a person who has substantial interest in the company, and any sum paid by such company in respect of an At the same time, this Court finds merit in the submissions of learned claimants that the Tribunal erred in assessing the income per month, ignoring the duly proved salary certificate 7) reflecting his monthly income at The reasoning of the learned Tribunal that total emoluments of as HRA, Rs.450/- conveyance allowance, Rs.75/ as washing allowance, Rs.940/- as VDA, Rs.461/- as medical as LTA, which cannot be treated as part of the income, is wholly erroneous. The Hon’ble Supreme Court in the judgment passed in Raghuvir , (2009) 15 SCC 363 has held as under:- Dearness allowance, in our opinion, should form a part of the income. House rent allowance is paid for the benefit of the family members and not for the employee alone. What would constitute an income, albeit in a different fact situation, came up for consideration National Insurance Co. Ltd. v. Indira [(2008) 2 SCC 763 : (2008) 1 SCC (Cri) 550] wherein it 21) fore, which were required to be paid to the deceased by his employer by way of perks, should be included for computation of his monthly income as that would have been added to his monthly income by way of contribution to the family as o the ones which were for his benefit. We may, however, hasten to add that from the said amount of income, the statutory amount of tax payable thereupon must be deducted. . The term ‘income’ in P. Ramanatha Aiyar's Advanced Law n defined as under: ) the value of any benefit or perquisite whether convertible into money or not, obtained from a company either by a director or a person who has substantial interest in the company, and any sum paid by such company in respect of any obligation, which but for such At the same time, this Court finds merit in the submissions of learned claimants that the Tribunal erred in assessing the income salary certificate 7) reflecting his monthly income at The reasoning of the learned Tribunal that total emoluments of conveyance allowance, Rs.75/- as as medical as LTA, which cannot be treated as part of the income, is Raghuvir - Dearness allowance, in our opinion, should form a part of the income. House rent allowance is paid for the benefit of the family members and not for the employee alone. What would constitute an income, albeit in a different fact situation, came up for consideration Indira [(2008) 2 SCC 763 : (2008) 1 SCC (Cri) 550] wherein it fore, which were required to be paid to the deceased by his employer by way of perks, should be included for computation of his monthly income as that would have been added to his monthly income by way of contribution to the family as o the ones which were for his benefit. We may, however, hasten to add that from the said amount of income, the Advanced Law ) the value of any benefit or perquisite whether convertible into money or not, obtained from a company either by a director or a person who has substantial interest in the company, and any sum paid y obligation, which but for such PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) payment would have been payable by the director or other person aforesaid, occurring or arising to a person within the State from any profession, trade or calling other than agriculture.’ It has also been stated: “Income” s C., as can be used” to denote a person's receipts (per Jessel, M.R., receipts from bus work, lands, investments, etc. Tax Ref. 626 21 logical conclusion, it should include those benefits, either in terms of money or otherwise, which are taken into consideration for the purpose of payment of income tax or professi elements thereof may or may not be taxable or would have been otherwise taxable but for the exemption conferred thereupon under the statute.” 7. “house rent allowance” included for determining the income of the deceased and consequently the amount of compensation. 8. In the judgment passed by the Hon’ble Supreme Court in Insurance Company Ltd. v. Nalini and Ors (C) No. 4230/2019 on 11.07.2024, it has been held that allowances under the heads of transport allowance, house rent allowance, provident fund loan, provident fund and special allowance ought to be added while consideri victim/deceased to arrive at the dependency factor. 2008 (O&M) -6- payment would have been payable by the director or other person aforesaid, occurring or arising to a person within the State from any profession, trade or calling other than agriculture.’ It has also been stated: “Income” signifies “what comes in” (per Selborne, C., Jones v. Ogle [(1861-73) All ER Rep 918] ). “It is as large a word as can be used” to denote a person's receipts (per Jessel, M.R., Huggins, ex p., Re [51 LJ Ch 935] ). Income is not confined to receipts from business only and means periodical receipts from one's work, lands, investments, etc. Secy. to the Board of Revenue, Income Tax v. Al. Ar. Rm. Arunachalam Chettiar & Bros. Ref. Vulcun Insurance Co. Ltd. v. 626 (2)] .’ 21. If the dictionary meaning of the word ‘income’ is taken to its logical conclusion, it should include those benefits, either in terms of money or otherwise, which are taken into consideration for the purpose of payment of income tax or professi elements thereof may or may not be taxable or would have been otherwise taxable but for the exemption conferred thereupon under the statute.” We, therefore, are of the opinion that “dearness allowance” and “house rent allowance” payable to the deceased should have been included for determining the income of the deceased and consequently the amount of compensation.” In the judgment passed by the Hon’ble Supreme Court in Insurance Company Ltd. v. Nalini and Ors. Petition for Special Leave to Appeal (C) No. 4230/2019 on 11.07.2024, it has been held that allowances under the heads of transport allowance, house rent allowance, provident fund loan, provident fund and special allowance ought to be added while consideri victim/deceased to arrive at the dependency factor. payment would have been payable by the director or other person aforesaid, occurring or arising to a person within the State from any profession, trade or calling other than agriculture.’ ignifies “what comes in” (per Selborne, 73) All ER Rep 918] ). “It is as large a word as can be used” to denote a person's receipts (per Jessel, [51 LJ Ch 935] ). Income is not confined to iness only and means periodical receipts from one's Secy. to the Board of Revenue, Income Al. Ar. Rm. Arunachalam Chettiar & Bros. [AIR 1921 Mad 427] v. Corpn. of Madras [AIR 1930 Mad . If the dictionary meaning of the word ‘income’ is taken to its logical conclusion, it should include those benefits, either in terms of money or otherwise, which are taken into consideration for the purpose of payment of income tax or professional tax although some elements thereof may or may not be taxable or would have been otherwise taxable but for the exemption conferred thereupon under the We, therefore, are of the opinion that “dearness allowance” and payable to the deceased should have been included for determining the income of the deceased and consequently In the judgment passed by the Hon’ble Supreme Court in National Petition for Special Leave to Appeal (C) No. 4230/2019 on 11.07.2024, it has been held that allowances under the heads of transport allowance, house rent allowance, provident fund loan, provident fund and special allowance ought to be added while considering the basic salary of the victim/deceased to arrive at the dependency factor. payment would have been payable by the director or other person aforesaid, occurring or arising to a person within the State from any ignifies “what comes in” (per Selborne, 73) All ER Rep 918] ). “It is as large a word as can be used” to denote a person's receipts (per Jessel, [51 LJ Ch 935] ). Income is not confined to iness only and means periodical receipts from one's Secy. to the Board of Revenue, Income [AIR 1921 Mad 427] [AIR 1930 Mad . If the dictionary meaning of the word ‘income’ is taken to its logical conclusion, it should include those benefits, either in terms of money or otherwise, which are taken into consideration for the onal tax although some elements thereof may or may not be taxable or would have been otherwise taxable but for the exemption conferred thereupon under the We, therefore, are of the opinion that “dearness allowance” and payable to the deceased should have been included for determining the income of the deceased and consequently National Petition for Special Leave to Appeal (C) No. 4230/2019 on 11.07.2024, it has been held that allowances under the heads of transport allowance, house rent allowance, provident fund loan, provident fund ng the basic salary of the PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh FAO-4181-2008 (O&M) 9. Therefore, the basic salary of the deceased minus allowance was Rs.11,175/- per month and if allowances towards HRA allowance (Rs.461/ month. Since the deceased was aged 45 years at the time of his death, p the ratio in National Insurance Co. Ltd. v. Pranay Sethi prospects of 30% (age 45) income of deceased to (appropriate where dependants number 4 Applying the multiplier ₹22,83,208.20/- three years i.e. consortium funeral expenses (rounded off). 10. Accordingly, on a recalculation, the claimants are held to be entitled to compensation 03.09.2008 is, carry interest at the rate of 9% per annum from the date of filing of the claim petition till realization. 11. In view of the aforesaid facts and circumstance filed by the insurance company by the appellants September 17, 2025 Pankaj* 2008 (O&M) -7- Therefore, the basic salary of the deceased minus allowance was per month and if allowances towards HRA (Rs.461/-) are added in the same, his monthly salary was Rs.13,939/ month. Since the deceased was aged 45 years at the time of his death, p National Insurance Co. Ltd. v. Pranay Sethi prospects of 30% (age 45) ought to have been provided of deceased to ₹2,17,448.40. After deducting 1/4 (appropriate where dependants number 4–6), the annual net loss is Applying the multiplier of 14 (age 41–45), the loss of -. Adding conventional heads, after making addition of 10% in every three years i.e. consortium ₹48,400×6 = ₹2,90,400 funeral expenses ₹18,000/-, total amount of compensation Accordingly, on a recalculation, the claimants are held to be entitled to compensation of Rs.26,09,600/-. The award of the thus, modified to the aforesaid extent. The enhanced amount shall carry interest at the rate of 9% per annum from the date of filing of the claim petition till realization. In view of the aforesaid facts and circumstance insurance company is dismissed; whereas, FAO No. by the appellants-claimants is allowed. (AMARINDER SINGH GREWAL , 2025 Whether speaking/reasoned Whether reportable Therefore, the basic salary of the deceased minus allowance was per month and if allowances towards HRA (Rs.2303/-) and medical the same, his monthly salary was Rs.13,939/ month. Since the deceased was aged 45 years at the time of his death, pursuant to National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680, future been provided, which enhanced the annual ₹2,17,448.40. After deducting 1/4th for personal expenses 6), the annual net loss is ₹1,63,086.30. , the loss of dependency is assessed at , after making addition of 10% in every ₹2,90,400/- loss of estate ₹18,000/-, and , total amount of compensation results in ₹26,09,600 Accordingly, on a recalculation, the claimants are held to be entitled to The award of the learned Tribunal dated modified to the aforesaid extent. The enhanced amount shall carry interest at the rate of 9% per annum from the date of filing of the claim In view of the aforesaid facts and circumstances, FAO No. 4181 of 2008 whereas, FAO No.863 of 2009 AMARINDER SINGH GREWAL JUDGE Whether speaking/reasoned : Yes : Yes Therefore, the basic salary of the deceased minus allowance was and medical the same, his monthly salary was Rs.13,939/- per ursuant to future annual for personal expenses ₹1,63,086.30. dependency is assessed at , after making addition of 10% in every , and 26,09,600/- Accordingly, on a recalculation, the claimants are held to be entitled to Tribunal dated modified to the aforesaid extent. The enhanced amount shall carry interest at the rate of 9% per annum from the date of filing of the claim FAO No. 4181 of 2008 863 of 2009 filed AMARINDER SINGH GREWAL) PANKAJ KUMAR 2025.09.30 09:33 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court Chandigarh