Punjab-Haryana High Court
Kajal And Others vs Deen Mohd And Others on 18 May, 2026
Author: Sudeepti Sharma
Bench: Sudeepti Sharma
FAO-198-2024 (O&M) -1-
IN THE HIGH COURT OF PUNJAB & HARYANA
AT CHANDIGARH
FAO-198-2024 (O&M)
KAJAL AND OTHERS.
......Appellants
Vs.
DEEN MOHD AND ORS.
......Respondents
Reserved on: 15.05.2026
Pronounced on: 18.05.2026
Uploaded on : 21.05.2026
Whether only the operative part of the judgment is pronounced? NO
Whether full judgment is pronounced? YES
CORAM: HON'BLE MRS. JUSTICE SUDEEPTI SHARMA
Present: Mr. Manish Jain, Advocate
Mr. Ketan Antil, Advocate
for the appellants.
None for respondents No.1 and 2.
Mr. Punit Jain, Advocate
for respondent No.3-Insurance Company.
****
SUDEEPTI SHARMA J.
1. The present appeal has been preferred against the award dated
09.10.2023 passed in the claim petition filed under Section 166 and 140 of the
Motor Vehicles Act, 1988 (in short ‘1988 Act’), by the learned Motor
Accident Claims Tribunal, Rewari (for short, ‘the Tribunal’) for enhancement
of compensation granted to the claimants to the tune of Rs.1,34,79,760/-
along with interest @ 7 % per annum, on account of death of Sarvesh Mudgal
in a Motor Vehicular Accident, occurred on 16.05.2022.
2. As sole issue for determination in the present appeal is confined
to quantum of compensation awarded by the learned Tribunal, a detailed
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FAO-198-2024 (O&M) -2-
narration of the facts of the case is not required to be reproduced here for the
sake of brevity.
SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES
3. The learned counsel for the claimants-appellants contends that
the amount assessed by the learned Tribunal is on the lower side and deserves
to be enhanced. Therefore, he prays that the present appeal be allowed and
amount of compensation be enhanced as per latest law.
4. Per contra, learned counsel for respondent No.3-Insurance
Company contends as under:-
i. That while awarding compensation to the appellants-claimants
vide the impugned Award, learned Tribunal erred in ignoring the
fact that the appellants-claimants were the permanent residents of
the District Alwar in Rajasthan and the accident in question also
took place in the area falling within the above-said State.
ii. That the claim petition was not maintainable before learned
Tribunal as learned Tribunal does not have jurisdiction to decide
the same.
iii. That learned Tribunal has also not taken the factum of the
deceased having contributed in causing the said accident by way
of driving his Car on the wrong side on the road, into
consideration.
iv. That Insurance Company has filed a separate appeal bearing
FAO-6703-2023, titled as Cholamandalam MS General
Insurance Company Ltd. Vs. Kajal and others, challenging award
passed by the learned Tribunal. Therefore, he prays for dismissal
of the appeal.
MOHD AYUB
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authenticity of this order/judgment.
FAO-198-2024 (O&M) -3-
5. I have heard learned counsel for the parties and perused the
whole record of this case with their able assistance.
SETTLED LAW ON COMPENSATION
6. Hon’ble Supreme Court in the case of Sarla Verma Vs. Delhi
Transport Corporation and Another [(2009) 6 Supreme Court Cases 121],
laid down the law on assessment of compensation and the relevant paras of
the same are as under:-
“30. 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, the general
practice is to apply standardised deductions. Having a
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.
31. 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
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FAO-198-2024 (O&M) -4-
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.
32. Thus even if the deceased is survived by parents and
siblings, only d the mother would be considered to be a
dependant, and 50% would be treated as the personal and
living expenses of the bachelor and 50% as the
contribution to the family. However, where the family of
the bachelor is large and dependent on the income of the
deceased, as in a case where he has a widowed mother
and large number of younger non-earning sisters or
brothers, his personal and living expenses may be
restricted to one-third and contribution to the family will
be taken as two-third.
* * * * * *
42. We therefore hold that the multiplier to be used should
be as mentioned in Column (4) of the table above
(prepared by applying Susamma Thomas³, Trilok Chandra
and Charlie), which starts with an operative multiplier of
18 (for the age groups of 15 to 20 and 21 to 25 years),
reduced by one unit for every five years, that is M-17 for
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FAO-198-2024 (O&M) -5-
26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40
years, M-14 for 41 to 45 years, and M-13 for 46 to 50
years, then reduced by two units for every five years, that
is, M-11 for 51 to 55 years, M-9 for 56 to 60 years, M-7
for 61 to 65 years and M-5 for 66 to 70 years.
7. Hon’ble Supreme Court in the case of National Insurance
Company Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] has clarified the
law under Sections 166, 163-A and 168 of the Motor Vehicles Act, 1988, on
the following aspects:-
(A) Deduction of personal and living expenses to
determine multiplicand;
(B) Selection of multiplier depending on age of
deceased;
(C) Age of deceased on basis for applying multiplier;
(D) Reasonable figures on conventional heads, namely,
loss of estate, loss of consortium and funeral expenses,
with escalation;
(E) Future prospects for all categories of persons and for
different ages: with permanent job; self-employed or fixed
salary.
The relevant portion of the judgment is reproduced as under:-
“52. As far as the conventional heads are concerned, we
find it difficult to agree with the view expressed in Rajesh².
It has granted Rs.25,000 towards funeral expenses, Rs
1,00,000 towards loss of consortium and Rs 1,00,000
towards loss of care and guidance for minor children. The
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head relating to loss of care and minor children does not
exist. Though Rajesh refers to Santosh Devi, it does not
seem to follow the same. The conventional and traditional
heads, needless to say, cannot be determined on
percentage basis because that would not be an acceptable
criterion. Unlike determination of income, the said heads
have to be quantified. Any quantification must have a
reasonable foundation. There can be no dispute over the
fact that price index, fall in bank interest, escalation of
rates in many a field have to be noticed. The court cannot
remain oblivious to the same. There has been a thumb rule
in this aspect. Otherwise, there will be extreme difficulty in
determination of the same and unless the thumb rule is
applied, there will be immense variation lacking any kind
of consistency as a consequence of which, the orders
passed by the tribunals and courts are likely to be
unguided. Therefore, we think it seemly to fix reasonable
sums. It seems to us that reasonable figures on
conventional heads, namely, loss of estate, loss of
consortium and funeral expenses should be Rs.15,000,
Rs.40,000 and Rs.15,000 respectively. The principle of
revisiting the said heads is an acceptable principle. But
the revisit should not be fact-centric or quantum-centric.
We think that it would be condign that the amount that we
have quantified should be enhanced on percentage basis in
every three years and the enhancement should be at the
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FAO-198-2024 (O&M) -7-
rate of 10% in a span of three years. We are disposed to
hold so because that will bring in consistency in respect of
those heads.
* * * * *
59.3. 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.
59.4. 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.
59.5. For determination of the multiplicand, the deduction
for personal and living expenses, the tribunals and the
courts shall be guided by paras 30 to 32 of Sarla Verma⁴
which we have reproduced hereinbefore.
MOHD AYUB
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59.6. The selection of multiplier shall be as indicated in
the Table in Sarla Verma¹ read with para 42 of that
judgment.
59.7. The age of the deceased should be the basis for
applying the multiplier.
59.8. Reasonable figures on conventional heads, namely,
loss of estate, loss of consortium and funeral expenses
should be Rs 15,000, Rs 40,000 and Rs 15,000
respectively. The aforesaid amounts should be enhanced at
the rate of 10% in every three years.”
8. Hon’ble Supreme Court in the case of Magma General
Insurance Company Limited Vs. Nanu Ram alias Chuhru Ram & Others
[2018(18) SCC 130] after considering Sarla Verma (supra) and Pranay
Sethi (Supra) has settled the law regarding consortium. Relevant paras of the
same are reproduced as under:-
“21. A Constitution Bench of this Court in Pranay Sethi²
dealt with the various heads under which compensation is
to be awarded in a death case. One of these heads is loss
of consortium. In legal parlance, “consortium” is a
compendious term which encompasses “spousal
consortium”, “parental consortium”, and “filial
consortium”. The right to consortium would include the
company, care, help, comfort, guidance, solace and
affection of the deceased, which is a loss to his family.
With respect to a spouse, it would include sexual relations
with the deceased spouse.
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FAO-198-2024 (O&M) -9-
21.1. Spousal consortium is generally defined as rights
pertaining to the relationship of a husband-wife which
allows compensation to the surviving spouse for loss of
“company, society, cooperation, affection, and aid of the
other in every conjugal relation”.
21.2. Parental consortium is granted to the child upon the
premature death of a parent, for loss of “parental aid,
protection, affection, society, discipline, guidance and
training”.
21.3. Filial consortium is the right of the parents to
compensation in the case of an accidental death of a
child. An accident leading to the death of a child causes
great shock and agony to the parents and family of the
deceased. The greatest agony for a parent is to lose their
child during their lifetime. Children are valued for their
love, affection, companionship and their role in the family
unit.
22. Consortium is a special prism reflecting changing
norms about the status and worth of actual relationships.
Modern jurisdictions world-over have recognised that the
value of a child’s consortium far exceeds the economic
value of the compensation awarded in the case of the
death of a child. Most jurisdictions therefore permit
parents to be awarded compensation under loss of
consortium on the death of a child. The amount awarded
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FAO-198-2024 (O&M) -10-
to the parents is a compensation for loss of the love,
affection, care and companionship of the deceased child.
23. The Motor Vehicles Act is a beneficial legislation
aimed at providing relief to the victims or their families,
in cases of genuine claims. In case where a parent has
lost their minor child, or unmarried son or daughter, the
parents are entitled to be awarded loss of consortium
under the head of filial consortium. Parental consortium
is awarded to children who lose their parents in motor
vehicle accidents under the Act. A few High Courts have
awarded compensation on this count. However, there was
no clarity with respect to the principles on which
compensation could be awarded on loss of filial
consortium.
24. The amount of compensation to be awarded as
consortium will be governed by the principles of awarding
compensation under “loss of consortium” as laid down in
Pranay Sethi². In the present case, we deem it appropriate
to award the father and the sister of the deceased, an
amount of Rs 40,000 each for loss of filial consortium.
9. A perusal of the award shows that the deceased was 45 years of
age at the time of the accident. Since the factum of age is not in dispute,
therefore, the learned Tribunal has rightly considered his age as 45 years by
placing reliance on the post mortem report (Ex.P-21) and the learned Tribunal
has rightly applied the multiplier of 14.
10. A perusal of the impugned award reveals that the deceased,
Sarvesh Mudgal, was employed as an Assistant General Manager (AGM)
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with Munjal Auto, Dharuhera, and was allegedly drawing a monthly salary of
₹1,50,000/-. In order to substantiate the said income, the claimants examined
Pradeep Sharma, Assistant Manager, who produced on record the salary slips
Ex. P-17 to Ex. P-21 along with the appointment letter Ex. P-1.
11. However, the learned Tribunal rightly declined to place reliance
upon the aforesaid salary slips, as the same pertained to the Covid period and
did not reflect the regular and stable earnings of the deceased. Instead, the
Tribunal assessed the income of the deceased on the basis of the last drawn
salary of ₹84,475/- exhibited as P-22.
12. The approach adopted by the learned Tribunal is just, proper, and
based on cogent evidence available on record. Accordingly, the income of the
deceased has been correctly assessed, and no interference is warranted in this
regard.
13. A further perusal of the award reveals that the learned Tribunal
has erred in adding 25% towards future prospects. Therefore, considering the
age of the deceased and the fact that he was a permanent employee 30% is to
be added as future prospects. Furthermore, the learned Tribunal has rightly
deducted 1/4 for personal expenditure of the deceased.
14. A further perusal of the award reveals that the amount granted by
learned Tribunal under the heads of loss of estate, funeral expenses and loss of
consortium are on lower side. Therefore, the award requires indulgence of this
Court.
CONCLUSION
15. In view of the law laid down by the Hon’ble Supreme Court in
the above referred to judgments, the present appeal is allowed. The award
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FAO-198-2024 (O&M) -12-
dated 09.10.2023 is modified accordingly. The appellants-claimants are
entitled to enhanced compensation as per the calculations made hereunder:-
Sr. Heads Compensation Awarded
No.
1 Monthly Income Rs.84,475/-
2 Future prospects @ 30% Rs.25,342/- (30% of 84,475)
3 Deduction towards personal Rs.27,454/- (109817 X 1/4)
expenditure 1/4
4 Total Income Rs.82,363/- (109817-27454)
5 Multiplier 14
6 Annual Dependency Rs.1,38,36,984/- (82363 X 12 X 14)
7 Loss of Estate Rs.18,150/-
8 Funeral Expenses Rs.18,150 /-
9 Loss of Consortium Rs.1,93,600/-
Parental : 2 x 48,400
Spousal : 1 x 48,400
Filial : 1 x 48,400
10 Total Compensation Rs.1,40,66,884/-
11 Deduction Rs.1,34,79,760/-
Amount Awarded by the
Tribunal
12 Enhanced amount Rs.5,87,124/- (14066884-13479760)
16. So far as the interest part is concerned, as held by Hon’ble
Supreme Court in Dara Singh @ Dhara Banjara Vs. Shyam Singh Varma
2019 ACJ 3176 and R.Valli and Others VS. Tamil Nadu State Transport
Corporation (2022) 5 Supreme Court Cases 107, the appellants-claimants are
granted the interest @ 9% per annum on the enhanced amount from the date
of filing of claim petition till the date of its realization.
17. The respondent No.3 is directed to deposit the enhanced amount
along with interest at the rate of 9% with the Tribunal within a period of two
months from the date of receipt of copy of this judgment. The Tribunal is
directed to disburse the same to the appellants-claimants in their bank
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accounts. The appellants-claimants are directed to furnish their bank account
details to the Tribunal.
18. Pending application (s), if any, also stand disposed of.
18.05.2026 (SUDEEPTI SHARMA)
Ayub/Saahil JUDGE
Whether speaking/non-speaking : Yes/No
Whether reportable : Yes
MOHD AYUB
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authenticity of this order/judgment.
