Punjab and Haryana High Court: In an appeal filed by the mother of the deceased-appellant, questioning the adequacy of the compensation granted by Motor Accident Claims Tribunal (‘the Tribunal’), on account of death of a nine-year-old child (‘the deceased’), in a motor vehicular accident, which took place on 15-01-2007, Archana Puri, J., opined that considering that the deceased was a brilliant student, and also considering the devaluation of rupee, in the modest estimate, the notional earnings of the deceased child could conveniently be taken to be Rs. 30,000 per annum. The Court stated that the appellants were entitled to the compensation on the count of ‘loss of consortium’, ‘loss of dependency’, ‘loss of estate’ and ‘funeral expenses’. Considering the same, the compensation payable to the appellants on account of the death of the deceased child was re-computed. As such, the enhanced compensation, after the deduction of the compensation was Rs. 3,64,700.
Background
In the present case, the accident took place on 15-01-2007, and as a result, the deceased was run over by the bus. She was taken to General Hospital, where she was declared ‘brought dead’. The mother of the deceased filed the claim petition for seeking compensation to the extent of Rs. 10 lakhs. The Tribunal appropriately considered the deceased to be nine-year-old, at the time of the accident, awarded the lumpsum amount of Rs. 1,50,000 and Rs.20,000 was awarded towards transportation and last rites.
Analysis, Law, and Decision
The Court observed that the mother of the deceased in her affidavit had categorically stated that the deceased had been a very brilliant student and was studying in the third class at the time. Considering that the deceased was a brilliant student, and considering the devaluation of rupee, in the modest estimate, the notional earnings of the deceased child could conveniently be taken to be Rs. 30,000 per annum. Thus, the Court applied the multiplier as per the guidelines laid down in Sarla Verma v. DTC, and stated that the loss of dependency comes to be Rs. 4,50,000.
The Court relied on National Insurance Co. Ltd. v. Pranay Sethi, and Magma General Insurance Co. Ltd. v. Nanu Ram, stated that the appellants were entitled to the compensation on the count of ‘loss of consortium’, ‘loss of dependency’, ‘loss of estate’ and ‘funeral expenses’. Considering the same, the compensation payable to the appellants on account of the death of the deceased child was re-computed. As such, the enhanced compensation, after the deduction of the compensation was Rs.3,64,700. The Court stated that on the differential amount of compensation, the appellant should be entitled to the interest at the rate of six percent per annum, from the date of filing of present appeal, till the realization of the enhanced compensation.
[Shanti Devi v. Rajasthan SRTC, FAO 4886 of 2009, Order dated 01-05-2024]
Advocates who appeared in this case :
For the Appellant: Chand Ram Olla, Advocate;
For the Respondent: Amit Kaith, Advocate.
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