SARUP SINGH @ RAM SARUP versus HDFC ERGO GENERAL INSURANCE COMPANY LTD. AND ORS.

Citation: [2022] 14 S.C.R. 1008 · Decided: 17-10-2022 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Case Partly allowed
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Judgment (excerpt)

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SUPREME COURT REPORTS
[2022] 14 S.C.R.
SARUP SINGH @ RAM SARUP
v.
HDFC ERGO GENERAL INSURANCE COMPANY
LTD. AND ORS.
(Civil Appeal Nos. 7283-7284 of 2022)
OCTOBER 17, 2022.
[M. R. SHAH AND C. T. RAVIKUMAR, JJ.]
Motor Vehicles Act, 1988: Compensation – Fatal accident –
Tribunal considered notional income of the deceased at Rs.10,000
per month and awarded compensation of Rs.20.64 lacs – High Court
reduced compensation to Rs.11.34 lacs by considering notional
income of Rs.6500 per month – High Court also reduced rate of
interest from 9% to 6% p.a. – Appeal by claimants against reduction
of compensation – Held: The amount awarded by the High Court
can be said to be on lower side – While awarding the loss of
dependency, the High Court did not award/consider the future
prospects at all – Considering the decision in the case of Pranay
Sethi and Ors. and the decision in the case of Janabai, the claimant
shall also be entitled to Rs. 40,000/- towards parental consortium
for minor child; Rs. 40,000/- towards spousal consortium for wife
and Rs. 40,000/- towards filial consortium for the father of the
deceased – High Court also erred in reducing interest from 9% p.a.
to 6% p.a. – Considering the fact that the deceased died in the year
2012, the claimants shall be entitled to the interest @ 7.5% p.a.
Partly allowing the appeals, the Court
HELD: The amount awarded by the High Court can be
said to be on lower side. While awarding the loss of dependency,
the High Court has not awarded/considered the future prospects
at all. As per the decision of this Court in the case of National
Insurance Company Limited Vs. Pranay Sethi and Ors., there shall
be 40% rise towards future prospects. Therefore, even if
considering the notional income @ Rs. 6,500/- per month as
determined by the High Court and adding 40% towards future
prospects and deducting 1/3rd towards personal expense of the
deceased and by applying the multiple of 17, the claimant shall
[2022] 14 S.C.R. 1008
1008
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be entitled to Rs. 12,37,790/- under the head loss of dependency.
Considering the decision of this Court in the case of Pranay Sethi
and Ors. and the recent decision of this Court in the case of Janabai
and Ors. Vs. I.C.I.C.I. Lombard General Insurance Company Ltd.,
the claimant shall also be entitled to Rs. 40,000/- towards parental
consortium for minor child; Rs. 40,000/- towards spousal
consortium for wife and Rs. 40,000/- towards filial consortium for
the father of the deceased. Thus, the claimants shall be entitled
to Rs. 1,20,000/- under the head loss of consortium. The
claimants shall also be entitled to Rs. 30,000/- under the
conventional head (funeral expense and loss of estate). The High
Court has also erred in reducing the interest from 9% p.a. to 6%
p.a. Considering the fact that the deceased died in the year 2012,
the claimants shall be entitled to the interest @ 7.5% p.a. [Para
4][1010-F-H; 1011-A-C]
National Insurance Company Limited v. Pranay Sethi
and Ors. (2017) 16 SCC 680 : [2017] 13 SCR 100;
Janabai and Ors. v. I.C.I.C.I. Lombard General
Insurance Company Ltd. 2022 ACJ 2003 – relied on.
Case Law Reference
[2017] 13 SCR 100
relied on
Para 4
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 7283-
7284 of 2022.
From the Judgment and Orders dated 16.05.2017 of the High
Court of Punjab and Haryana at Chandigarh in Cross Objection No.
209-C-II of 2017 and FAO No. 246 of 2015.
Abhimanyu Tewari, Ms. Eliza Bar, Ms. Sanya Kaushal, Siddhant
Saroha, Tushar Bathija, Advs. for the Appellant.
Sukant Vikram, Adv. for the Respondents.
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court reducing the amount of compensation
from Rs. 20,64,000/- as awarded by the learned Motor Accident Claims
Tribunal (hereinafter referred to as the “Tribunal”) to Rs.11,34,136/-
SARUP SINGH @ RAM SARUP v. HDFC ERGO GENERAL
INSURANCE COMPANY LTD.
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[2022] 14 S.C.R.
alongwith interest @ 6% p.a., the original claimants have preferred the
present appeals.
2. The deceased at the time of accident was of 28 years of age.
The original claimants – wife of the deceased, minor daughter,
father and sister of the deceased filed the claim petition before the Tribunal.
The learned Tribunal considered the notional income of the deceased at
Rs. 10,000/- per month and thereafter adding 30% towards the future
prospect and th
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