Chanderi Devi & Anr. v. Jaspal Singh & Ors.
Background
On the night of 29/30 September 2006, Surinder Singh and two co-travellers were in a car driven by Jaspal Singh (respondent) when it collided with another car near Sonepat on the G.T. Road. Surinder Singh, husband of appellant No. 1 and father of appellant No. 2, died of his injuries. The Motor Accidents Claims Tribunal awarded the family only Rs. 2,00,000 as compensation; the High Court of Punjab and Haryana enhanced this to Rs. 17,10,000 on appeal, but the family (widow and minor daughter) appealed to the Supreme Court seeking further enhancement, citing the deceased's higher earnings as a cook in Germany.
Decision Breakdown
The Supreme Court held that the High Court's income estimate (Rs. 8,333/month) was too low, while the appellants' claimed figure (based on Euro earnings, roughly Rs. 62,975/month) was too high for calculating dependency loss in Indian terms. It fixed a reasonable notional income of Rs. 15,000/month, added 50% for future prospects, deducted income tax and personal expenses, and applied the multiplier method from Sarla Verma v. Delhi Transport Corporation to arrive at a loss of dependency of Rs. 25,92,000. Adding amounts for loss of estate, loss of consortium, loss of love and affection (for the minor daughter), and funeral expenses, the Court awarded a total of Rs. 29,17,000 with 9% annual interest, directing partial deposit of the minor's share in a bank fixed deposit for her welfare until she attains majority.
Lesson Learnt
In motor-accident death claims where a deceased's income is uncertain or based on foreign earnings that can't be easily verified or applied, courts will estimate a reasonable notional income using established methods (like the Sarla Verma multiplier) rather than accepting either extreme figure put forward by either side.