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Shiv Kumar & Ors. vs. Gainda Lal & Ors.

Civil Appeal · 2022 INSC 1130Decided 21 Oct 2022
Civil Appeal No. 7629 of 2022
M.R. Shah · M.M. Sundresh

Background

The appellant's wife, a 25-year-old housewife who was pregnant at the time, died in a vehicular accident. The Motor Accident Claims Tribunal awarded the family about Rs. 19.12 lakh in compensation, calculating loss of dependency using a notional monthly income of Rs. 1,500. On appeal, the Punjab and Haryana High Court raised the compensation to about Rs. 29.34 lakh, increasing the notional monthly income to Rs. 6,000 but without adding anything for the deceased's future income prospects. The claimants then appealed to the Supreme Court, arguing the income figure and the amount awarded for loss of the unborn child (foetus) were both still too low.

Decision Breakdown

The Supreme Court held that, given evidence the deceased also did tuition work in addition to household duties, her notional monthly income should be raised further to Rs. 7,500, and that the High Court had erred in not adding the standard 40% addition for "future prospects" as settled law requires even for notional incomes. The Court also increased the award for loss of the foetus from Rs. 50,000 to Rs. 1 lakh, and granted Rs. 40,000 each to the husband and minor son for loss of consortium/loss of love and affection. The appeal was allowed, and the total compensation was enhanced to Rs. 32,82,000 with 7.5% interest per annum.

Lesson Learnt

In motor accident compensation claims involving a homemaker's death, courts must factor in the statutorily settled addition for "future prospects" on notional income and cannot rely purely on a bare minimum wage figure when there is evidence of the deceased's other income-generating activities or household contribution.

Official source (sci.gov.in)View Judgment (PDF)

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