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IN THE SUPREME COURT OF INDIA  CIVIL APPELLATE JURISDICTION  

CIVIL APPEAL NO.  6639     OF 2018  (Arising out of SLP (C) No.28752 of 2013)  

NUTAN RANI AND ANR     ..APPELLANTS   

VERSUS  

GURMAIL SINGH AND ORS          ..RESPONDENTS   

J U D G M E N T  

Dr D Y CHANDRACHUD, J  

1 The appeal is from a judgment of the High Court of Punjab and Haryana  

at Chandigarh dated 23 February 2011, in a first appeal against a decision of  

the Motor Accident Claims Tribunal, Chandigarh.  

2 The appellants are the heirs and legal representatives of Ashok Kumar  

who died as a result of an accident on 31 March 1994.  He was 30 years old at  

the time of the accident and worked as a commission agent/salesman with a  

firm in Ludhiana.  The accident took place while he was travelling in a bus  

REPORTABLE

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belonging to the Chandigarh Transport Undertaking. While he was alighting  

from the bus, it moved abruptly which caused him to fall. The fall resulted in  

serious injuries and led to his death on the following day.    

3 The heirs of the deceased filed a claim petition under Section 166 of the  

Motor Vehicles Act, 1988 before the tribunal, to seek compensation of Rs.20  

lakhs.  The Tribunal held that negligence on the part of the bus driver was not  

proved.  However, an amount of Rs.50,000 was awarded towards no fault  

liability together with interest at 12 per cent per annum.    

4 In appeal, the High Court drew an adverse inference on account of the  

non-examination of the bus driver and awarded a total compensation of              

Rs 3,98,500. However, the rate of interest was reduced to 6 per cent per  

annum.  Aggrieved by the judgment of the High Court, the heirs are in appeal.   

 5 The learned counsel appearing on behalf of the appellants has assailed  

the award of compensation by urging that:  

i. No addition on account of future prospects was made;  

ii. The High Court erred in deducting 1/3rd of the amount towards  

personal expenditure without considering that the income of the  

deceased was extremely low, at Rs. 3,000 per month. A person  

earning a low income, who has a family to feed, would not spend 1/3rd  

of his income towards his personal expenditure; and

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iii. The rate of interest was reduced from 12% as awarded by the MACT  

to 6% without adequate reason.  

6 We find merit in the submission that the High Court erred in not granting  

the benefit of future prospects in computing the income of the deceased. Having  

due regard to the judgment delivered by the Constitution Bench of this Court in  

National Insurance Company Ltd. v Pranay Sethi1,  an addition towards  

future prospects is warranted.  The deduction of one-third towards personal  

expenses is proper.  

   7 The decision of the Constitution Bench in Pranay Sethi (supra), warrants  

an addition of 40 per cent on account of future prospects, having regard to the  

age of the deceased. The total compensation payable to the appellants in terms  

of the judgment in Pranay Sethi is computed below:  

• Income : Rs 3,000/-  

• Percentage increase towards future prospects : 40%   

• 3000 x 40% = Rs 1,200/-  

• Total income : Rs 4,200/-  

• One-third deduction  : Rs 1,400/-  

• Income after deduction : Rs 2,800/-  

• Annual income = Rs 2,800 x 12 = Rs 33,600/-  

• Multiplier applied : 17 (since age of deceased was 30 years)  

                                                           1 (2017)16 SCC 680

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• Loss of dependency : Rs 33,600 x 17 = Rs 5,71,200/-  

• Loss of consortium : Rs 40,000/-  

• Loss of estate : Rs 15,000/-  

• Funeral expenses : Rs 15,000/-  

• Total compensation = Rs 6,41,200/-  

 8 Interest is allowed on the aforesaid amount at 9 per cent per annum from  

the date of the petition until payment.   

 9 The appeal is allowed in the above terms.  There shall be no order as to  

costs.  

...........................................CJI                  [DIPAK MISRA]      

                                                    ...........................................J                  [A M KHANWILKAR]      

                                                    ...........................................J                  [Dr D Y CHANDRACHUD]    New Delhi;  July 20, 2018