From Rs 50,000 to Rs 4.79 lakh: 22 years after 2 children killed in road mishap, HC hikes ex gratia by 9 times

An FIR in this regard was registered at a police station in Yamunanagar (Haryana).

The two parents filed a case before the Motor Accident Claims Tribunal (MACT) seeking compensation for the death of their children. On February 9, 2004, the MACT, in respective claim petitions filed by the parents, granted a compensation of Rs 50,000 each..

Not satisfied with the compensation award, the claimants filed respective appeals before the high court seeking extensive enhancement of the compensation. Advocate Bali contended that the MACT erred in granting such a meagre compensation. The counsel for Meenu Deen, however, asserted that there was no satisfactory evidence to seek enhanced compensation, and so, both the appeals deserved to be dismissed as they were without merit.

Hearing the matter, the bench of Justice Archana Puri cited a Supreme Court verdict in Kishan Gopal and another versus Lala and others (1992), wherein the top court, while considering the death of a child, aged 10 years, took the notional income of the deceased as Rs 30,000 and applied multiplier of 15 and the compensation came to be Rs 4.5 lakh. Also, Rs 50,000 was given towards love, affection, funeral expenses and last rites. In the present case, the bench said, “Be it noted that the respondent had not challenged the award. The accident in the case, in hand, had taken place on December 6, 2001. Definitely, the value of rupee has come down drastically, since then… Taking into consideration, all the aforesaid factors, the notional income, in both the appeals, can safely be taken to be Rs 25,000 per month.”

The court held that considering the age of the parents, the multiplier to be applied is ’15’ and so calculating, the loss of dependency comes to Rs 3,75,000 in both the appeals.

The high court said that amounts are to be paid on conventional heads, namely loss of consortium and funeral expenses as held in ‘National Insurance Company Limited versus Pranay Sethi and others’.

The bench further said, “An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for the parents is to lose their children for lifetime. Children are valued for their love, affection, companionship and their role in the family unit. Therefore, on account of filial consortium also, compensation is to be granted.”
Citing Pranay Sethi’s case (supra), the high court said that “loss of dependency, in both the appeals, comes to be Rs 3,75,000, filial consortium comes to be Rs 88,000 (Rs 44,000 to each of the appellant) and Rs 16,500 as funeral expenses. Therefore, the total comes to be Rs 4,79,500”.

The court ordered the enhanced compensation, in both the appeals, after deducting the MACT award which comes to Rs 4,29,500 (Rs 4,79,500-50,000).

Keeping in view the interest rates having been reduced drastically, on the enhanced amount of the compensation which is Rs 4,29,500, in both the appeals, the appellants (claimants) shall be entitled to the interest, at the rate of 6 per cent per annum, from the date of filing of the respective appeals, till realisation of the enhanced amount of compensation, said the high court.