MAC.APP./490/2016 of THE ORIENTAL INSURANCE CO LTD Vs NEELAM GUPTA AND ORS on 14 September 2026

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14.09.2026

1. These appeals have been filed assailing the impugned award dated 26th April 2016 passed by the Motor Accident Claims Tribunal, East District, Karkardooma Courts, Delhi (‘Tribunal/MACT’) in MAC Petition No. 151/2016, where the Tribunal awarded compensation of Rs.17,85,000/- along with 9% interest in relation to the death of Sh. Piyush Gupta (hereinafter, ‘deceased’) in an accident which occurred on 24th March 2013.

2. Deceased along with Neeraj Dangi were travelling as pillion riders on a motorcycle towards Delhi. When the motorcycle crossed near Chowki Morta, a truck bearing registration number HR-38F-5523 (hereinafter, ‘offending vehicle’) hit the motorcycle.

3. The offending vehicle was insured by Oriental Insurance Company Limited (‘Insurance Company’). MAC.APP. 490/2016 has been filed by the Insurance Company and Mr. Pankaj Seth, counsel appears on behalf of Insurance Company. MAC.APP. 11/2017 has been filed by the driver, since liability was ultimately imposed on driver and owner. Though, no one has appeared on behalf of driver and owner on previous dates. Even today, no one appears for driver and owner. Therefore, MAC.APP. 11/2017 is not being considered and is dismissed for want of prosecution. MAC.APP. 955/2018 has been filed by the legal heirs of deceased (hereinafter, ‘claimants’), seeking enhancement of compensation.

4. The only issue in dispute is the calculation of loss of dependency on the basis of notional income of deceased. As per the impugned award, notional income was considered as Rs.20,000/- per month in relation to the deceased, who was 20 years of age at the time of accident and was a first-year student, pursuing B. Com. from School of Open Learning, University of Delhi. It was stated that he was running a private tuition centre from home for various students, in respect to which the testimonies of parents of various students [PW1 to PW6], who were attending tuition classes, had been filed.

5. MACT considered potentiality of the income of deceased, who was pursuing B. Com., basis that he might have received a placement in some private sector job for a good salary and was also taking home tuitions, therefore, notional income of Rs.20,000/- per month was considered.

6. While, Mr. Pankaj Seth, counsel for Insurance Company, contends that this is exaggerated estimation, Ms. Aruna Mehta, counsel for claimants, states that this is a fair estimation of the income.

7. Ms. Aruna Mehta, points out to the evidence of PW1-PW6, in this regard. In each of these testimonies, witnesses had been produced by the claimants, who stated that their children were taking tuitions from the deceased, who used to issue typed receipts of the amounts that he used to charge and the total amount being paid per month by these parents came around Rs.20,000/-.

8. Ms. Aruna Mehta, has drawn attention of the Court to various receipts which have been received by the deceased. Ex. PW1/1 Colly (1 to 7) provides receipt voucher for a sum of Rs. 2,500/- received from Mrs. Geeta Gautam for

7 months. Ex. PW2/1 Colly (1 to 8) provides receipt voucher for a sum of Rs. 3,000/- received from Mr. Sanjeev Kumar Jha for 8 months. Ex. PW3/1 Colly (1 to 7) provides receipt voucher for a sum of Rs. 3,000/- received from Mrs. Sheela Devi for 7 months. Ex. PW4/1 Colly (1 to 7) provides receipt voucher for a sum of Rs. 5,500/- received from Mr. Sanjay Gupta for 8 months. Ex. PW5/1 Colly (1 to 7) provides receipt voucher for a sum of Rs. 3,000/- received from Mr. Rakesh Kumar for 7 months. Ex. PW6/1 Colly (1 to 9) provides receipt voucher for a sum of Rs. 3,000/- received from Ms. Sita Rani for 9 months. Accordingly, in view of the receipts exhibited, this Court is inclined to uphold the MACT’s finding on notional income.

9. Ms. Aruna Mehta, seeks enhancement of compensation on account of future prospects not being granted, as well as, the multiplier being wrongly awarded at ‘13’ on the basis of the age of mother of the deceased, as opposed to ‘18’ which ought to be applicable as per National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680.

10. There is no reason why future prospects ought not to be granted in a situation like this. Accordingly, considering the age, it will be granted at 40% and multiplier will be changed to ‘18’.

11. Loss of love and affection has been subsumed in loss of consortium in view of the decision in United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur and Ors. (2021) 11 SCC 780. Loss of consortium shall be awarded for five claimants, which were parties before the MACT. Accordingly, loss of consortium will be awarded at Rs.2,00,000/- (Rs.40,000 × 5).

12. Loss of estate and funeral expenses will be granted at Rs.15,000/- each in view of the principles enunciated in Pranay Sethi (supra).

13. Accordingly, the revised computation is as under: S. No. Heads Awarded by the Tribunal Awarded by this Court

Income of deceased (A) Rs. 20,000/- Rs. 20,000/-

Add: Future Prospects (B) Nil Rs. 8,000/-

Less: Personal expenses of deceased (C) Rs. 10,000/-

Rs. 14,000/-

Loss of dependency (A+B)-C=D Rs. 10,000/- Rs. 14,000/-

Annual loss of dependency (Dx12) = (E) Rs. 1,20,000/- Rs. 1,68,000/-

Multiplier (F)

Total loss of dependency (E x F)= (G) Rs. 15,60,000/- Rs. 30,24,000/-

Compensation for loss of consortium (H) Nil Rs. 2,00,000/-

Compensation for loss of love and affection (I) Rs. 1,00,000/- Nil

Compensation for loss of estate (J) Rs. 1,00,000/- Rs. 15,000/-

Compensation towards funeral expenses (K) Rs. 25,000/- Rs. 15,000/-

Total compensation (G+H+I+J=K)= L Rs. 17,85,000/- Rs. 32,54,000/-

Rate of Interest Awarded 9% 9%

Directions

14. For the aforesaid reasons, compensation has been enhanced by Rs. 14,69,000/- [“enhanced amount”].

15. Enhanced amount along with 9% interest per annum from the date of filing the petition shall be deposited before MACT within a period of four weeks. It is directed that a lump sum amount of Rs. 5,00,000/- shall be released to claimant/mother of deceased from the deposit of enhanced amount within a period of two weeks thereafter. Remaining enhanced amount, along with accrued interest, shall be kept in Fixed Deposit Receipts (FDRs) of Rs. 25,000/- each for periods of 3 month, 6 months, 9 months and so on, in succession as maybe calculated. Interest accruing on said FDRs shall be credited to the designated Savings Bank Account of claimant. The amount of FDRs on maturity would be released to the Savings Bank Account of claimant upon due verification.

16. By order dated 11th July 2016, this Court had directed the Insurance Company to deposit the entire originally awarded amount, along with accrued interest before MACT, and by order dated 29th July 2016, UCO Bank was directed to keep Rs. 22,00,000/- in FDRs and the balance amount was to be released to mother of deceased. Remaining amount from the original compensation shall be disbursed as per the directions of MACT.

17. The MACT’s finding on grant on recovery rights shall be sustained, therefore, Insurance Company shall first deposit the enhanced amount and recover the same from driver and owner.

18. Appeals are disposed of in above terms.

19. Pending applications, if any, are rendered infructuous.

20. Statutory deposit, if any, be refunded to Insurance Company, only if the order of deposit has been complied with.

21. Order be uploaded on the website of this Court. ANISH DAYAL, J SEPTEMBER 14, 2026/ak/sp