Punjab & Haryana High Court Enhances Motor Accident Compensation for Ex-Serviceman’s Family; Rules Married Children Also Entitled as Legal Representatives

Case Name: Santosh Sharma (Deceased) through LRs v. Raj Pal Singh & Others
Date of Judgment: October 31, 2025
Citation: FAO-7908-2016
Bench: Hon’ble Mr. Justice Harkesh Manuja

Held: The Punjab & Haryana High Court enhanced the compensation awarded to the legal heirs of an ex-serviceman who died in a road accident, ruling that even married children of the deceased are entitled to compensation as legal representatives under the Motor Vehicles Act. Justice Harkesh Manuja held that the Tribunal erred in assessing a low monthly income of ₹8,715 despite evidence of the deceased’s pension and agricultural earnings. The Court reassessed his monthly income at ₹25,000, recalculated the compensation accordingly, and enhanced the rate of interest from 7.5% to 9% per annum.

Summary: The deceased, Janak Raj, a 63-year-old ex-serviceman engaged in agriculture and dairy farming, died in a motor accident on May 29, 2013, due to the rash and negligent driving of respondent No.1. The Tribunal, Kurukshetra, awarded ₹6,23,040 with 7.5% annual interest. On appeal, the Court found sufficient material to establish that the deceased received a pension and earned additional income from agriculture. It reassessed his annual income at ₹3,00,000, deducted one-third for personal expenses, and applied a multiplier of 5 based on age, determining a loss of dependency of ₹10,00,000.

Justice Manuja also enhanced compensation under conventional heads, granting ₹18,000 each for funeral and estate loss and ₹1,44,000 for parental consortium (₹48,000 × 3). The Court relied on Sarla Verma v. DTC (2009) 6 SCC 121, Pranay Sethi (2017) 16 SCC 680, and United India Insurance Co. v. Satinder Kaur (2021) 11 SCC 780. Rejecting the insurer’s objection that married, self-dependent children were ineligible, the Court cited Manjuri Bera v. Oriental Insurance Co. (2007) and National Insurance Co. v. Birender (2021) to affirm that all legal representatives can claim compensation, irrespective of dependency.

Decision: The appeal was allowed, enhancing total compensation to ₹11,80,000 with interest at 9% per annum from the date of claim filing until realization. If not paid within three months, interest would rise to 12%. The Court directed that amounts already paid be deducted from the enhanced sum.