FAO No.3489 of 2011(O&M) -1- IN THE HIGH COURT FOR THE STATE OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.3489 of 2011(O&M) Date of Decision:10.05.2011 New India Assurance Company Limited, SCO No.36-37, Sector 17, Chandigarh through its Manager (Legal) .......Appellant Versus Smt. Mithlesh (age 40 years) wife of Sh. Bhawani Deen mother of Sh. Ram Tej and others ......Respondents Present: Mr. Vandanaa Malhotra, Advocate for the appellant. CORAM: HON'BLE MR. JUSTICE K. KANNAN 1. Whether Reporters of local papers may be allowed to see the judgment? No 2. To be referred to the Reporters or not? No 3. Whether the judgment should be reported in the Digest? No K. KANNAN J. (ORAL) 1. Delay in filing the appeal is condoned. 2. The appeal is by the insurance company awarding Rs.4,12,500/- in a case where the deceased was 22 years of age and the claimants were the parents and minor siblings. The contention was that the boy was a labourer and was earning about Rs.3,000/- per month. The Tribunal made a deduction of 1/3rd and adopted a multiplier of 17 for determination of compensation. 3. Learned counsel appearing for the insurance company states that the assessment of compensation is high, for it has failed to adopt the scales of compensation as provided by the Hon'ble Supreme Court in Sarla Verma Vs. DTC 2009(6) SCC 121 by not making 50 cut for death of a bachelor and for choice of multiplier, which was only to be taken on FAO No.3489 of 2011(O&M) -2- the age of the parent and not on the age of the deceased as laid down by the Hon'ble Supreme Court in Shakti Devi Vs. New India Assurance Company Ltd. JT (2010) 13 SC 103. The decisions laid down by the Hon'ble Supreme Court in Sarla Verma and Shakti Devi (supra) constitute law for its applicability by all Courts below. However, there are exceptions which the Hon'ble Supreme Court itself has provided in situations where the deceased is a person with modest earning and for whom the scales of compensation as per Schedule II could have given, for after all the compensation provided for in Schedule II is modest and makes possible for assessment of compensation for persons belonging to lower income strata. If the income was less than Rs.40,000/- and if a Tribunal has adopted the formula provided under Schedule II for application under Section 163-A of the Motor Vehicles Act, no exception could be taken to the same. The Tribunal has made a specific reference to the structured formula given in Schedule II under Section 163-A of the Motor Vehicles Act and it would admit of no exception. The assessment of compensation follows the scales of compensation as set through Schedule II of the Motor Vehicles Act. The overall assessment of compensation conforms to the requisite formula and calls for no intervention. 4. The award is confirmed and the appeal is dismissed. (K. KANNAN) JUDGE May 10, 2011 Pankaj*