Rekha Gupta and others Vs TATA AIG General Insurance Company and others (Punjab and Haryana High Court)
The Punjab and Haryana High Court disposed of two appeals arising from a common award passed by the Motor Accident Claims Tribunal, Patiala, concerning compensation for the death of Raj Kumar in a motor vehicle accident that occurred on 15.01.2021 near Jakhal Road, Patran. The deceased sustained fatal injuries when the offending vehicle, driven rashly and negligently by respondent No.2, struck his motorcycle. An FIR was registered against the driver. The widow and children of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act seeking compensation of ₹70 lakh, asserting that the deceased was engaged in agriculture, brick kiln business, and cloth business, earning approximately ₹1 lakh per month. The Tribunal awarded compensation of ₹50,82,600/- with interest.
The claimants sought enhancement of compensation, while the insurance company challenged the award on the ground that the deceased’s income tax liability had not been deducted while calculating compensation. The findings regarding rash and negligent driving and the insurer’s liability were not disputed before the High Court, restricting the controversy to the quantum of compensation.
To establish income, the claimants relied upon Income Tax Returns for Assessment Years 2020-21 and 2021-22. The first return had been filed during the deceased’s lifetime, while the second was filed after his death. The High Court observed that the second return could not be discarded merely because it was filed posthumously since it had been accepted by the Income Tax Department and its genuineness was not disputed. However, the Court accepted the claimants’ contention that the income shown in the return for Assessment Year 2021-22 covered earnings only up to the date of the accident and therefore could not be treated as annual income.
