This First Appeal from Order (FAO) under Section 173 of the Motor Vehicles Act, 1988, challenged an award passed by the Motor Accidents Claims Tribunal (MACT), Shimla, which had awarded Rs. 7,19,000/- as compensation for the death of the appellant’s 23-year-old son in a vehicular accident. The High Court of Himachal Pradesh partly allowed the appeal, substantially enhancing the compensation to Rs. 13,02,770/-. The Court held that the Tribunal erred by adopting a low notional income, applying an incorrect multiplier based on the dependents’ age rather than the deceased’s age, and failing to award proper compensation under conventional heads like filial consortium. Reassessing the case in light of landmark apex court rulings, the High Court emphasized that multipliers must strictly correspond to the deceased’s age, and conventional compensation amounts are subject to periodic upward revisions.
- Nature of the Dispute: On November 8, 2011, Mohit Dilta (deceased) suffered fatal injuries when the vehicle he boarded rolled down into a deep gorge due to rash and negligent driving. His mother (the appellant) filed a claim petition seeking Rs. 50,000,000/-, which the Tribunal partially allowed by awarding Rs. 7,19,000/-.
- Reassessment of Notional Income: Although the claimant asserted a monthly income of Rs. 50,000/- from agriculture, horticulture, and commission business without producing income tax returns or business accounts, the High Court found the Tribunal’s assessed notional income of Rs. 6,000/- to be inadequate. Considering his background as an agriculturist and horticulturist in 2011, his income was reasonably re-fixed at 8,000/- per month.
- Future Prospects and Personal Expenses: In line with Pranay Sethi, a 40% addition was made towards future prospects (since the deceased was below 40 years old), and a standard 50% deduction was applied for personal and living expenses due to his bachelor status.
- Correction of Multiplier Based on Age: The High Court corrected a serious error of law made by the Tribunal, which had applied an incorrect multiplier of 11. Citing precedents like Amrit Bhanu Shali and Sarla Verma, the Court reiterated that the multiplier must be determined by the age of the deceased (23 years) rather than the claimants, making the proper multiplier 18. This brought the loss of dependency to 12,09,600/-.
- Enhancement Under Conventional Heads and Filial Consortium: Invoking Magma General Insurance and Sunita v. United India Insurance Co. Ltd., the Court recognized the mother’s right to filial consortium and updated conventional heads (loss of estate, funeral expenses) with a 10% periodic enhancement every three years from 2017.
- Final Award Breakdown:
- Loss of Dependency: 12,09,600/-
- Loss of Estate: 19,965/-
- Funeral Expenses: 19,965/-
- Filial Consortium: 53,240/-
- Total Compensation: 13,02,770/- along with interest at 7.5% per annum.
STPL (Web) 2026 HP 420
Satya Dilta v. IFFCO Tokio General Insurance Co. Ltd. & Anr. (D.O.J. 27.07.2026)
Loading Viewer...





