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2025 Supreme(All) 3623

2025 AHC 192193
IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Sandeep Jain, J.
Suneeta Singh and Others - Appellants
Versus
Poonam Gupta and Others - Respondents
First Appeal From Order No. - 1915 of 2019
Decided On : 31-10-2025
Advocates Appeared :
For the Appellant : Jagat Narayan Shukla, Shahnawaz Khan
For the Respondent : Avdhesh Chandra Nigam, Shrey Singh, Vipin Chandra Dixit (Elevated)

Advocates:
Petitioner: Jagat Narayan Shukla and Shahnawaz Khan
Respondent: Avdhesh Chandra Nigam , Shrey Singh and Vipin Chandra Dixit (Elevated)

The court established that a correct assessment of income and consideration of future prospects is essential for calculating just compensation for claims under the Motor Vehicles Act.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Enhancement of compensation - Death in road accident - Claimants sought increased compensation for the untimely death of the deceased, with the Tribunal originally awarding Rs. 4,83,000/- which was inadequate, given the deceased’s proven income as a manager - The court relied on established precedent to rule that the claimants are entitled to an enhanced compensation of Rs. 11,27,900/- along with interest at 7% per annum. (Paras 2, 5, 11, 19)

(B) Compensation Calculation - The need to consider future prospects and the disparity in the initial assessment of the deceased's income were significant - Established jurisprudence dictates reasonable compensation is mandated. (Paras 14, 18)

Facts of the case:
The claimants, who are the deceased's family, appealed for higher compensation from an award of Rs. 4,83,000/- after the deceased, who was employed as a Manager in a brick kiln, died in an accident. Key evidence included salary documentation and educational qualifications.

Findings of Court:
Compensation fixed at Rs. 11,27,900/- with interest at 7% following guidelines from the U.P. Motor Vehicle Rules, 1998.

Issues: The court examined the factors in calculating adequate compensation, including the deceased's true income and the application of legal standards for financial awards.

Ratio Decidendi: The court determined the necessity to correctly assess the deceased's income to ensure just compensation while formalizing the obligation for enhanced future prospects as established judicial precedent.

Result: Appeal allowed; the award of the Tribunal modified accordingly.

Table of Content
1. appeal for enhanced compensation due to inadequate previous award. (Para 2 , 3)
2. arguments presented for and against the adequacy of compensation. (Para 4 , 5 , 6 , 7)
3. court's analysis of evidence and income proof of deceased. (Para 8 , 9 , 10 , 11 , 12 , 13)
4. established legal precedents for loss of consortium and future prospects. (Para 14 , 15 , 16)
5. redetermined total compensation amount and interest rates. (Para 18 , 19)
6. final orders for payment and record return. (Para 20 , 21)

JUDGMENT :

SANDEEP JAIN, J.

1. Learned counsel for the appellants and Shri Shrey Singh, learned counsel for the respondent insurance company are present.

2. This appeal has been filed by the claimants under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation against the judgment and award dated 30.05.2018 passed by the Motor Accident Claims Tribunal/Additional District Judge, Court No.10, Gorakhpur, in Motor Accident Claim Petition No. 51 of 2013 (Sunita Singh and others vs. Smt. Poonam Gupta and others), whereby, for the untimely death of Rajesh Singh(deceased) on 26.03.2012, due to the injuries sustained in a road accident that occurred on 23.03.2012, a compensation of Rs. 4,83,000/- along with interest at the rate of 6% per annum has been awarded to the claimants, which has been order to be indemnified by the insurer of the offending vehicle.

3. Since there is no cross-appeal by owner, driver and insurer of the offending vehicle as such, the factum of accident and negligence of offending driver is not disputed by the respondents.

4. Learned counsel for the claimants-appellants submitted that the Tribunal has awarded inadequate compensation to the claimants because the deceased was working as a Manager in a brick kiln and was drawing salary of Rs.7,000/- per month, but the Tribunal has disbelieved it and has assessed the income on notional basis at Rs.4,500/- per month.

5. Learned counsel further submitted that no compensation towards future prospects has been awarded by the Tribunal, and lesser amounts have been awarded under the heads of loss of estate, funeral expenses, and consortium. It was further submitted that the Tribunal has awarded interest only at the rate of 6% per annum, whereas, as per the mandate of Rule 220-A of the U.P. Motor Vehicle Rules, 1998, the claimants are entitled to interest at the rate of 7% per annum. With these submissions, it was prayed that the appeal be allowed and compensation be enhanced.

6. Per contra, learned counsel for the respondent-National Insurance Company Limited submitted that the Tribunal has awarded the right amount of compensation to the claimants because no documentary proof of profession and income of deceased was submitted by the claimants before the Tribunal.

7. Learned counsel further submitted that the Tribunal has also awarded interest at the rate of 6% per annum, which is just and reasonable.

8. I have heard the learned counsel for both the sides, perused the impugned judgment and record of the lower court.

9. The claimants claimed that the deceased was working as a Manager at a brick kiln and was drawing a salary of Rs.7,000/- per month, and also examined Roopchand as PW-3, the proprietor of Hari Bricks Field, Paniyara, District Maharajganj, in support thereof.

10. The tribunal believed that he was working only as a labourer at the brick kiln of PW-3, who was well educated, who was earning more than a labourer, who had a Tata truck having an agreement to pay Rs.13,000/- per month, but still assessed his income at Rs.4,500/- per month, which is erroneous.

11. PW-3 Roopchand proved that the deceased Rajesh Singh was working at his brick kiln at the post of Manager on salary of Rs.7,000/- per month, from 12.04.2011, who died in an accident on 26.03.2012. PW-3 has proved the salary certificate and attendance of the deceased.

12. The claimants have also filed the original educational certificate of the deceased which prove that he passed the B.A. examin

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