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2026 Supreme(All) 201

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
SANDEEP JAIN, J.
Mugga Devi and Others – Appellants
Versus
Makkhan Singh and Others – Respondents
First Appeal From Order No. 1995 of 2024
Decided On : 12-01-2026

Advocates Appeared:
For the Appellant : Mohd. Asim Zulfiquar
For the Respondent: Nagendra Kumar Srivastava

Compensation for wrongful death under the Motor Vehicles Act must not deduct pension or insurance benefits; claimants are also entitled to future prospects enhancement regardless of the deceased's age.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - The claimants appeal for enhancement of compensation awarded for the death of Jaiprakash Singh in a road accident - Tribunal awarded Rs.4,76,620/- with 7% interest; claimants argue for a revised compensation considering pension of Rs.23,936/- instead of the differential amount assessed. (Paras 1, 3, 9, 18)

(B) Compensation Assessment - Pension and gratuity cannot be deducted from the compensation; the wrongful death claimants are entitled to just compensation under the Act, exclusive of any benefits accrued post-death. (Paras 12-18)

(C) Future Prospects - Rule 220-A of U.P. Motor Vehicle Rules, 1998 entitles claimants to a 20% enhancement on compensation for future prospects, applicable regardless of the deceased’s age. (Paras 11, 18)

(D) Legal Precedents - Apex Court has established that amounts received as pension, gratuity, or under insurance are not to be deducted from a compensation amount established under the Motor Vehicles Act, as these are contractual benefits unrelated to the accident. (Paras 6-15) (E) Findings: The appeal is allowed, and the compensation is redetermined at Rs.15,22,545/- with interest @ 7% per annum from the claim petition date to actual payment. (Paras 20, 21)

Table of Content
1. introduction of case and uncontroversial facts. (Para 1 , 2)
2. claimants' arguments for compensation enhancement. (Para 3)
3. respondents' counterarguments against claimants' requests. (Para 4)
4. judicial review and consideration of files. (Para 5)
5. legal precedents regarding deductions from compensation. (Para 6 , 7 , 8)
6. clarifying deductions related to pension in compensation. (Para 9 , 10)
7. future prospects and non-pecuniary damages in compensation. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
8. final decision on compensation awarded. (Para 19 , 20)
9. order for enhanced payment and procedural directives. (Para 21 , 22)

JUDGMENT :

SANDEEP JAIN, J.

1. The instant appeal has been preferred by the claimants for enhancement of compensation, under Section 173 of the Motor Vehicles Act, 1988 against the impugned judgment and award dated 12.07.2024 passed by the Motor Accident Claims Tribunal, Moradabad in Motor Accident Claim Petition No. 253 of 2018 ( Smt. Mugga Devi and others vs. Makkhan Singh and others ) whereby for the untimely death of Jaiprakash Singh in a road accident that occurred on 07.02.2018, a compensation of Rs.4,76,620/- along with interest @ 7% per annum has been awarded to the claimants(wife and sons), which has been ordered to be indemnified by the insurer of the offending vehicle No.UP-21-BK-5747.

2. 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.

3. Sri Abhishek Tripathi holding brief of Mohd. Asim Zulfiquar, learned counsel for the claimants - appellants submitted that Jaiprakash Singh (deceased) was a pensioner, who was getting monthly pension of Rs.23,936/- per month and was about 73 years old at the time of the accident, which was duly proved by the claimants, but on the ground that the wife of the deceased was getting family pension of Rs.14,900/- per month, the Tribunal has assessed compensation on the differential amount of Rs.9,036/- per month, which is erroneous. Learned counsel submitted that in the light of the judgment of the Apex Court in the case of Hanumantharaju B. through LRs. vs. M. Akram Pasha and another , 2025 SCC OnLine SC 1106, the compensation should have been assessed on the basis of pension received by the deceased at the time of the accident and tribunal was not supposed to consider the family pension granted to the wife of the deceased after the accident. Learned counsel further submitted that the claimants were also entitled to compensation on future prospects of the deceased @ 20%, keeping in view Rule 220-A of the U.P. Motor Vehicle Rules, 1998 but the Tribunal has not awarded any compensation towards it. It was further submitted that the Tribunal has awarded inadequate amount of compensation under non-pecuniary heads, which requires enhancement. With these submissions, it was prayed that the appeal be allowed and enhanced compensation be paid to the claimants.

4. Per contra, learned counsel for the respondent-Insurance Company submitted that the deceased was about 73 years old at the time of the accident, who had no future prospects and the wife of the deceased was also getting family pension of Rs.14,900/- per month, which the Tribunal has rightly deducted from the pension of the deceased for assessing the compensation, as such, the claimants are not entitled to any enhancement in compensation awarded by the Tribunal and this appeal deserves no interference from this Court in exercise of its appellate jurisdiction. With these submissions, it was prayed that the appeal is meritless and is liable to be rejected.

5. I have heard learned counsel for the parties, perused the impugned judgment and documents submitted with the appeal.

6. The Apex Court in the case of Sebastiani Lakra and others vs. National Insurance Company Limited and another , (2019) 17 SCC 465 (By 3 Judges), while discussing the amount which are to be deducted f

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