IN THE HIGH COURT OF MADHYA PRADESH
Himanshu Joshi, J.
Ratan Raikwar v. Laxman Singh
Miscellaneous Appeal No. 4555 of 2024 (J); Decided on 27.10.2025*
Moter Vehicles Act, 1988 -- S. 168 -- assessment of income -- deceased unskilled labour -- income assessed at Rs. 6,000/- per month -- assessment of Rs. 9,125/- per month appropriate as per Minimum Wages Act at relevant time. [Paras 5 & 8 to 10]
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ORDER
1. This present appeal under section 173 of the Motor Vehicles Act, 1988, has been filed by the appellants/claimants being aggrieved with award dated 8.2.2024 passed by the Motor Accident Claims Tribunal, Chhatarpur, in Claim Case No.51/2023, partly allowing the claim case and granting compensation to the tune of Rs.9,84,200/- along with interest @ 6% per annum.
2. Factual matrix of the case is that on 25.9.2022, the deceased- Manish was going from Chhatarpur to village- Kannpura in a commander jeep along with his friends and when the driver of jeep stopped it, a container bearing registration No.MP-04-GB-6240 driven by respondent No.1 dashed the jeep rashly and negligently resulting into fatal injuries to the deceased and ultimately his death. A claim petition was filed claiming compensation of Rs.86,00,000/-, but the learned Tribunal has awarded the compensation to the tune of Rs.9,84,200/-.
3. The learned Tribunal has found that the accident was caused due to rash and negligent driving of respondent No.1 and the offending vehicle was insured with respondent No.3/Insurance Company on the fateful day. After examining the evidence adduced by the parties, the learned Tribunal has awarded the compensation of Rs. 9,84,200/- as under:-
| Heads | Amount of Compensation (in Rupees) |
| Loss of Dependency | 9,07,200/- |
| Funeral Expenses | 16,500/- |
| Loss of Estate | 16,500/- |
| Loss of Consortium | 44,000/- |
| Total | 9,84,200/- |
4. Hence, in all, a sum of Rs.9,84,200/- was awarded by the learned Tribunal as against the claim of Rs.86,00,000/-.
5. Learned counsel for the appellants submits that the deceased was an unskilled labour and the learned Tribunal erred in assessing his income as Rs.6,000/- per month whereas it should have been assessed as Rs.9,125/- per month. The learned Tribunal also erred in calculating the compensation amount. According to him, the amount of compensation requires to be enhanced.
6. On the other hand, learned counsel for the respondent/Insurance Company supports the impugned award and submits that the same is just and proper. He submits that since the appeal valuation is of Rs.4,00,000/-, therefore, if the amount of compensation is enhanced by this Court above appeal valuation, the appellants/claimants would not be entitled for the interest in respect of that part of compensation amount with retrospective effect.
7. Heard.
8. It is not in dispute that respondent No.1 was responsible for causing the accident and the offending vehicle was insured with respondent No.3 on the fateful day. The only question for determination in this appeal is as to whether the amount awarded by the learned Tribunal requires modification or not?
9. After hearing the submissions advanced by learned counsel for the parties and going through the record, this Court is of the opinion that the learned Tribunal has awarded less amount under the head of loss of consortium and also assessed the income of deceased on lower side. As per Minimum Wages Act, at the relevant point of time the income of unskilled labour should have been assessed as Rs. 9,125/- per month. Thus, considering the overall facts, in the opinion of this Court, the claimants/appellants are entitled to enhanced compensation as under:-
| Head | Amount of Compensation (in Rupees) | |
| Loss of Dependency | ||
| Monthly Income | Rs. 9,125/- | 13,79,700/- |
| Annual Income | Rs. 9,125 x 12 = 1,09,500/- | |
| Future Prospects (40%) | 1,53,300/- | |
| Deduction towards Personal Expenses i.e. 1/2 | 76,650/- | |
| Multiplier of 18 | 13,79,700/- | |
| Funeral Expenses | 16,500/- | |
| Loss of Estate | 16,500/- | |
| Loss of Consortium | 44,000 x 2 = 88,000/- | |
| Total | 15,00,700/- | |
10. Therefore, the appellants/claimants are entitled to get the compensation amount of Rs.15,00,700/- in place of Rs.9,84,200/-. The enhanced amount i.e. Rs.5,16,500/- shall also carry the same interest as has been awarded by the lear
The court modified the compensation assessment by considering future income prospects and family dependency as outlined under the Motor Vehicles Act.
The main legal point established in the judgment is the re-computation and enhancement of compensation under the Motor Vehicles Act, 1988, based on the deceased's potential income, future prospects, ....
The court recalculated compensation based on the deceased's potential earnings as a Mason, enhancing the total compensation awarded to Rs.11,82,312/- with interest.
The court clarified the calculation of compensation in motor vehicle accident claims, emphasizing the need for adequate compensation for loss of love and affection.
The court clarified the calculation of compensation in motor vehicle claims, emphasizing deductions based on dependents and appropriate consortium amounts.
The court established that compensation calculations must accurately reflect the deceased's income and the claimants' losses, adhering to statutory guidelines.
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