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2025 Supreme(MP) 600

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
PREM NARAYAN SINGH, J.
Farjana Bee and Others – Appellants
Versus
Mahesh and Others – Respondents
Misc. Appeal No. 6902 of 2023
Decided On : 28-03-2025

Advocates Appeared:
For the Appellant : Sachin Parmar
For the Respondent: Monesh Jindal

The court emphasizes maintaining the deceased's standard of living in compensation calculations, enhancing the award based on future prospects under the Motor Vehicles Act.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173(1) - Appeal for enhancement of compensation - Appellant seeks to increase compensation from Rs.9,54,500/- awarded by MAC Tribunal to Rs.66,50,000/- - Compensation was based on notional income of Rs.8,700/-; future prospects not adequately accounted for - Court finds Tribunal's assessment erroneous, enhances compensation to Rs.14,81,375/-. (Paras 1, 12)

(B) Compensation - Calculation of compensation for loss of dependency and future prospects - Importance of maintaining existing standard of living in motor accident compensation - The Apex Court's decision on minimum wages and future prospects referenced. (Paras 8, 9)

Facts of the case:
The accident occurred on 21.08.2021, resulting in the death of Salim Khan due to negligence of the vehicle driver. The initial compensation awarded was deemed insufficient. (Paras 3, 4)

Findings of Court:
The compensation amount has been enhanced to reflect a just and reasonable figure in consideration of legal precedents on dependency and consortium. (Paras 10, 12)

Issues: Whether the amount awarded by the Tribunal was just; computation of loss of income and future prospects; correctness of dependency assessment. (Paras 4, 11)

Ratio Decidendi: The court emphasized that the existing standard of living and valid adjustments for future prospects are crucial in determining compensation - Tribunal's decision was overly conservative and did not reflect these principles. (Paras 9, 12)

Result: Appeal partly allowed, compensation enhanced by Rs.5,26,875/-.

Table of Content
1. circumstances of the motorcycle accident. (Para 1 , 2 , 3)
2. arguments for and against compensation amounts. (Para 4 , 5)
3. court's analysis and consideration of compensation. (Para 6 , 7 , 8 , 9 , 10)
4. final decision enhancing compensation. (Para 12 , 13)

JUDGMENT :

PREM NARAYAN SINGH, J.

1. The appellant-claimant has filed This appeal under Section 173 (1) of the Motor Vehicles Act, 1988 has been filed by the appellant being aggrieved by award dated 03.08.2023 passed in MACC No.17/2022 by Second Member of Motor Accident Claims Tribunal, District Ratlam, whereby a total compensation amount of Rs.9,54,500/- has been awarded in favour of the claimant.

2. The present appeal is filed seeking enhancement in compensation amount up to Rs.66,50,000/-.

3. In short, the facts of the case are that on 21.08.2021 at about 5.30 to 5.40 pm, the deceased Salim was going on his motor cycle bearing registration No.MP 43 EJ 1215 slowly on safe side and when he was going towards Jaora from Hatpipaliya at that time the respondent no.1, was driving the offending vehicle No. MP-13-JB-1735 rashly and negligently, dashed down Salim Khan's vehicle due to which he suffered serious injuries on his head and various parts of body and expired during treatment.

4. The Tribunal while awarding the amount of compensation for the death of deceased, has considered the entire evidence placed on record and after recording evidence Tribunal awarded a total compensation of Rs.5,10,000/- in the following heads:

4.1 Learned counsel for the appellant submits that the Tribunal has committed an error in not awarding just and proper amount of compensation in the case as the amount awarded by the Tribunal is on the lower side hence, liable to be appropriately modified. The interest of 6% is also on very low as per settled law on this point. The Tribunal has committed an error in not awarding compensation under the head of future prospects keeping in view the verdict of the apex Court in the case of National Insurance Co. Ltd. vs. Pranay Sethi , 2017 ACJ 2700 . In which it is held that every dependent is entitled for consortium, hence, the view of learned Trial Court regarding single consortium is also perverse. So far as the income is concerned, the learned Tribunal has taken notional income as Rs. 8700/- per month and after deductions calculated loss of dependency as Rs.8,77,500/- which is also incorrect. Hence, prayed for awarding just and proper amount of compensation in the case.

5. On the other hand, learned counsel for the Insurance Company has argued in support of the impugned award and contended that the Claims Tribunal has rightly awarded the compensation amount in the case which does not call for any interference by this Court.

6. Heard learned counsel for the parties and perused the record.

7. After hearing learned counsel for the parties and going through the record and also the judgments passed by Hon'ble Apex Court in the cases of Magma General Insurance Company Limited (Supra), Kirti (Supra) and Pranay Sethi (Supra) I find substance in the arguments advanced by the counsel for the appellants.

8. Certainly, in this case, the claimants have not been produced any evidence regarding income. However, it is well settled that the income of claimant can be awarded on the basis of minimum wages prescribed by the State. In this regard, paragraph No.11 of the judgment passed by Hon'ble Apex Court in the case of Kirti and Another v. Oriental Insurance Company Limited , (2021) 2 SCC 166 , is condign to quote here:-

II. Assessment of monthly income:

“11. Second, although it is correct that the claimants have been unable to produce any document evidencing Vinod's income, nor have they established his employment as a teacher; but that doesn't justify adoption of the lowest tier of minimum wage while computing his income. From the statement of witnesses, documentary evidence on record and circumstances of the accident, it is apparent that Vinod was comparatively m

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