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2026 Supreme(Online)(Chh) 19413

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K. Agrawal, J
Ratna Banchor – Appellant
Versus
Santlal Patel – Respondent
MAC No. 218 of 2020|MAC No. 109 of 2020



Important Points

Compassionate appointment granted to a dependant of a deceased employee is not a 'pecuniary advantage' under the Motor Vehicles Act and cannot be used to deny or deduct compensation in a motor accident claim.

Subject

Civil - Motor Accident Claims

Act Referred

Headnote

The matter involves appeals arising from a common motor vehicle accident resulting in death, where the Insurance Company challenged the award on the ground that a claimant's compassionate appointment disentitles them from compensation, and the claimants sought enhancement of the award based on corrected salary figures. The court applied the law relating to pecuniary advantages under the Motor Vehicles Act and interpreted the nature of compassionate appointments. The primary issues were whether a compassionate appointment constitutes a 'pecuniary advantage' liable for deduction under the Motor Vehicles Act and whether the compensation should be enhanced based on evidence of a higher gross salary. The court reasoned that compassionate appointment is a condition of service to maintain the family and not a statutory advantage arising from the accidental death, thus not subject to deduction. Accordingly, the impugned award is modified and the instant appeal is allowed to the extent indicated herein-above.

Advocates:
For the Appellants/Petitioners: Suraj Patel, Shobhit Mishra
For the Respondents: Sangeet Kumar Kushwaha

Table of Content
1. clubbing of appeals arising from the same accident and summary of the tribunal's original award. (Para 1 , 2)
2. contentions regarding compassionate appointment disqualification and enhancement based on actual salary. (Para 3 , 4 , 5)
3. compassionate appointment is not a pecuniary advantage under the motor vehicles act. (Para 6 , 7)
4. recalculation of compensation based on proved gross salary and updated loss of consortium. (Para 8 , 9)
5. modification of the award and direction for payment of enhanced compensation. (Para 10 , 11)

Judgment on Board

1. Since both of these appeals have arisen out of a common accident and since common question of law and fact is involved in both of these appeals, therefore, they have been clubbed together, heard together and are being decided by this common judgment.

2. MAC/109/2020 has been preferred by the appellant/Insurance Company whereas MAC/218/2020 has been preferred by the appellants/claimants against the impugned award dated 17/10/2019 passed by learned Additional Motor Accident Claims Tribunal, Saraipali, District Mahasamund in Claim Case No. 46/2018 whereby compensation of Rs. 82,99,639/- has been awarded in favour of the claimants for the death of Ramkrishna Banchor, aged about 50 years, and the liability of payment of compensation has been fastened upon the Insurance Company.

3. Mr. Sangeet Kushwaha, learned counsel for the appellant/Insurance Company in MAC/109/2020, would submit that since the son of deceased namely Pramod Kumar Banchor was granted compassionate appointment, therefore, he does not have the right to claim compensation and the claim case as filed by him (being one of the claimants) is liable to be dismissed in toto.

4. Mr. Suraj Patel, learned counsel for the appellants/claimants in MAC/218/2020, would submit that Premanand Das (A.W.-2), who works as Accountant at the Government Higher Secondary School, Saraipali, has proved the salary slip of the deceased in the month of July, 2018 (Ex. A/7) and has stated that the gross salary of the deceased was Rs. 84,622/-, however, the Claims Tribunal has taken the gross salary of the deceased as Rs. 81,500/- per month, thus, the amount of compensation as awarded by the Claims Tribunal is liable to be enhanced.

5. I have heard learned counsel for the parties, considered their rival submissions made herein-above and went through the records with utmost circumspection.

MAC/109/2020 :-

6. So far as the question of grant of compensation to the person who has been granted compassionate appointment is concerned, it is no longer res integra and has been decided by the Supreme Court in the matter of Vimal Kanwar and Others v. Kishore Dan and Others 1(2013) 7 SCC 476 in which the question was framed in paragraph 20 and it was answered in paragraph 21 of the judgment, which states as under :-

“20. The second issue is “whether the salary receivable by the claimant on compassionate appointment comes within the periphery of the Motor Vehicles Act to be termed as ‘pecuniary advantage’ liable for deduction”.

21. “Compassionate appointment” can be one of the conditions of service of an employee, if a scheme to that effect is framed by the employer. In case, the employee dies in harness i.e. while in service leaving behind the dependants, one of the dependants may request for compassionate appointment to maintain the family of the deceased employee who dies in harness. This cannot be stated to be an advantage receivable by the heirs on under a statute occasioned on account of accidental death. Compassionate appointment may have nexus with the death of an employee while in service but it is not necessary that it should have a correlation with the accidental death. An employee dies in harness even in normal course, due to illness and to maintain the family of the deceased one of the dependants may be entitled for compassionate appointment but that cannot be termed as “pecuniary advantag



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