2026 Supreme(Online)(Chh) 24660
HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K. Agrawal, J
Radheshyam – Appellant
Versus
Surekha Bai – Respondent
MAC No. 546 of 2020 | MAC Case No. 436/2018
For the Appellants/Petitioners: Anand Kesharwani
For the Respondents: Raj Awasthi
The court held that the monthly income of a deceased person engaged in a poultry farm should be assessed according to the state's minimum wages notification to ensure a fair and just compensation award.
Headnote:(A) Motor Accident Claims - Compensation Enhancement - Monthly Income - Where the deceased was running a business (Poultry Farm), the monthly income should be assessed based on the prevailing minimum wages notification issued by the state government if the Tribunal's assessment is lower. (Para 6, 7)
(B) Computation of Compensation - Application of Precedents - Calculation of compensation for death must follow the established guidelines regarding multipliers and future prospects as laid down by the Supreme Court. (Para 8)
Issues: Whether the compensation awarded by the Claims Tribunal deserves enhancement by revising the monthly income of the deceased to the minimum wage rate.
| Table of Content |
|---|
| 1. background of the appeal for enhancement of compensation and finality of insurance liability. (Para 1 , 2) |
| 2. contention regarding the underestimation of the deceased's monthly income by the tribunal. (Para 3 , 4) |
| 3. application of state minimum wage notifications to determine the monthly income of self-employed deceased. (Para 5 , 6 , 7) |
| 4. computation of compensation using supreme court guidelines on multipliers and future prospects. (Para 8) |
| 5. final modification of the award and direction for payment of additional compensation. (Para 9 , 10) |
1. This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellants herein/claimants seeking enhancement in the amount of compensation, challenging the impugned award dated 23-12-2019 passed by the 5th Additional Motor Accident Claims Tribunal, Bilaspur in Motor Accident Claim Case No.436/2018, whereby the learned Claims Tribunal has awarded a total sum of ₹ 9,27,200/- as compensation for the death of Nand Kumar Yadav, aged about 23 years at the time of incident. The appellants herein/claimants are father and mother of deceased Nand Kumar Yadav, respectively.
2. The appeal filed on behalf of the Insurance Company being MAC No.303/2020 (Bajaj Allianz General Insurance Company Limited v. Radheshyam and others) had already been dismissed by this Court vide order dated 20-4-2026 and thus, the liability of the Insurance Company has become final.
3. Mr. Anand Kesharwani, learned counsel appearing on behalf of the appellants herein/claimants, would submit that the deceased was running a Poultry Farm and he was earning ₹ 40,000/- to ₹ 45,000/- per month, thus, the learned Claims Tribunal ought to have taken his monthly income to be ₹ 8,450/- on the basis of notification issued under the Minimum Wages Act in the year 2021, whereas, it has been taken as ₹ 6,000/-, therefore, the amount of compensation be enhanced suitably.
4. Mr. Raj Awasthi, learned counsel appearing on behalf of respondent No.2/Insurance Company, would support the impugned award and oppose the appeal.
5. I have heard learned counsel for the parties and considered their rival submissions made herein-above and also gone through the record with utmost circumspection.
6. Admittedly, the deceased was aged about 23 years at the time of accident and was running a Poultry Farm and thus, the learned Claims Tribunal ought to have taken his monthly income to be ₹ 8,450/- on the basis of notification issued under the Minimum Wages Act in the year 2021, whereas, it has been taken as ₹ 6,000/-, therefore, the amount of compensation deserves to be enhanced.
7. The learned Claims Tribunal has assessed the monthly income of deceased Nand Kumar Yadav to be ₹ 6,000/-, however, in the opinion of this Court, as per the Chhattisgarh Minimum Wages Notification issued by the Office of Labour Commissioner, Chhattisgarh, the monthly income of the deceased should be ₹ 8,450/- (as per minimum wages prescribed at relevant time).
8. Thus, considering the evidence available on record and that the deceased was aged about 23 years at the time of accident and was running a Poultry Farm, in light of the aforesaid discussion and in light of the judgments of the Supreme Court rendered in the matters of National Insurance Company Ltd. v. Pranay Sethi , (2017) 16 SCC 680, Sarla Verma & Ors. v. Delhi Transport Corporation & Ors, (2009) 6 SCC 121 and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors, (2018) 18 SCC 130, this Court is computing the compensation as below:-
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9. In view of the aforesaid analysis, the amount of compensation of ₹ 9,27,200/- awarded by the Claims Tribunal is enhanced to ₹ 13,98,640/-. Hence, after deducting the amount of ₹ 9,27,200/- the appellants are held entitled for an additional amount of ₹ 4,71,440/-. The concerned respondent is directed to deposit the amount of compensation as enhanced by this Court within a period of 45 days from the date of receipt of a copy o