Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Online)(MP) 7234

1

IN THE HIGH COURT OF MADHYA PRADESH
AT INDOR E

BEFORE

HON'BLE SHRI JUSTICE ACHAL KUMAR PALIWAL

MISC. APPEAL No.2354/2013
BETWEEN:-

1. SMT. GAYATRI DEVI W/O CHETAN SHARMA, AGED
ABOUT 22 YEARS, OCCUPATION: HOUSE HOLD R/O 251,
ALKAPURI DEWAS (MADHYA PRADESH)

2. RUDRA PRATAP S/O CHETAN SHARMA, AGED ABOUT 2
YEARS, MINOR THR GUARDIAN SMT. GAYATRI DEVI W/O
CHETAN SHARMA R/O 251, ALKPURI, DEWAS (MADHYA
PRADESH)

3. SATYANARAYAN SHARMA S/O LATE MAYARAM JI
SHARMA, AGED ABOUT 55 YEARS, OCCUPATION:
AGRICULTURE R/O GRAM ALWASA TEH HATOD DIST
INDORE (MADHYA PRADESH)

4. SMT. SHARDA BAI W/O SATYANARAYAN SHARMA, AGED
ABOUT 52 YEARS, OCCUPATION: HOUSE WORK R/O GRAM
ALWASA TEH HATOD DIST INDORE (MADHYA PRADESH)

.....APPELLANTS
(SHRI RAJESH LAL, LEARNED COUNSEL FOR THE APPELLANTS)

AND

1. ROOP NARAYAN S/O BADRILAL SAHU, AGED ABOUT 36
YEARS, OCCUPATION: DRIVER R/O 334, GIL TRANSPORT
GURU JAMBESHWAR NAGAR VAISHALI JAIPUR,
RAJASTHAN (RAJASTHAN)

2. SANTOSH GIL S/O SURESH GIL, AGED ABOUT 35 YEARS,
Signed by: HARIKUMAR
NAIR
Signing time: 12/22/2023
5:35:10 PM
Signature Not Verified

2
OCCUPATION: BUSINESS R/O 334 GIL TRANSPORT, GURU
JAMBESHWER NAGAR VAISHALI JAIPUR (RAJASTHAN)

3. KSHETRIYA PRABANDHAK NATIONAL INSURANCE CO.
LTD. INDORE 13 OLD PALASIYA INDORE (MADHYA
PRADESH)

.....RESPONDENTS
(SHRI PRADEEP GUPTA, LEARNED SR. COUNSEL WITH SHRI
BHASKAR AGRAWAL FOR THE RESPONDENT/INSURANCE
COMPANY)

MISC. APPEAL No.2278/2013

BETWEEN:-

THE NATIONAL INSURANCE CO. LTD. THRU.
REGIONAL MANAGER 13, OLD PALASIYA, INDORE
(MADHYA PRADESH)

........APPELLANT

(SHRI PRADEEP GUPTA, LEARNED SR. COUNSEL WITH SHRI
BHASKAR AGRAWAL FOR THE APPELLANT/INSURANCE
COMPANY)

AND

1. SMT. GAYTRI DEVI AND WD/O CHETAN
SHARMA, AGED ABOUT 22 YEARS, OCCUPATION:
HOUSE HOLD R/O 251, ALKAPURI (MADHYA
PRADESH)

2. RUDRAPRATAP S/O CHETAN SHARMA, AGED
ABOUT 2 YEARS, MINOR THROUGH MOTHER SMT.
GAYATRI DEVI R/O 251, ALKAPURI, DEWAS
(MADHYA PRADESH)

3. SATYANARAYAN SHARMA S/O LATE MAYARAM
SHARMA, AGED ABOUT 55 YEARS, OCCUPATION:
AGRICULTURE R/O VILL-ALWASA, TEH-HATOD,
DISTT-INDORE (MADHYA PRADESH)
Signed by: HARIKUMAR
NAIR
Signing time: 12/22/2023
5:35:10 PM
Signature Not Verified

3

4. SMT. SHARDA BAI W/O SATYANARAYAN, AGED
ABOUT 52 YEARS, OCCUPATION: HOUSEHOLD R/O
VILL-ALWASA, TEH-HATOD, DISTT-INDORE
(MADHYA PRADESH)

5. ROOPNARAYAN S/O BADRILAL SAHU, AGED
ABOUT 36 YEARS, OCCUPATION: DRIVER R/O 334,
GIL TRANSPORT, GURU JAMBESHWAR NAGAR,
VAISHALI, JAIPUR (RAJ.) (RAJASTHAN)

6. SANTOSH GIL S/O SURESH GIL, AGED ABOUT 35
YEARS, OCCUPATION: BUSINESS 334, GIL
TRANSPORT, GURU JAMBESHWAR NAGAR,
VAISHALI, JAIPUR (RAJ.) (RAJASTHAN)

………RESPONDENTS

(SHRI REJESH LAL, LEARNED COUNSEL FOR RESPONDENTS NO.1
TO 4)

…………………………………………………………………………………
Reserved on : 22.11.2023.
Pronounced on : 22.12.2023.
------------------------------------------------------------------------------------
These miscellaneous appeals having been heard and reserved
for orders, coming on for pronouncement this day, JusticeAchal
Kumar Paliwal pronounced the following:

Advocates:
Rajesh Lal (O/S),

The court discussed the principles for calculating the income of the deceased in a motor accident case, including the inclusion of perks and the addition of future prospects.

Headnote:
INCOME CALCULATION - MOTOR ACCIDENT - [KEYWORD] - In calculating the income of the deceased in a motor accident case, the following perks can be included in the basic salary: HRA, education allowance, supervisory allowance, CCA, and medical allowance. However, washing allowance and conveyance allowance cannot be included. Bonus cannot be added to the income unless it is a fixed amount or part of the salary. Future prospects can be added at a rate of 50% if the deceased was in a permanent job.
Fact of the Case:

The deceased, Chetan Sharma, was working as an Accounts Officer in Eicher Engineering Company. He was appointed on 04.04.2008 and was earning a basic salary of Rs.8,190/- per month. He was also receiving various perks, including HRA, education allowance, supervisory allowance, CCA, medical allowance, washing allowance, and conveyance allowance.
Finding of the Court:

The court held that the deceased's monthly gross salary was Rs.12,242/-. This included his basic salary of Rs.8,190/- and the following perks: HRA (Rs.500/-), education allowance (Rs.100/-), supervisory allowance (Rs.2985/-), CCA (Rs.50/-), and medical allowance (Rs.417/-). The court excluded washing allowance (Rs.325/-) and conveyance allowance (Rs.300/-) from the gross salary.
Issues: 1. Whether bonus can be added to the income of the deceased in calculating compensation under the Motor Vehicles Act?2. Whether future prospects can be added at a rate of 50% if the deceased was in a permanent job?
Ratio Decidendi: 1. Bonus cannot be added to the income unless it is a fixed amount or part of the salary.2. Future prospects can be added at a rate of 50% if the deceased was in a permanent job.
Final Decision: The court dismissed the appeal filed by the claimants and partly allowed the appeal filed by the Insurance Company. The compensation amount was reduced from Rs.27,32,936/- to Rs.26,70,436/-.

This

common

order

shall

govern

disposal

both

M.A.No.2354/2013 and M.A.No.2278/2013 as both appeals arise out

common award dated 13.08.2013.

These appeals by the appellants/claimants (M.A.No.2354/2013)

and Insurance Company (M.A.No.2278/2013) under section 173(1) of

the Motor Vehicles Act are arising out of the award dated 13.08.2013

passed by Member, MACT, Dewas district Dewas in Claim Case

No.248/2009 seeking enhancement/reduction of compensation amount

awarded by the Tribunal.

Learned counsel for the appellant/claimants has submitted that

Tribunal has assessed deceased’s income on the lower side. Deceased

was appointed on a monthly salary of Rs.14,603/-. Hence, his monthly

income should be determined as Rs.14,603/- per month. Further,

annual bonus of Rs.55,000/- be also added in the income.

Learned counsel for the Insurance Company has submitted that

Tribunal has assessed deceased’s income on the higher side. As per

deposition of PW/2 Anil Sharma and salary slip Ex.P/17, Deceased’s

basic salary was Rs.8190/- per month. Learned counsel for the

Insurance Company, after referring to para-11 of impugned award,

submits that Tribunal has wrongly assessed deceased’s monthly

income as Rs.12,784/- by including other allowances which is not

permissible in law.Learned counsel has submitted that only allowances

under the head of HRA and education allowances should be added for

calculating monthly income and other allowances i.e. washing

allowance, conveyance allowance, supervisory allowance, CCA,

medical allowance etc. cannot be added for determining monthly

income. In this connection learned counsel for the appellant has relied

upon the decision in the case of National Insurance Company Ltd. Vs.

Indira Srivastava and others – (2008) 2 SCC 763. It is also urged that

as deceased was not in any permanent job and he was in job for less

than 9 months, therefore, 50% of the income cannot be added under the

head of future prospects, instead only 40% of the income should be

added as future prospects. Therefore, Tribunal has wrongly added 50%

as future prospects while calculating deceased’s income. Learned

counsel after referring to para-24 of the order passed in the case of

Sarla Verma & others vs. Delhi Transport Corporation & another –

AIR 2009 SC 3104 submits that bonus cannot be added for calculating

/determining income. In Sarla Verma’s case (supra) bonus has already

been taken into consideration while allowing addition under the head

of future prospects. Therefore, while calculating / determining income

bonus cannot be added separately.

I have heard learned counsel for parties and perused record of

the case.

INCOME / SALARY:-

So far as monthly salary of deceased Chetan Sharma is

concerned, from depositions of Smt.Gayatridevi, Anil Sharma and

Ex.P/16 (salary certificate) & P/17 (salary slip), it is clearly established

that at the time of accident, deceased was working in Eicher

Engineering Company as Accounts Officer and he was appointed on

above post on 04.04.2008.

Break-up of Ex.P/17 (pay slip) is as under:

ECV Dewas – 2009-10

Pay-slip for the month of July, 2009

Name : Chetan Sharma

Employee ID -00916

Designation – Officer

Grade -M1a

Dept. –Accounts & Finance

ESIC# Days paid 31.00

PF# 743 LOP Days .00

DOJ 04/04/2008 OT days-

EL Balance -13.00

CL Balance -2.00

EARNINGS

DEDUCTIONS

Description

Basic

House Rent

Allowance

Conveyance

Allowance

Washing

Allowance

Supervisory

Allowance

Education

allowance

City Com.

Allowance

Medical

Allowance

Basic

structure

8190.00

500.00

300.00

325.00

2985.00

100.00

50.00

417.00

Payable

(Rs)

8190.00

500.00

300.00

325.00

2985.00

100.00

50.00

417.00

Description

Provident Fund

DBE

Society

Loan deduction

EMP welfare

fund

Amount

(Rs)

983.00

12.00

282.00

1250.00

6.00

GROSS PAY 12867.00 Gross deduction 2616.00

Net Pay 10251.00 Ten Thousand Two hundred fifty one only

As per above salary slip Ex.P/17 basic monthly sa

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