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2026 Supreme(MP) 663

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
HIRDESH, J.
Smt. Geeta Devi And Others - Appellants
Versus 
Ramjan Khan And Others – Respondents
MISC. Appeal No. 1278 of 2010 
Decided On : 07-01-2026

Advocates Appeared:
For the Appellants :Smt. Meena Singhal, Advocate.
For the Respondents:Shri B.K. Agrawal, Advocate.

Cross-objections under Order 41 Rule 22 CPC are maintainable for respondents seeking to modify a decree. In motor accident compensation, income must include gross salary and allowances, and the multiplier must be strictly determined by the age of the deceased.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173(1) - Code of Civil Procedure, 1908 - Order 41 Rule 22 - Death in motor accident - Quantum of compensation - Maintainability of cross-objection - A respondent who has not filed an appeal may file a cross-objection to modify a decree if aggrieved by certain findings, even if they initially expressed satisfaction with the award. A cross-objection is akin to a cross-appeal and provides a statutory opportunity to challenge specific aspects of a judgment. (Paras 10-12)

(B) Determination of Income - For calculating compensation, the term "income" encompasses gross salary, including various allowances and perks that benefit the family, irrespective of whether they are taxable, as these are considered part of the pay packet the employee carries home. (Paras 14-16)

(C) Multiplier - The multiplier applied for calculating loss of dependency must be strictly determined by the age of the deceased; for a deceased aged between 41 to 45 years, the correct multiplier is 14. (Para 17)

Facts of the case:
The legal heirs of a police constable who died in a road accident caused by a recklessly driven tanker sought enhancement of the compensation awarded by the Claims Tribunal. The Tribunal had awarded a specific sum based on a lower income assessment and a multiplier of 16. The Insurance Company filed a cross-objection challenging the findings on negligence, the income assessment, and the multiplier applied.

Findings of Court:
The court held that the gross salary, including allowances, must be considered for calculating the multiplicand instead of the net salary. It further found that since the deceased was between 41 and 45 years of age, the multiplier should be 14 instead of 16. The court also accepted the maintainability of the cross-objection filed by the Insurance Company.

Issues: Whether the cross-objection filed by the Insurance Company was maintainable under the Code of Civil Procedure and whether the income assessment and multiplier used by the Claims Tribunal were correct for determining just compensation.

Ratio Decidendi: Cross-objections under Order 41 Rule 22 of the CPC are maintainable as they allow a respondent to seek modification of a decree when the opposite party appeals. In motor accident claims, the multiplicand should be based on gross salary including benefits to reflect the true loss of dependency, and the multiplier must precisely match the age bracket of the deceased.

Result: The misc. appeal is partly allowed by enhancing the compensation amount by a sum of Rs.7,21,609/-.

Legal Category Hierarchy

  • tort
    • motor accident claims
      • compensation
        • loss of dependency (Para 17)
        • future prospects (Para 17)
        • consortium (Para 17)
        • funeral expenses (Para 17)
      • income assessment
        • allowances (Para 15, 16)
        • professional tax deduction (Para 17)
      • multiplier (Para 17)
      • negligence (Para 8)
  • practice and procedure
    • appeals
      • cross-objection (Para 8, 9, 10, 11, 12)
      • enhancement of compensation (Para 1, 6, 13, 19)
    • interest (Para 19)
    • court fees (Para 19)

Table of Contents

1. Motor accident claim — Enhancement of compensation — Death of a government constable. (Para 1 , 2 , 3 )

2. Claimants sought higher income assessment, future prospects, and consortium; insurer challenged negligence, multiplier, and income via cross-objection. (Para 6 , 7 , 8 )

3. Appeal partly allowed — Compensation enhanced; cross-objection dismissed; enhanced amount payable with interest from date of court fee. (Para 19 , 20 )

4. What allowances are included in the income of the deceased for computing compensation under the Motor Vehicles Act?

Emoluments including HRA, CCA, medical allowance, EPF, and GIS must be included; computer advance is excluded. Allowances are included irrespective of taxability. (Para 15 , 16 , 17 )

5. Is a cross-objection by the insurer maintainable when the insurer is satisfied with the award but the claimant appeals?

Yes. A cross-objection is like an appeal; a respondent may file it to challenge aspects of the award even if the appeal is filed by the opposite party. (Para 9 , 10 , 11 , 12 )

6. What multiplier is applicable for a deceased aged between 41 and 45 years under the Motor Vehicles Act?

The multiplier of 14 is applicable for a deceased aged between 41 and 45 years, not 16. (Para 17 )

7. What is the correct method for computing the loss of dependency and future prospects in a motor accident claim for a government employee?

Income includes gross salary minus professional tax; dependency is calculated as 3/4th of net income; future prospects at 30% are added; applicable multiplier is used. (Para 17 )

8. From what date does the enhanced compensation amount carry interest in a motor accident appeal?

Enhanced compensation carries interest from the date of payment of court fees by the appellants in the present appeal. (Para 19 )

ORDER :

HIRDESH, J.

This misc. appeal under Section 173(1) of the Motor Vehicles Act, 1988 has been filed by appellants- claimants seeking enhancement of compensation awarded by Additional Motor Accident Claims Tribunal, Ambah, District Moren (in ''the Claims Tribunal''), in Claim Case No.108 of 2008.

2. The Claims Tribunal, by its award dated 12th March 2010, granted a total compensation of Rs.12,58,797/- with interest at the rate of 7% per annum from the date of the award. The appellants are aggrieved by the quantum of compensation awarded and, therefore, have preferred this appeal, praying for its enhancement.

3. In brief, the facts of the case are that deceased, Jaiveer Singh, was a constable in Madhya Pradesh Police Department. The Claimants filed a claim petition before the Claims Tribunal, inter alia, stating that the deceased was a responsible and hardworking individual, known for his dedication to both his duties and his family. The deceased was the sole breadwinner for his family, and his untimely death resulted in severe financial hardship for the appellants, who are his legal heirs. The appellants are wife; son, parents and stepmother of deceased. At the time of his death, deceased was earning a monthly salary of Rs.14,000/- which he used to support his family. It was averred that on 4th February 2008, the deceased, along with his colleague Vaijnath Singh Jatav, was traveling on a motorcycle to execute court warrants as part of his official duties. While traveling on the AB Road, near Nayagaon Gate, Subhashpura Police Station, deceased’s motorcycle was struck from behind by a tanker bearing registration number MH 04AL2588 (in short '' the offending vehicle). The tanker was being driven recklessly and at high speed by respondent No.2- Vikram Singh, employed by respondent No.1- Ramjan Khan (the owner of offending vehicle). As a result of the collision, both the deceased and his colleague Vaijnath Singh Jatav died instantaneously. The appellants, being the legal heirs of deceased, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the loss of life of the deceased. They filed the claim against driver, owner, and insurer of tanker. In the claim petition, they claimed compensation to the tune of Rs.48,47,000/- for the loss of dependency, loss of love and affection, and other heads of damages.

4. After conducting proceedings, framing issues, and considering the oral and documentary evidence presented by parties, the Claims Tribunal granted a total compensation of Rs. 12,58,797/- along with interest at the rate of 7% per annum from the date of impugned award.

5. The appellants have now approached this Court seeking an enhancement in compensation amount.

6. Aggrieved by the compensation awarded by the Claims Tribunal, it is contended on behalf by learned Counsel for appellants that the income of the deceased was not properly assessed by the Claims Tribunal. The Claims Tribunal relied on a lower monthly income of deceased at Rs.10,280/- instead of Rs.14,000/- which was actual salary of deceased. Monthly income of Rs.14,000/- should have been considered for calculating the compensation. The Claims Tribunal failed to consider the future prospects of deceased. Since the deceased was a Government employee, he was likely to receive promotions and increments in salary as per the Sixth Pay Commission. The Claims Tribunal should have awarded compensation for the loss of future prospects, and a sum of Rs.5 lac should have been added to the compensation. The Claims Tribunal's award of Rs.60,000/- for the loss of companionship, love, and affection is grossly inadequate. It is further contended that a minimum of Rs. 1 lac should have been granted under this head. Hence, the compensation amount be enhanced.

7.On the other hand, the learned counsel for Insurance Company has supported the Award passed by the Claims Tribunal and submitted that the compensation awarded was just and appropriate, consi

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