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2026 Supreme(Online)(MP) 2973

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
Himanshu Joshi, J
Smt. Kamlabai – Appellant
Versus
Shayam Kumar – Respondent
MISC. APPEAL No. 1855 of 2016



Advocates:
For the Appellants/Petitioners: Navneet Kishore Verma
For the Respondents: Pradip Kumar Gupta

The court established that compensation for unskilled laborers in motor accident claims should be calculated based on the revised income guidelines provided by the State Legal Service Authority to ensure fair and realistic assessment of loss of dependency.

Headnote:The appeal was filed under Section 173(1) of the Motor Vehicles Act, 1988, challenging a compensation award passed by the Motor Accident Claims Tribunal. The case arose from a fatal accident caused by the rash and negligent driving of the first respondent, resulting in the death of the deceased. The Tribunal had initially awarded Rs. 2,15,000, which the appellant contested on the grounds of inadequate income assessment and incorrect multiplier application. The primary issue was whether the compensation awarded by the Tribunal required modification. The Court observed that the Tribunal erred in assessing the deceased's income at Rs. 3,000 per month. Following the revised guidelines of the M.P. State Legal Service Authority, the Court determined that the monthly income for an unskilled laborer should be Rs. 5,895. Applying the legal principles established in National Insurance Company Limited Vs. Pranay Sethi and Sarla Verma Vs. Delhi Transport Corporation, the Court recalculated the loss of dependency and conventional heads. Accordingly, the appeal stands partly allowed and the impugned award is modified to the extent indicated herein above subject to following conditions:-

Table of Content
1. summary of the accident, the resulting fatality, and the initial compensation award by the tribunal. (Para 1 , 2 , 3)
2. contest over the adequacy of income assessment and the multiplier used in the initial award. (Para 4 , 5)
3. identification of the core legal issue regarding the necessity of modifying the compensation amount. (Para 6 , 7)
4. application of state legal service authority guidelines and supreme court precedents to recalculate compensation. (Para 8)
5. final order for enhancement of compensation and directions for payment by the insurance company. (Para 9 , 11)

ORDER

1. The present appeal under Section 173(1) of the Motor Vehicles Act, 1988 has been preferred by the appellant/claimant, challenging the award dated 29.07.2016, passed by the 2nd Member, Motor Accident Claims Tribunal, Shujalpur, District Shajapur in Claim Case No.27/2015, whereby the learned Tribunal partly allowed the claim and awarded compensation to the tune of Rs.2,15,000/- along with interest at the rate of 8% per annum.

2. The factual matrix of the case are that on 29.01.2015, at around 7:30 P.M. deceased met with an accident due to rash and negligent driving of respondent No.1. As a result of which deceased sustained grievous injuries and he died on the way to Shajapur. Thereafter, dependent/claimant filed a claim petition under Section 166 of Motor Vehicles Act claiming compensation to the tune of Rs.50,50,000/- along with interest.

3. Learned claims Tribunal found that the accident was caused due to rash and negligent driving of respondent no.1 which was insured with respondent No.3 on the fateful day. Thus, learned MACT after appreciating the evidence on record partly allowed the claim petition and awarded a total sum of Rs.2,15,000/-.

4. Learned counsel for the appellant submits that learned claims tribunal has wrongly assessed the income of the deceased as Rs.3000/- per month and also erred in deducting the amount for personal expenses. The multiplier applied is incorrect and the amount of compensation awarded under other conventional heads are on lower side. Counsel for the appellant further submits that the appellant is the wife and dependent of the deceased and prays for enhancement of the award amount.

5. Per contra, learned counsel for the respondent submitted that the finding arrived at by the Tribunal is just and proper and does not call for interference in this appeal by this Court in this appeal.

6. It is not in dispute that respondent No.1 was responsible for causing the accident on the fateful day, the offending vehicle was insured with respondent No.3. The only question for determination in this appeal is whether the amount awarded by the Tribunal requires modification or not?

7. I have heard the rival submissions of learned counsel for the parties and perused the record.

8. Upon perusal of the record and after considering the submissions advanced by learned counsel for the parties, this Court is of the opinion that the learned tribunal has assessed lower side income of the deceased. The deceased at the time of accident was 70 years and as per the revised guidelines of the M.P. State Legal Service authority, the monthly income of unskilled labour was Rs.5895/- per month, whereas the learned tribunal has wrongly assessed the income of the deceased as Rs.3000/- per month only. Therefore, considering the overall facts and circumstances of the case, the income of the deceased would be considered as Rs.5895/- instead of Rs.3000/- per month. After applying the law laid down in the case of National Insurance Company Limited Vs. Pranay Sethi , reported in (2017) 4 ACJ 270 Sarla & Verma Vs. Delhi Transport Corporation & Others, reported in (2009) 6 SCC 121 the claimant is entitled to get the compensation as under:

Loss of Income Rs.5895x12= Rs.70,740 - 1/3 (personal expenses) x 5

Dependency multiplier = Rs.2,35,800/-

Loss of Consortium Rs.40,000/-

Loss of Estate Rs.15,000/-

Funer

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