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2026 Supreme(Online)(MP) 4454

Hirdesh, J
Manoj – Appellant
Versus
Arvind Kumar Jha – Respondent
MISC. APPEAL No. 2978 of 2019



Advocates:
For the Appellants/Petitioners: Ashok Kumar Yadav
For the Respondents: Praveen Kumar Newaskar

The court established that the economic contribution of a homemaker must be recognized and not equated with unskilled labor; in the absence of proof of income, such claimants should be assessed at least as semi-skilled workers under the Minimum Wages Act for just compensation.

Headnote:(A) Motor Accident Claims - Determination of Income - Homemaker - The contribution of a homemaker cannot be equated with that of an unskilled labourer as they render multifarious services to the family; economic value of such services must be recognized when determining just compensation. (Para 7)

(B) Compensation Assessment - Minimum Wages - In the absence of strict documentary proof of income, the income of a deceased female working as a beautician/homemaker ought to be assessed at least at the level of a semi-skilled worker under the Minimum Wages Act. (Para 8)

(C) Future Prospects and Multiplier - Application of established benchmarks - Application of 40% for future prospects and a multiplier of 16 based on age, in accordance with the principles laid down in Pranay Sethi and Sarla Verma. (Para 9)

Issues: Whether the compensation awarded by the Claims Tribunal was sufficient or required enhancement based on the professional and domestic status of the deceased.

Legal Category Hierarchy

  • tort
    • motor accident compensation
      • assessment of income
        • homemaker income
      • heads of compensation
        • loss of consortium
        • loss of estate
        • funeral expenses
      • future prospects
      • multiplier
  • practice and procedure
    • appeal
      • miscellaneous appeal
      • enhancement of compensation

Table of Contents

1. Motor accident death claim — Challenge to adequacy of compensation awarded by Claims Tribunal. (Para 1 , 2 )

2. Claimants argued income assessed too low; insurer supported award. Dispute over income assessment and other heads. (Para 4 )

ORDER

1. This appeal under Section 173(1) of the Motor Vehicles Act, 1988 has been filed by the appellant–claimant challenging the award dated 28.02.2019 passed by the 13th Member, Motor Accident Claims Tribunal, Gwalior (M.P.), in Claim

Case No.147/2015, seeking enhancement of compensation amount.

2. The date of the accident, the finding of negligence, and the liability are not in dispute. The findings recorded by the Claims Tribunal on these aspects have

attained finality, as the same have not been challenged in the present appeal.

3. As per the impugned award, the Claims Tribunal has awarded a total compensation of Rs. 6,97,200/- along with interest from the date of filing of the claim petition till its realization on account of the death of Mamta in the motor

accident.

4. Learned counsel for the appellants/claimants, while assailing the impugned award, submits that the learned Claims Tribunal has committed an error in

Signature Not Verified

Signed by: AVINASH

BHARGAV

Signing time: 28-Mar-26

12:42:02 PM

NEUTRAL CITATION NO. 2026:MPHC-GWL:10459

2 MA-2978-2019 assessing the income of the deceased on the lower side. It is contended that the deceased was engaged in work of beautician, however, the said aspect has not been properly appreciated by the learned Claims Tribunal. However, the learned Tribunal failed to properly consider this aspect. It is further submitted that the assessment of income by treating the deceased on lower side is erroneous and, on this ground, enhancement of compensation has been sought. It is contended on behalf of appellants that Claims Tribunal has also committed error in not awarding reasonable amount in other heads i.e. loss of estate and funeral expenses. Hence, it is prayed that reasonable amount of compensation may be awarded to the claimant.

5. On the other hand, learned counsel for Insurance Company supported the impugned award and prayed for dismissal of appeal.

6. Heard learned counsel for the parties and perused the entire record of the Claims Tribunal.

7. With regard to the assessment of income, the learned Claims Tribunal assessed the income of the deceased at Rs.3,500/- per month on the ground that no documentary evidence regarding her income was produced. However, the record reflects that the deceased, being a lady, was also a homemaker. The contribution made by a homemaker cannot be equated with that of an unskilled labourer. A homemaker renders multifarious services to the family, manages the entire household without fixed working hours and without any leave. The economic value of such services has been consistently recognized by the Courts and cannot

be ignored while determining just compensation.

8. In the considered opinion of this Court, the learned Claims Tribunal committed an error in assessing the income of the deceased at Rs.3,500/- per

Signature Not Verified

Signed by: AVINASH

BHARGAV

Signing time: 28-Mar-26

12:42:02 PM

NEUTRAL CITATION NO. 2026:MPHC-GWL:10459

3 MA-2978-2019 month. Even in the absence of strict documentary proof of income from work of beautician, her income ought to have been assessed at least at the level of a semi- skilled lady under the Minimum Wages Act, which, at the relevant time, was

Rs.5,975/- per month.

9. As regards future prospects, in light of the judgment of the Hon’ble Supreme Court in National Insurance Company Ltd. vs. Pranay Sethi , 2017 ACJ 2700, the claimants are entitled to addition of future prospects of 40 per cent which is rightly been assessed by Claims Tribunal. Further, as per Sarla Verma & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121, considering the age of the deceased, the appropriate multiplier of 16 has rightly been applied by Claims Tribunal. Also, in view of the judgment passed by Hon'ble Apex Court in the case of United India Insurance Company Ltd. vs. Satinder Kaur and Others reported in 2020 ACJ 2131, the claimants are entitled to get compensation towards loss of

consortium and loss of estate.

10. Accordingly, the claimants are entit

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