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Judgment
Hon'ble Shri Justice Sanjay Kumar Jaiswal
With the consent of learned counsel appearing for the parties, the matter was heard finally.
This appeal under Section 173 of the Motor Vehicles Act, 1988 (for short the "Act of 1988") has been preferred by the appellants/claimants seeking enhancement of the amount of compensation, challenging the impugned award dated 29.11.2025, passed in Claim Case No. 201/2023, whereby the learned Claims Tribunal has awarded a total sum of Rs.15,94,000/- as compensation for the death of Prasen Singh (44-years-old) who died in a road accident which took place on 04.10.2023.
Learned counsel for the appellants submits that the learned Tribunal failed to consider the material evidence on record, which clearly established that the deceased was working as a Maintenance In-charge at Arunoday Coal Agency and earning Rs. 25,000/- per month. Instead, the Tribunal erroneously assessed the monthly income at Rs. 10,100/- on the basis of minimum wages for unskilled labour, which is improper and liable to be enhanced. She further submits that since the deceased was a permanent employee of the said agency and was 44 years old, future prospects ought to be added at 30% rather than the 25% erroneously added by the Tribunal. Therefore, the appeal deserves to be allowed, and the compensation awarded by the Claims Tribunal suitably enhanced.
Learned counsel for respondent No. 3 / Insurance Company submits that the Claims Tribunal, after duly appreciating the oral and documentary evidence on record, rightly awarded the compensation amount. He further submits that the salary ledger (Exhibit A-16) presented covers the period from April 2024 to October 2024, whereas the deceased, Prasen Singh, had already passed away earlier on 04.10.2023. Therefore, the compensation awarded by the Claims Tribunal is just and proper, requiring no interference.
I have heard learned counsel for the parties, considered their rival submissions made herein-above and went through the records with utmost circumspection.
In the present case, the learned Tribunal assessed the deceased's monthly income at Rs. 10,100/- as per the minimum wages for an unskilled labourer for the current period. According to the claim petition, the deceased was working as a Maintenance In-charge at Arunoday Coal Agency with a monthly income of Rs. 25,000/-. To substantiate this claim, the claimants relied upon the testimony of the company's Project Manager, Khublal Soni (AW-2), examined pursuant to an authority letter (Exhibit A-23) issued by the proprietor, Kishore Sankhla. Further, the company's registration certificate (Exhibit A-13), the deceased's appointment letter (Exhibit A-14), promotion letter (Exhibit A-15), salary-related records (Exhibit A-16), and attendance registers (Exhibits A-17 to A-21) were placed on record.
During cross-examination, Khublal Soni (AW-2) admitted that Arunoday Coal Agency is a private establishment where employees are engaged on a temporary basis and are subject to termination at any time. Furthermore, the contention raised by the learned counsel for the Insurance Company merits consideration: the salary ledger (Exhibit A-16) lists entries for the period from April 2024 to October 2024, whereas the deceased, Prasen Singh, had tragically passed away earlier on 04.10.2023. Notwithstanding this discrepancy, the documentary evidence as a whole leaves no doubt that the deceased was indeed employed by the agency. As regards the claimed monthly income of Rs. 25,000/-, the promotion letter dated 21.03.2023 (Exhibit A-15) appears lacking in authenticity. Moreover, while the salary ledger reflects an amount of Rs. 25,000/- for May and July 2024, other months show fluctuating figures, such as Rs. 17,500/-, Rs. 15,000/-, Rs. 17,730/-, Rs. 5,000/-, and Rs. 3,225/, which are corroborated by attendance registers indicating periods of absence and leave.
Taking all these facts and the documents authenticated by AW-2 into cumulative consideration, the employment of the deceased Prasen Singh at Arunoday Coal Agency stands established. However, finding the claimed figure of Rs. 25,000/-to be inconsistent and unverified, his monthly income is hereby assessed at Rs. 18,000/-.
The second contention raised on behalf of the appellants is that, given the permanent nature of the deceased's employment, future prospects ought to be calculated at 30%. However, this argument is untenable in light of the admission made by Khublal Soni (AW-2) that Arunoday Coal Agency is a private establishment where employees are engaged on a temporary basis and are subject to termination at any time. Consequently, the 25% addition for future prospects adopted by the Tribunal is appropriate and warrants no interference.
In view of the foregoing discussion and upon assessing the deceased's monthly income at Rs. 18,000/-, the impugned award needs to be modified.
Thus, 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 Sethi1, Sarla Verma & Ors. Vs. Delhi Transport Corporation & Ors2 and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors3, this Court is computing the compensation as below:-
| Sr. No. | Heads | Compensation awarded by the Tribunal | Compensation awarded by this Court |
|---|---|---|---|
| 1 | Income | Rs. 10,100x12 = 1,21,200/- | Rs. 18,000x12 = 2,16,000/- |
| 2. | Future prospect | (+)25% (i.e. 30,300) = 1,51,500 | (+)25% (i.e. 54,000) = 2,70,000 |
| 3. | Deduction | (-) 1/3 (i.e. 50,500) = 1,01,000/- | (-) 1/3 (i.e. 90,000) = 1,80,000/- |
| 4. | Multiplier | (x) 14 = 14,14,000/- | (x) 14 = 25,20,000/- |
| 5. | Other conventional heads | Rs. 1,80,000/-[18,000+18,000+(48,00 0x3)] | Rs. 1,80,000/-[18,000+18,000+(48,000 x3)] |
| Total | Rs. 15,94,000/- | Rs. 27,00,000/- |
In view of the aforesaid analysis, the amount of compensation of Rs.15,94,000/- awarded by the Claims Tribunal is enhanced to Rs.27,00,000/-. Hence, after deducting the amount of Rs.15,94,000/-, the appellants are held entitled for an additional amount of Rs.11,06,000/-. The additional amount of compensation shall carry interest @ 6% per annum from the date of filing of the claim application before the Claims Tribunal till its realization. Rest of the conditions of the impugned award shall remain intact.
In the result, the appeal is partly allowed and the impugned award is modified to the extent as indicated herein-above.
The Registry is directed to communicate the claimants in writing “the enhanced amount” in this appeal as against the award made by the concerned Tribunal. The said communication be made in Hindi Deonagri language and the help of paralegal workers may be availed with a co-ordination of Secretary, Legal Aid of the concerned area wherein the claimants resides.