After 18-Year-Old’s Death, Chhattisgarh HC Raises Family’s Compensation To ₹15.04 Lakh, Adding Minor Brother To Consortium Award

In brief

The question

Whether the Tribunal’s assessment of the deceased’s income resulted in an inadequate award for loss of dependency

The court held

The Court partly allowed the appeal and enhanced the total compensation from Rs. 10,28,200 to Rs. 15,04,632.

It also directed

The appellants were awarded an additional Rs. 4,76,432, carrying interest at 6% per annum from the date of filing the claim application until realization.

The remaining terms of the Tribunal’s award were left undisturbed.

01Facts

Dasruram Gota, aged 18, died in a motor accident on 6 November 2020 involving a Matador allegedly driven negligently by respondent no. 1.

¶ 1–4

His parents and minor brother sought compensation under Section 166 of the Motor Vehicles Act, 1988.

¶ 1–4

The Motor Accident Claims Tribunal awarded Rs. 10,28,200. The claimants appealed under Section 173, seeking enhancement on the grounds that the deceased’s income had been assessed too low and the amounts under conventional heads were inadequate

¶ 1–4

02Issues

i.Whether the Tribunal’s assessment of the deceased’s income resulted in an inadequate award for loss of dependency

¶ 6–7

ii.Whether the compensation for consortium and other conventional heads required enhancement

¶ 8–10

03Law Applied

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal, while Section 166 provides the basis for a claim for compensation arising from a motor accident.

¶ 1–2

In assessing compensation, National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, supports the addition of future prospects and compensation under conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, guides the deduction for personal expenses and selection of multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, supports consortium compensation.

¶ 7–10

The Court applied these principles to award consortium separately to each of the three claimants.

¶ 7–10

Provisions in the judgment · 2 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173 Section 166

04Reasoning

The Court found the Tribunal’s monthly income assessment of Rs. 6,000 to be too low. In the absence of reliable evidence of the deceased’s work and earnings, it assessed his income at Rs. 8,860 per month, applying the relevant Chhattisgarh minimum wage for unskilled labour.

¶ 6

It left unchanged the 40% addition for future prospects, one-half deduction for personal expenses, and multiplier of 18, given the deceased’s age and unmarried status.

¶ 7

The Court also left the amounts for loss of estate and funeral expenses unchanged, but increased consortium from Rs. 88,000 for the parents to Rs. 1,32,000 by including the minor brother.

¶ 8–10

05Holding

The Court partly allowed the appeal and enhanced the total compensation from Rs. 10,28,200 to Rs. 15,04,632.

¶ 10–12

The appellants were awarded an additional Rs. 4,76,432, carrying interest at 6% per annum from the date of filing the claim application until realization.

¶ 10–12

The remaining terms of the Tribunal’s award were left undisturbed.

¶ 10–12

LawLens.Chhattisgarh High Court

Original Court PDF