Chhattisgarh High Court

Assessment of Notional Income and Just Compensation Upheld for Major Dependents in Fatal Motor Accident Claim

BUDRAM GAWADE vs MASURAM POYAM

Chhattisgarh High CourtJUDGMENT: April 30, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

the appellants, the four major children of the deceased Aaytu Gawade, filed an appeal under Section 173 of the Motor Vehicles Act (MV Act) challenging the award passed by the I Additional Motor Accident Claims Tribunal, Bastar, on 11.11.2025

Source reference: para 4

On 21.09.2024, the deceased died on the spot after his motorcycle was hit by the offending vehicle (CG 18 Q 0897)

Source reference: para 5-6

The appellants claimed the deceased earned Rs. 18,000/- per month as a laborer/agriculturist

Source reference: para 7

The Tribunal assessed the monthly income at Rs. 10,000/- and awarded a total compensation of Rs. 19,15,500/- with 9% interest

Source reference: para 5, 14

The appellants sought enhancement of this amount, arguing that the assessed notional income was too low

Source reference: para 11
02

Issues

1. Whether the assessment of the deceased's notional income at Rs. 10,000/- per month by the Tribunal was erroneous and required enhancement.

Source reference: para 11-12

2. Whether the compensation awarded by the Tribunal is just and proper under the facts and circumstances of the case.

Source reference: para 15
03

Law Applied

The court applied the provisions of Section 173 and Section 166 of the Motor Vehicles Act, 1988, regarding the adjudication of accident claims

Source reference: para 4, 6

compensation should represent a "just" amount—it should neither be a meager sum nor a "bonanza" for the claimants

Source reference: para 15

principles of dependency calculation including deductions for personal expenses and additions for future prospects (25% in this instance) and conventional heads like funeral expenses, loss of estate, and love and affection

Source reference: para 14
04

Reasoning

The Court examined the evidence regarding the income and age of the deceased, noting that he was in the age group of 40-50 years

Source reference: para 12

Although the appellants claimed an income of Rs. 18,000/- per month, the Court found that the Tribunal’s assessment of Rs. 10,000/- per month as notional income was based on the evidence on record and was not perverse or contrary to the facts

Source reference: para 14-15

The Court observed that the appellants are all major children of the deceased

Source reference: para 12

It verified the Tribunal's calculation, which included a multiplier of 15, a 25% addition for future prospects, and standard deductions, finding the total computation of Rs. 19,15,500/- to be reasonable and legally sound

Source reference: para 14-15
05

Holding

The High Court held that the assessment of income and the resulting computation of compensation by the Tribunal were just and proper and required no interference

The Court condoned the 23-day delay in filing via I.A. No. 01/2026. However, on merits, the Court dismissed the appeal, affirming the award dated 11.11.2025 passed in Claim Case No. 247/2024

Source reference: para 2, 16
Chhattisgarh High Court

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BUDRAM GAWADEvsMASURAM POYAM

Chhattisgarh High Court · April 30, 2026

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