Chhattisgarh HC Adds ₹2.21 Lakh To Accident Compensation, Applying Minimum Wage After ₹20,000 Mason-Income Claim Lacked Proof

In brief

The question

1. Whether the Tribunal’s assessment of the deceased’s monthly income at ₹8,965 required modification.

The court held

The appeal was partly allowed.

It also directed

The award was enhanced from ₹15,83,508 to ₹18,04,710, entitling the appellants to an additional ₹2,21,202, with 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.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi.

01Facts

The appellants, the deceased’s dependants, appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded for his death in a road accident on 21 October 2024.

¶ 2

The Claims Tribunal awarded ₹15,83,508, assessing the deceased’s monthly income at ₹8,965 as an unskilled labourer. The appellants contended that he worked as a mason and earned ₹20,000 per month, but had not substantiated that income with cogent evidence.

¶ 2–3, 6

02Issues

i.1. Whether the Tribunal’s assessment of the deceased’s monthly income at ₹8,965 required modification.

¶ 3, 6

ii.2. Whether the compensation awarded by the Tribunal should be enhanced.

¶ 2, 8–10

03Law Applied

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against a Claims Tribunal award.

¶ 2

In assessing compensation for a motor-accident death, the Court applied the principles in National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corporation and Magma General Insurance Co. Ltd. v. Nanu Ram, concerning future prospects, personal-expense deductions, multipliers and conventional heads of compensation.

¶ 8

The Court also relied on the Chhattisgarh Minimum Wages Notification to determine the applicable monthly income for unskilled labour.

¶ 6

Provisions in the judgment · 1 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173

04Reasoning

The Court found no reliable evidence supporting the claim that the deceased earned ₹20,000 per month as a mason.

¶ 6

However, it held that the Tribunal’s income assessment of ₹8,965 was too low and substituted the applicable minimum wage for unskilled labour—₹10,428 per month.

¶ 6

It left undisturbed the Tribunal’s application of 40% future prospects, a one-half deduction for personal expenses, multiplier of 18, and amounts for consortium, loss of estate and funeral expenses.

¶ 7

Applying those figures, the Court recalculated the total compensation as ₹18,04,710.

¶ 8