Chhattisgarh HC Raises Compensation For 50-Year-Old Labourer’s Death To ₹14.59 Lakh, Assessing Her Income At ₹9,960 A Month

The appellants, the deceased Ramkali’s claimants, appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded for her death in a road accident on 20 May 2022.

The Claims Tribunal had assessed her monthly income at ₹4,500 and awarded ₹7,50,000. The claimants asserted that she was a labourer earning ₹15,000 per month; on appeal, they relied on the applicable minimum wage of ₹9,960 for unskilled labour.

The Court condoned the 117-day delay in filing the appeal and, with the parties’ consent, heard it finally.

The Tribunal’s income assessment and the resulting compensation were challenged.

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

In assessing compensation, the Court relied on National Insurance Company Ltd. v. Pranay Sethi, Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors. for the applicable principles on future prospects, deduction for personal expenses, multiplier, and conventional heads.

Where a claimant’s asserted income is unsupported by documentary evidence, the Court may assess income by reference to the applicable minimum-wage notification; here, it used the Chhattisgarh minimum wage for unskilled labour.

The claimants produced no documentary proof of the deceased’s asserted monthly earnings of ₹15,000. The Court therefore declined to adopt that figure but found the Tribunal’s assessment of ₹4,500 too low, given the applicable minimum wage of ₹9,960 for unskilled labour.

Applying that monthly income, together with the principles identified in Pranay Sethi, Sarla Verma and Magma General Insurance, the Court recalculated the compensation at ₹14,59,800, compared with the Tribunal’s award of ₹7,50,000.

The enhanced amount carries interest at 6% per annum from the date the appeal was filed, 12 August 2024, until realization; the remaining terms of the Tribunal’s award remain unchanged.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi, with paralegal assistance if required.