Chhattisgarh High Court

Salary certificate corroborated by employer's testimony and vehicle records constitutes reliable evidence for assessing deceased's income.

DHALGAN SAHU vs ASLAM KHAN

Chhattisgarh High CourtJUDGMENT: April 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants, parents of the deceased Ravishankar Sahu, filed a claim under Section 166 of the Motor Vehicles Act, 1988, following a fatal accident on 16.07.2020

Source reference: para. 2

The deceased was driving a Swaraj Mazda (CG-10-X-2187) when it was struck by an offending truck (MP-20-HB-4067) owned by Respondent No. 1 and insured by Respondent No. 2

Source reference: para. 3

The claimants asserted the deceased was a driver earning Rs. 18,000 per month.

Source reference: no citation

The owner of the Mazda (AW-2) testified that the deceased had been his employee for five years, earning a monthly salary of Rs. 14,000 plus diet money, and produced a salary certificate (Ex. P/9)

Source reference: para. 9-10

The Tribunal awarded a total compensation of Rs. 16,65,848, which the appellants challenged as inadequate, specifically contesting the lower assessment of the deceased's monthly income

Source reference: para. 1, 6, 15
02

Issues

1. Whether a salary certificate issued by a private employer can be relied upon for income assessment in a motor accident claim when corroborated by oral testimony and the circumstances of the accident.

Source reference: para. 10

2. Whether the compensation awarded by the Tribunal requires enhancement based on the established skill and employment of the deceased.

Source reference: para. 6
03

Law Applied

The Court applied Sections 166 and 173 of the Motor Vehicles Act, 1988.

Source reference: no citation

It relied on the principles for calculating "just compensation" established in National Insurance Company Ltd. v. Pranay Sethi (2017) 16 SCC 680 regarding future prospects (40% for the deceased's age group)

Source reference: para. 14

It followed Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121 for determining the appropriate multiplier (18) and personal expenditure deductions (1/2 for a bachelor)

Source reference: para. 14

Additionally, it applied Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) 18 SCC 130 to award filial consortium to the parents

Source reference: para. 14
04

Reasoning

The Court scrutinized the reliability of the salary certificate (Ex. P/9). While acknowledging that solitary certificates are often insufficient, the Court found the "factual matrix" of this case unique: the deceased died while driving the very vehicle owned by the witness (AW-2) who issued the certificate

Source reference: para. 11-12

The Court performed an independent online verification of the vehicle's registration to confirm AW-2 was indeed the owner

Source reference: para. 12

Given that the deceased was a skilled worker (holding a valid driving license) and the employer personally deposed to his five-year tenure and salary, the Court held the reported income of Rs. 14,000 per month to be reliable

Source reference: para. 13

Consequently, the Court recalculated the dependency by adding 40% for future prospects, applying a multiplier of 18, and deducting 50% for personal expenses, finding the Tribunal’s original assessment to be undervalued

Source reference: para. 14
05

Holding

The Court allowed the appeal in part, enhancing the compensation from Rs. 16,65,848 to Rs. 22,26,800

The claimants were held entitled to an additional amount of Rs. 5,60,952 with 6% interest per annum from the date of the appeal's filing (31.07.2023)

Source reference: para. 15

The Court directed the Insurance Company to deposit the enhanced amount within 60 days, with specific instructions to place Rs. 2,50,000 each in fixed deposits for the parents and release the remainder to the mother

Source reference: para. 16
Chhattisgarh High Court

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DHALGAN SAHUvsASLAM KHAN

Chhattisgarh High Court · April 06, 2026

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