Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 01.10.2026

Case Overview

  • Parties: United India Insurance Co. Ltd (appellant/insurer) vs. Sawan Barla (mother of the deceased) and minor son Aarav Kumar Barla (claimants), along with Mahesh Yadav (driver) and Mohammad Iqbal Haq (owner) as respondents.
  • Two MAC appeals under Section 173 of the Motor Vehicles Act, 1988: MAC No. 139/2024 filed by the insurer and MAC No. 373/2024 filed by the claimants, both challenging the same award dated 26.09.2023 in Claim Case No. 1098/2022.
  • Original award by the Claims Tribunal: Rs 84,62,520 as compensation for death of Late Anup Kumar Barla (aged 45 years 18 days) in a road accident on 19.07.2022.
  • Issues raised:
  • Insurer argued that statutory income‑tax should be deducted from the deceased’s annual income, which the Tribunal had omitted.
  • Claimants argued the Tribunal incorrectly applied a multiplier of 13; under Supreme Court precedent Sarla Verma v. Delhi Transport Corp. the correct multiplier for age 41‑45 is 14.
  • Claimants also sought enhancement of the conventional heads (loss of estate, funeral expenses, loss of consortium) from Rs 1,10,000 to Rs 1,21,000.

Court’s Reasoning and Calculations

  • Age verification: Date of birth 01.07.1977, date of death 19.07.2022 → age 45 years 18 days (did not complete 46th year).
  • Monthly income accepted: ₹61,779 (Exhibit P‑11).
  • Annual income: ₹61,779 × 12 = ₹7,41,348.
  • Future prospects: 30% of annual income = ₹2,22,404; total before tax = ₹9,63,752.
  • Income‑tax deduction for FY 2022‑23 (slab rates):
  • Up to ₹2.5 L – nil
  • ₹2,50,001‑₹5 L – 5% → ₹12,500
  • ₹5,00,001‑₹10 L – 20% on ₹4,63,752 → ₹92,750
  • Total tax = ₹1,05,250 plus 4% education cess = ₹4,210 → Total tax ₹1,09,460.
  • Net annual income after tax: ₹9,63,752 – ₹1,09,460 = ₹8,54,292.
  • Deduction for personal & living expenses (1/3): ₹8,54,292 × 1/3 = ₹2,84,764; net = ₹5,69,528.
  • Correct multiplier applied: 14 → Compensation for loss of dependency = ₹5,69,528 × 14 = ₹79,73,392.
  • Other conventional heads enhanced to ₹1,21,000 (comprising loss of estate, funeral expenses, loss of consortium).
  • Total compensation computed by the Court: ₹79,73,392 + ₹1,21,000 = ₹80,94,392.

Final Outcome

  • The Court partially allowed both appeals and modified the original award to Rs 80,94,392, reducing the earlier award of Rs 84,62,520.
  • All other conditions of the original award remain unchanged.

Topics: Compensation, Motor Accident Claim, Tax Deduction