Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 02.11.2026

Case Overview

  • Parties: Appellants – Anil Kumar, Anjulata, and Ajit Kumar (siblings, children of Late Katlam Singh); Respondents – Hariram Panika, Vishwanath Prasad Yadav, and The Oriental Insurance Company Limited.
  • Counsel: Mr. Achyut Tiwari for the appellants; Mr. Akash Shrivastava for respondent No. 3 (Oriental Insurance); no counsel listed for respondents No. 1 & 2.
  • Nature of Proceeding: Appeal under Section 173 of the Motor Vehicles Act, 1988 seeking enhancement of compensation awarded by the Claims Tribunal.
  • Background: The Claims Tribunal, in Claim Case No. 20/2022, dated 09.01.2024, awarded Rs.7,50,000 as compensation for the death of Ramkali (aged 50) in a road accident on 20.05.2022.
  • Appellants’ Claim: Deceased was a labourer earning Rs.15,000 per month; they argued the Tribunal’s assessment of Rs.4,500 per month was too low.
  • Respondent’s Position: Oriental Insurance contended the Tribunal’s award was proper based on the evidence.
  • Procedural Points:

1. Application for condonation of delay (I.A. No. 01/2024) filed 117 days late – condoned.

2. Admission of the appeal and receipt of Tribunal records.

3. Both parties consented to final hearing.

Court’s Reasoning and Computation

  • The Tribunal had taken the deceased’s monthly income as Rs.4,500. The appellants could not produce documentary proof of the claimed Rs.15,000.
  • The Court adopted the Chhattisgarh Minimum Wages Notification for unskilled labour, i.e., Rs.9,960 per month, as the appropriate income basis.
  • Applying Supreme Court precedents (National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corp., Magma General Insurance Co. Ltd. v. Nanu Ram), the Court recomputed compensation as follows:

| Sr.No | Heads | Compensation awarded by Tribunal | Compensation awarded by Court |

| 1 | Income | Rs.4,500 × 12 = Rs.54,000 | Rs.9,960 × 12 = Rs.1,19,520 |

| 2 | Future prospect | (+) 25 % = Rs.13,500 → Rs.67,500 | (+) 25 % = Rs.29,880 → Rs.1,49,400 |

| 3 | Deduction | (‑) 1/3 = Rs.22,500 → Rs.45,000 | (‑) 1/3 = Rs.49,800 → Rs.99,600 |

| 4 | Multiplier (×13) | Rs.5,85,000 | Rs.12,94,800 |

| 5 | Other convention | Rs.1,65,000 | Rs.1,65,000 |

  • Total: Tribunal amount Rs.7,50,000; Court‑determined amount Rs.14,59,800.

Final Outcome

  • The Court partially allowed the appeal, enhancing the compensation to Rs.14,59,800.
  • The additional amount payable to the appellants is Rs.7,09,800.
  • Interest of 6 % per annum is to accrue on the additional amount from 12.08.2024 until actual realization.
  • All other conditions of the original award remain unchanged.
  • The Registry is directed to communicate the enhanced amount to the claimants in Hindi (Devanagari script), with assistance from paralegal workers coordinated by the Secretary, Legal Aid of the relevant area.

Topics: Compensation Award, Motor Vehicles Act