1 MAC No. 806 of 2019 CGHC010119612019 2026:CGHC:32566 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 806 of 2019  The United India Insurance Co. Ltd. Through Branch Manager, T.P. Nagar, Korba District Korba Chhattisgarh Through Its Divisional Manager, Divisional Office, IInd Floor, Adjacent To Guru Kripa, Tower, ICICI Bank, Vyapar Vihar, Road Bilaspur, Chhattisgarh. ... Petitioner versus 1. Smt. Neera Devi Wd/o Late Sajan Singh, Aged About 44 Years; 2. Harish Kumar S/o Late Sajan Singh, Aged About 23 Years; 3. Ku. Jyoti D/o Late Sajan Singh, Aged About 21 Years; 4. Ramesh Kunwar W/o Baldev Singh, Aged About 77 Years, (Deleted) As Per Hon’ble Court Order Dated 29-7-2026. 5. Baldev Singh (Deleted) As Per Hon’ble Court Order Dated 07- 07-2026. All claimants from Respondents No.1 to 5 are by Caste- Kanwar, R/o village Bhathapara Chhirra, P.S. & Tahsil Katghora, District Korba, Chhattisgarh. 6. Kumar Singh Khairwar W/o Late Sakhiram Khairwar, Aged About 34 Years, R/o Village Banbandha, Tahsil And Police Station Pali, District Korba Chhattisgarh. 7. Jugal Shriwas S/o Bhopal Shriwas At Patpara, Tahsil And Police Station Pali District Korba, Chhattisgarh. ... Respondents ANKIT KUMAR SINGH Digitally signed by ANKIT KUMAR SINGH 2 MAC No. 806 of 2019 For Appellant :- Mr. Akash Shrivastava, Advocate, appears on behalf of Mr. R.N. Pusty, Advocate. For Respondents No.1 to 5 :- Mr. Praveen Dhurandhar, Advocate. SB- Hon'ble Shri Justice Sanjay K. Agrawal Judgment On Board 29.07.2026 1. This appeal has been filed by the appellant/Insurance Company under Section 173 of the Motor Vehicles Act, 1988 (for short “Act of 1988”) challenging the impugned award dated 08.01.2019 passed by the Additional Tribunal to the Additional Motor Accident Claims Tribunal, Katghora, District Korba, Chhattisgarh (for short “Claims Tribunal”) in Claim Case No. 129/2017, whereby the Claims Tribunal allowed the claimants’ application and awarded 44,05,903/- along with ₹ interest. 2. Mr. Akash Shrivastava, learned counsel for the appellant/Insurance Company, would submit that income tax has not been deducted by the Claims Tribunal which ought to have been deducted while computing the compensation in light of decision of the Supreme Court in the matter of National Insurance Company Ltd. v. Pranay Sethi 1 and Shyamwati Sharma and others v. Karam Singh and others 2 . Furthermore, multiplier of 14 has wrongly been 1 (2017) 16 SCC 680 2 (2010) 12 SCC 378 3 MAC No. 806 of 2019 used by the Claims Tribunal considering the age of the deceased to be 45 years, however, in place of multiplier of 14, multiplier of 13 should be used as according to the salary slip age of the deceased was 48 years. 3. Mr. Praveen Dhurandhar, learned counsel for the claimants/respondents No.1 to 5, would not dispute the submission raised by the learned counsel for the appellant. 4. I have heard learned counsel for the parties, considered their rival submissions made herein above and gone through the records minutely. 5. Admittedly, while computing the compensation the Claims Tribunal did not deduct the income tax in light of the judgments of the Supreme Court rendered in the matters of Pranay Sethi (supra) and Shyamwati Sharma (supra.) However, this Court is computing the compensation as below:- Sr. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court 1. Income ₹24,703 x 12 = 2,96,436/- ₹ ₹24,703 x 12 = 2,96,436/- ₹ 2. Future Prospect (+30%) = 88,930/-; Total = 2,96,436+ ₹ ₹8,930 = 3,85,366/- ₹ (+30%) = 88,930/-; Total = 2,96,436+ ₹ ₹8,930 = 3,85,366/- ₹ 3. Income tax deduction Not deducted AY 2016-17 0-2,50,000 = NIL 4 MAC No. 806 of 2019 2,50,000 – 5,00,000 = 10% Tax Calculation 0-2,50,000 = NIL 10% of 1,35,366/- = ₹ ₹13,536.60/- 3% Education Cess 13,536.60 x 3% = 406.098 Total Tax = ₹13,536.60+406.098 = 13,942.698/- ₹ Round off = 13,942/- ₹ 4. After deducting income tax NIL ₹3,85,366-13,942 = 3,71,424/- ₹ 5. Deduction (-) ¼ = 96,341/-; ₹ ₹3,85,366-96,341= 2,89,025/- ₹ (-) ¼ = 92,856/-; ₹ ₹3,71,424–92,856= 2,78,568/- ₹ 6. Multiplier (x) 14 = 40,46,350/- ₹ (x) 13 = 36,21,384/- ₹ 7. Loss of Estate ₹15,000/- 15,000/- ₹ 8. Funeral Expenses ₹15,000/- 15,000/- ₹ 9. Consortium ₹40,000/- ₹40,000 x 4 = 1,60,000/- ₹ 10. Love and affection ₹20,000/- NIL 11. Medical Bills ₹2,69,552/- 2,69,552/- ₹ Total ₹44,05,902/- ₹40,80,936 /- 6. In view of the aforesaid analysis, the claimants are held to be entitled to compensation amount to the tune of 40,80,936/- ₹ as calculated above in place of compensation amount to the tune of 44,05,902/- ₹ awarded by the Claims Tribunal. However, the other direction contained in the impugned 5 MAC No. 806 of 2019 award shall remain as it is and the same is applicable on the compensation amount awarded by this Court. 7. In view of the above, appeal is allowed and the impugned award is modified to the extent as indicated herein-above. Sd/- (Sanjay K. Agrawal) Judge Ankit