1 2025:CGHC:55641 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 190 of 2023 1 - Smt. Rama Bai, W/o. Late Lakhan Singh Tekam, Aged About 49 Years, R/o. Village Kartala, Police Station Pali, Tahsil Pali, District Korba, Chhattisgarh 2 - Ashish Kumar Tekam, S/o. Late Lakhan Singh Tekam, Aged About 18 Years, R/o. Village Kartala, Police Station Pali, Tahsil Pali, District Korba, Chhattisgarh 3 - Saraswati, D/o. Late Lakhan Singh Tekam, Aged About 21 Years, R/o. Village Kartala, Police Station Pali, Tahsil Pali, District Korba, Chhattisgarh 4 - Minor Sandhya, D/o. Late Lakhan Singh Tekam, Aged About 16 Years, Represented Through Mother Smt. Rama Bai, R/o. Village Kartala, Police Station Pali, Tahsil Pali, District Korba Chhattisgarh ... Appellant versus 1 - Shiv Kumar Maravi, S/o. Late Ghurau Singh, Aged About 50 Years, R/o. Village Rainpur, P.S. Deepka, Tahsil Katghora, District Korba Chhattisgarh ASHOK SAHU Digitally signed by ASHOK SAHU Date: 2025.11.17 16:28:38 +0530 2 2 - Ghanshyam Singh, S/o. Narayan Singh, Aged About 40 Years, R/o. Village Rainpur, P.S. Deepka, Tahsil Katghora, District Korba Chhattisgarh 3 - The New India Insurance Company Limited, Through The Divisional Manager, The New India Insurance Company Limited, T.P. Nagar, Korba, Tahsil And District Korba, Chhattisgarh ... Respondents For Appellants : Mr. Krishna Kumar Dewangan, Advocate For Respondent No.3 : Mr. Qamrul Aziz, Advocate (Single Bench) Hon'ble Shri Justice Sanjay K. Agrawal Judgment on Board 14.11.2025 1. This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellants/ claimants seeking enhancement of the amount of compensation, challenging the impugned award dated 17.10.2022 passed by learned First Additional Motor Accident Claims Tribunal, Katghora, District Korba in Motor Accident Claim Case No.134/2021, by which the claim application of the claimants has been allowed and an amount of compensation to the tune of Rs. 8,61,050/- has 3 been awarded to the claimants for the death of Lakhan Singh Tekam, aged about 57 years at the time of accident. 2. Appellants who are wife, son and two daughters of deceased Lakhan Singh Tekam filed an application under Section 166 of the Act of 1988 before the Motor Accident Claims Tribunal (for brevity “Claims Tribunal”) seeking compensation to the tune of Rs. 38,45,000/- pleading therein that on the date of accident, deceased Lakhan Singh Tekam, aged about 57 years, was sole bread earner of the family and on account of his untimely death in the accident, the appellants have suffered economical and psychological difficulties. 3. Learned Claims Tribunal, upon appreciation of pleadings and evidence placed on record by respective parties, held that deceased Lakhan Singh Tekam died in the accident arising out of rash & negligent driving of the offending vehicle driven by respondent No.1, owned by respondent No.2 and insured by respondent No.3. Breach of conditions of insurance policy was not found to be proved and after calculating the amount of compensation, the learned Claims Tribunal awarded Rs. 8,61,050/- as total compensation along-with interest @ 7% per annum from the date of filing of claim application. 4 4. Mr. Krishan Kumar Dewangan, learned counsel for the appellants, would submit that the learned Claims Tribunal has awarded very meager amount while assessing income of deceased as Rs.7,000/- per month, which should be Rs. 9,200/- per month, as per Chhattisgarh Minimum Wages Notification issued by the office of the Labour Commissioner, Chhattisgarh, as the deceased was working as mason. Therefore, the instant appeal be allowed and the amount of compensation awarded by the learned Claims Tribunal may be enhanced suitably. 5. Mr. Qamrul Aziz, learned counsel appearing for the respondent No.3/ insurance company would submit that the appellants have failed to prove the exact income of deceased by producing clinching and admissible piece of evidence, hence, the learned Claims Tribunal is justified in assessing income of deceased on notional basis. The amount of compensation awarded by the learned Claims Tribunal is just and proper, which does not call for any interference. 6. I have heard learned counsel for the parties, considered their rival submissions made herein-above and gone through the records minutely. 5 7. Learned Claims Tribunal has assessed the monthly income of deceased Lakhan Singh Tekam to be Rs. 7,000/- per month, however, in the opinion of this Court, as per the Chhattisgarh Minimum Wages Notification issued by the office of Labour Commissioner, Chhattisgarh, the monthly income of the deceased should be Rs. 9,200/- per month, which comes to Rs.1,10,400/- per annum. 8. Thus, in light of the aforesaid discussion and in light of the judgments of the Supreme Court rendered in the matters of National Insurance Company Ltd. V. Pranay Sethi 1, Sarla Verma & Ors. Vs. Delhi Transport Corporation & Ors2 and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors 3 , this Court is computing the compensation as below:- Heads Compensation awarded by the Tribunal Compensation awarded by this Court Income as per minimum wages Rs. 7,000 x 12 = Rs. 84,000/- Rs. 9,200 x 12 = Rs. 1,10,400/- Add future prospects @ 15% Rs. 84,000 + Rs. 12,600 = Rs. 96,600/- @ 10% Rs. 1,10,400 + Rs. 11,040 = Rs. 1,21,440/- 1 (2017) 16 SCC 680 2 (2009) 6 SCC 121 3 (2018) 18 SCC 130 6 Deduction of 1/4 towards personal expenses Rs. 96,600 – 24,150 = 72,450/- Rs. 1,21,440 – 30,360 = Rs. 91,080/- Multiplier of 9 Rs. 72,450 x 9 = Rs. 6,52,050/- Rs. 91,080 x 9 = Rs. 8,19,720/- For love & affection/ consortium to all the appellants Rs. 1,76,000/- Rs. 1,76,000/- Funeral expenses Rs. 16,500/- Rs. 16,500/- Loss of Estate Rs. 16,500/- Rs. 16,500/- Total Rs. 8,61,050/- Rs. 10,28,720/- 9. In view of the aforesaid analysis, the amount of compensation of Rs. 8,61,050/- awarded by the Claims Tribunal is enhanced to Rs. 10,28,720/-. Hence, after deducting the amount of Rs. 8,61,050/-, the appellants are entitled for an additional amount of Rs. 1,67,670/-. The concerned respondent is directed to deposit the amount of compensation as enhanced by this Court within a period of 45 days from the date of receipt of a copy of this award. The additional amount of compensation shall carry interest @ 7% per annum from the date of filing of claim application before the Tribunal till its realization. Rest of the conditions of the impugned award shall remain intact. 7 10. Since the insurance company was exonerated from the liability holding that the policy was “Act Only Policy”, however, in light of the decision of the Supreme Court in the matter of Sunita V. United India Insurance Co. Ltd.4, it has been has held that in case of “Liability Only Policy”, the principle of “pay and recover” should have been applied. Consequently, the insurance company is directed to pay the amount of compensation and thereafter recover the same from the driver of the vehicle. 11. Accordingly, this appeal is partly allowed and the impugned award is modified to the extent as indicated herein-above. Sd/- (Sanjay K. Agrawal) Judge Ashok 4 AIRONLINE 2025 SC 601