-1- 2025:CGHC:42850 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 304 of 2024 1 - Smt. Shakuntala Satpathi W/o Late Kongres Satpathi Aged About 50 Years 2 - Kuldeep Satpathi S/o Late Kongres Satpathi Aged About 23 Years 3 - Ku. Kunti Satpathi D/o Late Kongres Satpathi Aged About 23 Years All R/o Ward No. 1, Virendra Nagar, Saraipali, Police Station And Tahsil Saraipali, District Mahasamund (C.G.) ... Appellant (s) versus 1 - Haradhan Sahu S/o Dhoba Sahu Aged About 48 Years R/o Village Patandadar, Police Station Sankra, District Mahasamund (C.G.) (Driver Of Vehicle Car Bearing Registration No. Cg/04/kz/6963) 2 - Naim Khan S/o Late Hamid Khan Aged About 35 Years R/o Ward No. 10, Ekta Chowk Mahasamund, District Mahasamund (C.G.) (Registered Owner Of Vehicle Car Bearing Registration No. Cg/04/kz/6963) 3 - The Branch Manager The New India Insurance Company Limited, Through Branch Manager, Branch Office L.I.C. Building, Commercial Campus, 1st Floor, In Front Of Shyam Square, Pandri, Raipur District Raipur (C.G.) (Insurer Of Vehicle Car Bearing Registration No. Cg/04/kz/6963) ... Respondent(s) ________________________________________________________ For Appellant (s) : Mr. Govind Prasad Dewangan, Advocate For Resp. No. 1 & 2 : Mr. Kriplesh Kela, Advocate For Resp No.3 : Mr. Deepak Gupta, Advocate _______________________________________________________ Digitally signed by PRAVEEN KUMAR SINHA Date: 2025.10.07 11:25:51 +0530 -2- S.B.: Hon'ble Shri Parth Prateem Sahu, Judge Judgment On Board 25 /08/2025 1. Heard on IA No.1 which is an application for condonation of delay of 56 days in filing this appeal. 2. Learned counsel for the respective respondents oppose submission of learned counsel for the appellants. 3. On due consideration of the submissions made by learned counsel for the appellants, reasons assigned in the application for condoning delay, it is allowed. Delay of 56 days in filing the appeal is hereby condoned. 4. With the consent of learned counsel appearing for the parties, appeal is heard finally at motion stage. 5. This is claimants’ appeal filed under Section 173 of the Motor Vehicles Act, 1988 (for short “Act of 1988”) seeking enhancement of amount of compensation awarded by learned Motor Accident Claims Tribunal, Mahasamund (CG) vide award dated 01.08.2023 passed in Claim Case No. H-107 of 2022. 6. As this appeal is filed by claimants seeking enhancement of amount of compensation, date and time of accident, motor accidental death of Kongres Satpathi, involvement of vehicle driven by non-applicant No.1 owned by non-applicant No.2 and insured by non-applicant No.3, liability to satisfy the amount of compensation upon non-applicant No.3 -3- are not in dispute, therefore, this Court is not adverting to facts of case as pleaded by parties to claim application and discussed by learned Claims Tribunal in its award and only considering the submissions made by learned counsel for respective parties on enhancement of amount of compensation. 7. Learned counsel for the appellants/claimants submits that while computing amount of compensation, learned Claims Tribunal erred in deducting Rs.1,63,630/- towards income tax from the total assessed income of deceased who was working as Upper Division Teacher and earning Rs.83,294/- per month. Amount of compensation awarded is less. 8. Learned counsel for respective respondents opposes the submission of learned counsel for appellants and would submit that learned Claims Tribunal has awarded just and proper amount of compensation which does not call for any interference. 9. I have heard learned counsel for parties and also perused record of claim case. 10. So far as submission of learned counsel for appellants/claimants that learned Claims Tribunal erred in deducting income tax from annual assessed income of deceased is concerned, from time to time, income tax slab is fixed by the government. There is no dispute with regard to assessment of monthly income by the Claims Tribunal as Rs.83,294/-. Date of accident is 12.05.2022. Hence, for the purpose of computing income tax, income of deceased would fall in financial year 2021-22 -4- (1st April 2021 to 30th March 2022) and relevant assessment year for computing income tax would be 2022-23. 11. Annual income of deceased on the date of accident was Rs.9,99,528/- (83,294 x 12). As on the date of accident, deceased was aged about 56 years, in view of decision of Hon’ble Supreme Court in case of National Insurance Company Ltd. Vs. Pranay Sethi and Ors. (2017) 16 SCC 680, after adding 15% to the assessed income towards future prospects, annual income of deceased would come to Rs.11,49,457/- (9,99,528 + 1,49,929). Prevalent tax slab applicable for assessment year 2022-23 was as under: Income Slab (Rs) Tax Rate Up to 2,50,000 NIL 2,50,001 to 5,00,000 5% 5,00,001 to 10,00,000 20% Above 10,00,000 30% 12.Income Tax Act allows Standard Deduction for the employees whose income is taxable under the head salary. For Assessment Year 2022- 23, standard deduction of Rs.50,000/- was applicable. After deduction of Rs.50,000/- from annual income of deceased, total annual income would come to Rs.10,99,457/- (Rs.11,49,457 – Rs.50,000). 13.Section 80 C of the Income Tax Act allows deduction up to Rs. 1.5 lakh per year for investments in specified financial instruments such as General Provident Fund (GPF), Life Insurance premiums, Public Provident Fund (PPF), National Savings Certificates (NSC) etc. Claimants in support of their claim application have placed on record -5- pay-slip of deceased as Ex.A-15 for the month of April 2022. In the said pay-slip, under the head – “Total Deduction”, amount is mentioned as Rs.10,300/- per month (GPF of Rs.10,000/- + GIS of Rs.300/-). Hence, total annual amount of deduction would come to Rs. 1,23,600/- (10,300 x 12). Hence, after deduction of Rs.1,23,600/- under Section 80 C of the Income Tax Act, Taxable Income of deceased would come to Rs.9,76,457/- (10,99,457 – 1,23,600). 14.Now calculation of income tax on total taxable income of deceased i.e. Rs.9,76,457/- would be as under: Taxable Income = Rs.9,76,457 /- • First Slab (up to Rs. 2,50,000): No tax for income up to Rs.2,50,000 • Second Slab (Rs.2,50,001 to Rs.5,00,000): Taxable income in this slab = Rs.5,00,000 -Rs.2,50,000 = Rs.2,50,000 Tax = 5% of Rs.2,50,000 = Rs.12,500 • Third Slab (Rs.5,00,001 to Rs.9,76,457): Taxable income in this slab =Rs.9,76,457 - Rs.5,00,000 = Rs.4,76,457 Tax = 20% of Rs.4,76,457 = Rs.95,291/- 15.Total tax would come to Rs. 1,07,791 (Rs. 12,500 + 95,291). Adding 4% i.e. Rs. 4,312/- towards Health and Education Cess total tax liability would come to Rs.1,12,103/- (1,07,791 + Rs. 4312). Hence, for the purpose of computing amount of compensation, net annual income of deceased would be Rs.10,37,354/- (11,49,457 - 1,12,103). It is ordered -6- accordingly. 16. Though ground for enhancement of amount of compensation on other conventional heads is not raised, however, considering the decision in case of Pranay Sethi (supra) wherein it was observed that compensation under other conventional heads is to be increased by 10% in every three years, I find it appropriate to enhance amount of compensation awarded under other heads by 10%. Accordingly, claimants will be entitled to get compensation of Rs.16,500/- each (15000 + 10%) under head of ‘loss of estate’ and ‘funeral expenses’ . Claimants No. 1 to 3 will further be entitled to get compensation towards ‘loss of consortium’ of Rs.44,000/- (40,000 + 10%) each. 17.For the foregoing discussions, I find it appropriate to re-compute the amount of compensation as under:- S. N. Heads Compensation 1. Loss of Income/Dependency (A) Annual Income – Rs.9,99,528 (83,294 x 12 ) (B) Addition of 15% towards future prospects (i) 9,99,528 x 15% = 1,49,929 (ii) 9,99,528 + 1,49,929 =11,49,457 (C) Deduction of Income Tax 11,49,457 - 1,12,103 =10,37,354 (D)Deduction of 1/3 towards personal and living expenses (10,37,354 x 1/3 =3,45,785) 10,37,354 - 3,45,785 = 6,91,569 (E) Multiplier of 9 6,91,569 x 9 = 62,24,121 : Rs. 62,24,121 -7- 2. Funeral Expenses (15000 + 10% =16500) : (+) Rs. 16,500 3 Loss of Estate (15000 + 10% =16500) : (+) Rs. 16,500 4. Loss of consortium of Rs.44,000/- each to appellant/ claimants No.1 to 3 (40,000 + 10% = 44,000) (44,000 x 3 = 1,32,000) : (+) Rs. 1,32,000 Total compensation : Rs. 63,89,121 18.Now the appellants/claimants are awarded total compensation of Rs. 63,89,121/- instead of Rs.60,64,962/- as awarded by the Claims Tribunal. 19.Enhanced amount of compensation shall carry interest @ 8% per annum from the date of filing of claim application till its realization. Any amount of compensation already paid to the claimants shall be adjustable from the total amount of compensation which has now been calculated and awarded by this Court. Other conditions of impugned award shall remain intact. 20.In the result, appeal is allowed in part. Impugned award is modified to the extent as indicated herein above. Sd/- Sd/--/- (Parth Prateem Sahu) Judge Praveen