1 2025:CGHC:57223 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 510 of 2023 United India Insurance Company Limited, Through Its Branch Manager, Branch Office, Anupma Chowk, Near Jhankar Talkies, Jagdalpur, District- Jagdalpur................(Non-Applicant No.2) ... Appellant versus 1 - Smt. Sangeeta Darro, Wd/o. Late Nirmal Darro, Aged About 36 Years, R/o. Village Bodali, Post Office- Lakhanpuri, Tahsil Charama, District- Kanker, Chhattisgarh.................(Applicant No.1) 2 - Ku. Varsha Darro, D/o. Late Nirmal Darro, Aged About 15 Years, Minor-Through Her Mother-Smt. Sangeeta Darro (Res. No.1), R/o. Village Bodali, Post Office- Lakhanpuri, Tahsil Charama, District- Kanker, Chhattisgarh....................(Applicant No.1) 3 - Pardeshi Ram Darro, S/o. Late Sawal Singh Darro, Aged About 75 Years, R/o. Village Bodali, Post Office- Lakhanpuri, Tahsil Charama, District- Kanker, Chhattisgarh.................(Applicant No.3) 4 - Smt. Ramtulla Bai Darro, W/o. Pardeshi Ram Darro, Aged About 65 Years, R/o. Village Bodali, Post Office- Lakhanpuri, Tahsil ASHOK SAHU Digitally signed by ASHOK SAHU Date: 2025.11.26 13:57:15 +0530 2 Charama, District- Kanker, Chhattisgarh.................(Applicant No.4) 5 - Ajit Toppo, S/o. Late Suleman Toppo, R/o. Sarpanchpara Eramnar, Police Station Toynar, District- Bijapur (Chhattisgarh) (Legal Representative Of Neeshu Toppo Who Died In The Alleged Accident And Was Owner- Driver Of The Motorcycle) ... Respondents For Appellant : Mr. Dashrath Gupta, Advocate For Respondent No.5 : Mr. Sundar Lal Sahu, Advocate on behalf of Mr. Manish Niagam, Advocate Mr. Akash Shrivastava, Advocate appeared as Amicus Curiae (Single Bench) Hon'ble Shri Justice Sanjay K. Agrawal Judgment on Board 25.11.2025 1. The appellant/insurance company has preferred this appeal under Section 173 of the Motor Vehicles Act, 1988 against the impugned award dated 26.11.2022, questioning the liability fastened upon the insurance company while allowing the claim application and granting compensation to the claimants. 2. Mr. Dashrath Gupta, learned counsel for appellant/ insurance company, would submit that the income tax ought to have been deducted from the gross salary of the deceased for calculating his gross income, which was opposed by Mr. 3 Sundar Lal Sahu, learned counsel appearing for the respondent No.5 i.e. Owner & Driver of the vehicle. However, no one appeared on behalf of the Claimants. 3. The question would be whether the income tax has to be deducted from the gross income of the deceased while computing the compensation or not ? 4. The Supreme Court in the matter of Meenakshi v. Oriental Insurance Co. Ltd.1 has held that the income tax ought to have been deducted from the gross salary of the deceased for calculating his income and held in para 13 as under : “13. However, we are of the opinion that the High Court was justified in deducting Income Tax from the gross salary of the deceased- Suryakanth for calculating his gross income. This factor was overlooked by the Accident Claims Tribunal while quantifying the award.” 5. Accordingly, the income tax has to be deducted from the gross salary of the deceased and thereafter, the calculation would be as under : Heads Compensation awarded by the Tribunal Compensation awarded by this Court Income per month Rs. 47,568/- Rs. 47,568/- 1 2024 SCC OnLine SC 1872 4 Yearly Income 5,70,816/- Rs. 47,568 x 12 = Rs. 5,70,816/- Income Tax Deduction Nil As per Slab of Assess- ment Year 2020-21 1). Up to Rs.2,50,000 – Nil 2). Rs. 2.5 Lakh to 5 Lakh – 5% of above 2.5 Lakh i.e. 12,500/- 3). Rs. 5 Lakh to 10 Lakh – 20% of amount exceeding Rs. 5 Lakh. Tax Deduction - 1). Nil upto Rs. 2.5 Lakh 2). 2.5 Lakh to 5 Lakh = Rs. 12,500/- 3). 5 Lakh to 10 Lakh = 20% of 70,816 (i.e. amount exceeding Rs. 5 Lakh) = Rs. 14,163.20 Income Tax added in each Slab - Rs. 12,500 + 14,163.20 = Rs. 26,663.20 4% Health & Education Cess = 26,663.20 x 4% = Rs.1,066.52 Total Tax Liability - Rs.26,663.20 + 1,066.52 = Rs. 27,729.72 Rounded up Rs. 27,730/- 5 Income after deduction of Income Tax Nil Rs. 5,70,816 – 27,730 = Rs. 5,43,086/- Dependents/ Deduction ¼ of Rs. 5,70,816 = Rs. 1,42,704/- ¼ of Rs. 5,43,086 = Rs. 1,35,771.50 Yearly Income after Deduction Rs. 5,70,816 – 1,42,704 = Rs. 4,28,112/- Rs. 5,43,086 – 1,35,771.50 = Rs. 4,07,314.50 Rounded up Rs. 4,07,314/- Multiplier of 14 (As per the age of deceased i.e. 44 years) Rs. 4,28,112 x 14 = Rs. 59,93,568/- Rs. 4,07,314 x 14 = Rs. 57,02,396/- Future Prospect Rs. 59,93,568 x 30% = Rs. 17,98,070/- Rs. 57,02,396 x 30% = Rs. 17,10,718.80 Rounded up Rs. 17,10,719/- Total Loss of Dependency Rs. 59,93,568 + Rs. 17,98,070 = Rs. 77,91,638/- Rs. 57,02,396 + Rs. 17,10,719 = Rs. 74,13,115/- Conventional Heads viz. Funeral & Loss of Estate Rs.33,000/- Rs.36,000/- (Funeral Expenses Rs. 15,000 + Loss of Estate Rs. 15,000 + 20%) Loss of Consortium (Spousal, Filial, Parental) Rs. 44,000/- Rs. 1,92,000/- (Rs. 48,000 x 4) Total Award Rs. 78,68,638/- Rs. 76,41,115/- 6. Accordingly, the amount of compensation of Rs. 78,68,638/- awarded by the Claims Tribunal is reduced to Rs. 76,41,115/-, 6 as Rs. 2,27,523/- is deducted towards the income tax. Rs. 76,41,115/- will be paid by the insurance company for disbursement of the claimants. Rest of the conditions of the impugned award shall remain intact. 7. Accordingly, this appeal is allowed in part to the extent as indicated herein-above. 8. Since the claimants are not represented, it appears that no amount has been disbursed to the claimants. A copy of this judgment be sent to the claimants as they are resident of remote village of District Kanker and copy of this judgment be also sent to the learned Claims Tribunal for information and necessary action. Sd/- (Sanjay K. Agrawal) Ashok Judge