Page No.1 of 4 IN MAC-318-2022 2025:CGHC:46563 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 318 of 2022 [Arising out of award dt. 25.10.2021, passed in Claim Case No.5 of 2017 (Heera Sai and another v. Kuldeep Singh and others) by the 1st Addl. Motor Accident Claims Tribunal, Kunkuri, District Jashpur (CG)] Reliance General Insurance Company Limited Through Its Legal Officer, Reliance General Insurance Company Limited, 301-302, Corporate House, 169 Rnt Marg, Opposite Jhabua Tower, Indore (M.P.) ... Appellant Versus 1 - Heera Sai S/o Sonsai Aged About 60 Years Caste Dom, R/o Village Barangjor, P.S. Kunkuri, District Jashpur Chhattisgarh. 2 - Phoolmait Bai W/o Heerasai, Aged About 55 Years Caste Dom, R/o Village Barangjor, P.S. Kunkuri, District Jashpur Chhattisgarh. 3 - Kuldeep Singh S/o Kartar Singh, Aged About 30 Years R/o H.H. 56/c, Guru Nanak Nagar Sakhi Jamshedpur, Sourvi Viltpur Jamshedpur Notmuri East Singhbhum (Jharkhand) 4 - Jagjeet Singh S/o Kartar Singh A.G. Road Sima Nagaland Kohima H.O. Kohima 797001 (Nagaland) ... Respondents [Cause-title taken from Case Information System (CIS)] ------------------------------------------------------------------------------------------------ For Appellants : Mr. Sourabh Gupta, Advocate For Respondents No.1-2 : Mr. Harish Khuntiya, Advocate ------------------------------------------------------------------------------------------------ Single Bench: Hon'ble Shri Justice Sanjay K. Agrawal (Order on Board) 11.09.2025 SAIFAN KHAN Digitally signed by SAIFAN KHAN Page No.2 of 4 IN MAC-318-2022 1. This appeal under Section 173 of the Motor Vehicles Act, 1988 (for short the “Act of 1988”) has been preferred by the appellant- Insurance Company challenging the impugned award dt. 25.10.2021, passed in Claim Case No.5 of 2017 (Heera Sai and another v. Kuldeep Singh and others) by the 1st Addl. Motor Accident Claims Tribunal, Kunkuri, District Jashpur (CG), whereby learned Claims Tribunal has awarded a total sum of Rs.40,96,348/- as compensation for the death of Vinod Kumar alongwith interest @ 9% PA from the date of claim application till its actual realization. 2. Learned counsel for the appellant-Insurance Company would make sole submission that the learned Claims Tribunal erred in not deducting income tax from the income of the deceased while computing his monthly/annual income. As such, the amount of compensation awarded by the learned Claims Tribunal to the claimants is not just and proper and, therefore, the impugned award is liable to be set aside. 3. On the other hand, learned counsel appearing for the respondents No.01 & 2 supported the impugned award and prays for dismissal of this appeal. 4. I have heard learned counsel for the parties, considered their rival submissions made herein above and went through the record with utmost circumspection. Page No.3 of 4 IN MAC-318-2022 5. In the case at hand, the spinal issue would be whether income tax has to be deducted from the income of the deceased while computing the compensation or not ? 6. In this regard it would be profitable to notice the decision of the Supreme Court in the matter of National Insurance Company Ltd. v. Indira Srivastava and others 1 , wherein it has been specifically held that statutory amount of tax payable must be deducted from the income of the deceased and observed in Para-19 as under: “19. The amounts, therefore, which were required to be paid to the deceased by his employer by way of perks, should be included for computation fo his monthly income as that would have been added to his monthly income by way of contribution to the family as contradistinguished to the one which were for his benefit. We may, however, hasten to add that from the said amount of income, the statutory amount of tax payable thereupon must be deducted.” 7. Thus, in light of the above-quoted judgment, this Court is computing the compensation as below:- Sr. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court 1. Income Rs.26,316/- x 12 = Rs.3,15,792/- Rs.26,316/- x 12 = Rs.3,15,792/- 2. Future Prospect (+) 50% (i.e. Rs.1,57,896/-) = Rs.4,73,688/- (+) 50% (i.e. Rs.1,57,896/-) = Rs.4,73,688/- 3. Income Tax Not Deducted As per income tax slab 1 (2008) 2 SCC 763 Page No.4 of 4 IN MAC-318-2022 2016-17:] upto 2,50,000 – Nil 2,50,000-5,00,000 – 10% (Thus, Rs.4,73,688 – Rs.2,50,000= Rs.2,23,688/- will be taxable amount @ 10%) i.e. (-) Rs.22,369/- = Rs.4,51,319/- 3. Deduction (-) 1/2 (i.e. Rs.2,36,844/-) = Rs.2,36,844/- (-) 1/2 (i.e. Rs.2,25,659.5) = Rs.2,25,660/- 4. Multiplier (x) 17 = Rs.40,26,348/- (x) 17 = Rs.38,36,220/- 5. Loss of Estate Rs. 15,000/- Rs. 15,000/- 6. Funeral Expenses Rs. 15,000/- Rs. 15,000/- 7. Loss of Consortium Rs. 40,000/- Rs. 40,000/- Total Rs. 40,96,348/- Rs.39,06,220/- 8. Accordingly, the amount of compensation of Rs.40,96,348/- awarded by the Claims Tribunal is reduced to Rs.39,06,220/-. Rest all the conditions of the impugned award shall remain intact. 9. Consequently, this appeal is allowed in part to the extent as indicated herein-above. sd/- (Sanjay K. Agrawal) Judge s@if