1 CGHC010361082023 2026:CGHC:29809 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 1856 of 2023 1 - The Oriental Insurance Co. Ltd. Through The Manager, The Oriental Insurance Co. Ltd, R.K . Plaza, Pachpedi Naka, Ring Road No. 1, Raipur, District- Raipur,c.G Represented Through In- Charge,legal Hub, Office- 1st Floor Rama Trade Center, Rajiv Plaza, Opposite Old Bus Stand Road, Bilaspur, (Insurer Of Vehicle Hyva No. CG- 07- CA- 8773), District : Bilaspur, Chhattisgarh ... Appellant versus 1 - Smt. Bhawna Dewangan W/o Late Ashutosh Dewangan Aged About 4 Years R/o Near Village Kanji House, Subhash Nagar, Dhamtari (Claimants), District : Dhamtari, Chhattisgarh 2 - Medhansh Dewangan S/o Late Ashutosh Dewangan Aged About 4 Years (Minor) Represented Through Mother And Natural Guardian Respondent No. 1, Smt. Bhavana Dewangan, W/o Late Shri Ashutosh Dewangan Aged 28 Years R/o Near Village Kanji House, Subhash Nagar, Dhamtari, District : Dhamtari, Chhattisgarh 3 - Savita Dewangan W/o Late Devi Prasad Dewangan Aged About 54 Years W/o Late Devi Prasad Dewangan Represented Through Respondent No. 1, Daughter- In- Law Smt Bhavana Dewangan , W/o Late Shri Ashutosh Dewangan Aged 28 Years R/o Near Village Kanji House, Subhash Nagar, Dhamtari, District : Dhamtari, Chhattisgarh 4 - Nandkumar S/o Shri Tejram Aged About 55 Years R/o Through Kiran Pal Lorik Traders, Azad Market, Risali, Bhilai, (Driver Of Vehicle Hyva No. CG- 07- CA- 8773)), District : Durg, Chhattisgarh 5 - Smt. Kiran Pal D/o Shri Lorik Pal R/o Through Lorik Traders, Azad Market, Risali, Bhilai, (Registered Owner Of Vehicle Hyva No. CG- 07- CA- 8773), District : Durg, Chhattisgarh ... Respondents 2 For Appellant : Mr. R.N. Pusty, Adv. with Mr. Akash Shrivastava, Adv. For Respondents No.1 to 3 : Mr. S.P. Sahu, Advocate For Respondents No.4 & 5 : None. Hon'ble Shri Justice Sanjay Kumar Jaiswal Order on Board (14.07.2026) 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 dated 25.08.2023, passed in Claim Case No.515/2022, whereby learned Claims Tribunal has awarded a total sum of Rs.53,26,200/- as compensation for the death of Ashutosh Dewangan, who died in road accident took place on 20.05.2022. 2. The first contention of the learned counsel for the appellant is that the income of deceased Ashutosh Dewangan, 29 years old was assessed at Rs. 25,300/- per month; however, the deceased held a contractual appointment as an Assistant Teacher at the Atmanand School for a period of three years, and it was uncertain whether his income would remain at that level in the future; therefore, the income should have been assessed at a lower figure. 3. Learned counsel for respondents No. 1 to 3 opposes the argument and supported the impugned award. 4. In the case in hand, Manesh Kumar Singh, the Principal of Swami Atmanand Government Excellence English Medium School, Kurud (Dhamtari), was examined on behalf of the claimants. He submitted Ashutosh Dewangan’s Joining Report (Exhibit P-12), salary slip (Exhibit P-13), and attendance register (Exhibit P-14), stating that Ashutosh’s contractual appointment was for three years, after which his services could either be terminated or his tenure extended. Given that both possibilities existed, it is not considered appropriate to reduce 3 the assessment of the deceased's income; consequently, the appellant insurance company's argument on this point is not acceptable. 5. The second contention of the learned counsel for the appellant regarding future prospects is that 50% future prospect was considered; however, in light of the judgment in the matter of Pranay Sethi (Paragraph 59.3), since the deceased was not in a regular job, it should have been calculated at 40%. 6. Learned counsel for respondents No. 1 to 3 opposes the argument on this point also and supported the impugned award. 7. For ready reference, para 59.3 of the judgment of the Hon’ble Supreme Court in the matter of National Insurance Company Ltd. V. Pranay Sethi, reported in (2017) 16 SCC 680, is reproduced herein as under:- “59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.” 8. Since the deceased Ashutosh’s employment was contractual rather than permanent job, in light of the above cited case law, the future prospects are adjusted from 50% to 40% and the compensation is calculated as under:- Sr. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court 1 Income Rs. 25,300 x 12 = Rs. 3,03,600/- Rs. 25,300 x 12 = Rs. 3,03,600/- 2. Future prospect (+)50% (i.e. Rs. 1,51,800) (+)40% (i.e. Rs. 1,21,440) 4 = Rs. 4,55,400/- = Rs. 4,25,040/- 3. Deduction (-) 1/3 (i.e. 1,51,800) = Rs. 3,03,600/- (-) 1/3 (i.e. 1,41,680) = Rs. 2,83,360/- 4. Multiplier (x) 17 = 51,61,200/- (x) 17 = 48,17,120/- 5 Other conventional heads Rs. 1,32,000/- Rs. 48,000x3 = Rs. 1,44,000/- 6 Funeral expenses Rs. 16,500/- Rs. 18,000/- 7 Loss of estate Rs. 16,500/- Rs. 18,000/- Total Rs. 53,26,200/- Rs. 49,97,120/- 9. In view of the aforesaid analysis, the amount of compensation of Rs. 53,26,200/- awarded by the Claims Tribunal is reduced to Rs. 49,97,120/-. Accordingly, the award impugned is modified to the above extent. The rest of the conditions of the impugned award shall remain intact. 10. In the result, the appeal is partly allowed. 11. The records of the claims Tribunal be sent forthwith along with a copy of this order for information and necessary action, if any. Sd/- (Sanjay Kumar Jaiswal) Judge H.L. Sahu