1 CGHC010373312023 2026:CGHC:40662 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 1842 of 2023 United India Insurance Company Limited, Head Office 24 White Road Chennai 600014 Through- Manager, T.P. Hub Bilaspur. L.I.C. Building, 1st Floor, Magarpara Road, Bilaspur, Chhattisgarh. ... Appellant(s) versus 1 - Smt. Raimun Bai W/o Shri Bahur Singh Dhruv Aged About 71 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant. 2 - Bahur Singh Dhruv S/o Shri Puran Singh Dhruv Aged About 76 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant. 3 - Smt. Kamla Dhruv D/o Shri Bahur Singh Dhruv Aged About 48 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant. 4 - Smt. Vimla Dhruv D/o Shri Bahur Singh Dhruv Aged About 38 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant 5 - Manisha Dhruv D/o Shri Bahur Singh Dhruv Aged About 32 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant BHOLA NATH KHATAI Digitally signed by BHOLA NATH KHATAI Date: 2026.09.18 17:39:29 +0530 2 6 - Smt. Nirmala Dhruv D/o Shri Bahur Singh Dhruv Aged About 36 Years R/o Village Lafandi, P.S. Rajim, District Gariyaband, Chhattisgarh....Claimant 7 - Bajrang Prasad Sonwani S/o Shri Prahlad Prasad Sonwani Aged About 46 Years R/o Santra Badi Ward Tarun Talkies Durg, P.S. Mohan Nagar Durg, District Durg, Chhattisgarh....Driver 8 - M/s Gappu Mahendra Travels Private Limited Director Kamaljeet Kaur W/o Late Satwant Singh Gill, R/o Mahendra Travels New Bus Stand Raipur, District Raipur, Chhattisgarh.....Owner ... Respondent(s) For Appellant(s) : Mr. Pravesh Sahu, Adv. on behalf of Mr. P. R. Patankar, Advocate For Respondents No.1 to 6 : Mr. Arvind Prasad, Advocate Hon'ble Shri Justice Sanjay Kumar Jaiswal Judgment on Board (17.09.2026) 1. This appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellant–Insurance Company calling in question the legality and correctness of the award dated 11.07.2023 passed by the 1st Additional Motor Accident Claims Tribunal, Balod, District Balod (CG) in Claim Case No.59/2022, whereby the Tribunal has awarded a total compensation of Rs.85,97,424/- on account of the death of Chandrahas Dhruv, who succumbed to the injuries sustained in a motor vehicle accident that occurred on 24.05.2022. 2. Learned counsel appearing for the appellant–Insurance Company submits that since the deceased was unmarried, 3 the Tribunal ought to have deducted one-half (1/2) of the income towards his personal and living expenses, instead of one-third (1/3). He, therefore, prays that the impugned award be modified accordingly. 3. Per contra, learned counsel appearing for the claimants/respondents No.1 to 6 opposes the submission advanced on behalf of the appellant–Insurance Company and submits that the Tribunal has awarded an inadequate amount under the conventional heads, which deserves to be suitably enhanced. 4. Heard learned counsel for the parties and perused the record. 5. From the evidence available on record, it is evident that the deceased Chandrahas Dhruv was posted as a Class-I Lecturer at Higher Secondary School, Village Bhainsasur, Antagarh, District Kanker. As per the salary slip Ex. A-38, his gross salary was Rs.49,941/- per month. However, after excluding the amount of Rs.500/- towards travelling allowance, the Tribunal assessed his monthly income at Rs.49,441/-. Accordingly, his annual income comes to Rs.5,93,292/- (Rs.49,441 × 12). Upon addition of 50% towards future prospects, the annual income comes to Rs.8,89,938/-. 6. Since the annual income, after addition of future prospects, exceeds the taxable limit, the amount liable to be paid towards income tax is required to be deducted from the annual income before determining the loss of dependency. Hence, the income tax is calculated as under: Income Tax Slabs for FY 2022-23 Income Tax Rates Taxable Income Total Tax Upto 2.5 lakh Nil --- Nil 4 2,50,001 to 5 lakh 5% Rs. 2,50,000/- Rs.12,500/- 5,00,001 to 10 lakh 20% Rs.3,89,938/- Rs. 77,987.60 rounded off to Rs. 77,988/- Total Rs.90,488/- Education Cess 3% Rs. 90,488/- Rs. 3619.52 rounded of to Rs.3620/- Total Tax Rs. 94,108 7. As regards the deduction towards personal and living expenses, it is not in dispute that the deceased was unmarried aged about 33 years at the time of the accident. In terms of the principles laid down by the Hon’ble Supreme Court in National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, read with the principles governing determination of compensation in the case of an unmarried deceased, one-half (1/2) of the income is liable to be deducted towards personal expenses. Learned Tribunal, however, deducted one-third (1/3) of the income towards personal expenses. The said deduction, therefore, cannot be sustained and is accordingly modified from one-third (1/3) to one-half (1/2). 8. It is further evident from the record that, out of the six claimants, the Tribunal awarded compensation only in favour of the mother, Smt. Raimun Bai, father, Shri Bahur Singh Dhruv and the widowed sister, Smt. Nirmala Dhruv. The remaining three claimants, namely, Smt. Kamla Dhruv, Smt. Vimla Dhruv and Smt. Manisha Dhruv, being married sisters of the deceased, were not held to be dependants upon the deceased and, consequently, no compensation was awarded in their favour. 9. Considering the date of incident, the age of the deceased and 5 the number of dependants, this Court finds that the addition towards future prospects and the multiplier applied by the Tribunal are just, proper and in accordance with law. However, the amounts awarded by the Claims Tribunal under the conventional heads are required to be suitably enhanced in view of the law laid down by the Hon’ble Supreme Court. 10. Thus, in light of the aforesaid discussion and the judgments of the Hon’ble Supreme Court in National Insurance Company Ltd. V. Pranay Sethi1, Sarla Verma & Ors. Vs. Delhi Transport Corporation & Ors2 and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors3, the compensation is recomputed as under:- S. No. Heads Compensation awarded by this Court 1 Income 49441 x 12 =5,93,292 2. Future prospects (+)50% i.e.2,96,646) = 8,89,938 3. Income Tax (Deduction) (-) 94,108 4. Annual Income 7,95,830 5. Deduction (-)1/2 = 3,97,915 6. Multiplier (x) 16 = 63,66,640 7. Funeral Expenses 16,500 8. Loss of Estate 16,500 9. spousal/parental/filial consortium 1,32,000 (44,000 x 3) Total Rs. 65,31,640/- 11. In view of the aforesaid analysis, the claimants shall now be entitled to a total compensation of Rs. 65,31,640/- in place of Rs.85,97,424/- as awarded by the Claims Tribunal. The remaining terms and conditions of the impugned award shall 1 (2017) 16 SCC 680 2 (2009) 6 SCC 121 3 (2018) 18 SCC 130 6 remain unaltered. 12. Consequently, the appeal of the insurance company is partly allowed and the impugned award is modified to the extent as indicated herein-above. 13. The Registry is directed to communicate the claimants in writing “the modified amount” passed in this appeal as against the award made by the concerned Tribunal. The said communication be made in Hindi Deonagri language and the help of paralegal workers may be availed with a co-ordination of Secretary, Legal Aid of the concerned area wherein the claimants reside. Sd/- (Sanjay Kumar Jaiswal) Judge Khatai