MAC/215/2024 of JAGGU RAM NETAM Vs BAL SINGH SORI on 29 September 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/claimant seeking enhancement of the amount of compensation, challenging the impugned award dated 21.04.2023, passed in Claim Case No. 705/2021, whereby the learned Claims Tribunal has awarded total sum of Rs.9,24,400/- in favour of appellants as compensation for the death of Jangluram Netam (52-years-old) who died in a road accident which took place on 26.06.2019.

2. Learned counsel for the appellant would submit that the learned Claims Tribunal has erred in awarding a meagre compensation. The Tribunal has assessed the income of the deceased on the lower side and has also awarded a lesser amount under the conventional heads, which deserves to be enhanced. Hence, the instant appeal may be allowed and the compensation suitably enhanced. It is further submitted that though the Tribunal has exonerated the Insurance Company on the ground of breach of policy, the vehicle was duly insured with Respondent No.3 on the date of accident, therefore, the principle of 'pay and recover' may be applied.

3. Learned counsel for the appellant further submits that there were initially four claimants. During the pendency of the claim petition, the wife of the deceased Janglu also died, leaving behind three children of the deceased. Thus, there are now three claimants remaining.

4. Learned counsel for respondent No. 3 would submit that the Claims Tribunal after appreciating oral and documentary evidence available on record rightly awarded the compensation amount. Hence, the compensation awarded by the Claims Tribunal is just and proper and requires no interference.

5. I have heard learned counsel for the parties, considered their rival submissions made herein-above and went through the records with utmost circumspection.

6. In the present case, the learned Tribunal has taken the monthly income of the deceased as Rs. 8,000/-, whereas it ought to have been Rs. 8,400/- as per the Minimum Wages Notification issued by the Office of the Labour Commissioner, Chhattisgarh. To that extent, the impugned award deserves to be modified.

7. Thus, in light of the aforesaid discussion and in light of the judgments of the Supreme Court rendered in the matters of 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, this Court is computing the compensation as below:-

(2017) 16 SCC 680

(2009) 6 SCC 121

(2018) 18 SCC 130

Sr. No. Heads Compensation awarded by the Tribunal Compensation awarded by this Court

Income Rs. 8,000x12 = 96,000/- Rs. 8400x12 = 1,00,800/-

2. Future prospect (+) 10% (i.e. Rs. 9600) = 1,05,600/- (+) 10% (i.e. Rs. 10080) = 1,10,880/-

3. Deducti on (-) 1/3 (i.e. 35,200) = 70,400/- (-) 1/3 (i.e. 36,960) = 73,920/-

4. Multiplie r

(x) 11 = 07,74,400/-

(x) 17 = 8,13,120/-

5. Other conventi onal heads Rs. 1,50,000/- (1,20,000+15,000+15,

Rs. 1,50,000/- (1,20,000+15,000+15,

Total Rs. 09,24,400/- Rs. 09,63,120/-

8. In view of the aforesaid analysis, the amount of compensation of Rs.09,24,400/- awarded by the Claims Tribunal is enhanced to Rs.09,63,120/-. Hence, after deducting the amount of Rs.09,24,400/-, the claimants are held entitled for an additional amount of Rs.38,720/-. The additional amount of compensation shall carry interest @ 6% per annum from the date of filing of the claim application before the Claims Tribunal till its realization.

9. As regards the prayer for applying the principle of ‘pay and recover’, it is evident that though there was a breach of the conditions of the insurance policy, the offending vehicle was duly insured with the Insurance Company on the date of accident. Therefore, in view of the principles laid down by the Hon’ble Supreme Court in Amrit Paul Singh & Anr. Vs. Tata AIG General Insurance Co. Ltd. & Ors., (2018) 7 SCC 558 and in Sunita & Ors. Vs. United India

Insurance Co. Ltd. & Ors., 2025 SCC OnLine SC 1464, it is directed that the Insurance Company shall first pay the compensation awarded to the claimants and thereafter recover the same from the owner and driver of the offending vehicle.

10. In the result, the appeal is partly allowed and the impugned award is modified to the extent as indicated herein-above.

11. The Registry is directed to communicate the claimants in writing “the enhanced amount” 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 resides.

Sd/- (Sanjay Kumar Jaiswal) Judge -Shubham