"High Court Enhances Compensation in Motor Accident Case to Rs. 17.15 Lakh, Citing Errors in Tribunal's Assessment"

In a significant ruling, the Madhya Pradesh High Court has enhanced the compensation awarded in a motor vehicle accident case from Rs. 9.40 lakh to Rs. 17.15 lakh. The judgement, delivered by Justice Amar Nath (Kesharwani) on 24th May 2024, addressed several errors made by the Motor Accident Claims Tribunal in assessing the deceased’s income and the compensation due to his family.

The case, titled *Smt. Savitri Singh Rajput and Others vs. Shah Coal Pvt. Ltd.*, involved the death of Rampal Singh Rajput, who was killed in a motor vehicle accident. The appellants, Smt. Savitri Singh Rajput and others, challenged the tribunal's award, seeking higher compensation. The tribunal had initially assessed the deceased’s monthly income at Rs. 6,000 and awarded a total compensation of Rs. 9.40 lakh.

Justice Kesharwani, in his detailed judgement, corrected the tribunal's assessment, recognizing Rampal Singh Rajput as a skilled labourer based on his heavy transport vehicle driving license. “The income of the deceased for an incident which took place in the year 2020, ought to have been taken as Rs. 10,000 per month,” observed the court.

The court also addressed the tribunal's erroneous deduction for personal expenses, noting that “the deduction towards personal expenses of the deceased should be 1/4th instead of 1/3rd.” Consequently, the High Court recalculated the total compensation, including amounts for loss of consortium, funeral expenses, and loss of estate, bringing the total to Rs. 17.15 lakh.

In its directive, the court emphasized the importance of equitable distribution among the dependents, specifying terms for fixed deposits for minor children. The judgement also stipulated that the enhanced compensation amount should accrue interest at 6% per annum from the date of the filing of the claim petition until the actual payment is made.

This ruling highlights the court's commitment to ensuring fair compensation in motor accident cases, addressing previous errors, and providing substantial support to the deceased's family.

Date of Decision: 24th May 2024

SMT. SAVITRI SINGH RAJPUT AND OTHERS VS SHAH COAL PVT. LTD.