The High Court reaffirms that, consistent with the Supreme Court’s decision in Pranay Sethi, 40% of the established income should be added as future prospects where the deceased was below 40 years old at the time of accident. This ruling upholds existing precedent and serves as binding authority for compensation claims involving similar age brackets under the Motor Vehicles Act.
Summary
| Category | Data |
|---|---|
| Case Name | MAC/1185/2022 of SMT TOMESH SAHU Vs RAKESH KUMAR SAKET |
| CNR | CGHC010313912022 |
| Date of Registration | 02-11-2022 |
| Decision Date | 03-11-2025 |
| Disposal Nature | DISMISSED |
| Judgment Author | HON’BLE SHRI JUSTICE SANJAY K. AGRAWAL |
| Court | High Court of Chhattisgarh, Bilaspur |
| Bench | Single Bench: Hon’ble Shri Justice Sanjay K. Agrawal |
| Precedent Value | Binding on all subordinate courts within Chhattisgarh |
| Overrules / Affirms | Affirms Supreme Court precedent in National Insurance Co. Ltd. v. Pranay Sethi (2017) |
| Type of Law | Motor Vehicle Accident Compensation |
| Questions of Law | Proper quantum of future prospects to be added for deceased below 40 years of age |
| Ratio Decidendi |
The court held that as per Pranay Sethi, addition of 40% of the established income as future prospects is appropriate where the deceased was aged below 40 years at the time of accident. Since the deceased in this case was 35, the Claims Tribunal correctly added 40%. The appellant’s contention for 50% addition was rejected. No grounds for enhancement or interference were found. |
| Judgments Relied Upon | National Insurance Co. Ltd. v. Pranay Sethi and Anr. (2017) 16 SCC 680 |
| Logic / Jurisprudence / Authorities Relied Upon by the Court | The Supreme Court’s guidelines in Pranay Sethi regarding the computation of “future prospects” based on age. |
| Facts as Summarised by the Court |
The appellants sought enhanced compensation for the death of a 35-year-old driver, arguing for 50% addition for future prospects. The Claims Tribunal had awarded addition of 40% as future prospects, following Pranay Sethi, which was affirmed by the High Court. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts in Chhattisgarh |
| Persuasive For | Other High Courts dealing with similar compensation calculations |
| Follows | National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 |
What’s New / What Lawyers Should Note
- The judgment reaffirms that 40% addition for future prospects applies where deceased was under 40.
- Arguments seeking a 50% addition for future prospects, despite the Supreme Court’s guidelines in Pranay Sethi, will not succeed for this age group.
- The judgment is useful as binding precedent on future prospects calculation for claimants in motor accident cases under similar facts.
Summary of Legal Reasoning
- The court engaged with the only question pressed—whether future prospects of 40% or 50% should be added when the deceased was 35 years old.
- The court examined the Supreme Court’s ruling in National Insurance Company Ltd. v. Pranay Sethi, which prescribes a 40% addition for deceased claimants below 40 years of age.
- Applying this authority, the court held that the Claims Tribunal was correct in awarding 40% future prospects for the deceased, aged 35.
- No other legal grounds were pressed on behalf of the appellants.
- Accordingly, the appeal seeking enhancement of compensation was dismissed.
Arguments by the Parties
Petitioner
- Claimed that future prospects should be calculated at 50%, not 40%, for deceased aged 35.
- Sought enhancement of the total compensation awarded.
Respondent (Insurance Company)
- Supported the Claims Tribunal’s award.
- Argued that 40% addition for future prospects was correct as per Pranay Sethi, given the deceased was 35.
- Submitted that the compensation is just and proper and needs no interference.
Factual Background
The appellants filed for compensation following the death of a 35-year-old, who worked as a driver, and was killed in a motor accident. The Claims Tribunal awarded Rs. 28,02,684.8/- as compensation, including a 40% addition for future prospects. The appellants appealed, seeking a higher enhancement on the basis that future prospects should be 50%. The court considered the issue in light of the Supreme Court’s ruling in Pranay Sethi.
Statutory Analysis
- Section 173 of the Motor Vehicles Act, 1988 (appeals to High Court against Claims Tribunal awards) was invoked.
- The judgment applies and interprets the principle from the Supreme Court regarding the standard for addition of future prospects to compensation under the Motor Vehicles Act for the dependants of deceased persons, specifically based on the age criteria, as outlined in Pranay Sethi.
Procedural Innovations
No new procedural innovations or guidelines were set out in this judgment.
Alert Indicators
- Precedent Followed – Existing law regarding calculation of future prospects under Pranay Sethi was affirmed.