The Madhya Pradesh High Court at Indore has dismissed an appeal seeking enhancement of compensation awarded to the family of a deceased BSF employee in a motor accident claim. Justice Jai Kumar Pillai upheld the compensation of ₹77.40 lakh granted by the Motor Accident Claims Tribunal, Indore.
The Court also declined to increase the interest rate from 6% to 9% per annum, finding no reason to interfere with the Tribunal's award.
The appeal was filed by Smt. Reshma Begum, widow of late Shamsuddin, and others under Section 173(1) of the Motor Vehicles Act, 1988. They challenged the award dated November 17, 2022, passed by the 11th Additional Member, M.A.C.T., Indore, in Case No. 1122/2019.
According to the case record, Shamsuddin was travelling on his motorcycle from Betma towards the BSF Campus at Bijasan Road, Indore, on February 10, 2019. An Eicher vehicle collided with his motorcycle on Airport Road, Navada Panth. He suffered serious injuries and was later declared dead at the District Hospital.
Shamsuddin was working with the Border Security Force and was survived by his widow, two minor children and aged parents. The Tribunal awarded ₹77,40,000 as compensation. The claimants approached the High Court seeking an additional ₹7 lakh and an increase in interest.
The appellants argued that the Tribunal had assessed Shamsuddin's income incorrectly. They contended that his monthly income should have been treated as ₹42,511, corresponding to an annual income of ₹6,24,684.
They further argued that the Tribunal had not adequately considered future prospects and the fact that the deceased was the sole earning member supporting minor children and aged parents. The claimants also sought an increase in the interest rate from 6% to 9% per annum.
Justice Jai Kumar Pillai examined the employment and salary records relied upon before the Tribunal. The High Court found that the Tribunal had correctly calculated the income relevant for determining the family's loss of dependency.
The Court noted:
"In assessing the income of a salaried person for motor accident claims, the gross salary is not the sole determinant; appropriate and mandatory statutory deductions must be accounted for."
After considering the documentary evidence, the Court accepted ₹34,913 per month as the appropriate base monthly salary for calculating dependency.
The High Court also considered the arguments concerning future income, the number of dependants and the multiplier used for calculating compensation. It held that these factors had already been taken into account by the Tribunal while arriving at the compensation of ₹77.40 lakh.
On interest, the Court observed that interest under Section 171 of the Motor Vehicles Act is discretionary and should correspond with prevailing banking rates. It found the Tribunal's 6% rate consistent with judicial precedents and the economic circumstances considered in the matter.
The Madhya Pradesh High Court concluded that the Tribunal's award did not suffer from illegality, perversity or jurisdictional error. It held that ₹77.40 lakh constituted just and reasonable compensation.
Accordingly, the Court affirmed the November 17, 2022 award of the 11th Additional Member, M.A.C.T., Indore, dismissed the appeal and directed that the parties bear their own costs.
Case Title: Smt. Reshma Begum Wd/O Late Shri Shamshuddin and Others v. Zafar Ali S/O Shri Mohd. Haaris and Another
Case Number: Miscellaneous Appeal No. 1566 of 2023
Judge: Hon'ble Shri Justice Jai Kumar Pillai
Decision Date: September 10, 2026
