The New India Assurance Company Limited Vs Rakesh Mandal

1 - Rakesh Mandal S/o Late Mantu Mandal Aged About 30 Years Permanent R/o Village- Premnagar, Thana- Dharamjaigarh, DistrictRaigarh C.G., Present R/o Village Injko, Thana And TehsilPatthalgaon, District- Jashpur C.G. (Claimants)

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2 - Smt. Neetu Mandal W/o Rakesh Mandal Aged About 28 Years Permanent R/o Village- Premnagar, Thana- Dharamjaigarh, DistrictRaigarh C.G., Present R/o Village Injko, Thana And TehsilPatthalgaon, District- Jashpur C.G. (Claimants)

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3 - Idrish Aalam S/o Mo. Vakil Mululing Aged About 49 Years R/o Village Rampur, Post- Pratappur, Thana- Pratappur, District- Chatra (Jharkhand) (Vehicle Driver)

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4 - Manish Agrawal S/o Madanlal Agrawal Aged About 40 Years R/o - Tikrapara, Bilaspur, District Bilaspur C.G. (Vehicle Owner)

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... Respondents

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For Appellants : Mr. P. Dutta, Adv on behalf of Mr. Sudhir Agrawal, Adv. For Respondents No. 1 & 2 : Ms. Pooja Yadav, advocate. For Respondents No. 3 & 4 : None.

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Hon’ble Shri Sachin Singh Rajput, Judge Order on Board

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2

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27/04/2026

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1. The present appeal under Section 173 of the Motor Vehicles Act, 1988 (for short, “MV Act”) has been filed challenging the quantum of award dated 21.04.2025 passed by the learned Motor Accident Claims Tribunal, Pathhalgaon, District Jashpur (C.G.) in Claim Case No. 30/2023, whereby a sum of Rs. 6,37,000/- has been awarded as compensation in favour of the claimants along with interest @ 7.5% per annum on account of the death of deceased Sonam Mandal in a motor accident that occurred on 30.07.2018 due to rash and negligent driving of motorcycle bearing registration No. CG-10-R-1934 by respondent No. 1 (driver). The said vehicle was owned by respondent No. 2 and was allegedly insured with the appellant/Insurance Company.

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2. Brief facts of the case are that on 30.07.2018 at about 08:00 a.m., Rakesh Mandal was proceeding on his motorcycle towards DAV School, Dharamjaigarh Colony, carrying his deceased daughter Sonam Mandal and Sanjana Biswas, daughter of Sambhu. At that time, the offending vehicle coming from the Kharsia side was being driven by respondent No. 2 in a rash and negligent manner, and it struck the said motorcycle, thereby causing the accident. As a result of the accident, Sonam Mandal sustained grievous head injuries and died on the spot. The accident was reported at Police Station Dharamjaigarh, District Raigarh (C.G.), on the basis of

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which Crime No. 182/2018 was registered at Police Station Bagbahar under Section 304-A of the Indian Penal Code.

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3. As per the pleadings in the claim application filed under Section 166 of the MV Act, the deceased Sonam Mandal was aged about 6 years. The claimants, being the parents of the deceased, filed the claim application seeking compensation of Rs. 25,50,000/-.

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4. Respondents No. 1 and 2, i.e., the driver and owner of the offending vehicle, remained ex parte and did not file any written statement.

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5. Respondent No. 3 filed its written statement contending, inter alia, that respondent No. 1 was not holding a valid and effective driving licence at the relevant time; that there was breach of the terms and conditions of the insurance policy; and that the claim amount was excessive, along with other averments forming part of the record.

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6. On the basis of the pleadings, the learned Tribunal framed issues and, upon appreciation of the evidence on record, decided the case in favour of the claimants and awarded compensation of Rs. 6,37,000/-.

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7. Learned counsel for the appellant submits that the amount of compensation awarded by the learned Tribunal is on the higher side and that future prospects have been granted erroneously; therefore, the award deserves to be suitably reduced.

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8. Per contra, learned counsel for respondents No. 1 and 2/claimants supports the impugned award and submits that the compensation awarded by the learned Tribunal is just, proper, and does not warrant any interference by this Court.

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9. Heard learned counsel for the parties, considered their rival submissions, and perused the record.

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10. The deceased was aged about 6 years. The learned Tribunal assessed the monthly income of the deceased at Rs. 4,500/-. After deducting 1/2 towards personal and living expenses, the monthly contribution to the family was taken at Rs. 2,250/-. The annual contribution thus came to Rs. 27,000/- (Rs. 2,250 × 12). By applying the multiplier of 15, the loss of dependency was calculated at Rs. 4,05,000/-. Thereafter, 40% was added towards future prospects, amounting to Rs. 1,62,000/-, taking the total under the head of loss of dependency to Rs. 5,67,000/-. In addition thereto, a sum of Rs. 15,000/- was awarded towards funeral expenses and Rs. 15,000/- towards loss of estate. Further, Rs. 40,000/- was granted under the head of loss of love and affection. Accordingly, the total compensation was determined at Rs. 6,37,000/-.

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11. The only contention raised by learned counsel for the appellant is that the compensation is on the higher side and that future prospects have been wrongly awarded, and therefore the same

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needs suitable reduction. This Court is not in agreement with the submission made by learned counsel for the appellant.

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12. In the opinion of this Court, it is well settled that compensation must be just and reasonable and should neither be a meagre amount nor a bonanza. The compensation of Rs. 6,37,000/cannot be said to be a bonanza, particularly when the claimants have lost their young 6 years old daughter in the said accident. In view of the above, this Court does not find any ground to interfere with the findings recorded by the learned Tribunal.

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13. Accordingly, the appeal fails and is hereby dismissed .

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14. All pending applications are also disposed of. The interim order, if any, stands vacated.

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Sd/-

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( Sachin Singh Rajput ) JUDGE

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Jyoti,

The New India Assurance Company Limited v. Rakesh Mandal

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The New India Assurance Company Limited v. Rakesh Mandal

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