Smt. Munni Devi vs Krishnapal Singh on 23 July, 2026

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    Madhya Pradesh High Court

    Smt. Munni Devi vs Krishnapal Singh on 23 July, 2026

             NEUTRAL CITATION NO. 2026:MPHC-GWL:22202
    
    
    
    
                                                                1                               MA-773-2016
                                 IN     THE      HIGH COURT OF MADHYA PRADESH
                                                       AT GWALIOR
                                                            BEFORE
                                                 HON'BLE SHRI JUSTICE AMIT SETH
                                                      ON THE 23rd OF JULY, 2026
                                                     MISC. APPEAL No. 773 of 2016
                                               THE NEW INDIA ASSURANCE CO. LTD.
                                                            Versus
                                                 SMT. MUNNI DEVI AND OTHERS
                               Appearance:
                                      Shri Shrinivas Gajendragadkar - Advocate for appellant/Insurance
                               Company.
                                      Shri Sunil Kumar Jain - Advocate for respondents No.1 and 2.
                                      None for respondents no. 3 and 4.
    
                                                                    WITH
                                                     MISC. APPEAL No. 899 of 2016
                                                 SMT. MUNNI DEVI AND ANOTHER
                                                             Versus
                                                 KRISHNAPAL SINGH AND OTHERS
                               Appearance:
                                      Shri Sunil Kumar Jain - Advocate for appellants- claimants.
                                      None for respondents No. 1 and 2 though served.
                                      Shri    Shrinivas    Gajendragadkar-Advocate        for       respondent
                               No.3/Insurance Company.
    
                                                               JUDGMENT
    

    Since both the appeals have been preferred under Section 173(1) of the
    Motor Vehicles Act, 1988 and arise out of the common Award dated

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    NEUTRAL CITATION NO. 2026:MPHC-GWL:22202

    SPONSORED

    2 MA-773-2016
    22.06.2016 passed by the Motor Accident Claims Tribunal, Morena
    (hereinafter referred to as “the Claims Tribunal”) in Claim Case No.10/2015,
    they were heard analogously and are being decided by this common
    judgment.

    2. Miscellaneous Appeal No.773/2016 has been preferred by the
    Insurance Company challenging the Award mainly on the grounds that: (i)
    the Claims Tribunal erred in imposing penal interest at the rate of 12% per
    annum in the event of default in payment of the compensation within two
    months; (ii) the offending truck has been falsely implicated; and (iii) the
    Claims Tribunal failed to attribute contributory negligence to the deceased.

    3. Miscellaneous Appeal No.899/2016 has been filed by the claimants
    seeking enhancement of the compensation awarded by the Claims Tribunal,

    whereby a sum of Rs.3,49,000/- along with interest at the rate of 7% per
    annum from the date of filing of the claim petition till realization has been
    awarded on account of the death of Ajay Pal Singh in the motor accident.

    4. In brief, the facts giving rise to present appeals, are that the
    claimants filed a claim petition under Section 166 of the Motor Vehicles Act
    seeking compensation on account of the death of Ajay Pal Singh in a motor
    accident that occurred on 04.09.2009. It was pleaded that the deceased, along
    with his friend Arvind Singh, was proceeding on a motorcycle from Morena
    to Village Khadoli. When they reached near Devari Village, between Fauji
    Dhaba and the Narua Canal Bridge on A.B. Road, Truck No. MP-06- E-
    5347, allegedly being driven rashly and negligently on the wrong side of the
    road, collided with the motorcycle. As a result of such accident, Ajay Pal

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    3 MA-773-2016
    Singh succumbed to the injuries sustained, while the pillion rider, Arvind
    Singh, also sustained grievous injuries. An FIR was registered at Police
    Station Civil Lines, Morena, and after investigation, a charge-sheet was filed
    against the driver of the offending truck for offences punishable under
    Sections 279, 337 and 304-A of the Indian Penal Code. It was pleaded that
    the deceased was about 19 years of age, was pursuing his studies and had
    bright future prospects. It was further pleaded that after completing his
    education, the deceased would have secured gainful employment with an
    estimated monthly income of Rs.20,000/-. On these averments,
    compensation of Rs.32,10,000/- was claimed from the owner, driver and
    insurer of offending vehicle.

    5. The owner and driver denied the accident involving the truck and
    pleaded that the vehicle had been falsely implicated. The Insurance
    Company also denied the allegations and raised several objections, inter alia,
    that the claim petition suffered from procedural defects; the claimants had
    failed to produce relevant documents relating to the vehicle and the driver;
    there was no proof regarding the age and income of the deceased; the
    accident, according to the FIR, involved Tempo No.CG-04/M-6566 and not
    Truck No.MP-06/E-5347; the truck had been subsequently implicated; and
    necessary parties, namely the owner, driver and insurer of the tempo as well
    as the motorcycle, had not been impleaded.

    6. Upon appreciation of the pleadings and evidence, the Claims
    Tribunal framed the necessary issues and, by the impugned Award, granted

    compensation in favour of claimants. Aggrieved thereby, both the Insurance

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    NEUTRAL CITATION NO. 2026:MPHC-GWL:22202

    4 MA-773-2016
    Company and the claimants have preferred the present appeals.

    7. Learned counsel appearing for the Insurance Company submits that
    the Claims Tribunal committed an error in directing payment of penal
    interest at the rate of 12% per annum in the event of failure to deposit the
    compensation amount within two months. It is contended that once interest at
    the rate of 7% per annum from the date of filing of claim petition had already
    been awarded, the Claims Tribunal could not have imposed an additional
    penal rate of interest. This aspect has been considered by the Apex Court in
    the case of National Insurance Company Limited vs. Keshav Bahadur and
    Others
    , (2004) 2 SCC 370.

    8. It is further argued on behalf of the Insurance Company that the
    learned Claims Tribunal itself recorded a finding that the deceased was about
    seventeen and a half years of age and was not legally entitled to hold a valid
    driving licence. Despite such finding, no contributory negligence has been
    attributed to the deceased. Appropriate contributory negligence ought to
    have been fastened upon the deceased. In support of contention, a reliance
    has been placed on the judgment of the Jharkhand High Court in the case of
    Ramzan Ansari and another vs. Kavita Singh and others, 2011 ACJ 1063.

    9. It is next contended on behalf of the Insurance Company that the
    FIR (Exhibit D2), lodged by Arvind Singh, who was travelling as a pillion
    rider on the motorcycle, specifically mentions that the accident was caused
    by Tempo No.C.I.W-6566. As the said tempo was not insured, Truck
    No.MP-06/E-5347 was subsequently and falsely implicated. The FIR, being
    the earliest version of occurrence, carries considerable evidentiary value and

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    5 MA-773-2016
    ought not to have been ignored by the learned Claims Tribunal. In support of
    this submission, reliance has been placed upon the decisions in the case of
    Arun Kumar Patel and another vs. Smt. Terasi Saket and others, ILR (2008)
    MP 282; National Insurance Company Limited vs. Rattani and Others,
    (2009) 2 SCC 75; and Oriental Insurance Company Limited vs. Premlata
    Shukla and Others
    , (2007) 13 SCC 476.

    10. Learned counsel for the Insurance Company further submits that if,
    during investigation, the involvement of Truck No. MP-06/E-5347 was
    subsequently found, it was incumbent upon the claimants to examine the
    Investigating Officer in order to explain the circumstances under which the
    truck came to be implicated. In the absence of such evidence, the Insurance
    Company was deprived of an opportunity to effectively cross-examine the
    Investigating Officer. Reliance has been placed upon the Division Bench
    judgment of this Court in the case of National Insurance Company Limited
    vs. Smt. Setubai and Others
    , ILR (2008) MP 2367.

    11. Lastly, it is submitted on behalf of Insurance Company that the
    Claims Tribunal has awarded Rs.25,000/- towards funeral expenses, whereas,
    in view of the law laid down by the Apex Court in the case of National
    Insurance Company Limited vs. Pranay Sethi
    , 2017 ACJ 2700, only
    Rs.15,000/- is admissible under the said head.

    12. On the aforesaid grounds, learned counsel for Insurance Company
    prays for setting aside the impugned Award and dismissal of appeal preferred
    by the claimants seeking enhancement of compensation.

    13. On the other hand, learned counsel appearing for the claimants

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    6 MA-773-2016
    supports the impugned Award insofar as the grant of penal interest is
    concerned and submits that once two months’ time had been granted to the
    Insurance Company for payment of the compensation amount, the Claims
    Tribunal was well within its jurisdiction to impose a higher rate of interest in
    the event of default. It is further submitted that merely because the deceased
    was below eighteen years of age and was driving the motorcycle, no finding
    of contributory negligence can be recorded unless negligence on his part is
    independently established. Reliance has been placed upon the judgment of
    the Apex Court in the case of Sudhir Kumar Rana vs. Surinder Singh and
    Others
    , (2008) 12 SCC 436.

    14. With regard to the involvement of Truck No. MP-06/E-5347,
    learned counsel for claimants submits that although the FIR initially referred
    to the involvement of a tempo, the investigation subsequently revealed that
    the offending vehicle was the truck in question, whereafter a charge-sheet
    was filed against its driver. It is argued that the claimants have duly proved
    the accident by leading cogent evidence, whereas the Insurance Company
    failed to adduce any evidence to rebut the same. It was always open to the
    Insurance Company to summon the Investigating Officer in support of its
    defence, and it cannot now seek to derive advantage from the evidence
    produced by the claimants. In support of submissions, reliance has been
    placed upon the judgments of the Apex Court in the case of Sunita and

    Others vs. Rajasthan State Road Transport Corporation and Others, 2019
    ACC 486 (SC), and National Insurance Company Limited vs.
    Chamundeshwari and Others, (2021)8 SCR 611, to contend that once a

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    7 MA-773-2016
    charge-sheet has been filed against the offending vehicle, the claimants
    discharge their burden on the touchstone of preponderance of probabilities.

    15. On the question of enhancement of compensation, learned counsel
    for the Claimants submits that the notional income of the deceased assessed
    by the Claims Tribunal at Rs.3,000/- per month is wholly inadequate. It is
    contended that having regard to the prevailing wages of an unskilled labourer
    at the relevant point of time, the income ought to have been assessed at
    Rs.4,200/- per month. Reliance has been placed upon the judgment in the
    case of Baby Sakshi Greola vs. Manzoor Ahmed Simon and another, SLP
    (Civil) No.10996/2018 decided on 11.12.2024. It is further submitted that the
    Claims Tribunal failed to award any amount towards future prospects and
    conventional heads.
    It is argued that the deduction towards personal expenses
    ought to have been one-third instead of one-half in view of the judgment of
    the Supreme Court in the case of Sarla Verma vs. Delhi Transport
    Corporation
    , (2009) 6 SCC 121. It is also contended that 40% addition
    towards future prospects and compensation under the head of loss of
    consortium and other conventional heads ought to have been awarded. On
    these grounds, learned counsel prays that the compensation awarded by the
    Claims Tribunal be suitably enhanced and the appeal preferred by the
    Insurance Company be dismissed.

    16. Heard learned counsel for the parties and perused the record as
    well as the impugned Award.

    17. So far as the contention of the learned counsel for the Insurance
    Company regarding contributory negligence is concerned, the same deserves

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    8 MA-773-2016
    to be rejected. Merely because the deceased was about seventeen and a half
    years of age and was driving the motorcycle without holding a valid driving
    licence, it cannot, by itself, be inferred that he was guilty of contributory
    negligence. The issue of contributory negligence has to be determined on the
    basis of the manner in which the accident occurred and not merely on
    account of absence of a valid driving licence. Unless there is cogent evidence
    to establish that the accident occurred due to the negligence attributable to
    the deceased, no deduction on account of contributory negligence can be
    made. In the present case, except for raising the plea that the deceased was
    not holding a valid driving licence, the Insurance Company has failed to
    adduce any evidence to establish any negligent act on the part of the
    deceased which contributed to the occurrence of the accident. On the
    contrary, the material available on record reveals that, after due investigation,
    the police filed the charge-sheet against the driver of Truck No. MP-06/E-
    5347, and no material has been brought on record to dislodge the said
    finding. The Hon’ble Apex Court in the case of Sudhir Kumar Rana (supra)
    has categorically held that mere absence of a valid driving licence cannot by
    itself lead to a finding of contributory negligence unless negligence in
    driving is independently proved. Consequently, the plea of contributory
    negligence raised by the Insurance Company is devoid of merit and is hereby
    rejected.

    18. The next contention advanced by the learned counsel for the
    Insurance Company regarding the alleged false implication of Truck No.
    MP-06/E-5347 also does not merit acceptance. Merely because the First

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    9 MA-773-2016
    Information Report initially mentioned the involvement of Tempo
    No.C.I.W.-6566, it cannot, by itself, lead to an inference that the offending
    truck was subsequently and falsely implicated. It is well settled that an FIR is
    not a substantive piece of evidence and its primary purpose is only to set the
    criminal law into motion. The material available on record reveals that during
    the course of investigation, the Investigating Agency found the involvement
    of Truck No. MP-06/E-5347 in the accident and, accordingly, filed a charge-
    sheet against its driver. The filing of the charge-sheet, coupled with the oral
    and documentary evidence produced before the Claims Tribunal, constitutes
    sufficient material to establish the involvement of the offending vehicle on
    the touchstone of preponderance of probabilities. In proceedings under the
    Motor Vehicles Act, the claimants are not required to prove their case
    beyond reasonable doubt as is required in criminal proceedings; rather, the
    claimants are required to establish their case on the basis of the standard of
    preponderance of probabilities. The Hon’ble Apex Court in the case of
    Sunita (supra) has held that the filing of a charge-sheet against the driver of
    the offending vehicle is a relevant circumstance which cannot be brushed
    aside, particularly when the opposite party fails to produce any cogent
    evidence to disprove the involvement of such vehicle. Similarly, in the case
    of Chamundeshwari (supra) , the Hon’ble Apex Court reiterated that once the
    claimants establish the involvement of the offending vehicle on the basis of
    the material available on record and the police investigation culminates in
    filing of a charge-sheet, the initial burden stands discharged and the burden
    shifts upon the insurer to rebut such evidence by leading cogent and

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    10 MA-773-2016
    convincing material. In the present case, although the Insurance Company
    disputed the involvement of Truck No.MP-06/E-5347, it neither examined
    the Investigating Officer nor produced any independent evidence to establish
    that the accident was caused by the tempo or that the truck was falsely
    implicated. Therefore, the defence raised by the Insurance Company remains
    a mere assertion without any supporting evidence. In such circumstances,
    this Court finds no reason to interfere with the finding recorded by the
    learned Claims Tribunal regarding the involvement of Truck No.MP-06/E-
    5347, and accordingly, the plea of false implication raised by the Insurance
    Company is hereby rejected.

    19. The next contention of the learned counsel for the Insurance
    Company relates to the imposition of penal interest at the rate of 12% per
    annum in the event of failure to deposit the awarded compensation within
    two months. The said contention deserves acceptance. The learned Claims
    Tribunal has already awarded interest at the rate of 7% per annum on the
    compensation amount from the date of filing of the claim petition till its
    realization. Once interest has been awarded under Section 171 of the Motor
    Vehicles Act, the Claims Tribunal has no jurisdiction to impose an additional
    penal rate of interest merely on account of default in payment within the
    stipulated period. The Hon’ble Apex Court in the case of Keshav Bahadur
    (supra) has categorically held that the Motor Vehicles Act does not
    contemplate the grant of penal interest and that the Claims Tribunal is
    empowered only to award reasonable interest on the compensation
    determined. In view of the law laid down by the Apex Court, the direction of

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    11 MA-773-2016
    the learned Claims Tribunal imposing penal interest at the rate of 12% per
    annum in case of default in depositing the compensation within two months
    cannot be sustained in law and is accordingly set aside. However, the award
    of interest at the rate of 7% per annum on the compensation amount from the
    date of filing of the claim petition till its realization shall remain undisturbed.

    20. The contention of the learned counsel for the Insurance Company
    regarding the award of Rs.25,000/- towards funeral expenses also deserves
    consideration. The learned Claims Tribunal has awarded an amount of
    Rs.25,000/- under the said conventional head; however, in view of the law
    laid down by the Constitution Bench of the Hon’ble Apex Court in the case
    of Pranay Sethi (supra), the amount admissible towards funeral expenses is
    restricted to Rs.15,000/-, subject to periodical enhancement as held therein.
    Accordingly, the finding recorded by learned Claims Tribunal awarding
    Rs.25,000/- towards funeral expenses is hereby set aside to the extent of
    excess amount and the same is reduced to Rs.15,000/-.

    21. The contention advanced by the learned counsel for the claimants
    is that the deduction towards the personal and living expenses of the
    deceased ought to have been one-third instead of one-half. It is undisputed
    fact that the deceased was an unmarried bachelor at the time of the accident
    and the claim petition was preferred by his parents. The Hon’ble Supreme
    Court in the case of Sarla Verma vs. Delhi Transport Corporation, (2009) 6
    SCC 121, has categorically held that where the deceased is a bachelor and the
    claimants are his parents, ordinarily 50% of the income is liable to be
    deducted towards his personal and living expenses, as it is presumed that a

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    12 MA-773-2016
    bachelor would spend a substantial portion of his income on himself and
    only the remaining amount would be available for contribution to the family.
    The said principle has consistently been followed and reaffirmed by the
    Hon’ble Supreme Court in the case of Pranay Sethi (supra) . In the present
    case, since the deceased was admittedly unmarried, the learned Claims
    Tribunal has rightly deducted one-half of the income towards personal and
    living expenses. Therefore, the submission of the claimants that only one-
    third deduction ought to have been made is contrary to the settled principles
    of law and does not merit acceptance.

    22. Now, the only question which survives for consideration is with
    regard to the quantum of compensation.

    23. It is not in dispute that the deceased was about seventeen and a half
    years of age at the time of the accident and was pursuing his studies. He was
    not earning any income at the time of the accident. However, while
    determining the compensation in the case of a young non-earning victim, the
    Court cannot adopt a mechanical approach by treating him merely as a non-
    earning person, but has to consider his educational background, potential for
    future employment, age, and the prevailing socio-economic conditions. The

    Hon’ble Apex Court in the case of Baby Sakshi Greola (supra ), has observed
    that while assessing compensation in the case of a non-earning young victim,
    the Court must take into consideration the future prospects and potential of
    the deceased, while ensuring that the assessment remains reasonable and
    based on relevant factors. In the present case, the deceased was a student of
    the Board of Secondary Education and, therefore, his future earning capacity

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    13 MA-773-2016
    cannot be completely ignored merely because he was not earning at the time
    of the accident.

    24. Learned counsel for the claimants submitted that the notional
    income of the deceased ought to have been assessed at Rs.4,200/- per month
    by treating him as an unskilled labourer, having regard to the prevailing
    minimum wages applicable on the date of the accident. However, the said
    contention cannot be accepted, as Rs.4,200/- per month was not the
    minimum wages prevalant in the State of Madhya Pradesh at the relevant
    time. The deceased was a student and had a reasonable prospect of pursuing
    higher education and securing gainful employment in the future. Therefore,
    assessing his notional income merely on the basis of the wages payable to an
    unskilled labourer would not be an appropriate reflection of his earning
    potential. At the same time, considering his educational status, young age,
    future prospects, and the promising career that lay ahead of him, he cannot
    be placed in the category of a person having no earning capacity. In such
    circumstances, the Court is required to adopt a balanced and pragmatic
    approach while determining the notional income. It is not in dispute that the
    minimum monthly wages prescribed for a skilled worker in the State of MP
    at the relevant time were Rs.3,800/-. In the considered opinion of this Court,
    adopting the said amount as the notional monthly income of the deceased
    would strike a fair balance between his future earning potential and the need
    to avoid a speculative assessment. Accordingly, the notional income of the
    deceased is assessed at Rs.3,800/- per month.

    25.Since the deceased was unmarried, deduction of 50% towards

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    14 MA-773-2016
    personal and living expenses, as made by the learned Claims Tribunal, is in
    accordance with the settled principles laid down by the Hon’ble Apex Court
    Court in the case of Sarla Verma vs. Delhi Transport Corporation, (2009) 6
    SCC 121. Further, as the deceased was below the age of 40 years, the
    claimants are entitled to an addition of 40% towards future prospects in view
    of the Constitution Bench judgment of the Hon’ble Apex Court in the case of
    Pranay Sethi(supra).
    The claimants, being the parents of the deceased, are
    also entitled to filial consortium of Rs.40,000/- each in terms of the law laid
    down in
    the case of Magma General Insurance Company Limited vs. Nanu
    Ram
    alias Chuhru Ram and Others, (2018) 18 SCC 130, as affirmed in
    United India Insurance Company Limited vs. Satinder Kaur alias Satwinder
    Kaur and Others, (2020) 11 SCC 1 .
    They shall also be entitled to Rs.15,000/-
    towards loss of estate and Rs.15,000/- towards funeral expenses in terms of
    Pranay Sethi (supra). Accordingly, the compensation is re-determined as
    under:-

    Monthly income : Rs.3,800/-

    Annual income : Rs.45,600/-

    Add: 40% towards future prospects : Rs.18,240/-

    Total annual income : Rs.63,840/-

    Less: 50% towards personal expenses : Rs.31,920/-

    Annual dependency : Rs.31,920/-

    Multiplier of 18 : Rs.5,74,560/-

    Filial consortium (Rs.40,000/- each to both parents) : Rs.80,000/-

    Loss of estate : Rs.15,000/-

    Funeral expenses : Rs.15,000/-

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    NEUTRAL CITATION NO. 2026:MPHC-GWL:22202

    15 MA-773-2016
    Total compensation : Rs.6,84,560/- (Rupees Six Lakhs Eighty-Four Thousand
    Five Hundred Sixty only).

    26. In view of the aforesaid discussion, the claimants are held entitled to
    receive total compensation of Rs.6,84,560/- (Rupees Six Lakhs Eighty-Four
    Thousand Five Hundred Sixty only) as against the amount of Rs.3,49,000/-
    awarded by the learned Claims Tribunal. Thus, the enhanced amount of
    compensation comes to Rs.3,35,560/- (Rupees Three Lakhs Thirty-Five
    Thousand Five Hundred Sixty only). The enhanced amount shall carry
    interest at the rate of 7% per annum from the date of filing of the claim
    petition till its realization, as already awarded by the learned Claims
    Tribunal. The amount, if any, already received by the claimants shall be
    adjusted from the enhanced compensation amount.

    27. Consequently, Miscellaneous Appeal No.773/2016 preferred by the
    Insurance Company succeeds in part and is partly allowed . The direction
    issued by the learned Claims Tribunal imposing penal interest at the rate of
    12% per annum in the event of failure to deposit the compensation amount
    within the stipulated period is hereby set aside. The finding awarding
    Rs.25,000/- towards funeral expenses is also set aside and the said amount is
    reduced to Rs.15,000/-. Except to the aforesaid extent, all other findings
    recorded by the learned Claims Tribunal regarding negligence, involvement
    of the offending vehicle, liability of the Insurance Company and other
    aspects of the Award are hereby affirmed.

    28. Miscellaneous Appeal No.899/2016 preferred by the claimants also
    succeeds in part and is allowed to the extent indicated hereinabove. The
    compensation awarded by the learned Claims Tribunal is enhanced from

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    NEUTRAL CITATION NO. 2026:MPHC-GWL:22202

    16 MA-773-2016
    Rs.3,49,000/- to Rs.6,84,560/- (Rupees Six Lakhs Eighty-Four Thousand
    Five Hundred Sixty only), along with interest at the rate of 7% per annum
    from the date of filing of the claim petition till realization. The enhanced
    amount, after adjustment of the amount already awarded and paid by the
    learned Claims Tribunal, shall be payable to the claimants in accordance
    with the apportionment and other directions contained in the impugned
    Award, which shall remain applicable to the enhanced amount also.

    29. The impugned Award dated 22.06.2016 passed by the Motor Accident
    Claims Tribunal, Morena in Claim Case No.10 of 2015 stands modified to
    the aforesaid extent. The parties shall bear their own costs.

    30. A copy of this judgment be also placed in the connected appeal i.e.
    M.A. No.899 of 2016.

    31. A copy of this judgment along with the record be transmitted to the
    Claims Tribunal for necessary compliance.

    (AMIT SETH)
    JUDGE

    AK/-

    Signature Not Verified
    Signed by: ANAND KUMAR
    Signing time: 27-07-2026
    12:28:56



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