HRA other allowances part of income

Disclaimer: This has been reported after the availability of the order of the Court and not on media reports so as to give an accurate report to our readers.

Rajasthan High Court: While considering an appeal filed, by the appellant-wife of deceased person, under Section 173, Motor Vehicles Act, 1988 against the judgment and award passed by the Additional District & Sessions Judge (Add. D&SJ) and the Motor Accident Claims Tribunal (Tribunal) by which the claim petition filed by the claimants was partly allowed, a Single Judge Bench of Sandeep Taneja, J., held that higher duties allowance (HDA), city compensatory allowance (CCA), washing allowance, house rent allowance (HRA), other allowances are part of the income of the deceased, for the purpose of calculating compensation towards loss of dependency.

Accordingly, the Court disposed of the said appeal.

Also read: Deceased driver was qualified skilled worker in heavy vehicle driver category: Punjab and Haryana HC upholds compensation granted by Motor Accident Claims Tribunal

Background

On 19 April 2006, the appellant’s husband, along with other persons, was travelling in a taxi and at about 2.30 p.m., a truck being driven by Respondent 1 came at a high speed in a rash and negligent manner. The driver of the truck lost control over the vehicle, because of which it came onto the wrong side of the road and collided with the taxi due to the which the occupants of the taxi sustained serious injuries and later, the appellant’s husband succumbed to death.

The Tribunal partly allowed the claim petition and awarded total compensation of Rs 15,73,100 along with interest of 6 per cent per annum. Being dissatisfied, the appellant approached the High Court.

The appellant stated that her husband was working as a Police Constable with Rajasthan Police and was drawing a salary of Rs 8900 per month. She contended that the Tribunal erred in taking into consideration only the basic pay and that dearness pay (DP) and dearness allowance (DA) payable to the deceased and deducting the amount of HDA, CCA, HRA, washing allowance and misc. allowance should also have been considered.

Also read: SC issues extensive directions on dispensation of large amounts of compensation lying deposited with MACT & Labour Courts

Issue

Whether the Tribunal was justified in excluding the amount which was being paid to the deceased towards the HDA, CCA, HRA, washing allowance and miscellaneous allowance or not.

Analysis

The Court referred to National Insurance Co. Ltd. v. Indra Srivastava, (2008) 2 SCC 763 and Manorma Sinha v. Oriental Insurance Co. Ltd., 2025 SCC OnLine SC 2241 and held that the Tribunal was not justified in deducting the amount from the monthly salary of the deceased, which was being paid to him towards HDA, CCA, HRA, washing allowance, other misc. allowances. Therefore, the Court held that the above allowances would be part of the income of the deceased, for the purpose of calculating compensation towards loss of dependency.

The Court stated that multiplier of 16 will be applicable as the monthly income of the deceased was determined as Rs 8900 and at the time of accident, the age of the deceased was 34 years.

Decision

Hence, the Court enhanced the compensation awarded by the Tribunal by Rs 5,79,300. Further, the Court stated that the rest of the impugned award would remain intact.

The Court directed the respondents to deposit the enhanced amount and further stated that the enhanced amount would carry the rate of interest in terms of the award passed by the Tribunal, from the date of filing of the claim petition.

Accordingly, the Court disposed of the present appeal.

[Priyanka v. Swarn Singh, S.B. Civil Miscellaneous Appeal No. 6406 of 2011, decided on 16-4-2026]


Advocates who appeared in this case:

For the Appellant: Vinay Mathur, Vinita Saini and Aashish Mittal, Advocates

For the Respondent: Tripurari Sharma and Bhpendra Singh, Advocates

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