BHOPAL/JABALPUR: Madhya Pradesh high court said in a recent judgment that a person in a non-govt job getting periodic pay hikes or annual increments can be considered a permanent employee, while partly allowing a revision petition for increase in compensation in a road accident. The high court increased the compensation by over Rs 2.7 lakh.
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Petitioner Anjum Ansari had challenged the compensation awarded by a tribunal in a claim under the Motor Vehicles Act, arguing that she deserved higher amount as her deceased husband taught in a private college affiliated to Rajiv Gandhi Praudyogiki Vishwavidyalaya (MP’s umbrella tech university). Since he was a permanent employee of the college, the claims court should have computed the amount of “future prospects” at a 15% rate rather than a 10% rate, the petition argued.
The respondents contended that only govt employees are considered permanent employees and employee of a private college cannot be treated as such.
Justice A K Paliwal cited a five-judge bench SC order in National Insurance Company vs Pranay Sethi and said, “If a person is in such a job wherein his salary is increased periodically / receives annual increment etc., such a person would be treated as being in permanent job.”
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Justice Paliwal said the claims court had erred in calculating ‘future prospects’ component at 10% and not 15%, as provided in law, and ordered an increase of Rs 2,72,260 in the compensation awarded to Anjum. Her compensation now comes to Rs 36.9 lakh.
