MV Act | No Restriction Can Be Imposed Under Minimum Wages Act To Assess Income Of Deceased To Determine Compensation: Punjab & Haryana HC

The Punjab and Haryana High Court has held that while computing compensation under the Motor Vehicles Act, no restriction can be imposed in assessing the income of deceased or the injured in order to assess just and fair compensation for the dependents.

Usually, in the absence of a salary certificate, 'minimum wages notification' can be considered to determine the notional income of deceased in motor accident claim cases.

Justice Amarjot Bhatti while hearing a batch of pleas filed by United India Insurance Company Limited against challenging the orders of Motor Vehicle Tribunal observed,

"The income provided in Minimum Wages Act, revised from time to time can be a basic criteria or guideline to assess the income of deceased or injured, as the case may be. The facts and circumstances of each case has to be evaluated. No restriction can be imposed in assessing the income of deceased or the injured in order to assess just and fair compensation for the dependents."

The bench reasoned that the provision to grant compensation under Motor Vehicles Act is a beneficial legislation and in such situation, the restriction to assess the income of deceased victim as provided under Minimum Wages Act is "unjustified".

In this case, deceased was running a photostat shop with alleged income of Rs. 18,000/- per month. No proof of income was produced.

Motor Accident Claims Tribunal had assessed the compensation by considering the income of deceased as Rs. 7,150/- per month as per DC Rate. The counsel for the Insurance company argued that quantum of compensation awarded in favour of the wife of the deceased and others on account of death of one Sultan in a motor vehicle accident is towards the higher side.

Justice Bhatti opined that there cannot be any fixed rule in all the situations where there is no documentary evidence regarding income of the deceased nor there is any fixed rule that income of the deceased has to be taken only as per minimum wages revised from time to time.

In the present case, Court said the income assessed by the Tribunal is not excessive, rather no future prospects have been considered. Therefore, it held compensation awarded by the Tribunal requires re-calculation. Court calculated the enhanced compensation and accordingly, the plea was disposed.

Citation: 2023 LiveLaw (PH) 229

Appearance: Jagjeet Beniwal, Advocate for respondent No. 1 in FAO-1114-2018.

 Manjeet Singh, Advocate for respondent No. 3 in FAO-1114-2018.

 R.P. Singh Ahluwalia, Advocate for respondent No. 6 in FAO-1114-2018

Title: Kavita Devi and others v. United India Insurance Company Limited [FAO-1119-2018 (O&M) with Cross-OBJ-64-2022 (O&M)]

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