[Compensation in Road Accidents] SC says minimum wage notification cannot be absolute yardstick in absence of salary certificate

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The Supreme Court has remarked that while computing the compensation granted to the family of deceased in a road accident, if the salary certificate is not available, the minimum wage notification can be a yardstick but at the same time cannot be an absolute one to fix the income of the deceased. 

A Bench of Justices R. Subhash Reddy and Hrishikesh Roy has thus held that:

“In absence of documentary evidence on record some amount of guesswork is required to be done. But at the same time the guesswork for assessing the income of the deceased should not be totally detached from reality.”

These observations were made in an appeal filed by the unfortunate parents of a 32-year old son who died in the motor vehicle road accident on 27.02.2016, claimingenhancement of compensation amount. 

Motor Vehicle Accident Claims Tribunal, Ajmer, Rajasthan had awarded a compensation of Rs.10,99,700/¬ with interest @ 6% p.a. An appeal was then filed by the aggrieved parents before the High Court which was dismissed in 2018. 

The deceased son Shivpal was a driver on a truck trailer who met with an accident due to rash and negligent driving.

The claimants told the Tribunal that the deceased was in possession of heavy vehicle driving licence and was earning Rs.15,000/­ per month.

While taking into account the income of the deceased asRs.5746/­ per month the Tribunal awarded the compensation inclusive of a consortium of Rs.40000/­ to the wife and minor child and an amount of Rs.10000/­ each to the appellant­parents.

It was noted that the claimants had specifically mentioned that the deceased was earning Rs.15000/ per month.  Possession of the requisite licence anddriving of heavy vehicle on the date of accident was proved from the evidence on record. 

Though the wife of the deceased had categorically deposed that her husband was earning Rs.15000/­ per month, the samewas not considered only on the ground that salary certificate was not filed, noted the Apex Court. It added,

“The Tribunal has fixed the monthly income of the deceased by adopting minimum wage notified for the skilled labour in the year 2016.  In absence of salary certificate the minimum wage notification can be a yardstick but at the same time cannot be an absolute one to fix the income of the deceased.”

The Court went on to add that merely because claimants areunable to produce documentary evidence to show the monthlyincome, same does not justify adoption of lowest tier ofminimum wage while computing the income.  

With this view, it was held that there existed no reason todiscard the oral evidence of the wife of the deceased.

Keeping in mind the enormous growth of vehicle population and demand for good drivers the Court fixed the income of the deceased at Rs.8000/­ per month for the purpose of loss of dependency.

As such are the Court found the claimants to be entitled to a compensation of Rs.14,33,664/­.  As Rs.10,99,700/­ had already paid the appellant­parents were granted differential compensation of Rs.3,33,964/­ along with interest @ 6% p.a. from the date of filing of claim petition.

Case Title: Chandra @ Chanda Chandram Vs.  Mukesh Yadav & Anr.

Access Copy of Judgment Here