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SUPREME COURT OF INDIA
Surya Kant, J.B. Pardiwala, JJ.
Meena – Appellant
Versus
Magma Hdi General Insurance Company Limited & Ors. – Respondents
Civil Appeal No. 6213 of 2022 (Arising Out of SLP(C) No. 7753 of 2020)
Decided On : 06-09-2022
Compensation - Minimum Wages - Motor Accident Claims Tribunal - Notifications-cum-Circulars - [Minimum Wages] - [Compensation] - [Motor Vehicles Act, 1988, Section 166] - The court discussed the issue of compensation amount awarded by the Motor Accident Claims Tribunal and the reduction of the amount by the High Court based on the premise of minimum wages. The court found that the High Court's reasoning was incorrect as the Tribunal had referred to Notifications-cum-Circulars issued by the State Government to assess the monthly income of the deceased. The court accepted the Tribunal's assessment and set aside the High Court's decision, restoring the compensation amount awarded by the Tribunal.
Fact of the Case:
The appellant - claimant was aggrieved by the order of the High Court reducing the compensation amount awarded by the Motor Accident Claims Tribunal.
Finding of the Court:
The court found the reasoning of the High Court to be incorrect and accepted the assessment of the Tribunal, setting aside the High Court's decision and restoring the compensation amount awarded by the Tribunal.
Issues: Reduction of compensation amount by the High Court based on the premise of minimum wages.
Ratio Decidendi: The court found the High Court's reasoning to be incorrect and accepted the assessment of the Tribunal based on Notifications-cum-Circulars issued by the State Government.
Final Decision: The appeal was allowed, the impugned judgment of the High Court was set aside, and that of the Motor Accident Claims Tribunal was restored. The respondent - Insurance Company was directed to deposit the compensation amount along with interest, if any, with the Tribunal within a period of two months.
ORDER
1. Leave granted.
2. The appellant - claimant is aggrieved by the order dated 22.08.2019 passed by the High Court of Punjab and Haryana at Chandigarh whereby the compensation amount of Rs.16,76,420/-, awarded by the Motor Accident Claims Tribunal, Narnaul (for short, 'the Tribunal'), has been reduced to Rs.14,35,200/-. The High has reduced the amount of compensation on the premise that the minimum wages of an unskilled labourer in the State of Haryana, at the time of accident, were Rs.5,341/- per month.
3. The above-stated reason assigned by the High Court appears to be incorrect for the reason that the Tribunal has referred to Notifications-cum-Circulars issued by the State Government from time to time in respect of minimum wages and based thereupon, the monthly income of the deceased was assessed at Rs.6,760/- per month.
4. The Tribunal has categorically observed that the State Government has been issuing Notifications from time to time fixing the minimum wages of the daily wagers and taking into consideration such Notifications, the Tribunal was of the view, and rightly so, that the income of the deceased Sanjay was Rs.6,760/- per month.
5. We are, thus, inclined to accept the reason assigned by the learned Tribunal and find no justification in reducing the compensation by the High Court.
6. The appeal is, accordingly, allowed; the impugned judgment dated 22.08.2019 passed by the High Court is set aside and that of the Motor Accident Claims Tribunal, Narnaul dated 31.07.2015 is restored. The respondent - Insurance Company shall, accordingly, deposit the compensation amount along with interest, if any, with the Tribunal within a period of two months.
7. As a sequel to the above, pending interlocutory applications also stand disposed of.
The court emphasized the importance of considering Notifications-cum-Circulars issued by the State Government in assessing compensation amounts in motor accident claims cases.
The assessment of compensation in motor accident claims should be based on the deceased's income and age, in accordance with relevant legal precedents.
The assessment of compensation under the Motor Vehicles Act should consider the deceased's income, and it cannot be assessed less than the minimum wages payable by the State of Punjab.
The court emphasized the importance of providing positive evidence to support claims, and the unjustifiability of reducing compensation amounts without sufficient reason.
The assessment of compensation for fatal accidents should be based on positive evidence of the deceased's income, and reliance on statutory provisions like the Minimum Wages Act should be justified.
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