Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(SC) 1855

SUPREME COURT OF INDIA
Pamidighantam Sri Narasimha, Sandeep Mehta, JJ.
Angad Tiwari & Anr. – Appellants
Versus
National Insurance Company Limited & Anr. – Respondents
Civil Appeal No.10950 of 2024, Special Leave Petition (Civil)No.023253 of 2024, Diary No(S). 33779 of 2023
Decided On : 01-10-2024

Advocates Appeared:
For the Petitioner: Mr. Santosh Kumar Pandey, AOR
For the Respondent: Mr. S.K. Ray, Adv., Ms. Neetika Chaturvedi, Adv., Mr. Abhishek Swarup, Adv., Mr. Mohit Chaturvedi, Adv., Mr. Chetan Sharma, Adv., M/s. Manoj Swarup And Co., AOR

Compensation in motor accident claims must be calculated based on the applicable minimum wage to ensure just recompense for claimants.

Headnote:(A) Motor Vehicles Act, 1988 - Claim Suit - Compensation determination based on minimum wage; Tribunal initially calculated monthly income at Rs.1500/-; High Court enhanced compensation to Rs.5,96,000/- but was found inadequate based on the minimum wage of Rs.200/- per day; overall increase to Rs.4,00,000/- confirmed. (Paras 3-6)

(B) The court emphasized that the compensation must reflect the minimum wage applicable at the time of the accident, ensuring claimant's rights to just compensation are upheld.

Facts of the case:
The appeal arises from a claim filed for compensation post a motor accident, where the initial compensation was calculated insufficiently based on the deceased's income.

Findings of Court:
Compensation enhanced to Rs.4,00,000/- based on a corrected monthly income reflecting minimum wage standards.

Issues: The primary issue was the adequacy of compensation concerning the deceased's income, specifically if the minimum wage should be used.

Ratio Decidendi: The court ruled that both the Tribunal and the High Court must have regard for the minimum wage while calculating compensation.

Result: Civil Appeal allowed.

Table of Content
1. overview of compensation claim and previous rulings. (Para 2 , 3 , 4)
2. argument for minimum wage as income basis. (Para 5)
3. court's decision to enhance compensation. (Para 6)
4. final order for compensation payment. (Para 7 , 8)

ORDER :

1. Delay condoned. Leave granted.

2. This appeal arises from the decision of the High Court in First Appeal from Order No.747/2013 dated 31-05-2022.

3. The appellant-claimant filed a Claim Suit No.125/2012 before the Motor Accident Claims Tribunal (“the Tribunal” for short], Faizabad, which by its order dated 30.11.2012 granted compensation of Rs.2,54,000/-. On the ground that there is no proof of income, the Tribunal calculated the monthly income at the rate of Rs.1500/- and arrived at a figure of Rs. 18000/- per year.

4. In appeal, the High Court enhanced the compensation to a sum of Rs.5,96,000/-.

5. Learned counsel for the appellant submits that the minimum wage at the relevant time was Rs.200/- per day, and consequently the monthly income would be a minimum of Rs. 6000/- per month. He has therefore submitted that the compensation must be determined on the basis of income calculated at Rs.6000/- per month. We agree with the submission of the appellant and hold that the Tribunal as well as the High Court could not have granted anything less than the minimum wage towards income.

6. Taking into account the age of the deceased, and considering the monthly income to be Rs. 6000/- we grant an overall enhancement of the compensation to Rs. 4 lakhs, which will be over and above what the High Court has granted.

7. The amount shall be deposited in the concerned Tribunal within a period of three weeks from today and the same shall be released as expeditiously as possible.

8. The Civil Appeal is allowed accordingly.

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