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2023 Supreme(Del) 3906

IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
Iffco Tokio General Insurance Co. Ltd. – Appellant
Versus
Shyam Sunder & Ors. – Respondents
MAC.APP. 88 of 2017
Decided On : 10-07-2023

Advocates appeared:
Mr.A.K. Soni, Advocate, for the Appellant.
Ms.Aruna Mehta, Advocate for R-1.

In motor accident claims, income proof for self-employment in the unorganized sector need not be supported by documentary evidence, and the absence of income tax returns does not cast doubt on the claimant's income.

Headnote:

Income Proof - Motor Accident Claim - Syed Sadiq v. United India Insurance Co. Ltd., (2014) 2 SCC 735, Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd. [(2011) 13 SCC 236] - The court discussed the issue of income proof in motor accident claims and relied on the precedent to establish that in cases of self-employment in the unorganized sector, the claimant's income need not be supported by documentary evidence. The court held that the bill books produced by the claimant were sufficient proof of income, and the absence of income tax returns did not cast doubt on the claimant's income.

Fact of the Case:

The appellant challenged the Impugned Award passed by the Motor Accidents Claims Tribunal, primarily disputing the determination of the respondent's income and the award of future prospects. The appellant argued that the income of the respondent should have been based on minimum wages for unskilled labor and that the future prospects were overestimated.

Finding of the Court:

The court found that the bill books produced by the respondent were sufficient proof of income, and the absence of income tax returns did not cast doubt on the claimant's income. The court also modified the award of future prospects based on the age of the respondent. The court rejected the respondent's challenge to the reduction of compensation for permanent disability.

Issues: Dispute over determination of respondent's income, challenge to the award of future prospects, and dispute over the reduction of compensation for permanent disability.

Ratio Decidendi: The court relied on the precedent to establish that in cases of self-employment in the unorganized sector, the claimant's income need not be supported by documentary evidence. The court also modified the award of future prospects based on the age of the respondent and rejected the challenge to the reduction of compensation for permanent disability.

Final Decision: The appeal was disposed of with directions to reassess the compensation payable to the respondent and release the same in favor of the respondent. The court also directed the parties to appear before the tribunal on a specified date.

JUDGMENT

Navin Chawla, J. (Oral)

1. The present appeal has been filed challenging the Impugned Award dated 27.10.2016 passed by the learned Motor Accidents Claims Tribunal, North-East District, Karkardooma Courts (hereinafter referred to as the `Tribunal') in MACT No. 476/2011.

2. The first ground of challenge of the appellant to the Impugned Award is that, in spite of the learned Tribunal observing that no proof regarding the income of the injured/respondent no. 1 herein has been filed, the learned Tribunal has taken the income of the injured/respondent no.1 as Rs.10,000/- per month on the date of the accident.

3. The learned counsel for the appellant submits that even the educational qualification of the injured was not placed on record. He submits that, therefore, at best the income of the respondent no.1 should have been taken as per the minimum wages for unskilled labour prescribed by the Government of NCT of Delhi.

4. On the other hand, the learned counsel for the respondent no.1 submits that the respondent no.1 had placed on record ten original bill books as proof of his income. The learned Tribunal has also recorded that the bill books have been filed, however, no further evidence of income was filed. She submits that being in an Unorganized Sector, mere non-filing of the Income Tax Returns cannot be read against the respondent no.1. She submits that, in fact, there was no cross-examination of the respondent no.1 on the issue of the bill books or his income.

5. I have considered the submissions made by the learned counsels for the parties on this issue. Before adverting to the same, I shall reproduce the findings of the learned Tribunal on this issue, as under:

"As far as income of the petitioner is concerned, it is stated by petitioner in his affidavitthat he was preparing plastic cloth bags and purses and earned a sum of Rs. 10,000/-p.m. However, no proof regarding the income of the petitioner has been filed except original bill books. Even the original documents regarding the educational qualification of the injured have not been placed on record. Looking to the fact of the present case, the possible income, in my opinion, of the claimant would be around Rs, 10,000/- per month on the date of accident..."

6. A reading of the above finding would show that the learned Tribunal has observed that apart from the original bill books, the respondent no.1 had led no further evidence in support of his claim of income. In my opinion, once the bill books have been produced on record and in the cross- examination of the respondent no.1, the veracity of the bill books could not be dislodged by the appellant herein, the bill books could have and have been rightly relied upon by the learned Tribunal as evidence of the income of the claimant/respondent no. 1. The learned counsel for the respondent no.1 submits that these bill books, in fact, show a monthly income of more than Rs.17,000/- per month for the respondent no.1.

7. I have also gone through the cross-examination of the respondent no.1 recorded by the learned Tribunal on 03.07.2015. I find that, apart from putting to the respondent no.1 that he was not filing any income tax return and giving a general suggestion that the bill books are fabricated, there was nothing brought on record that will disprove or cause a doubt on the authenticity of the said bill books. I may reproduce the relevant portion of the cross-examination of the respondent no. 1, as under:

"...I have filed the receipt for Rs. 10,000/- only. I had appointed Sh. Giri Raj as my attendant after 4-8-10 days of the accident and he worked with me for five months. Giri Raj is residing in Gali No. 12, Bharampuri. I do not know his exact address. No receipt was taken from him. I had paid Rs. 15,000/-. I am not assessed to income tax. It is correct that I did not file the income tax return as my income did not meet the minimum requirement of income for filing the return. The sewing machines used by us are motoriz

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