Compensation calculations for deceased individuals must accurately reflect their educational qualifications to ensure fair compensation, correcting any tribunal errors in prior awards.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation calculation - The tribunal erroneously calculated compensation based on the minimum wage of an unskilled worker despite evidence of the deceased's education level. The tribunal used school records for age determination but failed to apply this for income assessment. (Paras 4-8)

(B) Legal principles on appropriate income criteria for compensation based on the deceased's educational qualification were discussed. (Paras 5-6)

Facts of the case:
The appeal involves a claim for compensation due to the death of a non-matriculate individual in an accident. The tribunal initially used incorrect income parameters based on a lower qualification.

Findings of Court:
The award was modified to reflect the deceased's correct income bracket as a non-matriculate individual.

Issues: The appeal addressed the misapplication of income criteria in calculating compensation.

Ratio Decidendi: The court emphasized the necessity of accurately reflecting the deceased's educational qualifications in compensation calculations, correcting the tribunal's error.

Result: Appeal allowed and the matter remitted to the tribunal for reassessment.

Table of Content
1. notice and acceptance of parties. (Para 1 , 2 , 3)
2. error in assessing compensation based on qualifications. (Para 4 , 5)
3. modification of award for correct income assessment. (Para 6 , 7)
4. direction for tribunal to recompute compensation. (Para 8)
5. final order and directions to parties. (Para 9 , 10)

JUDGMENT

Sanjeev Sachdeva, J.

CM APPL. 14791/2022 (Exemption)

Allowed, subject to all just exceptions.

CM APPL. 14792/2022 (condonation of delay)

The Supreme Court by its orders dated 23.03.2020, 27.04.2021 and 10.01.2022 in Suo Moto Writ Petition (Civil) No. 3 of 2020 had suspended the period of limitation in view of the ongoing pandemic.

Accordingly, there is no delay in filing the appeal. The application is disposed of.

MAC.APP. 88/2022

1. Issue notice. Notice is accepted by learned counsel appearing for respondent no. 1.

2. Since there is no dispute with regard to the liability of the insurance company, vis-a-vis, driver and owner, service of respondent no. 2 is dispensed with.

3. With the consent of the parties, the appeal is taken up for consideration today.

4. Learned counsel appearing for the appellant submits that the tribunal has erred in taking the minimum wage of an unskilled worker for computing the compensation whereas admittedly the deceased was a non-matriculate.

5. It is noticed from the impugned award that the tribunal has erred in not noticing the copies of the marksheet and school leaving certificate of the deceased exhibited as Exb. PW1/6 and Exb. PW1/7 for assessing the income of the deceased. However, the very same documents have been taken into account by the tribunal for ascertaining the age of the deceased.

6. Clearly there is an ex-facie error on the face of the record. Accordingly, the impugned award to the said limited extent is not sustainable.

7. The award is accordingly modified taking the minimum wage of the deceased as that of a non-matriculate instead of an unskilled worker.

8. In view of the above, appeal is allowed. The matter is remitted to the tribunal for the purposes of computing the compensation by taking the income of the deceased on the basis of minimum age of a non-matriculate as on the date of the accident instead of the minimum wage of an unskilled worker.

9. The appeal is allowed in the above terms.

10. Parties shall appear before the tribunal for directions on 25.04.2022.

Click Here to Read the rest of this document