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2023 Supreme(P&H) 2679

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
B.S. WALIA, J.
United India Insurance Company Ltd. – Appellant
Versus
Shanno & Ors. – Respondents
FAO-1096 of 2023 (O&M)
Decided On : 01-05-2023

Advocates Appeared:
Mr. Amit Kundra, Advocate; For the Appellant
Mr. Rajiv Kumar Saini, Advocate for Respondent Nos.1 and 2.

Headnote:(A) Motor Vehicles Act, 1988 - Assessment of compensation - Compensation of Rs.24,92,912/- awarded for the death of the deceased was upheld; appellant challenged income assessment based on Minimum Wages Act. Personal expense deduction upheld at 1/3 instead of 50% as exceptional circumstances were present. (Paras 3, 5, 6, 8)

(B) Personal expenses deduction - The court maintained that deduction of 1/3rd for personal expenses is applicable when a bachelor supports a widowed mother and unmarried sister as dependents. (Paras 5, 8)

(C) Legal principle regarding minimum wages - While the minimum wage notification serves as a guideline, it is not the sole factor to assess compensation, requiring a balance between claims and evidence. (Paras 5, 6, 7)

Facts of the case:
The deceased Mubarik Ali, aged 25, was working as a cleaner and his income was assessed by the Tribunal at Rs.11,817/- based on minimum wage notifications. He left behind dependents which influenced compensation calculations.

Findings of Court:
The Tribunal’s award was justified as it considered the financial situation of the dependents and applied the enjoyment of compensation based on the deceased's income under the Minimum Wages Act appropriately.

Issues: The core issues addressed included the appropriate deduction for personal expenses based on the family structure, the correct income assessment based on minimum wages, and the application of legal precedents guiding compensation considerations.

Ratio Decidendi: The court emphasized that the deductions and assessments by the Tribunal reflect a careful consideration of the deceased's familial obligations and responsibilities, affirming that minimum wage figures are not absolute measures for compensation determination.

Result: Appeal dismissed.

Table of Content
1. contesting the basis for compensation calculation. (Para 1)
2. citing precedents supporting compensation assessment. (Para 3 , 7)
3. court's justification for upholding the award. (Para 4 , 8)
4. details of the deceased's employment and family. (Para 5)
5. final dismissal of the appeal. (Para 9)

JUDGMENT

B.S. Walia, J. (Oral)

Prayer in the appeal is for reduction of compensation of Rs.24,92,912/- awarded to therespondents claimants by the learned Motor Accident Claims Tribunal, Karnal. Learned Counsel contends that income of the deceased ought to have been assessed as per the minimum wages under the MINIMUM WAGES ACT instead of on the basis of average of Minimum Wages fixed by the Labour Commissioner, Haryana and the rate of wages fixed by the Deputy Commissioner, Karnal. Learned Counsel further contends that deduction towards personal expenses of the deceased ought to have been @ 50% instead of @ 1/3rd of the income of the deceased as made by the learned Tribunal.

2. Notice of motion to respondent Nos.1 and 2 only as learned counsel for the appellant contends that the award imposes liability on the appellant Insurance Company and the owner and driver jointly and severally. In view of the statement of learned counsel for the appellants, notice to respondent Nos.3 and 4 is dispensed with.

3. Mr. Rajiv Kumar Saini, learned counsel for Cavetaor- respondent Nos.1 and 2, who is present in Court, accepts notice and vehemently opposes the prayer for reduction by contending that the mother and unmarried sister of deceased Mubarik Ali were rightly awarded compensation by the learned Tribunal. Learned counsel relies upon the decision of Hon'ble the Supreme Court in Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram & others , 2018(18) SCC 130 , Sarla Verma and others v. Delhi Transport Corporation and another 2009(6) SCC 121, National Insurance Company Ltd. v. Meena Devi and others Law Finder Doc Id # 1975439, FAO No.631 of 2022 titled as Oriental Insurance Company Limited v. Jannati and others decided on 24.08.2022, FAO No.3584 of 2022 titled as United India Insurance Company Limited v. Amarjit and others decided on 26.08.2022 as upheld by Hon'ble the Supreme Court vide order dated 27.02.2023 in SLP (Civil) Diary No.(s). 42225 of 2022 in case titled as United India Insurance Company Limited v. Amarjit and others.

4. I have considered the submissions of learned counsel.

5. Admittedly, the deceased Mubarik Ali was aged 25 years at the time of his death on 01.12.2019 and was working as a cleaner in a truck though on the basis of licence of driver of a heavy vehicle issued to the deceased, it is claimed that he was working as a driver and drawing salary of Rs.25,000/- per month. However, the learned Tribunal by treating the deceased as unskilled worker assessed his monthly income on the basis of rates fixed under the notification issued for the relevant period by the State of Haryana under the MINIMUM WAGES ACT and the wages fixed by the Deputy Commissioner, Karnal. The Tribunal further by taking into account that the deceased had left behind his widowed mother and unmarried sister treated the case tobe one falling in the exceptional clause as contained in the decision of Sarla Verma's case(supra) and made deduction towards personal expenses of the deceased @ 1/3rd instead of 50% as per the general rule. Hon'ble the Supreme Court inMagma's case (supra) while taking into account the decision of Hon'ble Supreme Court in Sarla Verma's case (supra) as also the fact that the deceased therein was living in a village wherein he was residing with his aged father who was about 65 years old and unmarried sister, upheld the deduction made by the High Court towards personal expenses @ 1/3rd . In Sarla Verma's case (supra) Hon'ble the Supreme Court held that where the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and living e

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