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2025 Supreme(MP) 619

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
PREM NARAYAN SINGH, J.
Rajudibai and Others – Appellants
Versus
Ganesh and Others – Respondents
Misc. Appeal No. 3460 of 2024
Decided On : 28-02-2025

Advocates Appeared:
For the Appellant : Manish Jain
For the Respondent: Arun Gupta

Minimum wage guidelines must inform compensation calculation for unskilled laborers, as formal income documentation is often unavailable.

Headnote:(A) Motor Vehicle Act, 1988 - Section 173 - Appeal for enhancement of compensation - The tribunal awarded Rs.13,97,000/-; appellants claim underestimation of the deceased’s income - Deceased was a labourer with no documented evidence of income. Compensation to be reassessed based on minimum wages. Court finds tribunal's income assessment of Rs.7,775/- per month erroneous and enhances to Rs.9,325/- based on statutory guidelines. (Paras 2, 10, 12)

(B) Compensation - Assessment of income - Labourers' income can be inferred from minimum wages without formal documentation, reaffirming the principles of justice in compensation calculation. (Paras 8, 11)

Facts of the case:
The deceased was involved in a motorcycle accident resulting in grievous injuries and subsequently died during treatment. The appeal concerns the adequacy of compensation awarded for loss of life.

Findings of Court:
The proper amount of compensation determined to be Rs.16,84,887/- due to incorrect income assessment by the tribunal.

Issues: Whether the tribunal miscalculated the deceased's income and thus the compensation amount.

Ratio Decidendi: The Court held that minimum wage guidelines for laborers should inform compensation calculations, reflecting a proper benchmark for assessing loss.

Result: Appeal partly allowed, compensation enhanced by Rs.2,87,887/-.

Table of Content
1. accident details and consequences. (Para 3)
2. disputes over compensation assessment. (Para 5 , 6)
3. verification of income assessment criteria. (Para 7 , 8)
4. correct assessment of minimum wages. (Para 9 , 10 , 11)
5. enhancement of compensation granted. (Para 12 , 13 , 14 , 15)

ORDER :

1. With consent of the parties, heard the matter finally.

2. This appeal by the insurance company under section 173 of the Motor Vehicle Act, 1988 is arising out of the award dated 05.12.2023 passed by Additional Member to the Court of 1st Additional Motor Accident Claim Tribunal, Sardarpur, District Dhar in MACC No.19/2023 seeking enhancement of compensation awarded by the tribunal.

3. The brief facts of the case are that on 04.12.2022, the deceased/Raju was going Barmandal to Barkheda on his motorcycle. At the same time, on opposite side, a motorcycle bearing registration No. MP11-NE-6530 driven by Ganesh hit the deceased's motorcycle, because of which Raju/deceased sustained grievous injuries. Thereafter, he was sent for treatment to Mittal Hospital where he was died during treatment. Post-mortem of the deceased was done in P.M. Dhar Bhoj Hospital. Merg No. 42/2022 was registered and after investigation Crime No. 469/2022 was registered. In this sequence, charges were framed and challan was filed before the Court.

4. The tribunal framed issues and after taking evidence and hearing counsel for both parties, allowed the claim petition filed by appellants No.1 to 4 and awarded a compensation of Rs.13,97,000/- along with interest as follows:-

5. Being aggrieved by the said award, the appellants have filed this appeal stating that the tribunal has assessed the income of the deceased on the lower side and committed error of law by completely overlooking the facts. Therefore, it is prayed for setting aside the impugned award and alternatively prayed for enhancement of the amount of compensation awarded by the tribunal by assessing the income of the deceased on the basis of minimum wages applicable to an unskilled labour at the relevant period. During the course of argument, counsel for appellants has submitted a copy of revised guidelines/instructions by MP State Legal Services Authority mentioning the mentioning the daily wages rates of labours from the year 2010-2011 to 2023-2024.

6. On the other hand, learned counsel for the respondents have supported the impugned award with regard to the findings of the accident and death of the deceased in the motor accident. It is submitted that the tribunal has not committed any error in assessing the income of the deceased as Rs.7,775/- per month, hence prayed for reduction of compensation.

7. Heard learned counsel for the parties and perused the record. It is found that the accident was occurred on 04.12.2022 and FIR (Ex.P/2) was lodged on the same day i.e. 04.12.2022. According to the MLC report Ex-P/9 same was done on the same date and during the treatment, he was died. So considering all the documents, it is clearly established that deceased died due to the injuries sustained by him in the motor accident which was occurred on 04.12.2022.

8. So far as income of the deceased is concerned, the Tribunal has assessed it as Rs.7,775/- per month only for the reason that no document has been produced by the claimants as regards his income. As the deceased was working as a labourer, the tribunal could not have expected the appellants to produce any document regarding his income because such type of work is not done under any documents.

9. On this aspect, the law laid down in the case of Sapna and Others vs. Mangilal and Another , 2021 ACJ 957 by Co-ordinate Bench of this Court, relevant portion is mentioned below :-

“Having heard the learned counsel for parties and on perusal of the record, it is noticed that the appellant had deposed before the tribunal that the deceased was earning Rs.8,000/- per month, but no document in support of which was produced. The tribunal had noted that the deceased was about

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