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2026 Supreme(Online)(Del) 13181

IN THE HIGH COURT OF DELHI AT NEW DELHI
Anish Dayal, J
SUDHA & ORS VS. RAJ KUMAR & ORS (M/S UNITED INDIA INSURANCE CO LTD)
MAC.APP. 642/2024



Advocates:
For the Appellants/Petitioners: Akash Gahlot
For the Respondents: Kanupriya Tyagi

In fatal accidents involving minors, the benchmark income for compensation should be based on the minimum wages of a skilled worker, and the applicable multiplier is 18.

Headnote:The matter involves an application for the partial release of compensation granted by a MACT award regarding the death of a seven-year-old minor. The primary legal dispute concerns the appropriate multiplier to be applied and the determination of benchmark income, specifically whether to use a multiplier of 15 or 18 and whether to apply notional income or the minimum wages of a skilled worker. The court framed the issues around the adoption of the multiplier and the assessment of notional income for minors. Relying on established precedents, the court reasoned that a minor child who suffers death or permanent disability cannot be treated as a non-earning individual. Consequently, the computation of compensation must adopt, at minimum, the minimum wages payable to a skilled workman in the respective State, and a multiplier of 18 is applicable for children below 15 years of age. In the meantime, the application for partial release is allowed, considering there is no release order which has been granted. Accordingly, 70% of the compensation is released in terms of directions of the MACT in the impugned award.

Table of Content
1. application for partial release of compensation and grounds of appeal regarding multiplier and income. (Para 1 , 2 , 3 , 4)
2. minors are entitled to benchmark income based on skilled worker wages and a multiplier of 18. (Para 5)
3. grant of 70% partial release of compensation while the main appeal remains pending. (Para 6 , 7 , 8 , 9 , 10)

O R D E R

Lawyers are abstaining from appearing in the Court today.

CM APPL. 36032/2026

1. This application seeks release of partial amount of compensation granted by the impugned award dated 05th July 2024 passed by the MACT Rohini Courts.

2. By order dated 09th December 2024, this Court issued notice directing that the entire compensation be deposited by the insurance company before the Registrar General of this Court. However, no orders for release were passed.

3. As noted in the said order of 09th December 2024, the grounds for challenge in the appeal are related to adoption of multiplier of 18 instead of 15 for a death of a minor, who was 7 years of age and benchmark income being taken as minimum wages of a skilled worker.

4. The Court has already taken a view with respect to the issue of adoption of multiplier in respect of the death of a minor, as well as the wages which are considered as notional income.

5. Court decisions, including National Insurance Company Ltd v. Sanju & Ors. 2025:DHC:11781, Tata AIG General Insurance Company v. Mukesh Kumar and Ors. 2026:DHC:756, have been comprehensively considered by this Court in Rubi Devi and Anr. v. The New India Assurance Com. Ltd. And Ors. 2026:DHC:3674; it has been held that the multiplier ought to be ‘18’ and the minimum wages of a skilled worker ought to be considered in cases of minor. Relevant paragraphs are extracted as under:

“

On notional income of a minor

10. As regards determination of benchmark income, this Court in Sanju (supra), after examining the decision in Kajal (supra) and the subsequent judgments that followed and relied upon it, concluded that the notional income in cases concerning fatal accidents of minor children cannot be treated as a fixed or static figure. Instead, the appropriate way to assess the income is on the basis of the minimum wages payable to a skilled worker in the concerned State. The relevant observations of the Court are reproduced below:

“10. The first of these cases was Kajal v. Jagdish Chand, which was a case of injury inflicted upon a child of 12 years of age. The Court computed loss of future income on the basis of minimum wages of a skilled worker, reasoning as follows:

“20. Both the courts below have held that since the girl was a young child of 12 years only notional income of Rs 15,000 p.a. can be taken into consideration. We do not think this is a proper way of assessing the future loss of income. This young girl after studying could have worked and would have earned much more than Rs 15,000 p.a. Each case has to be decided on its own evidence but taking notional income to be Rs 15,000 p.a. is not at all justified. The appellant has placed before us material to show that the minimum wages payable to a skilled workman is Rs 4846 per month. In our opinion, this would be the minimum amount which she would have earned on becoming a major. Adding 40% for the future prospects, it works to be Rs 6784.40 per month i.e. 81,412.80 p.a. Applying the multiplier of 18, it works out to Rs 14,65,430.40, which is rounded off to Rs 14,66,000.”

11. The judgment in Kajal was followed in Master Ayush v. Branch Manager, Reliance General Insurance Co. Ltd., Minor Roopa v. The Divisional Manager, New India Assurance Company Ltd., and Baby Sakshi Greola v. Manzoor Ahmad Simon , which were all also cases where minor victims had suffered debilitating injuries.

12. This line of judgments has recently been reiterated in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, which was once again an injury case. The Supreme Court held therein as follows:

“9. On the as

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