In FAO-648-2023 (O&M)-PUNJ HC- Once vocation of deceased is proved in motor vehicle accident cases, then average earning from said avocation has to be taken as income of deceased & not minimum wages prescribed under Minimum Wages Act, rules P&H HC
Justice Rajbir Sehrawat  [24-05-2023]

Read Order: Reliance General Insurance Co. Ltd v. Harpreet Kaur and others 

Tulip Kanth

Chandigarh, June 2, 2023: The Punjab and Haryana High Court has clarified that for assessing the income of the deceased in motor vehicle accident cases, minimum wages are not to be applied in every case.

“The said standard of minimum wages can be applied only if there is not even a vocation of the deceased proved on record. Once the vocation of the deceased is proved on record, then the average earning from the said avocation has to be taken as the income of the deceased and not the minimum wages prescribed under the Minimum Wages Act”, the Single-Judge Bench of Justice Rajbir Sehrawat said.

The appeal in question had been filed by  the appellant-Insurance Company challenging the award passed by the Motor Accident Claims Tribunal, Patiala, whereby the respondents-claimants had been awarded an amount of Rs 22,98,000 on account of motor vehicular accident death of Satnam Singh.

The Tribunal had assessed the income of the deceased to be Rs 15,000per month. Keeping in view the number of dependants, deduction to the extent of one-third had been applied. Future prospects at the rate of 25% was added. Keeping in view the age of the deceased, the multiplier of 14 had been applied. Accordingly, the claimants were held entitled to an amount of Rs.22,98,000 , which included the loss of consortium, funeral charges and loss of estate, besides the loss of income as per the criteria disclosed herein above. 

From the Company’s side, it was contended that the vehicle in question was not involved in the accident at all and the owner himself had denied the involvement of the offending vehicle in the accident in question. After the denial by the owner qua all these transactions, the Insurance Company also got the signatures of the owner on these documents compared and the said comparison was placed on record before the Tribunal. 

It was also  submitted that the income of the deceased had wrongly been assessed at the rate of Rs.15,000 per month. Rather, since no income of the deceased was proved on record, therefore, the minimum wages should have been taken as standard wages for assessment of the income of the deceased.

The Bench did not find any substance in the arguments raised by the appellant. To prove their assertion qua the involvement of the vehicle and the vocation of the deceased, the claimants had examined the widow of the deceased-Satnam Singh who had proved on record that the deceased Satnam Singh was working as a carpenter on the date of accident, however, there was no documentary proof of the income of the deceased from his profession as a carpenter. 

So far as the involvement of the offending vehicle in question is concerned, the eyewitness of the accident has been examined by the claimants who has deposed as to the manner of the accident and qua the factum of the involvement of the offending vehicle in the accident. Despite crossexamination, nothing substantial could be extracted from him so as to impeach the credit of his testimony, the Bench added.

“However, as mentioned above, since the owner of the vehicle himself has not appeared as a witness in the witness-box, therefore, the alleged assertions made by him before the alleged investigator could not have, otherwise also, been proved on record. Moreover, the alleged report of the investigation is a self-created document of the respondents in the claim petition. Therefore, the said document cannot be given any leverage; as such. Accordingly, this Court finds that the Tribunal has rightly recorded the findings qua involvement of the offending vehicle in the accident”, the Court further held.

“The minimum wages are not of universal application; per se. Even on the statute, they are applicable only qua scheduled employments. Otherwise also, qua assessing the income of the deceased; for the purpose of the motor vehicle accident cases, minimum wages are not to be applied in every case and in routine”, the Bench held.

The Bench also didn’t find the argument qua income of the deceased to be of any significance and noted that nothing was placed on record before the Tribunal by the respondent -Insurance Company to show as to what were the minimum wages for carpenter on the date of accident.

Thus, dismissing the appeal, the Bench held that the statutory amount deposited for filing of the appeal be transferred to the Tribunal for onward payment to the claimants and to be adjusted towards the compensation, as such.