Can Notional Income under the Minimum Wages Act Form the Basis for Loss of Dependency in a Minor’s Death with a 15-Year Multiplier?

 

Summary

Category Data
Court Supreme Court of India
Case Number C.A. No.-014756-014756 – 2025
Diary Number 1108/2024
Judge Name HON’BLE MR. JUSTICE K. VINOD CHANDRAN
Bench
  • HON’BLE MR. JUSTICE AHSANUDDIN AMANULLAH
  • HON’BLE MR. JUSTICE K. VINOD CHANDRAN
Precedent Value Binding
Overrules / Affirms
  • Affirms Reshma Kumari v. Madan Mohan (2013)
  • Distinguishes Baby Sakshi Greola v. Manzoor Ahmad Simon (2024)
Type of Law Motor Accident Claims / Compensation law
Questions of Law
  • Can notional income based on minimum wages be adopted for a deceased minor?
  • What multiplier applies?
Ratio Decidendi The Court held that for a fatality claim by parents of a deceased minor, notional monthly income at minimum-wage rates under the Minimum Wages Act, 1948, may be adopted. A 40% uplift for future prospects and a multiplier of 15 (per Reshma Kumari) apply. A 50% deduction for personal expenses is mandatory. The decision distinguishes disability cases (where an 18 multiplier may apply) from death claims and confirms additional heads: loss of estate, filial consortium, medical and funeral expenses, and a separate award for pain and suffering.
Judgments Relied Upon
  • Reshma Kumari v. Madan Mohan, 2013 SCC OnLine SC 284
  • Baby Sakshi Greola v. Manzoor Ahmad Simon & Anr., 2024 INSC 963
Logic / Jurisprudence / Authorities Relied Upon by the Court Use of statutory minimum wages as a reliable basis for notional income; precedents on multiplier selection and components of compensation for death vs. disability.
Facts as Summarised by the Court A 14-year-old boy was fatally injured when a rashly driven truck struck him and two classmates. The parents’ claim before the Motor Accident Claims Tribunal resulted in Rs. 1,29,500; the High Court enhanced it to Rs. 4,70,000. The appellants sought further enhancement based on higher multipliers and contemporaries’ earning evidence.

Practical Impact

Category Impact
Binding On All subordinate courts
Distinguishes Baby Sakshi Greola v. Manzoor Ahmad Simon & Anr. (2024 INSC 963)
Follows Reshma Kumari v. Madan Mohan (2013 SCC OnLine SC 284)

What’s New / What Lawyers Should Note

  • The Court confirms that monthly notional income for dependency in a fatality claim may be based on the statutory minimum wages for a Class B city (Rs. 5,400).
  • Future prospects uplift fixed at 40% and a multiplier of 15 must be applied for a minor’s death claim.
  • A 50% deduction for personal living expenses is mandatory.
  • Pain and suffering of the deceased prior to death can be separately compensated and inures to the legal heirs.
  • Distinguishes the multiplier in death claims (15) from disability claims (18 in Baby Sakshi Greola).

Summary of Legal Reasoning

  1. Both parties agreed to adopt minimum wages under the Minimum Wages Act, 1948, as notional income for a Class B city (Rs. 5,400 per month).
  2. A 40% increase was applied for future prospects.
  3. The multiplier of 15 was adopted, following Reshma Kumari.
  4. A 50% deduction for personal and living expenses was applied.
  5. The Court distinguished disability-based compensation (multiplier 18 in Baby Sakshi Greola) from fatality claims.
  6. Additional heads (medical expenses, loss of estate, funeral expenses, filial consortium, and pain and suffering) were awarded as per established practice.

Arguments by the Parties

Petitioner

  • Relied on contemporaries’ earning evidence to argue for a higher multiplier (18) as in Baby Sakshi Greola.
  • Contended that the High Court’s criterion was inadequate.

Respondent

  • Agreed to adopt minimum wages for notional income.
  • Submitted that the multiplier must remain at 15, as held in Reshma Kumari.

Factual Background

A 14-year-old schoolboy and two classmates were struck by a negligently driven truck; the two classmates died instantly and the boy died a day later in hospital. The Motor Accident Claims Tribunal awarded Rs. 1,29,500 with 6% interest; the High Court enhanced the award to Rs. 4,70,000 with 6% interest. The parents appealed to the Supreme Court for further enhancement, focusing on notional income basis and choice of multiplier.

Statutory Analysis

  • Minimum Wages Act, 1948: Adopted to compute notional income for dependency.
  • Motor Vehicles Act principles on compensation guided the Court, but no novel statutory interpretation beyond established precedents was required.

Alert Indicators

  • ✔ Precedent Followed – Confirms Reshma Kumari parameters for multiplier and deductions.
  • 🔄 Conflicting Decisions – Distinguishes from Baby Sakshi Greola’s application of an 18-year multiplier in disability cases.

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