The Chhattisgarh High Court held that where claimants cannot establish the actual income of a deceased victim in a fatal accident, Tribunals must consider the notified State minimum wage rates as the basis for notional income calculation. This judgment reaffirms and applies existing precedent, enhancing compensation based on current minimum wages, and serves as binding authority within Chhattisgarh motor accident claims adjudication.
Summary
| Category | Data |
|---|---|
| Case Name | MAC/646/2024 of NAFEEZA KHAN Vs DULARAM BARETH CNR CGHC010102842024 |
| Date of Registration | 28-03-2024 |
| Decision Date | 03-11-2025 |
| Disposal Nature | DISPOSED OFF |
| Judgment Author | HON’BLE SHRI JUSTICE RAKESH MOHAN PANDEY |
| Court | High Court of Chhattisgarh |
| Precedent Value | Binding within Chhattisgarh for Motor Accident Claims Tribunal (MACT) compensation determinations. |
| Type of Law | Motor Accident Compensation (Tort and Insurance Law) |
| Questions of Law | Whether minimum wage rates notified by the State can be used for calculating notional income in the absence of direct evidence of a deceased victim’s income. |
| Ratio Decidendi |
The Court held that, in the absence of concrete evidence as to the deceased’s income, Tribunals must refer to the minimum wages notified by the State for determination of notional income, rather than adopting a lower, arbitrary figure. The judgment specifically recognized Rs. 10,220/month (minimum wage for unskilled laborers in Chhattisgarh as of December 2022) as the appropriate amount for such computation. Other conventional compensation heads were found proper. The Court recalculated compensation accordingly and ordered enhancement. |
| Facts as Summarised by the Court | The deceased, aged 18, was running a small hotel but no direct evidence of his income was produced. The Tribunal used a notional income of Rs. 7,000/month, which the appellate court deemed too low compared to the State’s minimum wage. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts and Motor Accident Claims Tribunals within Chhattisgarh. |
| Persuasive For | MACTs and High Courts in other States, especially in motor accident compensation cases involving unproven income. |
What’s New / What Lawyers Should Note
- The judgment explicitly directs that, where no direct income proof is available for deceased victims, Tribunals must use the State-notified minimum wage for unskilled laborers as the basis for notional income.
- The recalculation of compensation based on a higher minimum wage figure significantly increases the amounts payable under motor accident claims where income is unproven.
- Lawyers should source and present current minimum wage notifications in applicable claims, especially where clients’ or deceased claimants’ income cannot be proved.
- Conventional compensation sums (loss of consortium, funeral expenses, etc.) were not interfered with.
Summary of Legal Reasoning
- The Court considered that the deceased was stated to be running a small hotel, but the claimant (mother) could not provide evidence of his fixed income.
- The Tribunal’s use of a Rs. 7,000/month notional income was assessed as arbitrary and too low.
- The Court referred to the minimum wages matrix notified by the State of Chhattisgarh and found that, as of December 2022, the minimum wage for unskilled laborers was Rs. 10,220/month.
- The Court reasoned that notional income, absent proof, should not fall below the legal minimum wage notified, and adjusted calculation accordingly.
- Other compensatory heads (future prospects, consortium, funeral expenses, loss of estate) were found proper and retained.
- Compensation was re-calculated using corrected notional income, and enhanced accordingly.
Arguments by the Parties
Petitioner (Appellant/Claimant)
- Asserted that the deceased was 18, a bachelor, and earning Rs. 15,000/month.
- Contended the Tribunal’s Rs. 7,000/month notional income assessment was too low.
- Requested the Court to apply the minimum wage matrix for proper compensation.
Respondent No.3 (Insurance Company)
- Opposed enhancement.
- Argued the Tribunal awarded just and proper compensation based on available evidence.
- Sought dismissal of the appeal.
Respondents No.1 & 2 (Driver and Owner)
- No appearance, though served.
Factual Background
On 11.12.2022, Juned Khan (aged 18) died after being hit by a pickup vehicle allegedly driven rashly and negligently by the first respondent. The deceased was reportedly running a small hotel, but no evidence of actual income was submitted. His mother, the claimant, filed for compensation before the Claims Tribunal, which used Rs. 7,000/month as notional income for calculation. The present appeal sought enhancement based on State minimum wages.
Statutory Analysis
- The Court referred to the minimum wages notification applicable in Chhattisgarh for December 2022, setting the admissible minimum wage for unskilled laborers at Rs. 10,220/month.
- Recalculation of compensation used:
- Notional minimum wage as the base for income,
- 40% addition for future prospects,
- 50% deduction for the deceased being bachelor,
- Multiplier of 18 for age 18 years, following the standard motor accident compensation methodology.
- No discussion or interpretation of any other statutory provision is recorded.
Dissenting / Concurring Opinion Summary
No dissenting or concurring opinions were delivered or recorded in this judgment.
Procedural Innovations
No new procedural rules, guidelines, or innovations were announced in the judgment.
Alert Indicators
- ✔ Precedent Followed – Existing judicial approach on using minimum wages as notional income in the absence of income proof is followed and reaffirmed.