The High Court holds that compensation assessed on notional income, when contrary to statutory minimum wages for skilled workers, is subject to correction at the appellate stage. The judgment applies and clarifies binding principles from the Supreme Court on assessment of income and is binding authority for trial courts and claims tribunals in Chhattisgarh.
Summary
| Category | Data |
|---|---|
| Case Name | MAC/1031/2022 of SMT. SALINI Vs OMPRAKASH DEVAR |
| CNR | CGHC010305632022 |
| Date of Registration | 22-09-2022 |
| Decision Date | 02-09-2025 |
| Disposal Nature | PARTLY ALLOWED |
| Judgment Author | Hon’ble Shri Justice Sanjay K. Agrawal |
| Court | High Court Of Chhattisgarh at Bilaspur |
| Bench | Single Bench |
| Precedent Value | Binding on subordinate courts and claims tribunals in Chhattisgarh |
| Type of Law | Motor Vehicle Accident Compensation (Motor Vehicles Act, 1988) |
| Questions of Law | Whether the tribunal must adopt statutory minimum wages for skilled labour in computing compensation for death in a motor accident? |
| Ratio Decidendi | The High Court held that when a deceased is established to be a skilled worker, and there is an applicable statutory minimum wage, that wage must be adopted for income assessment rather than a lower notional figure. Relying on Supreme Court decisions in National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. DTC, and Magma General Insurance v. Nanu Ram, the Court computed loss on the basis of statutory minimum wages, future prospects, appropriate deductions, and specified heads of consortium and estate loss. Appellate correction is justified if the tribunal adopts a lower figure than the minimum wage prescribed for the relevant year and skill category. |
| Judgments Relied Upon |
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| Logic / Jurisprudence / Authorities Relied Upon by the Court | Application of minimum wage notifications by the Labour Commissioner when actual income is not proved; adoption of Pranay Sethi and Sarla Verma principles for assessment of compensation; inclusion of future prospects and conventional heads as per Supreme Court precedent. |
| Facts as Summarised by the Court | Deceased Ajay Kumar Nayak, aged 26, was a driver and sole breadwinner. The claimants (wife, parents) sought compensation under Section 166, MV Act, for his accidental death due to negligent driving of a vehicle owned and insured by the respondents. The Tribunal awarded Rs. 18,36,944/- on a lower assessed income. Claimants appealed, seeking enhancement based on minimum wage for skilled workers. |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts and tribunals in Chhattisgarh deciding motor accident claims. |
| Persuasive For | Other High Courts and motor claims tribunals in India regarding adoption of statutory minimum wages in similar circumstances. |
| Follows |
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What’s New / What Lawyers Should Note
- The High Court mandates strict application of minimum wage notifications for assessment of income in motor accident claims when the deceased’s status as a skilled worker is established and actual income evidence is absent.
- Notional income assessment at the tribunal stage can be corrected in appeal if it is lower than prescribed minimum wages.
- The Court reiterates and applies the heads of compensation as per Pranay Sethi, including future prospects and conventional heads.
- Lawyers should cite this authority for enhancement of compensation when tribunals use notional incomes inconsistent with statutory minimum wage notifications.
Summary of Legal Reasoning
- The Court examined whether the tribunal rightly determined the income of the deceased for compensation assessment.
- Noting the deceased’s status as a skilled driver and the absence of proof for higher actual income, the Court considered applicable minimum wage notifications issued by the Labour Commissioner, Chhattisgarh.
- The Tribunal’s lower income figure (Rs. 8,860/month) was found arbitrary when minimum wages for skilled workers for the relevant period stood at Rs. 10,290/month.
- The Court recalculated the annual income and applied the ratio of Pranay Sethi for future prospects (40%), Sarla Verma for deduction for personal expenses (1/3rd), and Magma General for consortium and estate loss.
- The enhanced computation was justified on legal principles and Supreme Court authority, correcting the tribunal’s error.
Arguments by the Parties
Petitioner (Appellants):
- The deceased was a skilled driver; the tribunal’s income assessment is below statutory minimum wages.
- Minimum wage notification for skilled labour should apply, warranting an enhanced compensation.
Respondent (Insurance Company):
- Appellants failed to produce clinching evidence of actual income.
- The tribunal was justified in using notional income for calculation; the awarded amount is reasonable and not open to interference.
Factual Background
The deceased, Ajay Kumar Nayak, aged 26 and working as a skilled driver, died in a motor accident caused by negligent driving of the respondent’s vehicle. His wife and parents, the claimants, filed for compensation under Section 166 of the Motor Vehicles Act, 1988, before the Claims Tribunal. The Tribunal, accepting liability but assessing income on a low notional basis, awarded Rs. 18,36,944/-. The claimants appealed, seeking recalculation on the basis of applicable minimum wages.
Statutory Analysis
- Motor Vehicles Act, 1988, Section 166: Basis for filing compensation claims for accidental death.
- Labour Law – Minimum Wages Notifications: Statutory minimum wage for skilled drivers in Chhattisgarh, as issued by the Labour Commissioner, must be applied for income assessment where accurate proof of income is unavailable.
- The Court did not read down or expand any statutory text but strictly enforced the requirement to apply minimum wage notifications when factual evidence is absent or inconclusive.
Dissenting / Concurring Opinion Summary
No dissenting or concurring opinions are recorded in the judgment.
Procedural Innovations
No new procedural innovations or guidelines are set forth in this judgment.
Alert Indicators
- ✔ Precedent Followed – Existing Supreme Court law (Pranay Sethi, Sarla Verma, Magma General) is affirmed and applied.
Citations
- 2025:CGHC:45023 (Chhattisgarh High Court)
- National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680
- Sarla Verma & Ors. v. Delhi Transport Corporation & Ors, (2009) 6 SCC 121
- Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors, (2018) 18 SCC 130