Madras High Court
Civil LawInsurance Law

A stale wage slip alone cannot establish income; notional monthly income was fixed at ₹18,000.

Muniyamma vs M/s.Sree Lakshmi Venkateswara Enterprises

Madras High CourtJUDGMENT: October 06, 20262 MIN READSOURCE JUDGMENT
A stale wage slip alone cannot establish income; notional monthly income was fixed at ₹18,000.. Muniyamma vs M/s.Sree Lakshmi Venkateswara Enterprises. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants, the deceased Siva’s parents and sisters, sought compensation under Section 166 of the Motor Vehicles Act, 1988, for his death in a road accident on 22 March 2021.

Source reference: pp.2–6

The Tribunal found the lorry driver negligent and awarded Rs.19,66,600, including Rs.17,13,600 for loss of dependency.

Source reference: pp.2–6

The claimants appealed under Section 173, contending that the Tribunal had understated the deceased’s monthly income; the insurer argued that the award required no interference.

Source reference: pp.2–6

The deceased was aged about 30 and unmarried.

Source reference: p.6

The claimants relied on a 2014 wage slip, but the employer was not examined.

Source reference: p.6
02

Issues

1. Whether the Tribunal’s assessment of the deceased’s monthly income, and consequent award for loss of dependency, required enhancement.

Source reference: pp.5–7

2. Whether the compensation awarded under the other heads required interference.

Source reference: p.7
03

Law Applied

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, against an award made on a claim under Section 166.

Source reference: p.2

In assessing compensation, the Court applied National Insurance Company v. Pranay Sethi, which governs the addition for future prospects, and Sarla Verma v. Delhi Transport Corporation, which provides the multiplier and deduction framework, including a 50% deduction for the personal and living expenses of a deceased bachelor.

Source reference: pp.4–5, 7

The Court also considered the deceased’s age, the available income evidence, and the accident year in fixing notional income.

Source reference: pp.6–7
04

Reasoning

The Court accepted that the wage slip supported the claim that the deceased had worked, but held that, standing alone and without testimony from the employer, it was insufficient to establish the claimed monthly income of Rs.20,000.

Source reference: p.6

Considering the accident occurred in 2021 and the deceased was about 30, the Court fixed notional monthly income at Rs.18,000.

Source reference: p.7

Applying 40% for future prospects, a multiplier of 17, and a 50% deduction for personal expenses, it recalculated loss of dependency at Rs.25,70,400.

Source reference: p.7

It found the Tribunal’s awards for loss of estate, funeral expenses, and consortium reasonable and left them unchanged.

Source reference: p.7
05

Holding

The appeal was partly allowed, and the total compensation was revised to Rs.28,23,400, comprising Rs.25,70,400 for loss of dependency and the unchanged sums under the other heads.

The insurer was directed to deposit the amount, less any sum already deposited, within six weeks, with interest at 7.5% per annum from the claim petition date to deposit; no interest was payable for the default period.

Source reference: pp.7–8

Withdrawal was subject to filing an application, payment of court fee on the enhanced amount, and the Tribunal’s directions on disbursement.

Source reference: p.8
06

Acts & Sections Cited

2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19882

Madras High Court

Original Court PDF

MuniyammavsM/s.Sree Lakshmi Venkateswara Enterprises

Madras High Court · October 06, 2026

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