Delhi High Court

Court May Adopt Higher Tier of Minimum Wages for Compensation Despite Unproved Salary Slips.

Raman Kumar Jha vs Amrish Sharma & Ors (Iffco Tokio Gen Ins Co Ltd)

Delhi High CourtJUDGMENT: July 08, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant sustained injuries in a motor vehicle accident on April 23, 2017, near Ghaziabad

Source reference: p. 1

The Motor Accidents Claims Tribunal (MACT), Karkardooma, awarded compensation of Rs. 11,03,144/- with 9% interest per annum via judgment dated May 23, 2018

Source reference: p. 1

The appellant filed this appeal seeking enhancement of compensation on two grounds: first, that his loss of income was incorrectly calculated based on minimum wages for an unskilled worker (Rs. 13,350/-) instead of his actual salary as a Manager (Rs. 20,800/-); and second, that attendant charges were under-calculated

Source reference: p. 1-2
02

Issues

1. Whether the Tribunal erred in calculating attendant charges at Rs. 50,000/- despite testimony indicating a higher expenditure

Source reference: p. 2, para. 3-4

2. Whether the income of the claimant should be assessed based on the minimum wages of a skilled worker or actual claimed salary in the absence of formal proof from the employer

Source reference: p. 2-4, para. 5-7
03

Law Applied

The Court applied the principles of compensatory justice under the Motor Vehicles Act, 1988.

Source reference: no citation

It specifically relied on the precedents established in Savita & Ors. v. National Insurance Company Ltd. (2026:DHC:3626), which provides "guideposts" for assessing income when documentary proof is lacking

Source reference: p. 2

The rule mandates that in the absence of formal proof of income in the informal sector, Courts should use minimum wage benchmarks of an appropriate category (unskilled, skilled, matriculate, etc.) as a yardstick rather than defaulting to the lowest tier

Source reference: p. 3, para. 6
04

Reasoning

Regarding attendant charges, the Court found merit in the appellant's contention as the Tribunal recorded the testimony of the attendant (Ravi Ranjan Jha) who worked for five months at Rs. 15,000/- per month, yet the Tribunal only awarded a lump sum of Rs. 50,000/-. Consequently, the Court adjusted this to the actual proven amount of Rs. 75,000/-

Source reference: p. 2, para. 4; p. 4

Regarding income assessment, while the appellant failed to examine a representative from his employer to prove his salary slips of Rs. 20,800/-, his testimony remained "unshaken" during cross-examination.

Source reference: p. 2, para. 5; p. 4, para. 7

Applying the Savita guidelines, the Court determined it was inappropriate to treat a Manager as an unskilled worker; therefore, it upgraded the benchmark to the minimum wage of a "skilled worker" (Rs. 16,468/-) for calculating the six-month loss of income

Source reference: p. 4, para. 7-8
05

Holding

The Court allowed the appeal in part, answering the issues in the affirmative.

The total compensation was enhanced by Rs. 43,708/-, raising the total from Rs. 11,03,144/- to Rs. 11,46,852/-

Source reference: p. 5, para. 8-9

The Insurance Company was directed to deposit the enhanced amount with 9% interest per annum from the date of filing the petition within six weeks

Source reference: p. 5, para. 10

Recovery rights previously granted to the Insurance Company remained undisturbed as the driver and owner failed to appear

Source reference: p. 5, para. 11
Delhi High Court

Original Court PDF

Raman Kumar JhavsAmrish Sharma & Ors (Iffco Tokio Gen Ins Co Ltd)

Delhi High Court · July 08, 2026

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