Chhattisgarh High Court

Minimum wage notifications govern income assessment for skilled deceased persons in motor accident compensation claims.

LAXAN BAI vs RAMADHAR YADAV

Chhattisgarh High CourtJUDGMENT: April 08, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants, parents of the deceased Vishwajeet Kanwar, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking an enhancement of the compensation awarded by the 8th Additional Motor Accident Claims Tribunal (MACT), Bilaspur.

Source reference: p. 1-2

The deceased was a 20-year-old ITI student and electrician who died in a motor accident.

Source reference: p. 2

The Tribunal, vide award dated 29-11-2019, granted a total compensation of ₹13,59,392/-.

Source reference: p. 2

The appellants contended that the Tribunal incorrectly assessed the deceased's monthly income at ₹8,660/- despite his status as a skilled laborer.

Source reference: p. 2
02

Issues

1. Whether the monthly income of the deceased was correctly assessed by the Tribunal in accordance with the Minimum Wages Act and the deceased's professional qualifications.

Source reference: p. 2

2. Whether the claimants are entitled to enhanced compensation under conventional heads and future prospects.

Source reference: p. 3
03

Law Applied

The Court primarily applied Section 173 of the Motor Vehicles Act, 1988.

Source reference: p. 2

It relied on the Chhattisgarh Minimum Wages Notification issued by the Office of the Labour Commissioner to determine the income of skilled workers.

Source reference: p. 3

For the computation of compensation, the Court followed the principles laid down in National Insurance Company Ltd. v. Pranay Sethi, which standardized future prospects and conventional heads.

Source reference: p. 3

Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., regarding the multiplier and personal expense deductions.

Source reference: p. 3

Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors., regarding the entitlement of each parent to parental consortium.

Source reference: p. 3
04

Reasoning

The Court noted that the deceased was an ITI student and an electrician, qualifying him as a skilled laborer.

Source reference: p. 2

Consequently, it revised the monthly income from ₹8,660/- to ₹9,830/- based on the prevailing Minimum Wages Notification.

Source reference: p. 3

Following the Sarla Verma guidelines, the Court applied a multiplier of 18 (for the age group of 20 years) and deducted 1/2 of the income toward personal and living expenses as the deceased was unmarried.

Source reference: p. 4

In line with Pranay Sethi, the Court added 40% for future prospects.

Source reference: p. 3-4

Under conventional heads, the Court enhanced 'Loss of Estate' and 'Funeral Expenses' to ₹18,750/- each (reflecting a 25% increase) and awarded ₹48,400/- each to the mother and father for 'Loss of Parental Consortium' per the Magma General ruling.

Source reference: p. 4
05

Holding

The High Court partly allowed the appeal, enhancing the total compensation from ₹13,59,392/- to ₹16,20,596/-.

The appellants were held entitled to an additional amount of ₹2,61,204/-.

Source reference: p. 4

The Court directed the Insurance Company to deposit the enhanced amount within 45 days, carrying an interest rate of 6% per annum from the date of the claim filing (07-03-2019) until realization.

Source reference: p. 4

All other conditions of the original award remained intact.

Source reference: p. 4
Chhattisgarh High Court

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LAXAN BAIvsRAMADHAR YADAV

Chhattisgarh High Court · April 08, 2026

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