Minimum wages of residence apply and bachelors incur fifty percent deduction for personal expenses.

On September 14, 2018, the deceased was returning from Gurugram to his residence in Palam, New Delhi, when a truck (registration no. HR-73A-9251) collided with his car from behind

The deceased sustained grievous injuries and was declared dead at Civil Hospital, Gurugram

The Appellants (the deceased's parents) filed a claim for compensation. The Motor Accident Claims Tribunal (MACT), South-West, Dwarka, passed an award on December 23, 2025, granting Rs. 22,16,000 with 7.5% per annum interest

In its computation, the Tribunal applied the minimum wages for a skilled worker in Haryana (Rs. 10,328.83) and deducted 1/3rd of the income toward personal expenses

The Appellants challenged the award, seeking the application of Delhi’s minimum wage rates, while the Respondent-Insurance Company contested the deduction percentage

1. Whether the minimum wages of a skilled worker applicable in Delhi should be used for computation instead of Haryana’s rates, based on the deceased's residence

2. Whether the deduction for personal expenses should be increased to 50% from 1/3rd, given that the deceased was a bachelor

3. Whether the interest rate of 7.5% per annum awarded by the Tribunal requires modification

The court primarily relied on the principles enunciated in National Insurance Co. Ltd. v. Pranay Sethi & Ors (2017) 16 SCC 680, which establishes that in cases where the deceased was a bachelor, a deduction of 50% towards personal and living expenses is required

Additionally, the court applied the evidentiary standards for determining applicable minimum wages based on the residential status of the deceased as per Aadhaar records and affidavits

The Court examined the Aadhaar cards of the deceased and his parents, along with the affidavits filed by the mother and father, all of which listed their residence in Palam Colony, New Delhi

Consequently, the Court held that the minimum wages for a skilled worker in Delhi (Rs. 17,991) should be the basis for income computation rather than the Haryana rates

Regarding the Respondent's contention, the Court noted that the deceased was a bachelor; therefore, applying the settled legal position in Pranay Sethi, the Tribunal’s 1/3rd deduction was incorrect and must be modified to 50%

Finally, the Court reviewed the interest rate and determined that 7.5% per annum was "reasonable and appropriate," finding no reason to interfere with the Tribunal's discretion on that point

It held that the income must be calculated at Delhi’s skilled worker rate of Rs. 17,991 per month and personal expenses must be deducted at 50%.

The total compensation was enhanced from Rs. 22,16,000 to Rs. 28,53,400. The Court ordered the Insurance Company to deposit the enhanced amount, plus 7.5% interest from the date of filing, before the Tribunal within six weeks for apportionment and disbursement