Facts
The appellants (legal representatives of the deceased, Ashok Kumar) sought enhancement of a compensation award of ₹16,76,900/- granted by the MACT
Source reference: p. 1On January 18, 2018, the deceased was killed in a motor accident involving an offending motorcycle on the Yamuna Expressway
Source reference: p. 1-2The deceased was 37 years old and survived by five dependents
Source reference: p. 2Before the Tribunal, the appellants claimed the deceased earned ₹15,000/- per month as a helper/supervisor at M/s Kanta Enterprises, supported by a wage certificate (Ex.PW-1/2) and the testimony of the proprietor (PW-3)
Source reference: p. 2-3However, the Tribunal rejected this evidence due to a lack of documentary corroboration (ITRs, wage registers) and assessed income based on the minimum wages of an unskilled worker in Uttar Pradesh (₹7,400/-)
Source reference: p. 2-3, 23Issues
1. Whether the Tribunal erred in adopting the minimum wages of an unskilled worker as the benchmark income in the absence of absolute documentary proof of salary
Source reference: p. 3 / para. 92. Whether the oral testimony of an employer and the personal circumstances of the deceased justify an upward revision of the benchmark income through "intelligent guesswork"
Source reference: p. 19 / para. 30(C)Law Applied
The court applied Section 165 and 169 of the Motor Vehicles Act, 1988, noting that claim petitions follow summary procedures and the standard of proof is the preponderance of probabilities rather than strict rules of evidence
Source reference: p. 9It relied on Chandra v. Mukesh Kumar Yadav (2022), which established that the inability to produce a salary certificate does not justify adopting the lowest tier of minimum wages; instead, courts must use "guesswork" not detached from reality
Source reference: p. 3, 7Kirti v. Oriental Insurance Co. Ltd. (2021) emphasized preserving the family's standard of living
Source reference: p. 5Rajwati @ Rajjo v. United India Insurance (2022) affirmed that oral testimony of family and co-workers can substantiate income even if passbooks or formal records are missing
Source reference: p. 8-9Reasoning
The Court analyzed the testimony of PW-3 (the employer), noting that while he failed to produce wage registers or ITRs during cross-examination, his statement that wages were paid in cash is typical for the informal sector
Source reference: p. 21-23The Court formulated several "guideposts," determining that in the informal sector, the lack of an appointment letter should not prejudice the claimant, and courts should consider the nature of work and the deceased's lifestyle (e.g., commuting by motorcycle)
Source reference: p. 18-20While the Court found PW-3’s testimony insufficient to prove the full ₹15,000/- claim, it held that the deceased was clearly engaged in a "private job" as evidenced by the FIR and PW-1's testimony
Source reference: p. 23-24Consequently, the Court found the Tribunal’s classification of the deceased as "unskilled" to be too low and revised the status to "skilled worker" based on the nature of his employment and circumstances
Source reference: p. 24Holding
The Court answered the issues in the affirmative, holding that the benchmark income should be revised from the minimum wage of an unskilled worker to that of a skilled worker in Uttar Pradesh, calculated at ₹9,381/- per month
The Court enhanced the total compensation from ₹16,76,900/- to ₹20,51,309/-, representing an increase of ₹3,74,409/-. The respondent Insurance Company was directed to deposit the enhanced amount with 7.5% interest per annum within four weeks
Source reference: p. 24, 25Original Court PDF
Savita & Ors.vsNational Insurance Company Ltd
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