Abdul Hafees & Anr. Vs. Dashrath Singh & Anr.

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Section 173 — Compensation — Calculation of income — Minimum Wages Act

Motor Vehicles Act, 1988 — Second Schedule — Compensation — Multiplier — Age of claimants

Motor Vehicles Act, 1988 — Section 173 — Appeal — Enhancement of compensation — Incorrect assessment

Issues for determination

• Whether the compensation awarded by the Tribunal for the death of Wasid in a motor vehicle accident was on the lower side and required enhancement?

Ratio decidendi

• In absence of documentary evidence for income, the minimum wage applicable at the relevant time, which was Rs. 72/- per day, ought to be taken into consideration for calculating the loss of income in motor accident claims.
• As per the Second Schedule of the Motor Vehicles Act, for claimants aged between 55 to 60 years, a multiplier of eight is applicable for calculating compensation in motor accident claims.
• Where the Tribunal fails to properly assess compensation by not considering minimum wages and applying the correct multiplier as per the Second Schedule, the appellate court can enhance the compensation amount.

Important points

• Held, the Tribunal committed an illegality by not properly assessing compensation, leading to an enhancement from Rs. 67,000/- to Rs. 1,50,000/-.
• Clarified, minimum wage of Rs. 72/- per day at the relevant time should be considered for income calculation in absence of documentary evidence.
• Declared, for claimants aged 55 to 60 years, a multiplier of eight is applicable as per the Second Schedule of the Motor Vehicles Act.

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