New India Assurance Co. Ltd. vs Suminder Kaur & Ors.
2010 Latest Caselaw 2271 Del

     *           IN THE HIGH COURT OF DELHI AT NEW DELHI



                                                                  Date of Order: April 28, 2010
+ MAC Appeal 274 of 2010
%                                                                                     28.04.2010
     New India Assurance Co. Ltd.                                              ...Appellant
     Through: Mr. Kishore Rawat, Advocate

         Versus

         Suminder Kaur & Ors.                                                  ...Respondents

Through:

JUSTICE SHIV NARAYAN DHINGRA

1. Whether reporters of local papers may be allowed to see the judgment?

2. To be referred to the reporter or not?

3. Whether judgment should be reported in Digest?

ORAL

1. By this appeal, the appellant has assailed an Award passed by learned Tribunal

dated 14th January 2010 whereby the Tribunal awarded a sum of Rs.27,13,900/- as

compensation to the claimants on death of Shri Davender Singh husband of claimant

no.1 and father of claimants no.2 and 3, in a motor accident. The ground of appeal as

taken by the appellant is that the Tribunal wrongly considered the income of the

deceased as Rs.25,000/- per month. It is submitted that the income was assessed on the

basis of expenditure incurred by the deceased on maintaining his family and

dependents. There was no evidence on record to prove that the deceased was earning a

sum of Rs.25,000/-. The deceased admittedly was not an income tax payee and no

documentary evidence was produced to prove the business income or educational

qualification of the deceased. Thus, the Award made by the Tribunal was contrary to the

settled law that in a case where income of deceased was not proved, the minimum

wages should be taken as the income.

MAC Appeal No.274.10 New India Assurance Co. Ltd. v. Suminder Kaur & Ors. Page 1 Of 3

2. It is settled law that Motor Accident Claim Tribunal has to conduct an inquiry for

grant of compensation. The inquiry has to be conducted in respect of all aspects involved

in a compensation case including the aspect of income of the deceased. There is no

doubt that in case of business persons or self-employed persons, the books of accounts

are the best evidence and if the books of accounts are produced then there is no need

for further evidence for proving the income and the Tribunal can infer income from the

books of accounts. However, where a person indulges in a small business or is a self-

employed person and the family is not involved in his business activities and is not aware

about his business affairs, the family can prove the income of the deceased by indirect

evidence. In the present case, it is not disputed that the deceased was the sole earning

member of the family. The family was living in a rented accommodation. The two of the

claimants viz. children of the deceased were studying. The deceased had also employed

a domestic help and a driver. The family proved the monthly income of the deceased by

placing on record the rent receipts, school fees receipts, the payments made to maid and

driver and other expenses. The rent itself was Rs.5,000/-. The children were studying in

Guru Harkishan Public School and were also taking tuitions. The deceased was also

owner of a Truck bearing number DL 1JA 5810. He was also having the permit for

running that truck. He was paying salary to the truck driver. He was in business of

removal of debris (malba) and supply of building materials. His bank statement was

placed on record to prove the receipts and disbursements. From all these documents

and expenditure proved on record, the Tribunal came to conclusion that the deceased

must be earning around Rs.25,000/- per month. However, the Tribunal considered that

since the income of the deceased was taxable income and the family of the deceased

was not aware of the fact whether he was paying income tax or not, the Tribunal

deducted tax payable on this amount and arrived at the annual income of the deceased.

MAC Appeal No.274.10 New India Assurance Co. Ltd. v. Suminder Kaur & Ors. Page 2 Of 3

3. I, consider that there was no infirmity in the Award passed by learned Tribunal in

arriving at monthly income of the deceased at Rs.25,000/-. I also consider that the

Tribunal rightly made the expenditure as the basis in arriving at the probable income of

the deceased. I find no force in this appeal and the same is hereby dismissed.

April 28, 2010                                               SHIV NARAYAN DHINGRA J.
rd

MAC Appeal No.274.10 New India Assurance Co. Ltd. v. Suminder Kaur & Ors. Page 3 Of 3