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Income on the basis of a salary certificate is not the only means for arriving at a just and fair compensation

In United India Insurance Co. Ltd. vs Indiro Devi, the deceased while employed with the Food Corporation of India met with an accident when the three-wheeler he was travelling in collided with a Signature Not Verified rashly driven Canter truck and died. The claimants claimed compensation before the Motor Accident Claims Tribunal which passed an award for compensation. 

The issue in this case revolves around the income of the deceased. On behalf of the accounts section of the employer of the deceased, it was deposed that the deceased was getting Rs. 8848/- as gross monthly salary. The deponent proved the salary certificate. The amount of salary was not questioned. The Tribunal passed the award on the basis that the salary he was receiving i.e. Rs. 8848/-.

The Tribunal did not take into account the fact that the Income Tax Returns of the deceased showed an income of Rs. 2,42,606/- per annum for the assessment year 2004-05 and Rs. 2,17,130 for the assessment year 2003-04. The Tribunal held that the claimants had not led any evidence to explain the contradictions between the two figures of income emerging from the evidence of the employer of the deceased and the income tax record, and passed the award relying on the salary certificate issued by the employer of the deceased.

In a revision carried to the High Court by the Insurance Company and appeal by the claimants, the High Court took the income of the deceased as found in the income tax assessment and provided for 50% increase as future prospect.

The Supreme Court while dismissing the appeal held that it is not possible to agree with the observation of the Tribunal that it was necessary for the claimants to “explain the said contradiction” between two figures of income. The claimants had led reliable evidence that the deceased had returned an income of Rs. 2,42,606/- for the assessment year 2004-05. This piece of evidence has not been discredited. Indeed, it was possible that the deceased had income from other sources also. There is nothing in the law which requires the Tribunal to assess the income of the deceased only on the basis of a salary certificate for arriving at a just and fair compensation to be paid to the claimants for the loss of life.

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