United India Insurance Company Limited v. Prameshawari

IN T

(127) United India Prameshawa CORAM:

Present:

ALOK JAI

CM-19086-

¶1Limitation A

¶2allowed and

¶1whereby, th compensatio

¶2of the decea accident, w THE HIGH COURT OF PUNJA CHANDIGAR a Insurance Company Limited Versus

ari and others HON'BLE MR. JUSTICEAL

**** Mr. Sidhant Mehra, Advocate f

**** IN, J. (Oral) CII-2024 The present application has be Act for condonation of delay of 0 For the reasons recorded in th d the delay of 02 days is hereby c The present appeal arises out he Tribunal has allowed the c on to the appellant. The short issue raised in the pr ased has been taken on the DC ra whereas, contrary to this, the AB AND HARYANA AT RH FAO-5004-2024 (O&M) Date of Decision:-21.11.2024 ……Appellant ……Respondents LOK JAIN for the appellant. een filed under Section 5 of the 02 days in filing the appeal. he application, the same stands condoned. of the award dated 22.07.2024, laim petition and awarded the resent appeal is that the income ates applicable at the time of the counsel for the appellant has

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submitted th Minimum W appellant ha this Court i Preeti and "Shri Ram Kaur and o upon which is reproduce hat the income of deceased oug Wages fixed by the State Gover as relied upon the judgments pass n the case of "United India In others" in FAO No. 799 of 20 General Insurance Company others" in FAO No. 2110 of 2 the reliance was placed by the l ed as under: "15. It has been held in Hon'ble Supreme Cour tribunal/Court to awar Vehicles Act is admitt therefore to circumscrib income of the deceased/ as may be notified under not be justified. Needless cases where no specific support of the claim, dependent upon the fac case. There may be in alongwith other suppor inspire confidence. Ther of the oral evidence and factual matrix of e Tribunal/Court while k wage fixed under the M criterion at the outset whether income of th ght to have assessed as per the rnment. Learned counsel for the sed by the Co-ordinate Bench of nsurance Company Limited Vs. 018 (O&M) and in the case of Limited and others Vs. Beant 2016 (O&M), the relevant para learned counsel for the appellant n a plethora of judgments by the rt that it is the duty of the rd 'just compensation'. Motor tedly a beneficial legislation, be the scope of assessment of /injured to the minimum wages r the Minimum Wages Act would s to say, assessment of income in documentary evidence is led in such assessment would be cts and circumstances of each nstances where oral evidence rting evidence on record may re has to be a sound evaluation supporting circumstances in the each particular case. The keeping in view the minimum Minimum Wages Act as the basic would proceed to determine he deceased/injured is to be

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f t a t e e r

f s d n n e h e y n e e m c e e

¶3absence of fell in error basis of the basis of the which were the DC rate

¶4considered t of law is tha available on deceased w style of "Pa 1, Karnal, w it has to be specific area

¶5Motor Acci income of th it should ha rates were f assessed at any highe evidence on record. This be the correct approach

Learned counsel for the appel any cogent evidence brought in in holding that the claimants we income of deceased that too as minimum wages applicable in t amounting to Rs. 9,024/- per m of Rs. 14,610/- per month. Heard learned counsel for the judgments relied upon by him at the income of the deceased ha n record and it was a positive as running a Confectionery and ardeep Confectionery and Tea St which demonstrates that he was n presumed that he was unskille a have been rightly applied. The question to be adjudicate ident Claims Tribunal (MACT he deceased on the basis of DC R ave been computed under the M far apart. To address this issue er level keeping in view the s in my considered view, would to follow in such cases." llant further submits that in the n by the claimants, the Tribunal ere entitled for the claim, on the s per the DC rate and not on the the State at that time of accident month and the Tribunal has taken the appellant at length and m, however, the settled principle as to be assessed by the evidence case of the claimants that the d Tea stall under the name and tall" near Ansal City Gate, NH-not an unskilled labour or even if d then also the DC rates of the ed is as to whether the learned T) had correctly computed the Rates applicable in the region or Minimum Wages Act, as the two e, it is important to observe the

e d e l e e t n d e e e d - f e d e r o e

nature, basi as prescribe

¶6District-leve are used as and skilled c

¶7No. 7004-F Rates in Pun reasonable r a contractua since then, c the year. U apply unifo according to of any spe arriving at th

¶8on their ski s, and applicability of both DC d under the Minimum Wages Ac DC rate being non-statutory wa el committees headed by Depu reference in terms of wages pai category of workers and get gov i. Principles of Minimum ii. District-specific facto and availability of l industrial needs, the ty district, etc.

The Punjab Government, Fin F-41/60571 (FIN-GEN), dated 2 njab and Haryana and the DC ra remuneration for labour in gove al basis. The rates are reviewed considering inflation and cost of Unlike Minimum Wages Act-st ormly over all districts. They o local conditions. This is also in cific formula for commutation hese rates. DC rates classify the employee ills, experience, and nature of jo Rates and the minimum wages ct. age rates, are determined by the uty Commissioners. These rates id for an unskilled, semi-skilled, erned by: m Wages. ors, including the cost of living labour, economic conditions, type of work prevailing in a nance Department Instructions

21.11.1941, which regulates DC ates are mainly designed to offer rnment-undertakings, mostly on periodically, usually every year f living increments occurs during atutory wages, DC rates don't vary drastically within a state ndicative as a reason for absence n or scientific methodology in es into different categories based ob. For instance, as the present

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a s C r n r g t e e n d t

case is of K at the Karna

¶9prevent exp mandatory establishmen Governmen as unskilled generally e Wages Act, same is repr

9.1 fixation/revi Notification Karnal, Haryana, therefore the fol al is reproduced as under:

¶1Category 1: Unskilled

¶2Category 2: Semi-skill

¶3Category 3: Other ma

¶4Category 4: Machiner

¶5Category 5: Part-T Chowkidars, Dak Runner

¶6Category 6: Karna Category)

On the other hand, the Minim ploitation of workers by ensuring for employers in schedule nts to pay minimum wages f ts. The rates are periodically rev d, semi-skilled, and skilled work xempt from its provisions. Th 1948 is important to determine roduced as under: "An Act to provide for fi certain employments. W provide for fixing minim employments;"

Section 5 of the 1948 Act ision of minimum wages n method, the provision is reprod llowing categorization prevalent d labour led labour npower categories ry/Transport Operators Time Staff (Sweepers, Malis, rs) al Sugar Mill Staff (Special mum Wages Act, 1948 aims to g fair compensation. It makes it ed industries, factories, and fixed by the Central or State vised based on skill levels, such kers. Unscheduled industries are he preamble of the Minimum e the purpose of the Act and the ixing minimum rates of wages in WHEREAS it is expedient to mum rates of wages in certain t prescribes two methods for i.e. Committee method and duced as under:

t

l o t d e h e m e n o n r d

¶10wages" nor "5. Procedure for fixing

(1) In fixing minimum r scheduled employment f or in revising minimum appropriate Government

(a) appoint as many com it considers necessary to respect of such fixation o or

(b) by notification in th proposals for the inform affected thereby and sp months from the date of proposals will be taken i

(2) After considering th committees appointed u

(1), or as the case may by it before the date 'Sp clause (b) of that Government shall, by Gazette, fix, or, as the ca rates of wages in respec and unless such notifica come into force on the e date of its issue: Provided that where proposes to revise the m mode specified in clau appropriate Governmen Board also." The Minimum Wages Act, 1 r does it lay down any criteri g and revising minimum wages. rates of wages in respect of any for the first time under this Act m rates of wages so fixed, the t shall either-mmittees and sub-committees as o hold enquiries and advise it in or revision, as the case may be, he Official Gazette, publish its mation of persons likely to be ecify a date, not less than two f the notification, on which the nto consideration. he advice of the committee or under clause (a) of sub-section be, all representations received ecified in the notification under sub-section, the appropriate notification in the Official ase may be, revise the minimum ct of each schedule employment, tion otherwise provides, it shall expiry of three months from the the appropriate Government minimum rates of wages by the use (b) of sub-section (1), the nt shall consult the Advisory 948, neither define "minimum ia or standards for fixation of

y t e s n

s e o e r n d r e l m

l e t e e y m f

minimum w employmen sources:

1.

during the In

¶2Workers (1

adding furth The court ru minimum w     wages. However, the minimum ts in the central sphere were re Indian Labour Conference, 1 The guidelines for determinin ndian Labour Conference. The c a) Consumption Needs: 3 man. b) Caloric Intake: Minimu calories a day for an average a c) Clothing: 72 yards cloth d) Housing: Rent equivalen under the Government's Industr e) Other miscellaneous ex amounting to 20% of the total m Supreme Court Judgment 1992) The Hon'ble Supreme Court b her criteria to take into account a uled that the following considera wage: Children's Education Medical Needs Recreation, including festivals Provisions for old age and marriage. m rates of wages for scheduled evised on the basis of two main ng minimum wages were made criteria included: consumption units per working um food requirement of 2700 adult Indian. ing annually per family. nt to minimum area prescribed rial Housing Scheme. xpenditure: Fuel, lighting etc. minimum wage. in Reptakos & Co. vs. Its built upon the 1957 norms by an appropriate standard of living. ations must comprise 25% of the and ceremonies d social obligations, such as

d n e g d

s y . e s

enormously making sure

¶11DC rates no field but w situation wh deceased wa generally te deceased. ensuring fai a more reg diverse, inf though both Rates usuall the decease applicability edge to DC

i) conditions, living, avail which make a region. Th These benchmarks, though n affected the fixation and period e they meet the basic requiremen A comparative analysis of the otified by the competent authori with a common intention to en here compensation has to be aw as earning a living in a particul end to give a better picture o While the Minimum Wages ir wages in scheduled industries, ion-specific and realistic bench formal, and localized employm h aim to ensure fair recompense ly provide a more accurate refle ed in motor accident cases y and practical value. The key rates while calculating in such c DC Rates are tailored to be in and they are fixed after consi lability of labour, and district-s es them a more realistic benchm he Minimum Wages Act, on th not codified in the Act, have dic revision of minimum wages, nts and welfare of workers. e minimum wages rate and the ity though operate in a different nsure a fair recompense. In a warded and it is proved that a ar city then the DC rates would of the earning capacity of the Act gives statutory guidelines , the DC rates tend to emerge as hmark for assessing income in ment scenarios. Therefore, even e, a comparison reveals that DC ection of the earning capacity of due to their locality-oriented points that give a competitive cases are as follows: n tune with the local economic idering factors like the cost of specific industrial requirements, mark for wage comparison within he other hand, provides uniform

e , e t a a d e s s n n C f d e c f , n m

statutory wa vis-à-vis inf

ii) Act, in whic whereas the people with the DC Rate within infor

iii) part-time em most cases o

iv) administrati assess incom not availabl

v) changes in c prevailing w to use in m should be bo

¶12his monthly established has rightly a ages, but these may not adequat formal employment. DC Rates are also different as ch only scheduled employments e former takes into the account hin informal and unscheduled in e stronger in cases of MACT wh rmal labours not holding any type Classification of employees li mployees by DC rates comes mo of accident deaths. DC Rates are widely used term ive practice, and even judicial pr me in circumstances where offi e. DC Rates are reviewed annuall cost of living so that they captu when the incident occurred. They motor accident compensation c oth timely and reasonably accura In the present case the tribunal y income to work out the c that the deceased was working i applied the DC rates. Moreover tely capture regional differences s compared to Minimum Wages are regulated by the said act and t wages of the larger extent of ndustries. This, therefore, makes here most victims are registered e of registered employment. ike unskilled, semi-skilled and ore within the purview of fact in ms in government contracts, local recedents as a better yardstick to cial records of employment are ly to accommodate inflation and ure the real economic conditions y are therefore very appropriate ases, where income estimation ate. has rightly taken the DC rate as compensation as, once it was in the said City, the Court below r, the Co-ordinate Bench of this

s s d f s d d n l o e d s e n s s w s

Hon'ble Co on the simil yardstick w however, th payable to th

¶13case, the de strike a bala viz-a-viz the and fair en restored to t of accident. on account should be ad to face.

¶14take the ben absence of a claimants ar resident of wager in a attracted rat only in the a ourt in FAO-1176-2024 after con lar issue, has rightly held that no which is often used to assess he same cannot be the only factor he claimants. Therefore, by applying the abo ceased was a young boy of 28 y ance between inflated and unrea e equally tenable claim of the pa nough which must ensure that the financial position as enjoyed Although there cannot be any c of the untimely demise of the dequate to mitigate the financial In light of the above discussio nchmark as to what should be the any cogent evidence qua the sam re able to prove (i) that the claim a particular city and (ii) was ea particular city, then the DC ther than the minimum wages ra absence of the above two issues n nsidering the various judgments o doubt the minimum wages is a the income of the deceased, r to determine the compensation ove ratio of law, in the present years, therefore, the Courts must asonable demands of the victim arty. The award should be "just" t the claimants are adequately by the claimant prior to the date compensation for the loss of life deceased, however, the amount l difficulties the family is likely n, wherever the Tribunal has to e income of the deceased (in the me), it is held that wherever the mant/deceased was a permanent arning his livelihood as a daily rates would be applicable and ate which would come into play not being addressed.

s a , n t t m " y e e t y o e e t y d y

¶14of any merit

¶15disposed of.

21.11.2024 Parul/Sandeep

Hence, in view of the above, t t stands dismissed. Pending miscellaneous appli .

Whether speaking/reasone Whether Reportable:- the present appeal being devoid ication(s) if any shall stand

(ALOK JAIN)

JUDGE ed:-

d d