Compensation Must Reflect Actual Income When Evidence Exists | HC

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  • Last Updated on 18 November, 2025

compensation based on actual income evidence

Case Details: New India Assurance Company Ltd. vs. Sri Paresh Sabdakar - [2025] 180 taxmann.com 274 (HC-TRIPURA)

Judiciary and Counsel Details

  • Dr T. Amarnath Goud, J.
  • G.S. DasK. DebS. DebMs Monoswaee Dey, Advs. for the Appellant.
  • S. DasS. Talapatra, Advs. for the Respondent.

Facts of the Case

In the instant case, the deceased was the driver of a truck under the employment of OP, the owner. He died in an accident while driving the said vehicle.

The Claimants filed a claim petition seeking compensation. The Commissioner for Employees’ Compensation passed the impugned award, assessing the monthly income of the deceased at Rs. 26,000 in terms of the Notification of the High Court.

It was noted that since the evidence of OPW-1, who claimed to be owner of vehicle and the employer of deceased, clearly indicated that the monthly salary of deceased was Rs. 5,000/-plus Rs. 1,200/- per trip for 4 to 5 trips per month, his monthly income was to be considered as Rs. 11,000/- and, thus, assessed amount of Rs. 26,000/- was to be reduced to Rs. 11,000/-.

High Court Held

The High Court held that the Notification is applicable only in cases where there is no proof of income. However, in the instant case, evidence of OPW-3, who was the employer, had been duly recorded, and the claimants themselves had admitted a relationship between the deceased and the employer (OPW-1). Therefore, the revised award was to be calculated based on the monthly income of Rs. 11,000.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied