LexStreakRead free →
Madras High Court (Madurai Bench)· 24 July 2026

Can the Tribunal fix a claimant's monthly income notionally where foreign employment salary is unproved?

C.M.A(MD)No.574 of 2019
C.M.A(MD)No.574 of 2019 · C.M.A(MD)No.574 of 2019
Coram: K.Murali Shankar
🔖 Save this judgment🔔 Follow Motor Vehicles Act, 1988📬 Get today's judgments
View the original judgment PDFFree to read. To download it — or the LexStreak typeset copy with the headnote and Points of Law — create an account; downloads are part of the Pro plan.
Answer

Yes; where the claimant fails to produce documentary proof of salary from foreign employment but other evidence such as bank credits supports a reasonable earning, the Tribunal may fix a reasonable notional monthly income.

Headnote

Motor Vehicles Act, 1988 — Compensation — Permanent disability — Multiplier method — Loss of earning capacity — Assessment of monthly income — Motor Vehicles Act, 1988 — Permanent disability — Multiplier method not automatic on every disability — Held: Ascertainment of loss of earning capacity is not automatic upon proof of permanent disability; the Tribunal must consider the nature and extent of disablement, the claimant's avocation, and the impact of disability on that avocation before applying the multiplier method. (¶6) Motor Vehicles Act, 1988 — Disability assessment — Medical and Lok Adalat evidence supports 60% disability — Held further: On facts, the medical records, disability certificates and the examination before the Lok Adalat established that the claimant sustained permanent disability at 60% with inability to stand or move without support, justifying invocation of the multiplier method. (¶7) Motor Vehicles Act, 1988 — Income assessment — Notional income where employment abroad unproved — Held further: Where a claimant fails to produce documentary proof of foreign salary but bank credits and other evidence on record support a reasonable earning, the Tribunal may fix a reasonable monthly income notionally. (¶9) National Insurance Company Ltd. v. Pranay Sethi; Sarla Verma v. Delhi Transport Corporation — Deduction for personal expenses and multiplier application — Held further: The Tribunal correctly deducted 40% towards personal and living expenses and applied the multiplier of 15 corresponding to the claimant's age of 37 years, and the compensation of Rs.20,93,000/- awarded under conventional and pecuniary heads is just and reasonable, warranting no interference. Appeal dismissed. (¶10, 11)

In the Court's own words
Paragraph 9The claimant has produced the service certificate, wherein it is evident that the claimant was employed in Saudi Arabia from 13.05.1999 to 09.05.2002. Though the claimant has alleged that he was working as a Diesel Mechanic in the Ministry of Defence, Kingdom of Saudi Arabia and was drawing a salary of SR2000/-i.e., Rs.24,000/- per month, he has not produced any iota of evidence to substantiate the same. The Tribunal, on considering the evidence available on record, has observed that the claimant had remitted amounts to his father's bank account and that during the period from 05.04.2005 till 03.05.2006, a sum of Rs.1,85,000/- was credited to his father's account. The Tribunal has further observed that the claimant has not produced any material to show his employment was permanent or contractual. But taking note of the entire evidence available on record, the Tribunal fixed the monthly income of the claimant at Rs.10,000/- and the same appears to be reasonable and cannot be said to be excessive.
Acts & Sections
Motor Vehicles Act, 1988

One judgment a day. That's the whole habit.

Read the full text of C.M.A(MD)No.574 of 2019 — and get the Supreme Court's output as a five-minute daily read, with plain-language headnotes and the questions each judgment settles.

Create my free account

Free forever plan · 30 seconds · data stays in India

Open the full judgment →

Also decided in this judgment
Must the Tribunal apply the multiplier method automatically whenever permanent disability is proved?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court (Madurai Bench). Corrections