Bombay High Court Considers Unsigned Job Offer, Raises Accident Compensation

The Bombay High Court has ruled that an unsigned employment contract can be taken into consideration in ascertaining the notional income, provided there is credible evidence to support the contract. The court said that such documents cannot be simply dismissed because of the lack of a signature when the surrounding circumstances prove that the documents are genuine.

Justice Jitendra Jain passed the judgment while hearing an appeal by the family of a deceased maritime engineer, who sought a higher compensation than what was awarded by the Motor Accident Claims Tribunal.

Tribunal's Income Assessment Challenged

The tribunal had estimated the monthly income of the deceased to be Rs 8,000 and paid a compensation of Rs 10 lakh. This assessment was disputed by the claimants who said that it did not represent the true earning capacity of the deceased.

The deceased was a maritime engineer with an almost 20-year work experience who died in a road accident during a trip to work.

Unsigned Contract Supported by Evidence

The claimants relied on an employment offer by M/s Samson Maritime, which stated that the compensation would be Rs 1,59,932 per month. Even though the document was not signed, the representative of the company appeared in court and testified to the employment agreement.

The court also observed that the deceased was on his way to Paradeep Port for some work in the same company when the accident happened. It noted that the lack of signature might not be the only reason to discard such evidence as it was corroborated by oral testimony and other surrounding facts.

The court also determined that although the contract was not considered to be completely concluded, it could still be relied upon to determine a reasonable notional income.

Additional Evidence Considered

The High Court also considered documents that indicated that the deceased had earned Rs 2.50 lakh on a 40-day assignment with another maritime company just before the accident. The qualifications, experience, and nature of the contractual employment in the maritime industry were also taken into consideration.

Compensation Raised Significantly

The court, which considered the judgment of the tribunal to be unsatisfactory, held that the monthly income of the deceased would be estimated to be fair at Rs 1.25 lakh.

The court re-estimated the amount of compensation to be paid at Rs 1,31,95,000 after considering future prospects, personal expenses and tax deductions.

Accordingly, the High Court raised the compensation amount of Rs 10 lakh to Rs 1,31,95,000 and ordered the insurer to pay the amount of the revised compensation plus interest within the specified time.