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2025 Supreme(SC) 823

SUPREME COURT OF INDIA
SURYA KANT, NONGMEIKAPAM KOTISWAR SINGH, JJ.
Hanumantharaju B. (Dead) by LRs. – Appellant
Versus
M. Akram Pasha and Another – Respondents
Civil Appeal No. 6935 of 2025 [Special Leave Petition (Civil) Nos. 2841-2842 of 2021]
Decided On : 13-05-2025

Advocates appeared:
For the Petitioner(s): Mr. Surya Pratap Deva, Adv. Mr. Thakur P. Janyani, Adv. Mr. Jugul Kishor Gupta, AOR

IMPORTANT POINTS
(1) Injury in accident – Amount of compensation is to be calculated on the basis of last drawn salary of injured/deceased in respect of salaried persons.
(2) Compensation – Pension and retirement benefits cannot be deducted for computing income – Compensation payable under Motor Vehicles Act is statutory while amount receivable under life insurance policy is contractual.

Headnote:

(A) Motor Vehicles Act, 1988 – Sections 168 and 173 – Injury in motor accident – Quantum of compensation – Compensation of Rs.27,47,700/- awarded by High Court – Amount of compensation is to be calculated on the basis of last drawn salary of injured/deceased in respect of salaried persons – Pension and retirement benefits cannot be deducted for computing income – While Medical Board had assessed disability at 61.94%, Commissioner appointed by Tribunal had assessed it to be 77.72% which was rounded off to 78% – Tribunal could not have doubted correctness of assessment made by Commissioner and could have accepted the same in view of credibility of subsequent medical opinion given by Commissioner as regards physical disability of original appellant not being challenged by Insurance Company--Age of original appellant at the time of accident was 43 years, appropriate multiplier would be 14 as had been applied by Tribunal and High Court – Neither MACT nor High Court awarded any compensation on account of future prospects – Total compensation of Rs. 67,36,084/- alongwith 7% interest awarded. (Paras 18, 19, 23, 24, 25, 27 and 28)

(B) Motor Vehicles Act, 1988 – Section 168 – Injury in motor accident – Deductions from amount of compensation – Any amount receivable on account of PF, pension or insurance cannot be deducted from salary of victim for the purpose of determining income or loss of earning for calculating compensation – Compensation payable under Motor Vehicles Act is statutory while amount receivable under life insurance policy is contractual – Pensionary benefit could not have been treated as “pecuniary advantage” liable to be deducted for the purpose of computation of compensation within scope of Motor Vehicles Act, 1988. (Para 19)

Facts of the case:

Present appeals have been preferred against common judgment and order dated 14.11.2019 passed by High Court of Karnataka at Bengaluru, in MFA No. 3569/2016 (MV-I) and MFA No. 4867/2016 (MV-I) whereby, appeals preferred against judgment and order dated 21.03.2016 passed in MVC by MACT, Bengaluru were partly allowed.

Findings of Court:

Since both respondents are jointly and severally liable, Respondent No. 2 is directed to pay enhanced compensation of Rs. 67,36,084/-, with simple interest at the rate of 7% per annum as directed above, within a period of six weeks from date of this order to appellants. Respondent No. 2 is at liberty to recover its share from Respondent No. 1, if any, in accordance with law.

Result : Appeals allowed.

Judgement Key Points

Key Points: - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!)

What is the method for calculating compensation in motor accident claims as applied in this judgment?

What is the court’s stance on deducting pension, provident fund, or life insurance from the victim's salary for computing loss of earnings?

What is the appropriate treatment of future prospects and disability percentage in determining the enhanced compensation?


Table of Content
1. accident details, medical assessments, and initial compensation facts. (Para 3 , 4 , 5)
2. disability percentage and amount awarded by mact. (Para 8 , 11 , 12)
3. recognized need for future prospects in calculating compensation. (Para 16 , 19 , 20)
4. court's approach towards disability assessment, ensuring accurate measures for compensation. (Para 22 , 23 , 25)
5. final enhancement of compensation and adjusted interest rate. (Para 30 , 31)

JUDGMENT :

NONGMEIKAPAM KOTISWAR SINGH, J.

1. Leave granted.

2. The present appeals have been preferred against the common judgment and order dated 14.11.2019 passed by the High Court of Karnataka at Bengaluru, in MFA No. 3569/2016 (MV-I) and MFA No. 4867/2016 (MV-I) whereby, the appeals preferred against the judgment and order dated 21.03.2016 passed in MVC No. 5024/2010 by the Motor Accident Claims Tribunal, Bengaluru were partly allowed. The insurance company being Respondent No. 2, which filed the MFA No. 4867/2016 before the High Court of Karnataka, has not challenged the order of the High Court in the aforesaid MFA No. 4867/2016.

3. The facts of the case in brief as can be culled out from the records are that on 10.05.2010, around 1:45 pm, the original appellant (who died during the pendency of this appeal), who was working as a Sub-Inspector (MIN) in the office of DIGP, CRPF, Yelahanka Base, Bangalore, was driving his motor cycle to Yelahanka, on Doddaballapur Main Road, Karnataka, when he met with an accident with an Omni Car bearing registration KA-04/C-826 owned by the Respondent No. 1 at J. Valsal Road, CRPF Campus. When the driver of the said car took a turn towards the right side, the original appellant’s motorcycle collided with the car and he fell down, sustaining grievous injuries. On the same day, FIR No. 86/2010 was lodged against the driver of the car u/s 279, 337 IPC at P.S. Yelahanka Tr. The medical record indicates that the original appellant was admitted to the hospital on three different occasions for nearly 15 days immediately after the accident and he underwent surgery on his left leg. He also suffered heart attack due to stress and injuries.

4. Considering the injuries he suffered, a Medical Board was constituted at the Composite Hospital, Bengaluru to examine his physical fitness which certified him to be suffering from physical disabilities at 61.94%. Because of the aforesaid physical disability, he was unable to perform his duties properly and did not get due promotion and was subsequently discharged from service on 22.03.2012.

5. Prior to his discharge, the original appellant filed Motor Accident Claim MVC No. 5024/2010 on 05.08.2010 claiming compensation of Rs. 74 Lakhs from the Respondents. The MACT, Bangalore awarded an amount of Rs. 3,28,422/- to the original appellant along with 9% interest per annum as compensation vide its order dated 31.01.2014, taking into account his last drawn salary of Rs. 36,231/- at the time of the accident as well as the disability at 61.94% as assessed by the Medical Board.

6. Being aggrieved by the order passed by the MACT, the original appellant preferred an appeal being MFA No. 3965/2014(MV) before the High Court of Karnataka, seeking enhancement of the compensation. In that appeal, it was agreed by both the parties, i.e. the original appellant and insurance company, that the matter would require reconsideration by the Tribunal. Accordingly, the Karnataka High Court, without expressing any opinion on the merits of the case, remanded the matter to the Tribunal with the direction to reconsider, vide order dated 12.01.2015. Accordingly, the matter was again placed before the MACT.

7. When the matter was placed for reconsideration before the MACT, in terms of the direction of the High Court, the Tribunal appointed a Commissioner, namely, Dr. Shankar R. Krupad, who had examined the original appellant in Columbia Asia Referral Hospital where he was initially treated, to give his opinion on the extent of disability of the app

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