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2025 Supreme(SC) 1375

SUPREME COURT OF INDIA
SANJAY KAROL AND PRASHANT KUMAR MISHRA, JJ.
Sadhana Tomar And Others – Appellant
Versus
Ashok Kushwaha And Others – Respondent
Civil Appeal No. 3763 of 2025 (Arising out of SLP(C) No.6986 of 2023)
Decided on : 24-01-2025

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for death in motor accident - Appellants claimed Rs. 28,50,000/- but Tribunal awarded Rs. 9,77,200/-; appeal granted by Supreme Court, determining the deceased’s income at Rs. 6,500/- per month based on Minimum Wages Notification, applying a multiplier of 18 for age 24, leading to total compensation of Rs. 17,52,500/-. (Paras 4, 11, 12, 15, 17)

(B) Legal representatives - Definition under the Motor Vehicles Act is to be interpreted widely; dependents not limited to traditional categories. (Paras 13, 14)

Facts of the case:
The deceased was 24 years old and died in an accident involving an auto driven rashly by an unlicensed driver. The claim was filed contending the potential earnings of the deceased. (Paras 3-4)

Findings of Court:
The compensation should adequately reflect the dependency loss, with deductions adjusted to account for all claimants. (Paras 16-17)

Issues: The appropriate determination of the deceased's income, multiplier application, and who qualifies as a legal representative. (Paras 8, 13)

Ratio Decidendi: The court emphasized just compensation in line with potential earnings and dependency while expanding the definition of legal representatives under the Motor Vehicles Act to include broader familial relationships. (Paras 14-15)

Result: Civil Appeal is allowed with the total compensation set at Rs. 17,52,500/-.

Table of Content
1. facts surrounding the accident and compensation claim. (Para 2 , 3 , 4 , 5 , 6)
2. assessment of income and multiplier controversy. (Para 8 , 10 , 12)
3. court's observations on dependency and compensation rationale. (Para 9 , 11 , 13 , 14 , 15 , 16)
4. final decision on compensation calculations. (Para 17 , 18)

ORDER :

Time taken for disposal of the claim petition by MACT Time taken for disposal of the appeal by the High Court Time taken for disposal of the appeal in this Court

1 year 10 months 3 years 10 months 1 year 10 months

Time taken for disposal of the claim petition by MACT Time taken for disposal of the appeal by the High Court Time taken for disposal of the appeal in this Court

1. Leave Granted

2. The present appeal is directed against the judgment and order dated 19th September 2022, passed in Miscellaneous Appeal No.5231 of 2018 by the High Court of Madhya Pradesh at Gwalior, which, in turn, was preferred against the order dated 9th October 2018 in Claim Case No.680/2016 passed by Motor Accidents Claims Tribunal, Gwalior (M.P.).

3. The brief facts giving rise to this appeal are that : on 25th September 2016, the deceased, namely Dheeraj Singh Tomar, aged 24 years, was travelling in an Auto bearing registration No. MP 30-R-0582 (hereinafter referred to as the "offending vehicle") along with other passengers. The driver of the offending vehicle was driving rashly and negligently, overturned the offending vehicle at Gohad Chauraha Road near Gautum Nagar, Bajrang Washing Centre at Gwalior, due to which the deceased died on the spot and the other passengers suffered injuries.

4. The Appellants (dependents of the deceased) filed a claim petition before the Tribunal seeking compensation of Rs. 28,50,000/-, submitting therein that the deceased was earning up to Rs.35,000/- per month, by doing wholesale business of fruit selling to meet the daily expenses of the family.

5. The Tribunal by its Order dated 9th October 2018, observed that Respondent No.1 and 2 are jointly and severally liable to pay compensation as the driver, at the time of accident, was driving the vehicle without a valid and effective driving licence. The Tribunal awarded compensation to the tune of Rs.9,77,200/- along with simple interest @ 7% p.a. to appellant No.1 to 3 herein, by taking the notional income of the deceased as Rs.4,500/- per month and fixing the future prospects at 40 per cent. A deduction of 1/3rd amount for personal expenses was made, and Appellant Nos.4 and 5, i.e., his father and younger sister were not considered as dependents of the deceased.

6. Being aggrieved by the amount of compensation awarded, the claimant-appellants filed an appeal before the High Court. The main ground of challenge was that the Tribunal had incorrectly determined the monthly income of the deceased at Rs.4,500/- per month, whereas it should have been Rs.35,000/- per month; and also, that the Tribunal had deducted 1/3rd amount from the annual income of the deceased towards personal expenses, whereas since there are five claimant-appellants, the deduction for personal expenses ought to have been by 1/4th.

7. The High Court, vide its impugned judgment, affirmed the findings of the Tribunal in respect of the amount of compensation awarded and disposed of the same by holding that the insurance company to pay the amount of compensation to the claimants and, thereafter, recover the same from the driver and owner of the offending vehicle as they are jointly and severally liable to pay the compensation in accordance with the decision of this Court in National Insurance Co. Ltd. vs. Swaran Singh & Ors. [(2004) 3 SCC 297].

8. Yet dissatisfied, the claimant-appellants are now before us. The points raised by the appellants are that the High Court incorrectly assessed the monthly income of the deceased at Rs.4,500/-, and the appropriate multiplier was also not applied.

9. We have heard the learned counsel for the parties.

10. We are unable to agree with the view taken by

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