SUPREME COURT OF INDIA
K. VINOD CHANDRAN, N.V. ANJARIA, JJ.
Smt. Manjula & Ors. – Appellants
Versus
The Branch Manager, Oriental Insurance Company Ltd. Bijapur & Anr. – Respondents
Civil Appeal No. 11425 Of 2025 (@ Special Leave Petition (Civil) No. 1733 of 2021)
Decided On : 09-09-2025
| Table of Content |
|---|
| 1. overview of the car accident and claim background. (Para 1) |
| 2. dispute regarding income assessment of the deceased. (Para 2 , 3) |
| 3. court's scrutiny of evidence on income claims. (Para 4 , 5) |
| 4. determination of compensation based on legal precedents. (Para 6) |
| 5. orders for payment of compensation and appeal decision. (Para 7 , 8 , 9) |
JUDGMENT :
K. VINOD CHANDRAN, J.
Four friends from Bijapur were on a pilgrimage to Shirdi when the car in which they were travelling, driven by one of them, was hit by a goods’ lorry driven rashly and negligently coming from the opposite direction on the NH-13 Bijapur-Horti Road. All the persons travelling in the car died on the spot. Four claim petitions were filed before the Tribunal and four appeals were filed seeking enhancement of compensation, to which appeals cross objections were filed by the Insurance Company. The appellate order which is impugned in the present appeal by the claimants in one of the claim petitions seek enhancement of income and a better award than that granted by the Tribunal, since the High Court reduced the quantum of income without any reason.
2. There is absolutely no dispute with respect to the negligence being mulcted on the driver of the lorry, which is also covered by a valid insurance policy. The challenge is only to the quantum and though in the judgment of the Tribunal from which the present appeal arises, the deceased-husband of the first claimant was found to have a monthly income of Rs.6,000/-, without any reasoning and without reliance to any material, the High Court reduced it to Rs.5,500/-. The total amount was enhanced, since addition was made to the future prospects in tune with the Constitution Bench judgment in National Insurance Co. Ltd. v. Pranay Sethi , (2017) 16 SCC 680.
3. The dispute is raised on the income determined which according to the learned Counsel for the appellants; vehemently asserted before us, was Rs.2,25,000/-. The deceased was a multifaceted personality having several irons in the fire; proprietor of a medical shop, partnership in a pharmaceutical distributorship and Director of a Cooperative Bank. The learned Counsel appearing for the Insurance Company, however, pointed out that none of these tall claims were substantiated.
4. As we noticed, the High Court has not referred to any material in fixing the monthly income. The trial court on the other hand, in the subject claim petition has referred to the various documents produced by the claimants. It has been proved that the deceased had a diploma in Pharmacy. The claim of running a medical shop was not proved since his licence was cancelled on 11.02.2008 while the accident took place on 25.07.2010. The distributorship run through a partnership was proved, but not the income since the various documents produced were found by the Tribunal to be not authenticated; nor were the alleged partners examined. The claim of Directorship in a Cooperative Bank and monthly sitting fees obtained, was also not fully substantiated. It was in this situation that the Tribunal adopted a monthly income of Rs. 6,000/- which the High Court reduced, without any basis, to Rs.5,500/-.
5. We cannot but notice that this Court has in Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd. , (2011) 13 SCC 236 found that in the year 2004 even a Coolie would be earning an amount of Rs.4,500/- in a month. If incremental increase is made of Rs.500/- per year, it can be safely assumed that a Coolie in the year 2010, when the subject accident occurred, would have obtained an income of Rs.7,500/-. The deceased herein has been proved to have a diploma in Pharmacy though the exact remuneration is not substantiated. He is found to be in a partnership of pharmaceutical distributorship and associated with a Cooperative Bank. The deceased was also running a medical shop, though prior to the date of the accident the licence stood cancelled. Considering the overall circumstances, it can be safely assumed th
National Insurance Co. Ltd. v. Pranay Sethi
Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd.
Compensation for permanent disability in vehicular accidents must reflect accurate income assessment and multiplier application based on established precedents, ensuring just restitution.
The court considered the deceased's income from multiple sources and the lack of consideration for future prospects in enhancing the compensation, in line with the judgment of Pranay Sethi (2017) SC ....
The main legal point established is the determination of compensation amount under the Motor Vehicles Act by considering various judgments.
Future income prospects must be considered in compensation calculations, and the appropriate multiplier should reflect the deceased's age and established legal guidelines.
The main legal point established in the judgment is the application of relevant legal precedents to determine the quantum of compensation, future loss of income, and the rate of interest in motor acc....
Accurate income assessment and consideration of future prospects are essential in determining compensation for motor accident claims.
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