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2025 Supreme(SC) 1756

SUPREME COURT OF INDIA
K. Vinod Chandran, N. V. Anjaria, JJ.
Dhannalal Alias Dhanraj (Dead) Thr. LRs. – Appellant
Versus
Nasir Khan and Ors. – Respondents
Civil Appeal No. 2159 of 2024
Decided On : 26-09-2025

Advocates appeared:
For the Appellant(s) : Mr. Shail Kumar Dwivedi, AOR Mr. Siddharth Krishna Dwivedi, Adv.
For the Respondent(s): Mr. Atul Nigam,Adv. Mrs. Priya Puri, AOR Ms. Tanvi Nigam,Adv. Mr. Sachin Dubey,Adv. Ms. Riya Dogra, Adv. Mr Sharad Kumar Puri,Adv. Ms. Lubhanshi Tanwar,Adv.

Legal representatives can pursue claims for personal injury compensation after the claimant's death, as established by the amended Section 167(5) of the Motor Vehicles Act, 1988.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Claim for personal injury - Appeal for enhancement of compensation post death of injured - Legal representatives entitled to pursue claim for personal injury under amended provision of Section 166. - Court ruled that the right to claim compensation survives beyond the claimant's death, as per Section 167(5) post-amendment. (Paras 6 and 7)

(B) Compensation quantum - Calculation based on monthly income of Rs.9,000, applying multiplier of 11 for the actual lifespan of injured, yielding total compensation of Rs.20,37,095 - Award modified to reflect just compensation including interest from date of filing claim petition. (Paras 11, 12, and 13)

(C) Legal principles established - Court affirmed that legal representatives can claim damages even if injury-related death occurs and emphasized that compensation must not only reflect loss of life but also include consideration for maintaining fairness against windfall. (Paras 10 and 11)

Facts of the case:
The injured claimant, rendered 100% disabled in a motor accident, passed away during the appeal process; legal heirs continued seeking enhanced compensation. The Tribunal initially awarded an amount deemed insufficient after reassessment of earnings and applicability of multiplier.

Findings of Court:
The court enhanced the compensation based on the injury's long-term impact, culminating in a revised award to include future prospects and rightful interest from the date of filing until payment.

Issues: The court addressed whether legal representatives could pursue the claim post-death of the injured and re-evaluated the appropriate compensation amount based on the injured's circumstances and earnings.

Ratio Decidendi: The court concluded that statutory provisions allow claims to survive past the claimant's death, with enhanced calculations ensuring fair compensation reflective of the injured's life and potential earnings, balancing the injury's ongoing impact against the terms of compensation.

Result: Appeal allowed.

Table of Content
1. claimant's right to appeal post-death (Para 1 , 2)
2. legal representatives can pursue compensation claims (Para 3 , 5 , 6 , 7)
3. establishing income and compensation calculations (Para 8 , 9 , 10)
4. compensation cannot lead to a windfall (Para 11 , 12)
5. compensation and interest calculations (Para 13 , 14)
6. final verdict and order (Para 15 , 16)

JUDGMENT :

K. VINOD CHANDRAN, J.

1. The original claimant, the injured in a motor accident, had filed the above appeal, seeking enhancement of compensation as awarded by the Motor Accidents Claims Tribunal1[for short, ‘the Tribunal’] and enhanced by the High Court. The claimant who was rendered 100% disabled, by reason of the accident, unfortunately died during the pendency of this appeal; on 24.04.2024. The legal representatives have substituted themselves in place of the deceased claimant/injured.

2. Heard, Mr. Shail Kumar Dwivedi, learned counsel for the appellants and Mr.Atul Nigam, learned counsel for the respondent insurance company.

3. The learned counsel for the insurance company raised a preliminary objection in continuing the appeal and considering it, by virtue of the substitution of the deceased claimant by his legal representatives. It is the contention of the insurer that since the claim is of compensation for personal injury, the continuation of the proceedings cannot be permitted by the legal representatives, going by Section 306 of the Indian SUCCESSION ACT , 1925 and as interpreted by a Full Bench of the Madhya Pradesh High Court in Bhagwati Bai and Anr. v. Bablu and Mukund and Ors. , AIR 2007 MP 38 (FB), followed by a Single Judge of the High Court of Allahabad in Saroj Sharma v. State of U.P. , 2014 SCC OnLine ALL 7707.

4. The learned counsel for the respondent relied on a decision of this Court in Meena (Dead) Rep. by LRs. v. Prayagraj and Others., 2025 SCC OnLine SC 1433 which followed another decision of this Court in Oriental Insurance Company Limited v. Kahlon @ Jasmail Singh Kahlon , (2022) 13 SCC 494.

5. We have to first deal with the preliminary objection raised against the continuation of the proceedings after the victim died. The Full Bench of the Madhya Pradesh High Court on an interpretation of the provisions of the MOTOR VEHICLES ACT , 1988, especially Section 166 , juxtaposed with Section 306 of the Indian SUCCESSION ACT , 1925 held : “…that a claim for personal injury filed under Section 166 of the MOTOR VEHICLES ACT , 1988 would abate on the death of the claimant and would not survive to his legal representatives except as regards the claim for pecuniary loss to the estate of the claimant.” (sic paragraph 15).

6. The answer is simple and clear in so far as the insertion of sub-section (5) to Section 167 by Act 32 of 2019 with effect from 01.04.2022, which reads as under:

“[(5) Notwithstanding anything in this Act or any other law for the time being in force, the right of a person to claim compensation for injury in an accident shall, upon the death of a person injured, survive to his legal representatives, irrespective of whether the cause of death is relatable to or had any nexus with the injury or not.]”

7. The right to claim compensation for the injuries caused in a motor vehicle accident hence survives on the legal representatives of the injured even if the injured dies in the course of the proceedings for reasons not relatable to or having any nexus with the injuries sustained. Here the injured died in 2024, after the insertion to Section 166 by amendment. We also have a difference of opinion with the declaration of law in Bhagwati Bai (supra), which we need not dilate upon in the facts of this case where the inserted provision is squarely applicable.

8. The finding in Kahlon @ Jasmail Singh Kahlon (supra) and Meena (supra) we extract from paragraph 5 of the latter decision which reads as follows:-

“5. At the outset, the learned counsel for the claimants relied on Oriental Insurance Company Limited v. Kahlon @ Jasmail Singh Kahlo

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