THE SUPREME COURT OF INDIA
K. VINOD CHANDRAN, N.V. ANJARIA, JJ.
Rani @ Raj Kumari And Others – Appellants
Versus
Kamlakat Gupta And Others – Respondents
Civil Appeal No. 5224 of 2024
Decided On : 05-12-2025
Motor Vehicles Act, 1988 – Sections 168 and 173 – Death in motor accident – High Court allowed appeal of claimants enhancing total compensation from Rs.7,28,500/- to Rs.9,20,500/- with 7% interest – At the time of accident, deceased was 33 years of age and was working in a Stone Crusher – His case was that he was earning Rs. 6000/- per month from crusher company – His further case was that he owned agricultural field – While Tribunal had taken Multiplier of 17, High Court adopted Multiplier of 15 – Certificate and Khatauni were issued by employer-Stone Crusher Company – It is reasonable to accept that deceased was getting Rs.6,000/- as monthly salary from stone crusher company – Even if direct evidence regarding exact amount of income had not come on record, deceased could be presumed to have some income from agricultural activity – Deceased was in age group of 30 to 35 years – It would be proper to apply Multiplier of Rs. 16 – After adding 40% towards future prospects and deduction of 1/5th amount towards personal expenses, total compensation of Rs.20,55,320/- with 7% interest awarded – Compensation shall be disbursed in favour of seven claimants in same proportion as directed by Tribunal. (Paras 3.2, 3.5, 5.1, 5.2, 5.3, 5.6, 6 and 6.1)
Facts of the case:
Seven Appellants - original claimants have filed this Appeal against judgment and award of Allahabad High Court in First Appeal from order no. 1493 of 2013, seeking enhancement in compensation in respect of death of 33 years old Sobran Singh, who died in a vehicular accident.
Findings of Court:
Claimants are held entitled to additional compensation of Rs. 11,34,820/- with interest at 7% from date of filing of claim petition till payment. Insurance company is directed to deposit the additional compensation of Rs. 11,34,820/- with interest at 7% within 8 weeks from today with Tribunal concerned.
Result : Appeal allowed.
JUDGMENT :
N.V. ANJARIA, J.
Seven Appellants - the original claimants have filed this Appeal against judgment and award of the Allahabad High Court in First Appeal from order no. 1493 of 2013, seeking enhancement in the compensation in respect of death of 33 years old Sobran Singh, who died in a vehicular accident.
1.1. Appellant No. 1 is the widow of the deceased whereas Appellant Nos. 2, 3, 4 and 5 are the three minor daughters and minor son of the deceased respectively, appellant No. 6 is the father, and appellant No. 7 is the mother of the deceased.
2. The High Court allowed the appeal of the claimants enhancing the total compensation from Rs. 7,28,500/- to Rs. 9,20,500/- with interest at 7%, which was awarded by the Motor Accident Claims Tribunal. Contending that the amount of compensation is required to be further enhanced, it was pleaded before this Court that the High Court committed an error in awarding only Rs. 70,000/- towards non-pecuniary heads, further erred in applying the multiplier of 15 instead of 17 and erred also in not awarding the due compensation in respect of other conventional heads.
3. On the fateful day, that is on 02.09.2009, when the accident occurred, the said Sobran Singh was going to his home Kot from Jhansi on his motorcycle bearing registration No. U.P.-93-K-4069. At around 7 p.m., the motorcyclist Sobran Singh had reached near the bridge ahead of village Bhojla. At that time a Jeep Gypsy bearing No. UP-93-Q- 6471 came from the opposite direction. The said vehicle was stated to be driven in rash and negligent manner. It dashed with the motorcycle. As a result of the accident, Sobran Singh sustained grievous injuries on his head and legs.
3.1. Sobran Singh was taken to the Medical College, Jhansi for the treatment. From the Jhansi Medical College, he was shifted to the Gwalior Hospital. While being treated at the Gwalior Hospital on 10.09.2009, he succumbed to injuries, after 8 days of the accident.
3.2. At the time of the accident, the deceased was 33 years of age and was working in a Rajaram Stone Crusher. His case was that he was earning Rs. 6000/- per month from the crusher company. His further case was that he owned agricultural field admeasuring 3-1/2 Bighas and that 20 Bighas of land was given to him in the family division and that in the said land, he used to engage in farming. According to the appellants’ case, the deceased had an income of Rs. 10,000/- per month from the farming activity in addition to Rs. 6,000/- per month which he had been receiving as salary for his crusher related job.
3.3. By filing Motor Accidents Claims Petition No. 668 of 2009 under Section 166 of Motor Vehicle Act, 1988, the widow of the deceased and other claimants prayed for compensation of Rs. 26,10,000/-. The Motor Accident Case Tribunal, Jhansi (hereinafter referred to as the ‘Tribunal’) proceeded to adjudicate the compensation after framing the issues. The issue whether the offending vehicle Gypsy jeep was being driven with negligence and carelessness, and accordingly it hit the motorcycle, was answered in positive in favour of the claimants. It was recorded that the Gypsy driver possessed a valid license on the date of the accident.
3.4. On the basis of the evidence considered by the Tribunal the total compensation which came to be awarded was Rs. 7,28,500/- with 6% interest from the date of filing of application till payment. The Tribunal took the monthly income of the deceased to be Rs. 4,500/- and determined the total compensation awarding amounts under different heads as under,
| Monthly Income | Rs. 4,500/- |
| Future Prospects | Not considered |
| Deduction for Personal Expenses | 1/4th (Rs. 1,125/-) |
| Annual Income | Rs. 40,500/- |
| Multiplier Applied | 17 (age taken as 33 yrs) |
| Loss of Dependency | Rs. 6,88,500/- |
| Treatment Expenses | Rs. 10,000/- |
| Funeral Expenses | Rs. 5,000/- |
| Loss of Marital/Compan | |
National Insurance Company Limited vs. Pranay Sethi & Others
Death in motor accident – Future prospects are integral component of just compensation.
Compensation assessments in fatal accident claims must account for actual dependency, future prospects, and appropriate multipliers, following statutory guidelines and relevant precedents.
In motor accident claims, where documentary evidence of income is absent, courts may use minimum wage notifications as a baseline while applying reasonable guesswork to determine actual income. Compe....
The main legal point established in the judgment is the re-assessment of notional income and enhancement of compensation under various heads to ensure just and reasonable compensation for the claiman....
The main legal point established is the importance of assessing 'just and fair' compensation under the Motor Vehicles Act, 1988, Section 168, based on income tax returns and legal precedents.
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