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2026 Supreme(SC) 622

SUPREME COURT OF INDIA
VIKRAM NATH, SANDEEP MEHTA, VIJAY BISHNOI, JJ.
Sarla Devi and Others – Appellants
Versus
Reliance General Insurance Company Limited and Others – Respondents
Civil Appeal No. 8190 of 2026 [Arising Out of SLP (Civil) No. 13979 of 2018]
Decided On : 26-05-2026

Advocates appeared:
For the Petitioner(s): Mr. Rameshwar Singh Malik, Sr. Adv. Mr. Jitesh Malik, Adv. Mr. Jatin Hooda, Adv. Mr. Abhaya Nath Das, Adv. Mr. Piyush Sharma, Adv. Mr. Satish Kumar, AOR
For the Respondent(s): Mr. Joy Basu, Sr. Adv. Mr. A.K. Soni, Adv. Mr. Rajeev Maheshwaranand Roy, AOR Mr. Nilesh Kumar, Adv. Mr. P Srinivasan, Adv. Mr. Pavan Kumar, Adv. Mr. Anoop George, Adv.

IMPORTANT POINT
Death in motor accident – Under social welfare legislations, paramount consideration is awarding just and adequate compensation for all dependents of deceased.

Headnote:

Motor Vehicles Act, 1988 – Sections 168 and 173 – Death in motor accident – Compensation of Rs.7,70,400/- awarded by High Court in appeal – Permissible deductions from amount of compensation – While ensuring that award of compensation under the Act is not profitable or in nature of unjust enrichment, award should also not turn out to be a mere pittance or grossly meagre – Under social welfare legislations, paramount consideration is awarding just and adequate compensation for all dependents of deceased – Award of compensation under the Act is not profitable or in nature of unjust enrichment – High Court has rightly deducted amount of financial assistance payable to eligible family members under 2006 Rules from total compensation awarded under the Act – Although mother is not entitled to any ex-gratia financial assistance under 2006 Rules, since deceased is survived by a widow and daughter, however, that does not diminish independent legal injury suffered by mother due to sudden death of her son – Impugned award modified. [Haryana Compassionate Assistance to Dependants of Deceased Government Employees Rules, 2006] (Paras 15, 16, 22, 23, 24 and 25)

Facts of the case:

Present appeal has been preferred by Appellants challenging the order dated 12.09.2017 passed by High Court of Punjab and Haryana at Chandigarh in F.A.O. No. 3633 of 2015, wherein High Court allowed the appeal, and modified compensation amount awarded by Motor Accident Claims Tribunal, Rohtak vide award dated 23.02.2015 in M.A.C.T. Case No. 117 of 2012, thereby granting total compensation of Rs.7,70,400/- to the Appellants

Findings of Court:

Amount of Rs. 11,30,600/- payable to Appellant No. 3 will be added to sum of Rs. 7,70,400/- as awarded by High Court in impugned order. Consequently, it would bring total compensation under the Act to Rs. 19,01,000/-, on which interest would be payable as accorded by Tribunal and upheld by High Court. Respondents are jointly and severally liable to pay the compensation to the Appellant/Claimants within a period of eight weeks from the date of this order.

Result : Appeal disposed of.

Table of Content
1. case facts, procedural history, and compensation assessment methods. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. conflicting arguments regarding deductibility of ex-gratia assistance versus compensation. (Para 9 , 10 , 11)
3. deduction of financial assistance mandated to prevent double recovery. (Para 12 , 13 , 14 , 15)
4. parents ineligible for financial assistance when widow/children survive. (Para 16 , 17 , 18)
5. ensuring just compensation for all dependents regardless of statutory deductions. (Para 19 , 20 , 21 , 22 , 23 , 24)
6. adjustment of total compensation to ensure individual dependent rights are protected. (Para 25 , 26)

JUDGMENT :

VIJAY BISHNOI, J.

1. Leave Granted.

2. The present appeal has been preferred by the Appellants challenging the order dated 12.09.2017 (hereinafter referred to as “impugned order”) passed by the High Court of Punjab and Haryana at Chandigarh (hereinafter referred to as “the High Court”) in F.A.O. No. 3633 of 2015, wherein the High Court allowed the appeal, and modified the compensation amount awarded by the Motor Accident Claims Tribunal, Rohtak (hereinafter referred to as “Tribunal”) vide award dated 23.02.2015 in M.A.C.T. Case No. 117 of 2012, thereby granting a total compensation of Rs.7,70,400/- to the Appellants.

FACTUAL MATRIX

3. On 23.07.2012, at about 9:00 PM, Sachin Kumar (hereinafter referred to as “deceased”) was travelling from Jhajjar to Rohtak on motorcycle bearing Registration No. HR-12H-2221, driving on the correct side of the road and at a moderate speed. When he reached near Pehlwan Dhaba on Rohtak-Jhajjar Road, near village Karontha, a Trolla bearing Registration No. RJ-14GC-8428, being driven rashly and negligently at a high speed from the opposite direction, came onto the wrong side of the road and collided with the motorcycle. Due to the impact, the deceased sustained fatal injuries and died on the spot.

4. The Appellants herein, the widow (Appellant No. 1), the minor daughter of the deceased (Appellant No. 2), the mother of the deceased (Appellant No. 3) and the father of the deceased (Appellant No. 4) filed a claim petition bearing MACT Case No. 117 of 2012, under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as “the Act”) before the Tribunal. The Appellants, contending that the deceased was 25 years of age at the time of accident and was employed as a constable in the Haryana Police Department, Government of Haryana, drawing a salary of Rs. 18,000/- claimed Rs. 40,00,000/- as compensation at an interest of 18% per annum from the Respondents herein.

5. The Tribunal, after considering the pleadings and evidence adduced by the parties, held that the deceased had died due to the injuries sustained in the accident, which occurred on account of the rash and negligent driving of Respondent No. 2, who was driving Trolla bearing Registration No. RJ-14GC-8428. Further, on the basis of the matriculation certificate, postmortem report, and the pleadings of the claimants, the Tribunal assessed the age of the deceased to be between 24 and 25 years. Upon perusal of the salary certificate of the deceased, the Tribunal determined his gross monthly salary to be Rs. 16,230/-. Relying upon the judgment in Sarla Verma and Others vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121, the Tribunal assessed the total compensation payable to Appellant Nos. 1 to 3 at Rs. 37,30,680/-along with interest @ 8% per annum, payable jointly and severally by the respondents, as the offending vehicle was duly insured with Respondent No. 1.

6. As regards Appellant No. 4, the Tribunal held that he was a retired government servant and was receiving pension, and thus could not be considered a dependent under the Act. Consequently, the Tribunal directed that the amount under the head of loss of dependency, was to be divided equally between the Appellant Nos. 1 to 3. The compensation assessed by the Tribunal is as under:

Income

Rs. 16,230/- per month

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