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2026 Supreme(SC) 1069

SUPREME COURT OF INDIA
S.V.N. BHATTI, N.V. ANJARIA, JJ.
Reliance General Insurance Company Limited – Appellant
Versus
Priyanka Das and Others – Respondents
Civil Appeal No. 12085 of 2026 With Civil Appeal No. 12086 of 2026 With Civil Appeal No(S). 12087-12088 of 2026 With Civil Appeal No. 12089 of 2026
Decided On : 03-09-2026

Advocate Appeared:
For the Parties :Mr. Syed Jafar Alam, Adv. M/s Trilegal Advocates On Record, AOR Mr. Syed Jafar Alam, AOR Ms. Prerna Mehta, AOR Mr. Shantanu Sagar, AOR Mr. Prabhat Ranjan Raj, Adv. Mr. Anil Kumar, Adv. Mr. Gunjesh Ranjan, Adv. Mr. Abhishek Kumar Gupta, Adv. Mr. Manoneet Dwivedi, Adv. Mr. Prakash Kumar Mangalam, Adv.

IMPORTANT POINTS
(1) Death in motor accident – Multiplier must be determined by age of deceased, not by age of dependants.
(2) Injury in motor accident – Calculation of functional disability depends on assessing victim’s earning capacity in open, competitive market, rather than on retention in a specific, highly accommodated role.

Headnote:

Civil Appeal No. 12085 of 2026

Motor Vehicles Act, 1988 – Sections 168 and 173 – Death in motor accident – Deceased aged 33 years and having gross salary was Rs.10,65,600/- per annum – Compensation of Rs.2,94,82,617/- awarded by Tribunal – Multiplier must be determined by age of deceased, not by age of dependants – MACT and High Court correctly applied multiplier of 16 in determining compensation – In matters such as present, mathematical precision is not always sought or applied by Courts and Tribunals, but claimants are awarded just and fair compensation and in the process, what is due is not denied; what is undeserving is not awarded – Impugned Judgment has followed binding precedents and does not warrant interference. (Paras 14, 15 and 16)

Civil Appeal No(s). 12087-12088 of 2026

Motor Vehicles Act, 1988 – Sections 168 and 173 – Injury in motor accident – Total compensation of Rs. 1,35,53,298/- awarded by Tribunal – Medical Board’s opinion will be guiding factor in determining compensation for injuries suffered by Claimants in accident – Once Medical Board’s report is against Insurer’s argument, it cannot be heard to argue that compensation is payable at a lesser percentage than assessed by duly constituted Medical Board – Compensation has to be accordingly re-determined – Calculation of functional disability depends on assessing victim’s earning capacity in open, competitive market, rather than on retention in a specific, highly accommodated role – Compensation calculation shifts from High Court’s 80% assessment to 100% functional disability because Claimant’s capacity to independently secure, sustain, or advance employment in open labour market has been entirely extinguished – Total compensation of Rs. 3,77,84,297/- (Three Crores Seventy-Seven Lakhs Eighty-Four Thousand Two Hundred and Ninety-Seven), with 7.5% interest awarded. (Paras 16, 17, 19, 20, 21 and 22)

Facts of the case:

MACT Petition was filed by Priyanka Das, injured pillion rider, claiming compensation of Rs. 5 crores, together with interest at 18% per annum. Parents of deceased were arrayed as Proforma Respondent Nos. 4 and 5 in MACT Petition No. 9 of 2014 before Court of Motor Accident Claims Tribunal, Gurugram. Age of deceased was established as 33 years, and multiplier of sixteen was applied. Accordingly, total loss of dependency was determined to be Rs. 1,07,29,200/-. From gross total of Rs. 1,08,54,200/, amount received under Personal Accidental Term Policy was deducted. Accordingly, net compensation was determined to be Rs. 82,56,152/-.

Findings of Court:

Total compensation awarded is Rs. 3,77,84,297/- (Three Crores Seventy-Seven Lakhs Eighty-Four Thousand Two Hundred and Ninety-Seven), with interest at 7.5 per cent per annum from the date of the Claim Petition until the entire amount is realised.

Result : Civil Appeal Nos. 12087-12088 of 2026 dismissed, and Civil Appeal No. 12089 of 2026 filed by Claimant is allowed in part.

JUDGMENT :

S.V.N. BHATTI, J.

1. The Civil Appeals arise from the Order dated 24.01.2019 in FAO Nos. 3607 and 5444 of 2017 (O&M) of the High Court of Punjab and Haryana.

2. Civil Appeal No. 12085 of 2026 is at the instance of Reliance General Insurance Company Limited, and Civil Appeal No. 12086 of 2026 is at the instance of the Claimant.

3. On 10.04.2011 at around 05.30 P.M., an accident occurred near Brijghat Bridge between a motorcycle and a heavy goods vehicle bearing No. HR-55-2812. The motorcycle was driven by Sushant Prabhakaran, and Priyanka Das/Claimant was the pillion rider. The FIR narrates the accident, and the Chargesheet states that the heavy goods vehicle hit the motorcycle, causing the riders to fall, and the truck ran over Sushant Prabhakaran, resulting in his instantaneous death. The Claimant/pillion rider sustained grievous multiple injuries to vital parts of the body. FIR No. 198, dated 10.04.2011, was registered at Police Station Gadmukteshwar on the complaint received from passerby/third party Radhe Shyam Kaushik. The Civil Appeals are confined to the claim for compensation arising from the demise of Sushant Prabhakaran. At the time of his death, Late Sushant Prabhakaran was 33 years old and employed as Manager, Contact Centre, at Ericsson India Private Limited, DLF Cyber City, Gurugram. Sahadeov Prasad is the father, and Sandhya Prasad is the mother of the deceased. It was pleaded in the Claim Petition that the Claimant was the widow of Sushant Prabhakaran.

4. MACT Petition No. 9 of 2014 was filed by Priyanka Das, the injured pillion rider, claiming compensation of Rs. 5 crores, together with interest at 18% per annum. The parents of the deceased were arrayed as Proforma Respondent Nos. 4 and 5 in MACT Petition No. 9 of 2014 before the Court of the Motor Accident Claims Tribunal, Gurugram (“The Tribunal”).

5. The Claimant, in support of the claim for Rs.5 crores in compensation, primarily relied on the evidence of Ajay Kumar Chadha, PW-11, and the salary slips of Sushant Prabhkar, marked as Exhibit PW-11/A, which evidenced the deceased’s income/salary at the time of the accident. The Tribunal, on 03.04.2017, awarded Rs.82,56,152/- and apportioned as follows:

1.

Priyanka Das

Rs.5,00,000/-.

2.

Sahadeov Prasad

Rs.50,000/-

3.

Sandhya Prasad

Rs.77,06,152/-

6. On negligence and the cause of the accident, the Tribunal held that the determination of compensation before the Tribunal is summary in nature and that negligence is evaluated on the preponderance of probabilities, rather than the strict criminal standard of “proof beyond reasonable doubt”. PW-9, the injured pillion rider, has deposed to the circumstances leading to the accident. The manner in which the motorcycle was crushed beneath the truck’s tyres established that the accident was due to the rash and negligent driving of the truck driver examined as RW-2. The Insurer’s defence that the terms of the Insurance Policy have been violated was rejected, inasmuch as the Insurer contended that the Vehicle No. HR-55-2812 did not have a valid fitness certificate. This contention is disbelieved upon appreciation of the contemporaneous Registration Certificate of the vehicle marked as Exhibit-R6. Consequently, the Tribunal fastened liability of Rs.82,56,152/- on the Insurer.

7. The Tribunal, in apportioning compensation, did not accept Priyanka Das’s claim that she was the legally wedded wife of Sushant Prabhakaran. There is no documentary evidence of the factum of their marriage. While rejecting her status as a legally wedded wife, the Tribunal appreciated Exhibits P-13 and P-14, i.e., employment records, in asserting the status she claimed as the wife of the deceased Sushant Prabhakaran. In the circumstances, the Tribunal concluded that Priyanka Das had listed the deceased, Sushant Prabhakaran, as her fiancé. The Tribunal considered Priyanka Das’s independent standing and recorded that she was not

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Judicial Analysis

No cases in the provided list are explicitly identified as overruled, reversed, or treated as bad law. The list does not contain any language such as "overruled," "reversed," "abrogated," or "treated as bad law" for any entry. Therefore, this section is empty.

National Insurance Company Limited VS Pranay Sethi - 2017 8 Supreme 107: This case provides detailed formulas and guidelines for calculating compensation, including the multiplier based on the age of the deceased and the addition percentages for future prospects. The language indicates that courts and tribunals are to be guided by this judgment in determining the multiplicand and multiplier. This suggests it is being followed or applied as a precedent for future calculations.

> "For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paragraphs 30 to 32 of Sarla Verma. The selection of multiplier shall be as indicated in the Table in Sarla Verma read with paragraph 42 of that judgment."

Munna Lal Jain VS Vipin Kumar Sharma - 2015 7 Supreme 444: This case acknowledges the lack of a statutory formula for compensation in motor accidents and notes that courts have evolved guidelines. The language suggests it is a foundational case that has been followed in developing compensatory formulas, albeit with caveats.

> "There being no statutory formula for compensation in motor accident; grey areas are inevitable. Courts therefore have evolved guidelines giving formula."

Manjuri Bera VS The Oriental Insurance Company LTD. - 2007 3 Supreme 620: This case distinguishes between the entitlement to maintain a claim and the quantum of compensation. It limits the scope of the claim for a married daughter who was not dependent on the deceased, referring to Section 140 of the M.V. Act for liability. This suggests the case has been distinguished in subsequent applications.

> "Married daughter is entitled to maintain claim petition u/s 166 MV Act but where she was not dependent on deceased, quantum of compensation could be the liability referable to Section 140 of M.V. Act."

Sube Singh VS Shyam Singh (Dead) - 2018 3 Supreme 453: This case focuses specifically on the multiplier being based on the age of the deceased and not the dependents. This narrow focus suggests it may be distinguished from broader claims or other cases that might consider the dependents' ages.

> "MAIN POINT Multiplier has to be decided on age of the deceased and not the dependents."

Sarla Verma VS Delhi Transport Corporation - 2009 3 Supreme 487: This case limits the calculation of income by stating that actual future pay revisions should not be considered. This is a specific limitation on the scope of income calculation, indicating it has been distinguished or applied with this specific caveat.

> "Actual future pay revisions should not be taken into account for the purpose of calculating the income."

PAPPU DEO YADAV VS NARESH KUMAR - 2021 1 Supreme 425: This case outlines the principles of just compensation, including all elements to place the victim in their prior position, avoiding stereotypical approaches, and considering future prospects. While it establishes clear principles, the list does not provide explicit language on how subsequent courts have treated it (e.g., followed, distinguished, or criticized). The treatment is uncertain based on the provided text.

> "Just compensation should include all elements that would go to place victim in as near a position as he was in, before occurrence of accident... Future prospects are an integral component of just compensation."

PAPPU DEO YADAV VS NARESH KUMAR - 2021 1 Supreme 425: The treatment of this case is unclear from the provided list. It establishes principles of just compensation but does not contain explicit language indicating whether it has been followed, distinguished, criticized, or otherwise treated in subsequent decisions. The analysis is based solely on the content of the case law itself, without clear signals of its judicial treatment in later cases.

**Source :** Manjuri Bera VS The Oriental Insurance Company LTD. - Supreme Court Sube Singh VS Shyam Singh (Dead) - Supreme Court Munna Lal Jain VS Vipin Kumar Sharma - Supreme Court Sarla Verma VS Delhi Transport Corporation - Supreme Court National Insurance Company Limited VS Pranay Sethi - Supreme Court PAPPU DEO YADAV VS NARESH KUMAR - Supreme Court

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