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2017 Supreme(SC) 1050

DIPAK MISRA, A. K. SIKRI, A. M. KHANWILKAR, D. Y. CHANDRACHUD, ASHOK BHUSHAN
National Insurance Company Limited – Appellant
Versus
Pranay Sethi – Respondent


Judgement Key Points

The judgment provides standardized guidelines for deductions towards personal and living expenses of the deceased when determining the multiplicand (net income for loss of dependency) in motor accident death claims under Section 166 of the Motor Vehicles Act.

Key Rules on Deductions:

  • For married deceased:
  • Deduct 1/3 (33%) if 2-3 dependent family members.
  • Deduct 1/4 (25%) if 4-6 dependent family members.
  • Deduct 1/5 (20%) if more than 6 dependent family members. (!) (!) (!)

  • For bachelor deceased (typically parents as claimants):

  • Normally deduct 50%, assuming higher personal spending and limited dependency (usually only mother as dependant, excluding father, siblings unless evidence shows otherwise).
  • Exception: If large dependent family (e.g., widowed mother + many non-earning siblings), restrict to 1/3. (!) (!) (!) (!)

  • General principles:

  • Tribunals/courts must ordinarily follow these standardized percentages from paras 30-32 of the referred framework (as approved here). (!) (!) (!) (!)
  • Deduction reflects the portion of net earnings spent exclusively on the deceased (not family maintenance); it may vary based on case-specific evidence like number of dependants, but need not strictly match dependant count. (!) (!)
  • "Income" for this purpose is actual/established income less tax, with future prospects added before deduction. (!) (!) (!)

These rules promote uniformity and consistency, applied after proving age, income, and dependants, alongside multiplier and future prospects. (!) (!) (!) (!) (!) (!) (!)


JUDGMENT :

Dipak Misra, CJI.

Perceiving cleavage of opinion between Reshma Kumari and others v. Madan Mohan and another, (2013) 9 SCC 65 and Rajesh and others v. Rajbir Singh and others, (2013) 9 SCC 54 both three-Judge Bench decisions, a two-Judge Bench of this Court in National Insurance Company Limited v. Pushpa and others, (2015) 9 SCC 166 thought it appropriate to refer the matter to a larger Bench for an authoritative pronouncement, and that is how the matters have been placed before us.

2. In the course of deliberation we will be required to travel backwards covering a span of two decades and three years and may be slightly more and thereafter focus on the axis of the controversy, that is, the decision in Sarla Verma and others v. Delhi Transport Corporation and another, (2009) 6 SCC 121 wherein the two- Judge Bench made a sanguine endeavour to simplify the determination of claims by specifying certain parameters.

3. Before we penetrate into the past, it is necessary to note what has been stated in Reshma Kumari (supra) and Rajesh’s case. In Reshma Kumari the three-Judge Bench was answering the reference made in Reshma Kumari and others v. Madan Mohan and another, (2009) 13 SCC





























































































































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