Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Motor Vehicles Act 1988: s. 168 – Motor Accident – Quantum of Compensation – Determination of – Loss of Income |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Motor Vehicles Act, 1988: s. 168 – Motor Accident – Quantum of Compensation – Determination of – Loss of Income – Notional Income – Reliability on income tax returns and audit reports – Death of a businessman in a motor accident – Grant of compensation to deceased’s dependants-appellants while relying on income tax returns and other financial documents – In appeal by the Insurance Company, the compensation reduced on the ground that the tribunal erred in calculating ‘loss of income’ – High Court held that deceased’s income consisted returns over capital assests, which were transferred to his legal heirs who continued to enjoy the benefits derived from them; income derived from capital assets cannot be said to be income earned out of the deceased’s personal skills as there was no real contribution by him; deceased’s dependants suffered no loss of income and instead computed the compensation by fixing his salary at Rs. 25,000/- per month on a notional basis as per his educational qualification – On appeal, held: Compensation must be fair, reasonable, and equitable – Determination of quantum must be liberal and not parsimonious – Documents such as income tax returns and audit reports are reliable evidence to determine the income of the deceased – Entire amount from the business ventures must be treated as income, as deceased was actively involved in the day-to-day administration of the businesses from their stage of infancy – Computation under income from house property and agricultural land is related to loss of dependency arising mainly out of loss of managment capacity or efficiency – Value of managerial skills to be determined along with the other considerations – In view thereof, compensation modified to Rs. 2,27,12,400/- with interest at the rate of 7.5% p.a. |
Judge | Hon'ble Mr. Justice Surya Kant |
Neutral Citation | 2022 INSC 1044 |
Petitioner | K. Ramya |
Respondent | National Insurance Co. Ltd. & Anr. |
SCR | [2022] 18 S.C.R. 238 |
Judgement Date | 2022-09-30 |
Case Number | 7046 |
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