Tag: Interest on Compensation

Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims

In a significant ruling on motor accident claims, the Supreme Court reinforced the principles from Pranay Sethi and Somwati. The Court established that the income of a deceased, even if not fully substantiated, cannot be assessed lower than the notional income of an unskilled labourer, with due consideration for annual increments. It upheld the application of standard multipliers, future prospects, and clarified that loss of consortium is payable to spouses, children, and dependent parents. Facts Of The Case: In a tragic accident on July 25, 2010, four friends from Bijapur on a pilgrimage to Shirdi lost their lives when their car was involved in a head-on collision with a rashly and negligently driven goods lorry on NH-13. The case concerns one of the deceased, a qualified pharmacist, wh...
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Supreme Court Enhances Compensation: Income Tax Returns Must Be Considered for Accident Claims
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Enhances Compensation: Income Tax Returns Must Be Considered for Accident Claims

The Supreme Court held that for motor accident compensation, the functional disability affecting earning capacity, not just medical disability, is determinative. Income tax returns must be reasonably considered unless proven fabricated. Just compensation includes actual medical expenses proven by vouchers and future medical needs, but future prospects are not awarded when the claimant can continue earning post-disability. Facts Of The Case: On April 9, 2007, the appellant, Anoop Maheshwari, was riding his motorbike when it was hit by a rashly and negligently driven truck. The accident resulted in Maheshwari suffering a severe injury, specifically a hemipelvectomy, which is the amputation of one leg along with a portion of the pelvic bone. The Motor Accidents Claims Tribunal established t...
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Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases
25Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases

The Supreme Court held that compensation for permanent disability is a distinct head from loss of income and cannot be denied merely because the latter is awarded. It further ruled that future medical and attendant charges must account for the victim's full life expectancy, not a restricted period. The Court also reinstated compensation for loss of enjoyment of life and family's pain and suffering, emphasizing these are legitimate and independent heads of claim. Facts Of The Case: On July 3, 2011, the appellant, Kavin, a 21-year-old arts student, was travelling as a passenger in an Omni bus from Coimbatore to Chennai. At around 10:15 PM, the bus, driven rashly and negligently by its driver, dashed against a tamarind tree on the left side of the road. The accident resulted in grievous inj...
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Supreme Court Rules :Landowners Can’t Get Uniform Compensation for Power Lines
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules :Landowners Can’t Get Uniform Compensation for Power Lines

The Supreme Court set aside the High Court's judgment for failing to properly assess compensation under the Indian Telegraph Act, 1885. It emphasized that compensation must be determined based on location-specific evidence and remanded the cases. The Court also highlighted the absence of a statutory appeal mechanism against orders of the District Judge and referred the issue to the Law Commission for examination. Facts Of The Case: A power transmission project titled "400 KV Jhajjar Power Transmission System-PPP-1" was initiated by HVPNL in Haryana. Jhajjar KT Transco Private Limited (JKTPL) was awarded the project, which sub-contracted the erection work to Kalpataru Power Transmission Ltd. The 100 km-long transmission line passed through land in four districts, including Sonepat and Jha...
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Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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Supreme Court Shifts Liability Back to Insurance Company in Landmark Motor Accident Case
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Shifts Liability Back to Insurance Company in Landmark Motor Accident Case

This Supreme Court judgment holds that under Section 147 of the Motor Vehicles Act, 1988, an insurer is liable to indemnify claims for the owner of goods or his authorized representative traveling in a goods vehicle. Furthermore, the registered owner remains liable for compensation until a transfer is formally reported to the Registering Authority under Section 50, and the insurer cannot avoid its liability based on unsubstantiated assertions. Facts Of The Case: A motor accident involving a goods vehicle resulted in several claims for death and injury. The injured and deceased were petty hawkers, such as a fish monger and a vegetable vendor, who were accompanying their goods in the vehicle at the time of the accident. The insurance company contested its liability on two primary gro...
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Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths
8Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

This Supreme Court judgment clarifies that allowances forming part of a deceased's salary, if used for family support, must be included in income computation for motor accident compensation. It applies established principles from Sarla Verma and Pranay Sethi to include future prospects and awards consortium as per Magma General Insurance, ensuring just compensation under the Motor Vehicles Act. Facts Of The Case: On February 16, 2009, Lokender Kumar died in a motor accident caused by the rash and negligent driving of a Santro car on the Sohna-Gurgaon Road. His widow and two minor children filed a claim petition before the Motor Accident Claims Tribunal in Gurgaon, seeking Rs. 25 lakhs in compensation. The Tribunal, considering his basic salary of Rs. 3,665 per month and applying a multip...
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Not Just Salaried: Supreme Court Rules Self-Employed Accident Victims Get Future Income Rise
8Sep By The Legal ChamberNo Comments
Supreme Court

Not Just Salaried: Supreme Court Rules Self-Employed Accident Victims Get Future Income Rise

The Supreme Court held that self-employed claimants are entitled to future prospects, affirming the principles in Santosh Devi and Pranay Sethi. It further ruled that uncontroverted medical evidence on disability must be accepted in its entirety, and the percentage of disability assessed by the treating doctor cannot be arbitrarily reduced by the Tribunal or High Court without reasoning. Facts Of The Case: On November 19, 2016, at approximately 6:00 a.m., the appellant, Lokesh B, a 38-year-old tailor, was driving his Omni car on the Peenya flyover in Bengaluru. His vehicle collided with a stationary lorry that was allegedly parked in the middle of the flyover without any indicators or reflective warnings. As a result of the collision, Lokesh sustained grievous injuries, including skull f...
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Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value
25Aug By The Legal ChamberNo Comments
Supreme Court

Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value

The Supreme Court held that when multiple sale exemplars exist, the highest bona fide transaction must be used to determine market value for compensation, and averaging is impermissible unless prices fall within a narrow range. The Court emphasized that certified sale deeds have presumptive value under Section 51A of the Land Acquisition Act, 1894, and the absence of rebuttal evidence strengthens their validity. Facts Of The Case: The appellants were farmers whose land, Survey Nos. 103 and 104 admeasuring 16.79 Hectares in Village Pungala, Parbhani, Maharashtra, was acquired in the early 1990s under the Maharashtra Industrial Development Act, 1961 for setting up an industrial area near Jintur town. The Land Acquisition Officer awarded compensation at Rs. 10,800 per acre in an award dated...
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Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims
5Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, proof of negligence is not required for claiming compensation, as the provision operates on a structured formula basis. The Court emphasized that compensation must be computed as per the Second Schedule of the Act, excluding non-scheduled heads like loss of love and affection. It ruled that the deceased, being a third party to the offending vehicle, entitled the claimants to compensation, payable jointly and severally by the insurer of the offending vehicle. The judgment clarified that Section 163A has an overriding effect over other provisions of the Act, ensuring expedited compensation without fault liability adjudication. Facts Of The Case: On the night of November 15, 2006, Surender Singh was driving a tr...
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