Pranay Sethi Case - The Legal Chamber

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...

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...

Supreme Court Upholds Higher Compensation for Loss of Income in Road Accident Claim

The Supreme Court enhanced compensation for a road accident victim with 50% disability, revising multiple heads under the Motor Vehicles Act. It increased future income loss by applying a 40% future prospects multiplier and upheld medical expense reimbursement with additional allowances. The judgment reaffirmed principles from Pranay Sethi and Ramachandrappa, ensuring just compensation with 9% interest. Facts Of The Case: The case involves M. Seetharama, a 38-year-old man who suffered severe injuries in a road accident on 25.06.2015 when his bike collided with a rashly driven jeep. An FIR was registered against the jeep driver, confirming negligence. Seetharama sustained multiple fractures, including in his right femur, clavicle, tibia, and fibula, leading to vascular compromise and even...