Pranay Sethi judgement - The Legal Chamber

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...

The Supreme Court ruled that pension benefits cannot be deducted from salary when computing motor accident compensation, as they are statutory rights unrelated to the accident. It upheld 78% disability (overriding lower courts' 50-61.94% assessments) and mandated 30% future prospects for the 43-year-old victim. The Court enhanced compensation to ₹67.36 lakhs with 7% interest, applying multipliers consistently with Sarla Verma and Pranay Sethi precedents, while clarifying that post-accident medical assessments must prevail over initial disability evaluations if unrebutted. Facts Of The Case: On May 10, 2010, Hanumantharaju B., a CRPF Sub-Inspector, met with a motor accident in Bengaluru when an Omni car collided with his motorcycle. He suffered grievous injuries, underwent multiple surg...

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