Tag: Pranay Sethi Judgment

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation
Supreme Court

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation

The Supreme Court clarified that for computing compensation in motor accident claims, the deceased's income includes all allowances, regardless of taxability. Future prospects for a permanent employee below 40 are to be added at 50%. Income tax deduction, if applicable, must be calculated as per the actual tax slab rates for the relevant year. Facts Of The Case: The case originated from a motor accident claim filed by the dependents of a 27-year-old engineer employed with the Power Grid Corporation of India, who died in an accident. The Motor Accident Claims Tribunal awarded compensation of approximately ₹88.20 lakhs. This computation included his full monthly salary of ₹53,367 (comprising basic pay, DA, and other allowances), applied a multiplier of 18, added 50% for future prospe...
Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims
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...
Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death
Supreme Court

Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

The Supreme Court clarified that in claims under Section 166 of the MV Act, a notional income for a deceased child need not be limited to the figures in Schedule II (for Section 163-A claims). It reinstated the Tribunal's calculation, confirming no deduction for personal expenses is required in such cases. Facts Of The Case: The case originated from a motor accident involving a 10-year-old boy who was fatally struck by a bus owned by the Tamil Nadu State Transport Corporation while he was cycling to school. The parents of the deceased child filed a claim petition before the Motor Accidents Claims Tribunal. The Tribunal, acknowledging the undisputed negligence of the bus driver, awarded a total compensation of ₹8,55,000. This calculation was based on attributing a notional monthly...