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Motor Accident Compensation LawSupreme Court of India

Reliance General Insurance Company Limited v. Kanika & Ors.

Civil Appeal · 2026 INSC 188Decided 24 Feb 2026
C.A. No.-002506-002507 - 2026
Justice Sanjay Karol · Justice Augustine George Masih

Background

Kanika's sister, a government health worker, died in a motorcycle-jeep collision in 2009. The Motor Accidents Claims Tribunal awarded compensation, which the Punjab and Haryana High Court later enhanced, but the High Court's original ("Main") order held that ex-gratia amounts the family received under Haryana's 2006 Compassionate Assistance Rules had to be deducted from that compensation. The claimants then sought "clarification" of that order, and in a later order the High Court effectively reversed itself, holding those amounts need not be deducted after all: a reversal the insurer challenged before the Supreme Court.

Decision Breakdown

The Supreme Court held that once a High Court decides a motor-accident appeal, it cannot use an application styled as "clarification" to substantively change the judgment: the Motor Vehicles Act creates no such procedure, and any correction must fit within the narrow confines of Sections 151 and 152 of the Code of Civil Procedure. Section 152 CPC permits only correction of clerical or accidental errors, not re-determination of substantive issues, as settled in Jayalakshmi Coelho v. Oswald Joseph Coelho and State of Punjab v. Darshan Singh; similarly, the inherent power under Section 151 CPC cannot override the Code's express provisions. Applying the earlier three-judge bench ruling in Reliance General Insurance v. Shashi Sharma, the Court held that only benefits under the 2006 Rules that directly replace lost pay/allowances (not pensions or unrelated benefits) are deductible from motor-accident compensation. The Court set aside the "clarification" order, restored the original Main Order (including the deduction), and directed the claimants to file an affidavit before the Tribunal disclosing amounts received so the Tribunal can make a suitable disbursal order.

Lesson Learnt

A court cannot use a "clarification" application to substantively rewrite its own final judgment: genuine corrections are limited to clerical/accidental errors, and any attempt to alter findings or the compensation amount under the guise of clarification must instead go through the strict formal process of a review.

Reliance General Insurance Company Limited v. Kanika & Ors. – Legal Case Shots | LegalAware