B. Sangeetha & Anr. v. OMR Travel Access Pvt. Ltd. & Anr.
Background
The appellants, wife and mother of a man who died in a motor accident in 2012, were awarded compensation by the Motor Accident Claims Tribunal based on his monthly salary of Rs. 9,000, later enhanced by the Madras High Court to Rs. 15,000 per month. The appellants argued that a salary certificate showing his actual income as Rs. 23,419 per month (from a sister company of his employer) had been wrongly disregarded by the High Court.
Decision Breakdown
The Supreme Court held that since the salary certificate and bank statements for the period closest to the accident were duly proved and were never effectively challenged by the insurer during cross-examination, there was no justification for discarding them in favour of older, lower salary figures. Recalculating compensation using the proven monthly income of Rs. 23,419, a multiplier of 17, 40% future prospects, and standard additions as laid down in the Constitution Bench ruling in National Insurance Co. v. Pranay Sethi, the Court raised the total compensation to Rs. 45,28,981 (about Rs. 45.29 lakh), payable with 9% annual interest from the date of filing.
Lesson Learnt
In compensation claims, courts must rely on the most recent and properly proved salary evidence (such as certificates and bank records) rather than discounting it in favour of older figures, especially when the other side does not seriously contest that evidence in cross-examination.