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Kurvan Ansari alias Kurvan Ali & Anr. v. Shyam Kishore Murmu & Anr.

Civil Appeal · 2021 INSC 734Decided 16 Nov 2021
Civil Appeal No. 6902 of 2021
Justice R. Subhash Reddy · Justice Hrishikesh Roy

Background

The appellants' seven-year-old son was fatally struck by a motorcycle while standing near his grandparents' house in 2004. The motorcycle's driver, who lacked a valid driving licence, was found to have driven rashly and negligently. The parents sought compensation under Section 163-A of the Motor Vehicles Act, and the Tribunal awarded Rs. 2,25,000 based on a notional annual income of Rs. 15,000 (the statutory figure fixed back in 1994). The High Court added a small amount for funeral expenses but otherwise upheld the award, prompting the parents to appeal to the Supreme Court for a higher sum.

Decision Breakdown

The Supreme Court held that the notional income figure of Rs. 15,000 per annum, unchanged since 1994 despite the rising cost of living and repeated judicial directions to the government to revise it, was no longer "just and reasonable." Relying on its own precedents (Puttamma, R.K. Malik, Kishan Gopal), the Court raised the notional income to Rs. 25,000 per annum, which, applying the statutory multiplier of 15, increased the loss-of-dependency compensation to Rs. 3,75,000. It also awarded Rs. 40,000 each to the two parents for loss of filial consortium and Rs. 15,000 for funeral expenses, bringing the total to Rs. 4,70,000 with 6% interest from the date of the claim petition. The insurance company was directed to pay the full amount first and then recover it from the vehicle's owner, since the driver lacked a valid licence.

Lesson Learnt

Compensation for the death of a non-earning child under Section 163-A of the Motor Vehicles Act is not frozen at outdated statutory figures: courts can and will adjust the "notional income" upward to reflect inflation and cost of living when the government has failed to update the law.

Official source (sci.gov.in)View Judgment (PDF)

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