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Manjula & Ors. vs. The Branch Manager, Oriental Insurance Company Ltd., Bijapur

Not available · 2025 INSC 1093Decided 9 Sept 2025
Not available
Justice K. Vinod Chandran · Justice N.V. Anjaria

Background

Four friends from Bijapur, on a pilgrimage to Shirdi, died on the spot when their car was hit head-on by a rashly driven goods lorry on the Bijapur-Horti Road. The claimants (family of one of the deceased) sought enhanced compensation. The Tribunal fixed the deceased's monthly income at Rs. 6,000, but the High Court reduced it to Rs. 5,500 without giving any reasoning, prompting this appeal.

Decision Breakdown

The Supreme Court held that the High Court's reduction of income was unreasoned and unsustainable, since the trial court had relied on documentary evidence showing the deceased was a pharmacy diploma holder involved in a medical shop, a pharmaceutical distributorship, and a cooperative bank directorship (though none of these incomes was fully proven). Drawing an analogy to what even an unskilled worker (a coolie) would have earned by 2010, the Court fixed the deceased's monthly income at Rs. 12,000. It upheld the multiplier of 14 and 25% future prospects, along with standard amounts for loss of estate, funeral expenses, and loss of consortium (extended to spouse, children, and parents), raising the total award to Rs. 20,80,000, payable with 6% interest within three months.

Lesson Learnt

In motor accident compensation cases, appellate courts must not reduce a tribunal's income determination without recording clear reasons or referring to evidence; compensation should realistically reflect a deceased person's demonstrated skills and multiple income sources rather than being arbitrarily lowered.

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

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