LexS. VISHNU GANGA & ORS. versus M/S ORIENTAL INSURANCE COMPANY LIMITED REP. BY ITS DIVISIONAL MANAGER & ORS.
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[2025] 1 S.C.R. 1163 : 2025 INSC 123 S. Vishnu Ganga & Ors. v. M/s Oriental Insurance Company Limited Rep. by Its Divisional Manager & Ors. (Civil Appeals No(s). 1162-1163 of 2025) 29 January 2025 [Sudhanshu Dhulia and Ahsanuddin Amanullah,* JJ.] Issue for Consideration Matter pertains to the correctness of the order passed by the High Court reducing the amount of compensation granted under the Motor Vehicles Act, 1988. Headnotes† Motor Vehicles Act, 1988 – Compensation – Enhancement – Parents of the appellants met with an accident resulting in their death while travelling in a vehicle after the bus belonging to respondent no.3 dashed into the said vehicle – Appellants claimed identical compensation for the parents as both were partners in a Mill – Tribunal granted compensation of Rs.58,24,000/- for the father and Rs.93,61,000/- for the mother with interest – High Court reduced the amount of compensation to Rs.26,68,600/- for the father and Rs.19,22,680/- for the mother – Interference with: Held: Award rendered by the tribunal is well-considered – Merely because the appellants stepped into the shoes of the deceased, by such factum itself, the appellants would not be capable of running the Mill – Lack of experience and maturity, real/expected downfall in the profitability of the firm relevant while considering a claim pertaining to loss of future income/earnings – Notional income fixed by the tribunal of Rs.60,000/- each per month, is much more reasonable – Income Tax Returns reliable evidence to assess the income of a deceased – Between the formula applied by the tribunal vis-a-vis the approach adopted by the High Court, the view of the tribunal rendered in the form of the award satisfies the judicial conscience – High Court’s reasoning militates against settled law – Impugned judgment set aside. [Paras 11, 14] * Author 1164 [2025] 1 S.C.R. Supreme Court Reports Case Law Cited K Ramya v. National Insurance Co. Ltd. [2022] 18 SCR 238 : 2022 SCC OnLine SC 1338; Amrit Bhanu Shali v. National Insurance Co. Ltd. [2012] 5 SCR 207 : (2012) 11 SCC 738; Kalpanaraj v. Tamil Nadu State Transport Corporation [2014] 6 SCR 577 : (2015) 2 SCC 764 – relied on. B Parimala v. Riyaz Ahmed, 2000 SCC OnLine Kar 446; Sushma H.R. & Anr. v. Deepak Kumar Jha & Ors., 2022 SCC OnLine SC 2166; Helen C Rebello v. Maharashtra State Road Transport Corporation [1998] Supp. 1 SCR 684 : (1999) 1 SCC 90; United India Insurance Co. Ltd. v. Patricia Jean Mahajan (2002) 6 SCC 281; New India Assurance Co. Ltd. v. Charlie [2005] 2 SCR 1173 : (2005) 10 SCC 720; National Insurance Co. Ltd. v. Indira Srivastava [2007] 13 SCR 352 : (2008) 2 SCC 763; Yadava Kumar v. Divisional Manager, National Insurance Co. Ltd. [2010] 10 SCR 746 : (2010) 10 SCC 341; National Insurance Co. Ltd. v. Pranay Sethi [2017] 13 SCR 100 : (2017) 16 SCC 680; Ningamma v. United India Insurance Co. Ltd. [2009] 8 SCR 683 : (2009) 13 SCC 710 – referred to. List of Books and Periodicals Cited Peter Cane, Atiyah’s Accidents, Compensation and the Law (7th Edition, Cambridge University Press, 2006) 411-412 – referred to. List of Acts Motor Vehicles Act, 1988. List of Keywords Compensation; Lack of experience and maturity; Real/expected downfall in the profitability of the firm; Loss of future income/earnings; Notional income; Income Tax Returns; Judicial conscience; Motor Accidents Claims; Death due to motor vehicle accident; Formula for calculating compensation. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 1162-1163 of 2025 [2025] 1 S.C.R. 1165 S. Vishnu Ganga & Ors. v. M/s Oriental Insurance Company Limited Rep. by Its Divisional Manager & Ors. From the Judgment and Order dated 22.12.2017 of the High Court of Judicature at Madras at Madurai in CMAMD Nos.1075 and 1076 of 2015 Appearances for Parties Advs. for the Appellants: Ms. Kiran Suri, Sr. Adv., T. R. B. Sivakumar, Deva Vrat Anand, Ms. Hema Malik. Advs. for the Respondents: Sudhir Naagar, Abhishek Kumar Gola, Ramneek Singh, Mayank Sachdeva, Ms. Aparna Dubey, Ms. Shaily Tarrar, Ms. Sonia Mottan, Subhash Motan, Ms. G. Indira, P Gandepan, Ms. Larika Khandalwal, Ashwini Kumar, Ms. D Poornima. Judgment / Order of the Supreme Court Judgment Ahsanuddin Amanullah, J. Leave granted. 2. The present appeals are directed against the Final Order and Judgment dated 22.12.2017 (hereinafter referred to as the “Impugned Judgment”) passed by a learned Division Bench of t
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