VidhiSangh

Supreme Court of India · 07/04/2025

NEW INDIA ASSURANCE CO. LTD. versus SMT. SUNITA SHARMA AND ORS.

[2025] 4 S.C.R. 603 · 2025 INSC 469

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court held that the High Court erred in deducting only 50% of the ex gratia financial assistance payable under the Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006 while computing Motor Vehicles Act compensation; following the three-Judge Bench decision in Shashi Sharma, the amount received or receivable under those Rules towards pay and allowances must be excluded in full, though no recovery was ordered of sums already paid.

Issues

  1. How compensation payable under the Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006 is to be treated when computing compensation under the Motor Vehicles Act, 1988.
  2. Whether the High Court could follow its own earlier decision in Kamla Devi v. Sahib Singh in preference to the Supreme Court's decision in Reliance General Insurance Co. Ltd. v. Shashi Sharma.

Provisions considered

Held

Result

Appeal allowed; the impugned judgment set aside to the extent it deducted only 50% of the compensation payable under the Rules of 2006; no recovery to be made of amounts already paid to the respondents; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2025] 4 S.C.R. 603.