VidhiSangh

Supreme Court of India · 16/03/2025

SHIVALEELA AND OTHERS A1: SHIVALEELA A2: KUMARI KAVYA A3: KUMARI PURNIMA A4: KUMARI SHRAVYA A5: MASTER VEERESH A6: K. H. M. SHIVAMURTHAIAH versus THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD. & OTHERS R1: THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD. R2: SRI. GIRISH B. R3: DR. BASAVARAJA

[2025] 4 S.C.R. 63 · 2025 INSC 357

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Summary

Motor accident claim by the dependants of a 32-year-old agriculturist who also ran milk-vending and tractor-hiring businesses. The MACT had assessed his notional income at Rs.10,000 per month and the High Court reduced it to Rs.8,000; the Supreme Court held that both courts ignored the evidence of a Rs.4,20,000 agricultural loan, banana-crop sales of over Rs.5,00,000 in a few months, a family tractor and monthly milk payments, fixed the monthly income at Rs.15,000, raised interest to 7.5% per annum and re-computed the compensation at Rs.35,66,600.

Issues

  1. Whether the MACT and the High Court correctly assessed the monthly income of the deceased at Rs.10,000 and Rs.8,000 respectively, when evidence of agricultural loans, crop sales, a family tractor and milk-vending income was on record.
  2. What monthly income should be taken for computing loss of dependency, and at what rate interest should run on the compensation.

Provisions considered

Held

Result

Appeals partly allowed; High Court order modified by taking the deceased's monthly income as Rs.15,000 instead of Rs.8,000 and interest at 7.5% per annum instead of 6%, total compensation Rs.35,66,600; parties to bear their own costs; application to file additional documents allowed.

Judgment PDF: Supreme Court of India, [2025] 4 S.C.R. 63.