VidhiSangh

Supreme Court of India · 28/04/2025

NEW INDIA ASSURANCE CO. LTD. versus KAMLESH AND OTHERS.

[2025] 4 S.C.R. 2594 · 2025 INSC 724

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Summary

The dependants of a 43-year-old Haryana Government employee killed in a motor accident were also entitled to financial assistance under the Haryana Compensation Assistance to the Dependents of Deceased Government Employees Rules, 2006, and the High Court deducted half of that assistance from the Motor Vehicles Act compensation. The Court held that it was bound by the three-Judge decision in Reliance General Insurance v. Shashi Sharma, under which the pay and allowances payable under the 2006 Rules are deducted from the loss-of-income component (but not from consortium or other conventional heads), disagreed with the two-Judge decision in Krishna v. Tek Chand, and held that Sebastiani Lakra had not diluted Shashi Sharma. Compensation was recomputed at Rs.7,86,119 with no refund of amounts already paid.

Issues

  1. Whether the financial assistance payable under the Haryana 2006 Rules is deductible from compensation under the Motor Vehicles Act, 1988, and if so wholly or in part.
  2. Whether Shashi Sharma remained binding in view of Helen C. Rebello, Sebastiani Lakra and the two-Judge decision in Krishna v. Tek Chand.
  3. How the loss of income, loss of consortium and other conventional heads were to be computed and against which head the deduction was to be made.

Provisions considered

Held

Result

Appeals disposed of on the question of law following Shashi Sharma. Compensation recomputed at Rs.7,86,119 after deducting the financial assistance payable under the 2006 Rules from the loss of income; compensation already paid to the claimants not to be refunded.

Judgment PDF: Supreme Court of India, [2025] 4 S.C.R. 2594.