VidhiSangh

Supreme Court of India · 23/04/2019

NATIONAL INSURANCE COMPANY LTD. versus MANNAT JOHAL & ORS. ETC. ETC.

[2019] 6 S.C.R. 683 · 2019 INSC 561

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Summary

The Supreme Court sustained motor-accident compensation of Rs 48 lakh with interest at 7.5% per annum, rejecting both the insurer’s demand for deductions and the claimants’ challenge to the reduced interest rate. The employer’s one-time ex gratia payment was not shown to be continuing salary assistance under service rules. The overall assessment remained just, particularly since the High Court had allowed only 40%, rather than 50%, for future prospects despite the deceased’s settled employment.

Issues

  1. Whether the employer’s ex gratia payment required deduction from compensation.
  2. Whether the income assessment and allowances justified modification of the award.
  3. Whether interest should be restored from 7.5% to 12% per annum.

Held

Result

Insurer’s and claimants’ appeals dismissed. High Court award of Rs 48 lakh with interest at 7.5% per annum from filing of the claim petition until realisation left undisturbed.

Judgment PDF: Supreme Court of India, [2019] 6 S.C.R. 683.