Case Name: Mani Mangla & Ors. v. Abhyudaya Paliwal @ Banu & Ors.
Court/Authority: Supreme Court of India, Civil Appellate Jurisdiction
Appeal No.: Civil Appeal No. ___ of 2026 (arising out of SLP (C) No.16566 of 2026)
Order Date: 01 June 2026 (signed), New Delhi May 25, 2026
Original Tribunal Award Date: 27 August 2024
High Court Judgment Date: 9 September 2025
Parties Involved
Appellants: Mani Mangla & others (legal heirs of the deceased Arun Kumar Mangla)
Respondents: Abhyudaya Paliwal @ Banu & others; HDFC Ergo General Insurance Company Limited (insurance respondent)
Deceased: Arun Kumar Mangla, age 57, died 21 July 2019 in road accident
Issues / Allegations / Violations
Dispute over method of income assessment for compensation: MACT used notional monthly income Rs 30,000 instead of actual ITR gross income Rs 6,97,287 per annum.
Appellants alleged arbitrary splitting of sole proprietor income and improper reduction, seeking enhanced compensation reflecting true earning capacity.
Question of liability of insurance company to pay additional compensation.
Findings & Observations
Supreme Court observed that compensation assessment should reflect ends of justice; noted that reliance on notional income undervalued loss.
Court considered income tax returns and financial documents of the deceased, finding merit in enhancing compensation.
High Court’s hypothetical approach was deemed insufficient.
Penalties / Settlements / Directions
HDFC Ergo General Insurance Company Limited directed to pay a lump‑sum amount of Rs 10,00,000 (Ten Lakh Rupees) to the appellants.
This amount is to be paid in addition to the existing compensation of Rs 27,57,700 awarded by MACT and affirmed by the High Court.
Payment to be deposited directly into the appellants’ bank accounts in the same proportion as the original award, within six weeks of the order.
In case of default, appellants entitled to interest at the rate awarded by the Labour Court/Tribunal.
Corrective Actions & Future Obligations
Appellants must furnish bank account particulars to the respondents’ counsel without delay.
Insurance company must comply with the payment schedule and proportionate allocation as per original award.
Final Ruling & Enforcement
Appeal disposed of in terms of the above directions; additional lump‑sum payment ordered.
Pending applications (IA No. 115620/2026 and IA No. 115619/2026) also disposed of.
Order signed by Justices Sanjay Karol and Augustine George Masih.
