Abhaybhai: Three active legal heirs (names not specified).
Judges: J. Sanjay Karol and J. Nongmeikapam Kotiswar Singh.
Issues / Allegations / Violations
Determination of appropriate compensation for death of two minor students in a motor accident caused by a BMW car (registration GJ‑03‑LB‑4554) deemed 90 % negligent.
Assessment of notional monthly income of the deceased (initially ₹9,000 by High Court, contested as inadequate).
Calculation methodology: future prospects, multiplier, personal expense deduction, and contributory negligence.
Findings & Observations
The Supreme Court upheld the High Court’s finding of 90 % driver negligence and 10 % rider contributory negligence.
Adopted higher notional monthly income of ₹15,000 per deceased, citing precedents S. Mohammed Hakkim v. National Insurance Co. Ltd. and Navjot Singh v. Harpreet Singh.
Applied a 40 % addition for future prospects and a multiplier of 18 to the yearly income (₹1,80,000), resulting in a gross amount of ₹45,36,000.
Deducted one‑third (₹1,51,200) for personal expenses, yielding net loss of income/future earnings of ₹30,24,000.
Added loss of consortium (₹96,800) and funeral/estate expenses (₹18,150 each), bringing total compensation to ₹31,57,100 per deceased.
Penalties / Settlements / Directions
Total Compensation Awarded: ₹31,57,100 to the legal heirs of Hirenbhai Bhikhubhai Vekariya (MACP No. 37/2020) and ₹31,57,100 to the legal heirs of Abhaybhai Ravjibhai Parmar (MACP No. 38/2020).
Interest: 9 % per annum on the enhanced compensation from the date of filing of the claim petitions until realization.
Payment Directive: The Insurance Company (Respondent No. 3) shall deposit the enhanced amounts, after adjusting any sums already paid, within eight weeks of the order.
Remittance Instructions: Amounts to be directly transferred to the claimants’ bank accounts; account details to be supplied promptly by the appellants’ counsel.
Interest Computation: The period of delay in filing the appeal is excluded from interest calculation.
Corrective Actions & Future Obligations
The Insurance Company must provide the claimants’ bank account particulars to the respondent counsel immediately.
Ensure full payment of the enhanced compensation plus accrued interest within the stipulated eight‑week period.
If any portion of the amount has already been deposited (by the High Court or the Tribunal), that sum shall be combined with the interest and disbursed to the claimants.
All pending applications, if any, are to be disposed of by the Court.
Final Ruling & Enforcement
The Supreme Court allowed the appeals, modified the impugned awards, and directed the payment of the enhanced compensation as detailed above.
The order is enforceable immediately, with the Insurance Company liable for compliance and interest obligations.
