Motor Vehicle Act, 1988 – s.166 r/w. s.140 – On 12.08.2008, a Bus allegedly driven in a negligent manner hit a motorcycle, which was driven by victim along with his wife – Victim died – Claim petition filed – MACT awarded a compensation of Rs.31,41,000/- with interest at the rate of 9% p.a. from the date of filing of the Claim Petition – However, the High Court reduced the compensation payable to the appellants from Rs.31,41,000/- to Rs.16,97,370/- – Correctness: Held: The High Court interfered and reduced the compensation as awarded by the Tribunal only on the ground that Return for the Assessment Year 2008-2009 had to be excluded from consideration – It is not in dispute that the deceased was a businessman – The relevance of the Income Tax Return stems, in the context of the Act, for the period which it relates to i.e., the Financial Year concerned, and not on the date on which it is filed with the Income Tax Department – When faced with Returns for different Assessment Years, it would be upto the Tribunal concerned to adopt either the average income therefrom or choose an Assessment Year to rely upon – There is good reason to leave judicial discretion on the Tribunal to adopt one of the afore-noted two courses of action, bearing in nature the social purpose and object behind the Act, which is a beneficial legislation – It is quite unfortunate that the High Court in the present case has dealt with the matter in such a casual and superficial way where the rightful claim of the appellants under a welfare legislation has been drastically reduced without any cogent reason on a very tenuous ground – Thus, the impugned order is modified to the extent that the original amount Rs.31,41,000/- awarded by the Tribunal as compensation is restored. [Paras 15, 16]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan Also reported as [2025] 4 SCR 63 : 2025 INSC 357.. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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