RAJ RANI & ORS. versus ORIENTAL INSURANCE CO. LTD. & ORS.
Compensation must be calculated with annual income reflecting all allowances and future prospects; deduction only of 1/3rd towards personal expenses and 50% for contributory negligence. No deduction for lump sum payment. Just compensation is Rs.12,80,000 with 7.5% interest per annum to claimants.
- Parties
- Appellant: Raj Rani & Ors.; Respondent: Oriental Insurance Co. Ltd. & Ors.
- Jurisdiction
- India
- Judgment Date
- 06 May 2009
- Procedural Posture
- Civil Appeal / Supreme Court Appellate Decision
- Outcome
- Appeal allowed in part; compensation increased.
- Legal Topics
- Compensation, Quantum, Contributory Negligence, Multiplier, Future Prospects
Case Brief
Summary, issues, holding and outcome
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Parties
Raj Rani & Ors.
Appellant
Oriental Insurance Co. Ltd. & Ors.
Respondent
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Legal Issues
- 1 Whether deduction of 1/3rd twice from compensation was valid
- 2 Extent and apportionment of contributory negligence
- 3 Whether future prospects must be considered in assessment of compensation under s.166 of Motor Vehicles Act
Ratio Decidendi
Compensation must be calculated with annual income reflecting all allowances and future prospects; deduction only of 1/3rd towards personal expenses and 50% for contributory negligence. No deduction for lump sum payment. Just compensation is Rs.12,80,000 with 7.5% interest per annum to claimants.
Court Disposition
Appeal allowed in part; compensation increased.
Orders
- Claimants entitled to Rs.12,80,000/- compensation with interest at 7.5% per annum from date of petition to payment.
- No deduction for lump sum payment.
Full Case Text
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