Compensation arising out of motor vehicle accident should be proportionate to the income of the deceased : Bombay HC

TITLE : The Divisional Controller, NEKSRTC v Smt. Sushila

CITATION : First Appeal No. 1180 of 2011

CORAM : Hon’ble justice Smt.Vibha Kankanwadi and Hon’ble Justice Abhay S. Waghwase

DATE:  7th December, 2023


 The appeal is based on the judgement and award given by the Motor Accident claims Tribunal on 2011


A shrimant died in a car accident while his two wheeler was dashed by a KSRTC bus. It was alleged that the driver of the bus was negligent and rash along with being inexperienced. This incident took place in 2007. The respondent filed written statement and denied all the allegations. It has been contended that the claimants in collusion with police registered a false case against a driver of the respondent. According to the respondent, the deceased himself had lost the control over his vehicle as he was driving it recklessly and wanted to avoid a collision with jeep coming from opposite direction. The motor Accident claims held the respondent liable and ordered the respondent to pay Rs. 21,05,000 with 7.5% interest per annum. The appellant has appealed on the ground that the compensation is not enough considering the face that the deceased had an income of Rs.2,00,000 per month.


The court held in the affirmative that the driver and the respondent is vicariously liable to pay compensation. The provisions in respect of Section 166 of the Motor Vehicles Act and other Sections are benevolent provisions and it is settled principle of law that, in such cases the Tribunal is bound to grant just compensation. It was found by the court and the tribunal that the monthly income of the deceased according to Income tax returns filed was Rs.1,48,920 only. The court dismissed the order and findings of the Tribunal and allowed the party to deserve more compensation.

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Written by- Sanjana Ravichandran

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