In Brief
K. Ramya and others appealed against the High Court's decision reducing motor vehicle accident compensation from Rs 4.29 crores to Rs 57.90 lakhs. The deceased, a businessman with diverse interests in jewellery, textiles, and agriculture, died in a collision where the opposing driver was at fault. The Supreme Court held that the High Court wrongly rejected income tax returns and audit reports as evidence. The Court divided the deceased's income into two categories: business ventures (entirely includable as loss of income given his active involvement) and house property/agricultural income (where only managerial skills valued at Rs 2.50 lakhs should be deducted). Adding 40% future prospects, deducting one-fourth for personal expenses, and applying a multiplier of 16, the Court awarded enhanced compensation of Rs 2.27 crores with 7.5% interest.
The lawyer headnote and full judgment text are available to registered users.