In Brief
The widow and four daughters of Aranganathan, who died in a 2001 motor accident, appealed against a High Court judgment reducing compensation from Rs 59.04 lakh to Rs 33.55 lakh. The Supreme Court held that income tax returns are the primary basis for determining annual income in motor accident claims. While accepting the tax return figure of Rs 2,11,131, the Court added Rs 1,04,987 for prepaid license fees paid upfront, bringing annual income to Rs 3,16,118. Applying the 25% future prospects enhancement and 20% personal expense deduction, with a multiplier of 13, the Court enhanced compensation to Rs 42,29,534 with 9% interest. The appeal was partly allowed.">
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