In Brief
A 27-year-old engineer died in a motor accident in 2011. The Motor Accident Claims Tribunal awarded his family Rs. 88,20,454 as compensation, including his salary, allowances, future prospects at 50%, and conventional heads. The High Court reduced this to Rs. 38,15,499 by excluding allowances, cutting future prospects to 40%, and imposing a flat 30% income tax deduction. The Supreme Court held that allowances must be included in computing loss of income, tax deductions should reflect actual applicable rates, and future prospects for a deceased under 40 with permanent employment should be 50%. The Court restored compensation at Rs. 74,43,631 with 6% annual interest.
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