In Brief
On 30 December 1995, an oil tanker collided head-on with a car driven by Rajpal Singh Johal, killing him and injuring his wife. A Motor Accident Claims Tribunal awarded Rs. 37,71,000 in compensation. The High Court enhanced this to Rs. 48,00,000 but reduced interest from 12% to 7.5% per annum. The insurer and claimants appealed the quantum and interest rate respectively. The Supreme Court dismissed both appeals, holding the High Court's award of Rs. 48,00,000 at 7.5% interest constituted just compensation, being broadly consistent with established principles for assessing pecuniary loss to dependents. The court rejected the insurer's demand to deduct ex gratia employer payments, distinguishing them from statutory schemes, and upheld the interest rate as reasonable.
The lawyer headnote and full judgment text are available to registered users.