Supreme Court Awards Rs 60 Lakh Compensation in Road Accident Case, Overturns High Court Order
In a landmark ruling on motor accident compensation, the Supreme Court of India has awarded Rs 60 lakh to the widow and minor daughter of a road accident victim. This decision sets aside a controversial order by the Madhya Pradesh High Court, which had drastically reduced the compensation from Rs 52 lakh to a mere Rs 9 lakh.
Details of the Case and Judicial Proceedings
A Division Bench comprising Justices Sanjay Karol and A G Masih delivered the verdict, strongly criticizing the High Court for disregarding credible evidence regarding the deceased's income. The Bench held that the High Court erred in arbitrarily slashing the compensation without proper justification.
The case stems from a tragic road accident in 2018, where the victim, an operator of JCB machines and bulldozers, lost his life. Following his death, his wife and eight-year-old daughter filed a claim with the Motor Accident Claims Tribunal (MACT) in Katni, Madhya Pradesh. They asserted that he earned Rs 24,000 per month as a skilled worker and sought compensation of Rs 75 lakh.
The MACT initially awarded Rs 52 lakh along with interest, recognizing the family's loss. However, the insurance company involved, IFFCO Tokio General Insurance Co Ltd., challenged this award before the High Court. The insurer argued that the deceased's income was not adequately proven, leading the High Court to reduce the compensation to Rs 9 lakh. In doing so, the High Court treated the deceased as an unskilled worker, citing a lack of sufficient documentary proof.
Supreme Court's Rationale and Final Ruling
Dissatisfied with the reduction, the claimants approached the Supreme Court through a special leave petition. Representing the family, advocates Siddharth R Gupta and Yogesh Soni presented compelling arguments. They contended that the employer's testimony and salary certificate, already on record, were sufficient to establish the income, aligning with established Supreme Court precedents.
Furthermore, the advocates emphasized that operating heavy machinery such as JCBs and bulldozers constitutes skilled work and should not be equated with unskilled labor. The Supreme Court agreed with these submissions, ruling that the employer's testimony and salary certificate constituted reliable evidence that should not have been discarded.
The court observed that the High Court's approach in reducing the compensation was unjustified, especially since the evidence had not been disputed. In its final order, the Supreme Court restored and enhanced the compensation to Rs 60 lakh, directing the insurance company to immediately release the amount to the claimants and file a compliance report.
This ruling underscores the judiciary's commitment to ensuring fair compensation for accident victims and their families, based on credible evidence and legal principles.
