Category: Accident

Income-Deceased aged 38 years was in the business of selling desi ghee and namkeen bhujia in a small village—Held; Income assessed by Tribunal as Rs.1200/ – per month is on lower side—Income should have been assessed at Rs.2500/- per month keeping in view circumstances of case

2018(3) Law Herald (SC) 2305 : 2018 LawHerald.Org 1492 IN THE SUPREME COURT OF INDIA Before Hon’ble Mr. Chief Justice DipakMisra Honble Mr. Justice A M Khanwilkar Civil Appeal No.7279of2018 (Arising…

IMP – PAY & RECOVER — Accident—Tractor-trailer—No evidence that any trailer was insured or trailer was attached to the tractor—Thus, it would follow that injured person (other than driver of tractor) travelled in tractor as a passenger–Insurance company not liable to pay-However, insurance company directed to pay & recover.

  2018(3) Law Herald (SC) 2288 : 2018 LawHerald.Org 1489 IN THE SUPREME COURT OF INDIA Before Hon’ble Mr. Chief Justice Dipak Misra                  Hon’ble Mr. Justice A.M. Khanwilkar CIVIL…

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Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.