The Supreme Court allowed the appeal by the claimant, S. Shakul Hameed, against the Tamil Nadu State Transport Corporation Limited, enhancing compensation for injuries from a motor accident. The Court clarified that the claim, though filed under Section 163A of the Motor Vehicles Act, 1988, was actually under Section 166 due to allegations of rash and negligent driving. It modified the monthly income from Rs.3,300/- to Rs.5,000/- based on precedent, applied a multiplier of 17, added 40% future prospects, and restored the disability to 50%. The total compensation for loss of income was set at Rs.7,14,000/-, with other awards and interest affirmed. The respondent was directed to pay within three months.
The Supreme Court allowed the appeal filed by the claimant seeking enhancement of compensation awarded for injuries sustained in a motor accident -- The Court held that though the application mentioned Section 163A of the Motor Vehicles Act, 1988 (MV Act), the claim was actually under Section 166 of MV Act since the averments indicated the accident occurred due to rash and negligent driving -- The Court modified the income computation from Rs.3,300/- per month to Rs.5,000/- per month, relying on precedent in Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd. (2011) 13 SCC 236 -- The Court restored the disability assessment to 50% as fixed by the Tribunal, reversing the High Court's reduction to 40% without appeal by the Insurance Company -- The compensation was recalculated using a multiplier of 17, future prospects of 40% for self-employed claimant, and 50% disability -- The total award was enhanced to Rs.7,14,000/- for loss of income, with conventional heads and interest at 7.5% per annum affirmed
The appeal was allowed. The Court modified the income to Rs.5,000/- per month, applied a multiplier of 17, added 40% future prospects, and restored disability to 50%. Total compensation for loss of income was set at Rs.7,14,000/-, with conventional heads and interest at 7.5% affirmed. Respondent directed to pay within three months.
Citation: 2026 LawText (SC) (01) 23
Case Number: Civil Appeal No. of 2026 (@ Special Leave Petition (C) No. 7347 of 2024)
Date of Decision: 2026-01-06
Case Title: The Issue of Consideration was whether the Tribunal and High Court correctly applied Section 163A of the Motor Vehicles Act, 1988 for compensation computation, and whether the income and disability assessments were proper in the absence of concrete evidence
Before Judge: Ahsanuddin Amanullah J. , K. Vinod Chandran J.
Equivalent Citations: 2026 INSC 29
Appellant: S. Shakul Hameed
Respondent: Tamil Nadu State Transport Corporation Limited
Nature of Litigation: Civil appeal seeking enhancement of compensation awarded for injuries in a motor accident
Remedy Sought: Appellant sought enhancement of compensation amounts awarded by the Tribunal and High Court
Filing Reason: Dissatisfaction with the income computation at Rs.3,300/- per month and reduction of disability from 50% to 40%
Previous Decisions: Tribunal awarded Rs.2,12,800/-; High Court enhanced to Rs.2,23,000/- with 7.5% interest
Issues: Whether the claim was properly under Section 163A or Section 166 of the Motor Vehicles Act, 1988 Whether the income and disability assessments were correct in the absence of evidence
Submissions/Arguments: Appellant argued for minimum wages as income and against reduction of disability to 40% Respondent argued that application was under Section 163A with no evidence of employment or income, and disability assessment at 40% was correct
Ratio Decidendi: In motor accident claims, even if filed under Section 163A of the Motor Vehicles Act, 1988, the claim may be treated under Section 166 if allegations indicate rash and negligent driving. In absence of evidence, income can be computed based on precedent and nominal increases. Disability assessment should not be reduced without appeal by the opposing party. Future prospects of 40% apply to self-employed claimants.
Judgment Excerpts: "though Section 163A of the MV Act was mentioned in the application, the claim is one under Section 166 of the MV Act" (Para 5) "the income of the appellant, hence can be safely computed at Rs.5,000/- per month" (Para 6) "Disability as assessed by the Tribunal hence has to be maintained" (Para 7)
Procedural History: Claim filed before Tribunal -- Tribunal awarded Rs.2,12,800/- -- High Court enhanced to Rs.2,23,000/- with interest -- Supreme Court granted leave and heard appeal -- Supreme Court allowed appeal with modified compensation
