Facts: D. Velu, aged 37, died in a road accident on 09.06.2011 when a tanker lorry hit his two-wheeler due to rash and negligent driving. His widow, minor children, and parents filed a claim petition before the Motor Accidents Claims Tribunal (MACT) seeking Rs. 20,00,000/- as compensation. The insurer contested the claim, disputing negligence, income, and quantum of compensation.
Procedural Posture: The MACT awarded Rs. 9,37,000/- with 7.5% interest, determining the victim's monthly income as Rs. 6,000/-. The claimants appealed to the High Court, which partly allowed the appeal and modified the award to Rs. 10,51,000/-, reckoning the monthly salary as Rs. 7,000/-. Dissatisfied with the minor modification and denial of future prospects, the claimants appealed to the Supreme Court.
Issue: The Supreme Court addressed two primary issues: (i) the assessment of the victim's income and the denial of any amount towards future prospects, and (ii) the grant of compensation under the head "loss of love and affection".
Holding: The Supreme Court enhanced the compensation, holding that the victim's monthly income should be reckoned as Rs. 10,000/- and that future prospects should be added. It also clarified that compensation for "loss of love and affection" is comprehended within the broader head of "consortium".
Reasoning: The Court relied on documentary evidence (salary certificate) to determine the victim's income. Referring to Pranay Sethi, the Court emphasized that adding future prospects to the income of the deceased is compulsory, not discretionary. The Court also clarified that while Rajesh v. Rajbir had recognized "loss of love and affection" as a distinct head, the Constitution Bench in Pranay Sethi disapproved of this approach, stating that such compensation is subsumed under "consortium". The Court harmonized Pranay Sethi and Magma General Insurance, stating that consortium is a compendious term encompassing spousal, parental, and filial consortium. The Court directed the insurer to pay the balance compensation with 9% interest from the date of filing the claim petition.