Neelam vs Ganga Singh
- Neutral2026 INSC 512
Ratio decidendi
The rule this decision rests on
Where a deceased person's actual income cannot be established through documentary evidence such as Income Tax Returns, but oral evidence and the issuance of a PAN card indicate engagement in skilled business activity, the court may determine monthly income by reference to benchmarks established for comparable occupations, adjusted for inflation over time, rather than being bound by the unsubstantiated claim advanced by the claimants. In computing loss of consortium in motor accident compensation cases, filial consortium—the loss suffered by children from deprivation of their father's company and guidance—is an independent head of damage compensable to the children in addition to spousal consortium awarded to the widow. Where minor children are entitled to compensation in a motor accident claim, if those children have attained majority by the time of final award, the court need not direct deposit of the awarded amount in fixed deposit as a protective measure.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2026 INSC 512 Non-Reportable
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
Civil Appeal No.7935 of 2026
Smt. Neelam and Ors. …Appellants Versus Ganga Singh and Ors. …Respondents
ORDER
An unfortunate accident, wherein a tractor driven rashly and
negligently mowed down a motorcycle, left a family without its
breadwinner. The widow and three children of the deceased
were before the Motor Accident Claims Tribunal, Gwalior,
Madhya Pradesh. The Tribunal computed the monthly income of
the deceased at Rs.4,000/- and awarded a compensation of
Rs.6,16,000/- with interest at the rate of 7 % per annum.
2. Before the High Court, an appeal was filed in which
modifications were made, enhancing the compensation to Signature Not Verified Digitally signed by babita pandey Date: 2026.05.19 17:46:02 IST Reason: Page 1 of 4 Civil Appeal No.7935 of 2026 Rs.8,26,000/- based on the decision of the Constitution Bench of
this Court in National Insurance Co. Ltd. v. Pranay Sethi1.
3. The appellants, the claimants, are before this Court seeking
further enhancement of the compensation. The Tribunal adopted
Rs.4,000/- as the monthly income considering the fact that even
an unskilled labourer would be entitled to Rs.3,000/- to Rs.3,500/-
per month and since the deceased had a PAN card issued in his
name, there could be marginal enhancement.
4. In fact, this Court in Ramachandrappa v. Royal Sundaram
Alliance Insurance Co. Ltd.2 held that a Coolie would be entitled
to a monthly income of Rs.4,500/- in the year 2004. The
Constitution Bench decision in Pranay Sethi1 accepted the
principle that there could be incremental increase on passage of
time. Hence, a Coolie would be entitled to enhancement of
Rs.500/- per year in which circumstances in the year 2010, the
monthly income for a Coolie can be safely determined at
Rs.7,500/- per month.
5. In the present case, the deceased was said to have been
running a business of erecting tents for events and carrying out
1 (2017) 16 SCC 680 2 (2011) 13 SCC 236
Page 2 of 4 Civil Appeal No.7935 of 2026 decoration work therein. There were also witnesses proferred to
depose that they had been the clients of the deceased. However,
no documentary proof has been produced to substantiate this
claim and despite the deceased having obtained a PAN card,
there was no Income Tax Return filed. However, the issuance of a
PAN card in the name of the deceased and the oral evidence led
before the Tribunal would persuade us to assume that the
deceased had a monthly income more than that of a Coolie. The
claim before the Tribunal, which was not substantiated, was of
Rs.15,000/- per month. We are of the opinion that the monthly
income of the deceased can be safely determined to be
Rs.10,000/-.
6. Though, the High Court had adopted the principle in Pranay
Sethi1 loss of consortium was granted only to the wife. This Court
in New India Assurance Company v. Somwati and Ors.3 held that
not only spousal consortium, filial consortium can also be granted
to the children for having lost the company of their father.
7. The total amounts awarded, hence would be as per the
following computation:
3
(2020) 9 SCC 644
Page 3 of 4 Civil Appeal No.7935 of 2026 S. No. Particulars Amount
1. Loss of Income Rs.18,90,000/- (10,000 x 140% x 12 x 15 x 3/4
2. Loss of Consortium Rs.1,20,000/-
3. Loss of Estate Rs.15,000/-
4. Funeral Expenses Rs.15,000/-
Total Rs.20,40,000/-
8. The above amount shall be paid to the appellants with
interest at the rate of 7%, after deducting what has already been
paid, within a period of two months.
9. Further, if the children of the deceased have attained
majority, there is no need to deposit the amount in fixed deposit
as directed by the Tribunal.
10. The appeal stands allowed with the above directions.
11. Pending application(s), if any, shall stand disposed of.
……….…………………….….. J.
(SANJAY KUMAR)
……….…………………….….. J.
(K. VINOD CHANDRAN)
NEW DELHI;
MAY 15, 2026.
Page 4 of 4 Civil Appeal No.7935 of 2026
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