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Neelam vs Ganga Singh

Supreme Court15 May 2026

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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