Legal Provisions Involved: Sections 166 and 173 of the Motor Vehicles Act, 1988 ; Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006; Code of Civil Procedure, 1908. 

Judgement by: Supreme Court of India

Judge/Bench: Justice Sanjay Karol and Justice Augustine George Masih

Facts

A motorcycle collision with a jeep resulted in the death of a government employee. Her dependents filed a claim before the Motor Accidents Claims Tribunal, Rohtak, which awarded Rs. 8,80,000/-. On appeal, the High Court enhanced the compensation to Rs. 29,09,240/- but directed deduction of amounts received under the 2006 Rules.

Key Legal Provisions

Sections 166 and 173 of the Motor Vehicles Act, 1988; Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006; Code of Civil Procedure, 1908. 

Issues raised

Whether the amounts received under the 2006 Rules should be deducted from motor accident compensation? 

Arguments of the case

The Appellant argued that benefits replacing lost income must be deducted to prevent double recovery while the Respondent argued that the entire compensation should be payable. 

Judgement

The Supreme Court allowed the appeals, restoring the Main Order. It was held that only benefits corresponding to “pay and allowances” under the 2006 Rules are deductible; other benefits like pension remain unaffected. 

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