Supreme Court restores tribunal award for parents of child killed by state transport bus; High Court cut set aside

A bench of Justices K. Vinod Chandran and N.V. Anjaria heard an appeal by the parents of a ten‑year‑old boy challenging the Madurai Bench of Madras High Court’s reduction of compensation awarded for their son’s death in a road accident. The appeal concerned only quantum; there was no dispute on negligence attributed to the driver of the respondent Tamil Nadu State Transport Corporation bus.

The Court allowed the appeal and restored the award made by the Motor Accident Claims Tribunal. The Tribunal had awarded Rs.8,55,000, having reckoned the child’s prospective monthly income at Rs.5,000, applied a multiplier and made deductions as reflected in its computation; the High Court had reduced the income to Rs.30,000 per year as per Schedule II to the Motor Vehicles Act and applied a lower multiplier, thereby decreasing the total award to Rs.5,80,000. The Supreme Court held that Schedule II applied to claims under Section 163A (no‑fault compensation) and could not be mechanically imposed in a Section 166 claim involving proven negligence. The Court, in its reasoning, observed: “There is no straight jacket formula as to the income to be adopted in the case of children when they suffer injuries or succumb to death, in a motor vehicle accident. In fact, the Tribunal had considered a Division Bench decision which adopted the income of Rs.5,000/- per month for a 9‑year old. The High Court does not give any reasoning to deviate from the said monthly income adopted by a Division Bench and merely adopts the income as per Schedule II. Schedule II is applied in cases where the claim is made under Section 163A of the Act, which proceeds on a ‘no fault liability’. In the present case a claim under Section 166 of the Act was preferred and there was negligence found on the driver of the offending vehicle.” The Court therefore set aside the High Court’s order and restored the Tribunal’s award, directing payment after adjusting amounts already paid.

Background The dispute arose after a ten‑year‑old boy cycling to school was struck and killed by a bus owned by the Tamil Nadu State Transport Corporation. The appellants (the parents) instituted a claim before the Motor Accident Claims Tribunal under Section 166 of the Motor Vehicles Act; negligence on the part of the bus driver was found by the Tribunal. The Tribunal computed compensation at Rs.8,55,000, adopting Rs.5,000 per month as the child’s notional income, applying a multiplier (the Tribunal used 18) and awarding amounts for loss of love and affection (Rs.1,00,000), funeral and incidental expenses.

On appeal the High Court reduced the award: it adopted the Schedule II figure of Rs.30,000 per annum for a child, applied a multiplier of 15 (considering the mother’s age), reduced funeral expenses and deleted amounts awarded for transportation and damage to clothing and the cycle, while adding Rs.15,000 for loss of estate, arriving at Rs.5,80,000. The State relied on Schedule II; the appellants urged that a Division Bench precedent and the Tribunal’s assessment of Rs.5,000 per month were appropriate for a Section 166 claim and that Schedule II’s tables were inapposite in a fault‑based claim.

The Supreme Court noted that Schedule II governed Section 163A claims and could not be applied mechanically to Section 166 matters where negligence was established. The Court observed that there was “no question of any deduction for personal expenses” in the child’s case and that the High Court had not explained its departure from Division Bench reasoning relied upon by the Tribunal. The Court also applied the legal position on solatium set out by a Constitution Bench in Pranay Sethi, noting the appropriate limits for filial consortium, and recorded that “the order of the Tribunal is restored.” The appeal was allowed; the Tribunal award was to be paid by the respondent after deducting amounts already paid or deposited, within one month, with interest as previously directed by the Tribunal or the High Court. Pending applications, if any, stood disposed of.

Case No.: Civil Appeal No. 3595 of 2024 Case Title: Thangavel & Ors. v. The Managing Director, Tamil Nadu State Transport Corporation Limited Appearances: For the Petitioner(s): Not indicated in the reported judgment For the Respondent(s): Not indicated in the reported judgment