The Supreme Court of India has significantly enhanced compensation awarded in a 2000 motor accident case involving the death of a young engineering student, observing that the future earning potential of meritorious students cannot be treated at par with unskilled workers.
A bench of Justice Vijay Bishnoi and Justice S. V. N. Bhatti increased the compensation from ₹13.44 lakh to ₹19.25 lakh in the case of Mohinder Kaur (D) Through L.R. v. Brij Lal Arora and Ors. decided on May 12, 2026.
Background of the Case
The case arose from a road accident that took place on May 28, 2000, on the Delhi-Mathura road. Karan Pal Singh, a 22-year-old mechanical engineering student, was travelling on a motorcycle with his classmate when a truck allegedly driven rashly hit them. The student was taken for treatment and later succumbed to his injuries in Agra.
His mother approached the Motor Accident Claims Tribunal seeking compensation. The Tribunal initially awarded ₹2.23 lakh, which was later enhanced by the Punjab and Haryana High Court to ₹13.44 lakh. Dissatisfied with the amount, the family moved the Supreme Court seeking further enhancement.
Court’s Observations
The Supreme Court noted that the deceased was not an ordinary student but someone with strong academic credentials. The bench recorded that he was pursuing mechanical engineering, had completed a diploma in Plastic Engineering, and also possessed AutoCAD certification.
“The amount seems wholly inadequate for the deceased, who was a bright Engineering student with promising prospects,” the bench observed while examining the compensation fixed by the High Court.
Referring to earlier judgments, the Court said the earning potential of engineering students cannot be assessed on the same basis as minimum wages payable to unskilled labourers.
The Court also disagreed with the High Court’s refusal to grant future prospects merely because the income assessed was “notional.” It held that settled legal principles require future prospects to be added even in such cases.
Compensation Recalculated
The bench reassessed the student’s monthly income at ₹12,000 considering his educational background and career potential. After adding 40% future prospects and applying the multiplier method, the Court calculated the loss of dependency at ₹18.14 lakh.
The Court further granted:
- ₹15,000 towards loss of estate
- ₹40,000 towards filial consortium
- ₹30,000 towards funeral expenses
- ₹25,670 for motorcycle damage
The total compensation was fixed at ₹19,25,070 with interest at 7.5% per annum from the date of filing of the claim petition.
Decision
The Supreme Court directed the respondents to jointly and severally pay the enhanced compensation within eight weeks. With these directions, the appeal was disposed of.
Case Details:
Case Title: Mohinder Kaur (D) Through L.R. v. Brij Lal Arora and Ors.
Case Number: Civil Appeal arising out of SLP (Civil) No. 580 of 2020
Judges: Justice S. V. N. Bhatti and Justice Vijay Bishnoi
Decision Date: May 12, 2026
