The Supreme Court of India has restored the compensation awarded by the Motor Accident Claims Tribunal (MACT) to the parents of a 10-year-old boy who died in a tragic road accident involving a bus operated by the Tamil Nadu State Transport Corporation.
The Madurai Bench of the Madras High Court had earlier reduced the compensation from ₹8.55 lakh to ₹5.80 lakh, prompting the parents to challenge the decision before the apex court.
Case Background
The boy was cycling to school when he was hit by the bus. While the Transport Corporation did not dispute the driver’s negligence, the appeal focused solely on the quantum of compensation.
Read also:- Kerala HC Clarifies: Property Possession Alone Doesn't Make One Liable for Senior Citizen's Maintenance
The Tribunal had calculated the compensation considering the notional income of ₹5,000 per month, applied a multiplier of 18, and deducted two-thirds for personal expenses. The award also included ₹1,00,000 for loss of love and affection, ₹25,000 for funeral expenses, and ₹5,000 each for transportation and loss of personal belongings.
The High Court reduced the estimated income to ₹30,000 per year, applying Schedule II of the Motor Vehicles Act, and adopted a multiplier of 15 based on the mother’s age. It also lowered funeral expenses to ₹15,000, deleted the transportation and clothing-related damages, but added ₹15,000 as loss of estate.
This resulted in the total amount being brought down to ₹5.80 lakh.
The apex court noted that there is no fixed formula for calculating income in cases involving children. It found the Tribunal’s adoption of ₹5,000 per month appropriate, as it was consistent with earlier Division Bench rulings.
Read also:- SC Acquits Woman in Murder Case Citing Doubts Over Evidence and Eyewitness Testimony
The court clarified that Schedule II applies only to Section 163A claims (no-fault liability), while this case was filed under Section 166, where negligence is established.
It also held there should be no deduction for personal expenses in such cases and that certain amounts wrongly deleted by the High Court, like transportation costs and loss of belongings, should be restored.
"We are of the opinion that the monthly income of ₹5,000 as adopted by the Tribunal is perfectly in order… There is no question of any deduction for personal expenses." – Supreme Court Bench
Read also:- SC Clarifies Limitation Period in Reassessment Orders Involving DRP for Non-Resident Assessees
While the recalculation could have resulted in ₹8.70 lakh, the court noted that the parents had not appealed for an increase. Therefore, it restored the Tribunal’s original award of ₹8.55 lakh.
The Transport Corporation was directed to pay the remaining amount within one month, after deducting any sums already paid or deposited, along with the applicable interest.
Case Title: Thangavel & Ors. vs. The Managing Director, Tamil Nadu State Transport Corporation Limited
Case Number: Civil Appeal No. 3595 of 2024
Date of Judgment: 8 August 2025
