As per case facts, a collision between a Hyundai Santro and a KSRTC bus led to the death of the claimant's husband and mother-in-law, and injuries to the claimant. The ...
2026 INSC 889
1
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 10755-10758 OF 2026
REENA
… APPELLANT(S)
VERSUS
THE MANAGING DIRECTOR,
KARNATAKA STATE ROAD
TRANSPORT CORPORATION AND OTHERS . … RESPONDENT(S)
J U D G M E N T
S.V.N. BHATTI, J.
1. The Civil Appeals are directed against the common Judgment dated
10.01.2025 in MFA Nos. 5074, 5075 and 5076 of 2014, and I.A. No. 1 of 2024
in MFA No. 5074 of 2014. The Appellant is the Claimant in the bunch of
Appeals. The details of the Civil Appeals are stated thus:
CLAIM
PETITION
APPEAL BEFORE HC CIVIL APPEAL
MVC No. 7828
of 2005
MFA No. 5074 of 2014
&
I.A. No. 1 of 2024 filed
in MFA No. 5074 of
2014
Civil Appeal No. 10755 of
2026
Civil Appeal No. 10758 of
2026
2
MVC No. 7829
of 2005
MFA No. 5075 of 2014
Civil Appeal No. 10756 of
2026
MVC No. 583
of 2006
MFA No. 5076 of 2014.
Civil Appeal No. 10757 of
2026
2. On 14.10.2005, at 1:20 AM, on NH-48, near Siddeshwara Petrol Bunk,
opposite Sapthagiri Hospital, Kunigal Town, Karnataka, a light motor vehicle,
Hyundai Santro No. KA-04-MB-2073, driven by Nandan Shet, and a heavy
passenger motor vehicle, KA-01-F-7846, driven by Ramalingappa G.
Poojari/RW1, collided. The Claimant was one of the passengers in the
Hyundai Santro. The other passengers were the Claimant’s husband,
Nandan Shet; the Claimant’s mother-in-law, Geetha Shet; and a family
friend, Mahesh. Nandan Shet, Geetha Shet, and Mahesh all died. The
Claimant sustained injuries and was hospitalised. She is surviving the
trauma and loss of family members and a friend. The Claimant’s husband
was aged 30 years and 11 months at the time of the accident. She avers that
her husband was a Mechanical Engineering Graduate, working in the
software field, and was also the Managing Director of his IT company, Geetha
Technologies. The Claimant’s mother-in-law, Late Geetha Shet, was a
homemaker and assisted the deceased, Nandan Shet, in his business. In the
present bunch of Appeals, we are not adverting to the details of Late Mahesh,
as the bunch of Appeals does not deal with the claim for grant of
compensation by his dependents.
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3. The subject accident was registered as FIR No. 275 of 2005 at the
Kunigal Police Station. A Charge Sheet was filed, and the driver of the Heavy
Passenger Vehicle was tried in CC No. 1002 of 2005 by the Court of the
Principal Civil Judge (Jr. Dn.) & JMFC, Kunigal. On 03.10.2008, the Trial
Court acquitted the driver/RW1 of the heavy passenger motor vehicle by
giving him the benefit of the doubt. The Claimant filed MVC No. 7828 of 2005,
claiming Rupees one crore and fifty lakhs as compensation for the demise of
her husband, Nandan Shet. The Claimant also filed MVC No. 7829 of 2005,
claiming compensation for the demise of her mother-in-law, Geetha Shet.
Lastly, MVC No. 583 of 2006 was also filed, seeking compensation for the
injuries the Claimant sustained and the medical expenses incurred for
treatment and convalescence. The MVCs were independent, but the narrative
in the claim for compensation is that the driver/RW1, in the wee hours on
14.10.2005, drove the vehicle in a rash and negligent manner, causing the
collision, accident, and the death of the two family members of the Claimant.
4. The Claimant, an injured passenger travelling in the Santro car,
survived the accident. The Claimant alleged that her husband was in the
prime of his life, healthy, working in the Software field, and running Geetha
Technologies. He was also a partner in Artium Technologies and, given his
educational background, avocation, and stake in two companies, he was
earning Rupees One Lakh to One Lakh Fifty Thousand per month. The
accident, it is alleged, occurred due to RW1’s rash and negligent driving of a
heavy passenger vehicle. The Claimant has rested her claim for
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compensation on the loss of dependency arising from the deaths of her
husband and mother-in-law, and for medical expenses.
5. The First Respondent, in the reply before the MACT, contended that
the heavy passenger motor vehicle is owned and operated by the Karnataka
State Road Transport Corporation (“KSRTC”). The Corporation itself is the
internal Insurer of the subject vehicle. The Second Respondent is the Insurer
of the Santro car. The Respondents are jointly and severally liable for the
claim for compensation. On the merits of the matter, the First Respondent
stated that RW1 was driving the vehicle slowly and cautiously on the left-
hand side of the road. The accident occurred due to the rash and negligent
driving by Nandan Shet, the driver of the Santro. The First Respondent is not
liable for compensation because the accident happened on account of the
exclusive rash and negligent driving of Nandan Shet. The Third Respondent
received notice, remained absent, and was set ex parte before the MACT. The
Second Respondent, the Insurer of Santro car No. KA-04-MB-2073, admits
that it issued a private car package insurance policy for the Santro car for
the period 23.12.2004 to 22.12.2005. The insurance company's objection is
that the insurance was in favour of Accenture Services Private Limited, and
the Santro car was under a financial arrangement with GE -Capital
Transformation Financial Services Limited. It is not clear how Nandan Shet
was driving the vehicle, and the insurance company therefore avers that the
Third Respondent has let the vehicle for “hire and reward”. Therefore, the
liability under the policy is contended to be non-answerable by the insurance
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company. The Tribunal, keeping in perspective the averments, framed the
following issues in MVC No. 7828 of 2005 for decision:
“1. Whether the petitioner proves that the deceased Nandan
Shet died due to injuries sustained in a road traffic accident
on 14.10.2005 at about 1.20 a.m., near Sapthagiri hospital,
opposite to Siddeshwara Petrol bunk, NH-48, Kunigal on
account of rash and negligent driving of KSRTC Bus bearing
Reg.No.KA-01-F-7846 by its driver?
2. Whether the petitioner is entitled for compensation as
claimed? If so, from whom? .
3. What Order or Award?”
6. The Claimant examined herself as PW1 and marked Exhibits P1 to P20
in MVC No. 7828 of 2005. Similarly, she was examined as PW1 and PW2 and
marked Exhibits P1 to P22 in MVC Nos. 7829 of 2005 and 583 of 2006.
7. The Tribunal, after appreciating the oral evidence of Claimant/PW1 as
an eyewitness, the registration of the FIR, read with the Charge Sheet in CC
No. 1002 of 2005, and the statement of bus conductor Suresh, who was
admittedly sitting next to RW1 at the time of the accident, recorded that the
accident was on account of the rash and negligent driving of a heavy
passenger motor vehicle by RW1. On Issue No. 2, the Tribunal found that the
Claimant was employed as an Associate Manager in M/s . Accenture,
Bangalore, and therefore the death of her husband has not resulted in loss
of dependency to her. The Tribunal, under the head of ‘loss of consortium’
and ‘funeral expenses’, awarded Rs. 1,50,000/- to the Claimant in MVC No.
7828 of 2005. The Tribunal did not independently record a finding on the
liability of the Insurer/Second Respondent on the ground that the accident
had happened on account of the rash and negligent driving of RW1.
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8. The Tribunal awarded Rs. 1,67,000/- in MVC No. 583 of 2006 and
Rs.1,50,000/- in MVC No. 7829 of 2005. As noted above, the Claimant
carried the matter in appeal before the High Court of Karnataka, which,
through the Impugned Judgment, enhanced the compensation in MFA No.
5074 of 2014 to Rs. 14,35,267/-, but, on account of alleged contributory
negligence of 50%, awarded Rs. 7,17,634/- with interest at 6% per annum
from the date of the Claim Petition till its realisation, payable by the First
Respondent, KSRTC. In contrast, the compensation was reduced in MFA Nos.
5075 and 5076 of 2014. In fine, the compensation for the death of the
husband and mother-in-law, and for the injuries of the Claimant, can be
summarised as follows:
FOR DEATH OF NANDAN SHET/HUSBAND OF THE CLAIMANT:
Sr.
NO.
HEADS MACT HC
1. Loss of
Dependency/Estate
NIL Rs. 13,80,267/-
[Notional income
Rs.20,000/- considering he
was an engineer, adding
future prospects @40%,
applying 1/3
rd
deduction,
and multiplier of16 –
considering age as 30];
2. Loss of Consortium Rs. 1,00,000/- Rs. 40,000/-
3. Funeral and
obsequies expenses
50,000/- Rs.15,000/- (funeral and
transportation expenses)
TOTAL Rs.1,50,000/-
+ interest
@8% p.a.
Rs.14,35,267/-
But considering 50:50
contributory negligence:
Rs.7,17,634/- + interest
@6% p.a.
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FOR DEATH OF GEETA SHET/MOTHER -IN-LAW OF THE CLAIMANT:
S.
NO.
HEADS MACT HC
1 Loss of
Dependency
NIL NIL
2 Loss of Estate Rs.1,50,000/- NIL
3 Funeral and
obsequies
expenses
15,000/- (towards funeral
and transportation expenses)
TOTAL Rs.1,50,000/-
+ interest
@8% p.a.
Rs. 15,000/- + interest @6%
p.a.
FOR INJURIES SUFFERED BY THE CLAIMANT
S.
NO.
HEADS MACT HC
1 Pain and Agony Rs. 50,000/- Rs. 25,000/-
2 Medical Expenses Rs. 11,000/- Rs. 11,000/-
3 Attendant charges,
food, diet,
nourishment,
conveyance etc.
Rs. 6,000/- Rs. 6,000/-
4 Loss of amenities,
disappointment,
discomfort,
disability etc. on
account of disability
Rs. 1,00,000/- Rs. 50,000/-
TOTAL Rs.1,67,000/-
+ interest
@8% p.a.
Rs.92,000/- + interest
@6% p.a.
9. Hence, the Civil Appeals.
10. The Appellant-in-Person contends that the Tribunal and the High
Court have determined and awarded frugal compensation to her. The
Appellant argues that apportioning liability between the heavy passenger
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motor vehicle and the light motor vehicle is illegal, erroneous, and
unsustainable. No liability was fastened on the Insurer. The Impugned
Judgment, by referring to the evidence of PW1 while excluding the FIR
registration and the filing of the Charge Sheet, recorded a finding that the
driver of the Santro car drove the vehicle negligently and that there was
contributory negligence to the extent of fifty per cent in the subject accident.
The High Court’s approach is illegal, erroneous, and contrary to the binding
decisions on the evidentiary value of the FIR, Charge Sheet, etc. The High
Court committed a fundamental error in appreciating the rough sketch of the
occurrence by exclusively focusing on the position of the Santro car and
assessing contributory negligence. The oral evidence of the Respondents
discloses that the curve present at the scene of occurrence was ignored. The
Appellant-in-Person invites our attention to the statement of Suresh, the bus
conductor, and, in spite of the absence of contrary evidence or suggestion,
the High Court has denied compensation o n the ground of contributory
negligence. In brief, it is argued that there is no contributory negligence by
the deceased, Nandan Shet, and, alternatively, that it is not 50% as
determined by the High Court. The determination of contributory negligence
ought to be commensurate with the circumstances presented and
established before the court. Adverting to the quantum of compensation, it
is argued that the Tribunal fell into serious error by not granting
compensation under the head ‘loss of dependency’. The Appellant might be
an earning member, but compensation is payable to her, though not on the
grounds of loss of dependency, but on loss of estate. The High Court awarded
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compensation under the head ‘loss of estate’, but the quantum granted is
meagre. The Claimant requests the Court to allow I.A. No. 1 of 2024 in MFA
No. 5074 of 2014 filed before the High Court. The following is the list of
documents produced as additional evidence in the said IA:
“(i) Employer Accenture termination letter
(ii) Father's death certificate
(iii) Geetha Technologies Invoices and quotations
(iv) Vijaya Bank Current account cheque of Geetha
Technologies
(v) Proof that Vijaya Bank Current Account of Geeta
Technologies was in the name of Narayan J. Phadye
(vi) Newspaper clip of husband's name change
(vii) Driving License and MIT Engineering College Identity
Card of husband
(viii) Driving licence of mother-in-law
(ix) CHC Kunigal Referral card
(x) Sagar Apollo Physiotherapy advice”
Therefore, the compensation to the Appellant under the head “loss of
estate” be determined taking note of his basic qualifications, additional
qualifications acquired and the invoices and quotations evidencing additional
income to the deceased.
11. With reference to the Civil Appeals filed against the MFA Nos. 5075
and 5076 of 2014 before the High Court, it is argued that the evidence clearly
shows that the deceased mother-in-law was not a homemaker but was
assisting her son, late Nandan Shet, and that reasonable compensation
should have been awarded. Even the actual expenses, leave alone the
reasonable compensation for pain and suffering, have not been paid and
awarded. Further, the Impugned Judgment failed to consider Appellant’s
permanent mental disability resulting from the trauma which subsequently
led to her termination on performance grounds.
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12. Ms. Kiran Suri, learned Senior Counsel appearing for the First
Respondent, vehemently argues that the compensation awarded by the
Tribunal and the High Court is just and proper and in a way exceeds what
the Appellant is entitled to in the circumstances of the case. The findings of
fact recorded by the High Court on contributory negligence are unassailable.
The Counsel invites the Court’s attention to a rough sketch marked in MVC
No. 7828 of 2005, which highlights the positions of the Santro car and the
KSRTC heavy vehicle. The driver of the Santro car is responsible for the
accident, but not RW1. The salary has been notionally fixed at Rs. 20,000/-
, and in the circumstances of the case, this notional fixation is also on the
higher side. In the absence of documentary evidence, the Appellant’s claim
of Rs. 1,00,000/- to Rs. 1,50,000/- per month from the deceased, Nandan
Shet, is unrealistic and untenable. From the averments and documents on
record, the compensation granted is proper and just. The Appellant, being
the daughter-in-law, is not entitled to claim compensation on the ground of
loss of dependency or on any other head. Further, the medical expenses are
reimbursed to the Appellant, as evidenced on record.
13. Learned counsel for the insurance company supports the findings on
the contributory negligence and, on account of the findings of fact, submits
that since there is negligence on the part of the driver of the Santro car, the
insurance company is not liable to pay any compensation. It is also argued
that late Nandan Shet is not covered by the insurance policy. Finally, without
prejudice to these two objections, it is contended that the compensation
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awarded by the High Court is fair and just, and that no case for enhancement
is made out.
14. We have taken note of the submissions and perused the record.
15. The following admitted circumstances are set out before our analysis
of rival contentions. On 14.10.2005, an accident between the heavy and the
light motor vehicle occurred, resulting in the deaths of Nandan Shet, Geetha
Shet and Mahesh. The Claimant in the same accident sustained grievous
injuries. The heavy-vehicle passenger bus is owned and operated by the
KSRTC, which is also the internal Insurer for the vehicle involved in the
accident. The Claimant, at the time of the accident, was working as an
Associate Manager at Accenture Technologies, Bangalore. The Insurance
Policy is the ‘Private Car Package Policy’. The accident occurred during the
currency of the policy issued by the Second Respondent. The Second
Respondent claims exoneration of any liability on the ground that the Santro
car was let for “hire and reward” by the Third Respondent. Therefore, the
Insurer is not obligated to pay compensation. We have perused the record
and observed that this argument has not been put to trial, much less that a
finding is recorded by the Tribunal or the High Court. We also note that the
High Court, in paragraph 58 of the Impugned Judgment, has observed as
follows:
“58. There is no dispute that Santro car bearing Registration
No.KA-04-MB-2073 was insured with New India Assurance
Insurance Company Ltd. which was respondent No. 3 in
M.V.C.No.7916/2005. Though the Tribunal in reasoning
portion held that Insurer is liable, in the operative portion
fastened the liability on the owner of the car which is
unsustainable. The Insurer of the car is liable to pay the
compensation. Therefore, M.F.A. No. 1222/2013 filed by the
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owner of the car deserves to be allowed.
M.F.A.No.1094/2012 deserves to be allowed in part and
M.F.A.No.2473/2012 is liable to be dismissed. ….”
16. Admittedly, this finding of the High Court is not challenged by the
Second Respondent. Independent of the said omission, the insurance policy
placed on record by the Second Respondent provides that the insured vehicle
can be driven by any person, including the insured, provided that the person
driving holds an effective driving licence at the time of the accident and is not
disqualified from holding or obtaining such licence. It further provides that
the person must hold an effective learner’s licence and must comply with
Rule 3 of the Central Motor Vehicles Rules, 1989. Per contra, the limitation
as to use prohibits entrustment of the subject vehicle for “hire and reward”.
From the record, at the outset, after appreciating the totality of
circumstances, we hold that the Second Respondent’s objections to
exoneration from the subject claim are untenable, and the extent of
contribution by the Second Respondent would depend on the consideration
of contributory negligence and whether the finding recorded by the High
Court is tenable wholly or in part.
17. The averments of negligence or contributory negligence are sketchy.
The First Respondent, as a fact in issue, alleges that the driver of the Santro
led to the accident. The Tribunal, on consideration of the FIR, Charge Sheet,
etc., held as follows:
A. The Tribunal, while differing from the 2011 ruling in MVC No. 7916 of
2005, attributed 100% negligence to the First Respondent’s bus driver.
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B. It relied on the statements of the Conductor (C. Suresh/Exh. P-8 of
MVC. 7828) which read as follows:
“The driver of the KSRTC bus drove the bus in a rash and
negligent manner and dashed against the car which was
coming in the opposite direction. On account of the impact, the
car was dragged to the extreme left side of the road by the
bus to a distance of 50 to 60 feet, crossed the left side
chamber, hit the P.W.D. compound wall and got stationed on
the heap of the mud”.
C. The evidence led in by the First Respondent does not depict that late
Nandan Shet drove his vehicle in a rash and negligent manner, or that his
negligence caused the subject accident.
D. Nothing on record indicates that the accident was caused by Nandan
Shet’s rash and negligent driving of the Santro.
18. Let us now advert to the evidence on both the sides regarding the issue
on Contributory Negligence:
18.1 EVIDENCE ON BEHALF OF THE CLAIMANTS:
A. The Claimant was examined as PW1 and stated that the accident was
caused solely by the driver of the First Respondent. To support her claim, she
relied on several official documents, including the FIR, complaint, Charge
Sheet, Rough Sketch, Inquest Mahazar, spot Mahazar, post-mortem report,
and a statement from a witness, conductor. She was seated in the rear seat
on the left side of the Santro car and denied sleeping at the time of the
collision. The defence has not suggested to her that the accident occurred due
to rash and negligent driving by the Santro car’s driver. The statement of the
conductor of the First Respondent’s Bus (Exh. P-8) was recorded by the police
under Section 161 of the Code of Criminal Procedure, 1973 (“CrPC”). The
14
conductor stated that the driver of the First Respondent’s bus drove in a rash
and negligent manner, dashing against the car coming from the opposite
direction. The impact caused the bus to drag the car to the extreme left side
of the road for 50 to 60 feet, cross the left-side chamber, hit the PWD
compound wall, and finally come to a halt on a heap of mud. Additionally, the
official police records, namely the FIR and Charge Sheet, were filed exclusively
against the driver of the First Respondent’s Bus.
18.2 EVIDENCE ON BEHALF OF THE FIRST RESPONDENT
A. The driver of the First Respondent’s Bus, Shri R.G. Poojari, was examined
as RW1 and presented a contrasting narrative. The accident occurred because
the driver of the Santro car came from the opposite direction in a rash and
negligent manner at extreme speed, moving to the extreme left side of the
road. Although he attempted to file a complaint with the police after the
accident, which was refused, he later admitted during cross-examination that
he had not produced any documents to prove the said refusal. He denied the
suggestion that his own rash and negligent driving caused the accident and
produced the judgment in CC No. 1002 of 2005, which shows that he was
acquitted in the criminal case arising out of the subject accident. He admitted
in cross-examination that the bus conductor, Suresh, was sitting beside him,
knew exactly how the accident occurred, and had given a statement to the
police.
B. Mr. Satish Raju, a Law Officer in KSRTC, was examined as RW2. He
produced certified copies of exhibits from MVC No. 7916 of 2005 (Mahesh’s
Award), an investigator’s report, and four photographs. Stated that the
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judgment passed in MVC No. 7916 of 2005 held that the drivers of both the
bus and the Santro car were responsible for contributing to the accident
through their rash and negligent driving. During cross -examination, he
admitted that he was not an eyewitness to the accident and had not personally
taken the photographs that he produced, which the Tribunal noted did not
even show the Santro car.
C. Mahadevappa, the Kunigal Depot Manager, was examined as RW3 and
stated that he had taken the photographs of the accident spot. During his
cross-examination, he admitted that when he took those photos, only the bus
was present at the scene because the car had already been moved to the Police
Station.
19. The above evidence has been analysed by the High Court. The findings
of the Impugned Judgment on Contributory Negligence are summarised as
follows:
A. While a police Charge Sheet has presumptive value, it is not conclusive
proof of negligence. Courts and Tribunals are fully permitted to go beyond the
charge sheet and examine other evidence, especially when evidence on record,
such as the bus driver’s honourable acquittal in a criminal court, contradicts
it.
B. The Tribunal erred by confronting the bus driver with a statement made
by the bus conductor. Under Section 162(1) of the CrPC, a statement made to
the police can only be used to contradict the maker of the statement, not a
third party.
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C. Relying on the scene sketch, it was held that the car was driven to the
extreme right side of the road despite having sufficient space on the left to
avert the collision. Hence, the driver of the Santro car, late Nandan Shet and
the First Respondent bus driver contributed equally, i.e., fifty per cent each,
towards the accident.
20. We preface a few of the well-established precedents in the adjudication
of Motor Vehicle Accident claims:
A. Police investigation records, including the FIR and final Charge-Sheet,
constitute valid, admissible, and reliable prima facie evidence to establish
rash and negligent driving in MACT proceedings. Further, a subsequent
acquittal in a criminal case does not affect the assessment of tortious liability
under the MV Act.
1
B. Criminal proceedings and civil MACT Claim Petitions operate in
entirely distinct legal realms, as the degree of “culpable rashness” required
under Section 304-A of the Indian Penal Code, 1860 (“IPC”) is significantly
higher than civil negligence under the law of torts. The findings, quashment,
or acquittals in Criminal Court cannot control or dictate the outcome of
MACT proceedings, which must be evaluated independently on civil
standards.
2
C. A site map or accident sketch cannot be read in isolation or used as
the sole basis to record contributory negligence against a deceased driver in
the absence of corroborating ocular evidence. Furthermore, the non-
1
ICICI Lombard General Insurance Co. Ltd. v. Rajani Sahoo & Ors., (2025) 2 SCC
599.
2
Mathew Alexander v. Mohd. Shafi & Anr., (2023) 13 SCC 510.
17
examination of all potential witnesses is not fatal to a claim if the existing
record adequately establishes negligence.
3
D. The spot where a lighter vehicle is found lying on a site map post-
accident cannot be assumed to be the spot where the collision occurred, nor
that it was being driven on the wrong side, as a collision with a heavy,
speeding vehicle naturally pushes or drags the smaller vehicle forward. The
Charge Sheet points towards prima facie driver complicity, and site maps
alone cannot establish contributory negligence without direct contra -
evidence.
4
E. Motor accident Claim Petitions under Section 166 of the MV Act must
be adjudicated on the touchstone of “preponderance of probability” rather
than proof beyond reasonable doubt. Further, under Section 173 of the MV
Act, the Appellate Court is required to carefully marshal all oral and
documentary evidence before reversing a reasoned MACT award.
5
21. The following principles can be laid out from the above judgments:
A. Charge Sheet creates a prima facie case of negligence.
B. Criminal acquittals do not displace this prima facie civil liability.
C. Scene sketches showing post-impact vehicle positions cannot be used
to infer contributory negligence against smaller vehicles.
3
Sunita & Ors. v. Rajasthan State Road Transport Corporation & Ors., (2020) 13
SCC 486.
4
Mangla Ram v. Oriental Insurance Co. Ltd. & Ors., (2018) 5 SCC 656.
5
Geeta Dubey & Ors. v. United India Insurance Co. Ltd. & Ors., 2024 SCC OnLine
SC 3779.
18
D. High Courts cannot summarily overturn MACT Awards without meeting
the standard of preponderance of probability in civil cases.
22. Against the above background, this Court first decides whether the
view taken on contributory negligence is correct, and whether the award of
compensation for the demise of the late Nandan Shet is nominal and
represents just and fair compensation.
22.1 The High Court erred in ignoring the FIR and chargesheet, which,
according to binding precedents supra, demonstrate the preponderance of
negligence on one or the other. The said documents are treated as evidence
in the final analysis of negligence regarding the offending vehicle. We do not
wish to replicate the Judgment with citations, except the precedents already
noted. The error apparent, going to the root of the High Court’s finding, is
that it recorded that RW1 was honourably acquitted and the Claimant was
not examined before the Criminal Court. We note, first, that the Criminal
Court has not acquitted RW1 honourably. The acquittal was by extending
the benefit of doubt. That being so, the High Court ought to have appreciated
the oral evidence of PW1 and RW1, and taken note of the First Respondent’s
non-examination of the bus conductor, Suresh. The admissions on the
curves, etc., at the site were ignored in the Impugned Judgment. Negligence
was attributed to late Nandan Shet based on the Santro vehicle’s position on
the topographical sketch. The topographical sketch is not properly
appreciated by the Impugned Judgment. The contact point of the vehicle is
determinative, not the drag marks, which ultimately take the vehicle to the
left-hand side of the bus and to the right-hand side of the Santro. The
19
evidence of RW1 is not credible, and much credence cannot be given to his
evidence, more particularly after RW1 secured acquittal from the Criminal
Court. PW1 was not summoned as a witness in the criminal case. Her non-
examination by the Prosecution in the circumstances of the case ought not
to result in an adverse finding by the High Court. The degree of proof in the
two proceedings, namely the criminal court and the Tribunal, is not the
same. In our considered view, the High Court's finding on contributory
negligence between the vehicles involved is incorrect and warrants our
interference. We restore the finding recorded by the Tribunal, which is apt
and correct in the circumstances of the case. In fine, the accident occurred
due to RW1’s rash and negligent driving.
23. The Claimant has placed additional evidence on record through I.A.
No. 1 of 2024. The High Court rejected the prayer on the ground that the
application was filed at a belated stage. The observation may be correct.
However, the Impugned Judgment failed to notice a cruc ial fact that the
Claimant was married to the deceased, late Nandan Shet, about three
months before the date of the accident. The reason now given is that, due to
shock and the absence of any other person to support or guide her, she could
not immediately gather the documents sought to be relied upon by her.
24. In our view, the High Court ought to have allowed the additional
evidence, at least for the limited purpose of determining the just and fair
compensation to which the Claimant is entitled. Under Order XLI Rule
27(1)(b) of the Code of Civil Procedure, 1908, an Appellate Court is
empowered to take additional evidence on record if it requires the
20
documents “to enable it to pronounce judgment” or for “any other
substantial cause.” Further, the MV Act is a beneficial, welfare-oriented
legislation designed to protect accident victims and their families. Section
169 of the MV Act states that Tribunals may follow a summary procedure as
they may deem fit. The documents, such as the Bank of Baroda current
account inquiry record and commercial software invoices, are relevant to
determine the statutory mandate of “just compensation” under Section 168
of the MV Act.
25. The Claimant, in her Affidavit before the High Court, explained the delay
in filing documents, namely, the acute physical and mental shock of the
accident, her subsequent job loss, and the systemic delays in retrieving
dormant bank records after the merger of Vijaya Bank into Bank of Baroda.
The date of the accident is 14.10.2005. Litigation has been pending for 21
years. Proceedings before MACT are summary in nature and, with a view to
avoiding extending the life of litigation, the additional evidence application, in
the peculiar facts and circumstances, we allow the Civil Appeal against the
order in I.A. No. 1 of 2024 in MFA No. 5074 of 2014 and receive the additional
evidence.
26. The Claimant has relied upon Exh. P16, a Salary Certificate, and Exh.
P15, a Purchase Order in favour of Geetha Technologies. The additional
evidence would show the bank account details of the deceased, Nandan Shet.
The heads under the payment of compensation by the High Court are in line
with the decisions of this Court, but for a Software Engineer, as opposed to
a Mechanical Engineer, working in the IT/Software Industry, the Salary of
21
Rs. 20,000/- per month is on the lower side. We take note of the
contemporaneous acquisition of the deceased’s certified courses, as well as
the invoices and quotations, to show the additional income that the deceased
earned.
26.1 The deceased held a Bachelor of Engineering (Mechanical) Degree
obtained in 1999 (Exh. P14) and specialised in software certifications in
Oracle and Visual Basic (Exh. P17 and Exh. P18). By March 2001, he had a
fixed monthly Salary of Rs. 7,000 at Magma Solutions (Exh. P16). The Bank
of Baroda Finacle Inquiry Record links the deceased’s CIF ID to the current
account of Geetha Technologies, proving his proprietorship. The
documentary trail from 2003 to 2005 demonstrates his transition from a
salaried employee to an independent IT entrepreneur executing corporate
contracts. This is further corroborated by a May 2003 quotation for Rs.
30,000, an August 2003 invoice for Rs. 50,000, a June 2004 Purchase Order
for Rs. 52,000 (Exh. P15), and a finalised invoice (GT2005/81) for Rs. 28,200
issued on 04.10.2005, just ten days before the accident.
27. Having noted the totality of circumstances and the peculiar facts of the
case, we are unable to accept the claim of Rs. 1,00,000/- to Rs 1,50,000/-
per month as the deceased’s income while simultaneously limiting it to Rs.
20,000/- per month for a person with the above skills working in Bangalore.
Considering the Claimant’s husband’s professional degree and his years of
software experience, the deceased’s realistic income could be stated at Rs.
70,000/- per month at the time of his death in October 2005.
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28. To sum up, in Civil Appeal No. 10755 of 2026, filed against MFA No.
5074 of 2014, the compensation is determined as follows:
HEAD OF COMPENSATION FORMULA APPLIED AMOUNT (IN RS.)
Fixed Base Monthly
Income
MACT Exhibits and documents
in I.A.
70,000 per
month
Gross Actual Annual
Income
Rs. 70,000 × 12 8,40,000 per
year
Less: Statutory Tax
Deductions
Income Tax (FY 2005–06 Slabs +
2% Cess) + Professional Tax
(-) 2,08,440
Net Actual Annual
Income
Income at the time of death 6,31,560
Add: Future Prospects +40% of Net Actual Income (+) 2,52,624
Net Effective Annual
Income
Net Actual Income + Future
Prospects
8,84,184
Annual Savings to
Estate
1/3
rd of Net Effective Annual
Income
2,94,728 per
year
Multiplier Applied Factor of 17 for the age of 30
years
17
1. Substantive Loss to
Estate
Rs. 2,94,728 × 17 50,10,376
2. Loss of Spousal
Consortium
Rs. 40,000 base + 30% inflation
adjustment
52,000
3. Funeral &
Transportation
Expenses
Rs. 15,000 base + 30% inflation
adjustment
19,500
TOTAL COMPENSATION Sum of Rows 1, 2, and 3 Rs. 50,81,876
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29. Civil Appeal Nos. 10756 and 10757 of 2026 are disposed of in the light
of the findings of this Court on the Contributory Negligence. Consequently,
the composition granted by the High Court in the Impugned Judgment in Civil
Appeal Nos. 10756 and 10757 of 2026 is confirmed but the apportionment
referred to in the Impugned Order (v) (b), (c) is modified and is exclusively
payable by K.S.R.T.C.
30. Civil Appeal Nos. 10755 and 10758 of 2026 are allowed. The claimant
is awarded the compensation of Rs.50,81,876 (Rupees Fifty Lakhs Eighty One
Thousand Eight Hundred and Seventy Six) with interest at the rate of 6 per
cent per annum from the date of filing of the claim petition till the date of
realisation.
31. Pending Application(s), if any, shall stand disposed of accordingly. No
order as to cost.
..……….…………………J.
[S.V.N. BHATTI]
...…………………………J.
[N.V. ANJARIA]
New Delhi;
August 19, 2026.
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