The Supreme Court has clarified the distribution of an enhanced compensation award in a motor accident claim, correcting an omission in its earlier judgment by specifying how the compensation should be apportioned among the legal heirs of the deceased. The Court also directed that the entire compensation be released to the widow and the now-major children of the deceased, bringing an end to a long-pending dispute arising out of a 2010 accident.
A Bench comprising Justice J.B. Pardiwala and Justice K. Vinod Chandran passed the order while allowing a Miscellaneous Application filed in M. Sabitha and Others v. Brahma Swamulu and Another. The application pointed out that although the Supreme Court had earlier enhanced the compensation awarded to the claimants, it had inadvertently failed to apportion the enhanced amount among the beneficiaries.
The deceased was survived by his wife, two children, and mother, all of whom were claimants in the motor accident compensation proceedings. During the pendency of the appeal before the Supreme Court, however, the deceased’s mother passed away, leaving behind four sons, one daughter, and the family of a predeceased son as her legal heirs. This development necessitated a fresh determination regarding the share originally earmarked for her.
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The applicants also informed the Court that the High Court had earlier directed only 50% of the compensation to be disbursed because the children were minors at the time. Since both children had now attained majority, the claimants sought directions for release of the entire compensation amount.
The Court noted that the High Court had originally apportioned the compensation of ₹17,42,875 among the four claimants. After the Supreme Court enhanced the total compensation to ₹36,38,750 in its earlier judgment, it decided to follow the same pattern of distribution while specifying the individual shares.
Accordingly, the Court allocated:
- Wife (Appellant No. 1): ₹15,58,750
- Child (Appellant No. 2): ₹8,20,000
- Child (Appellant No. 3): ₹8,20,000
- Mother (Appellant No. 4): ₹4,40,000
The enhanced compensation thus totals ₹36,38,750.
Since the deceased’s mother had died during the pendency of the proceedings, the Court held that the compensation payable to her formed part of her estate and had to be distributed among her legal representatives.
The Bench noted that the mother had already withdrawn ₹2 lakh awarded by the High Court during her lifetime. Therefore, only the enhanced amount of ₹2.40 lakh remained to be distributed.
The Court directed that appellants 2 and 3, being the children of the deceased son of the fourth appellant, would receive one share corresponding to their branch of the family. The remaining ₹2 lakh would be divided equally among the mother’s five surviving legal representatives—her four sons and one daughter—giving each ₹40,000. They were granted liberty to seek payment before the Motor Accident Claims Tribunal after the amount is deposited.
The Supreme Court further clarified that the shares of Appellants 2 and 3 would each stand enhanced by ₹20,000, representing their entitlement from their deceased grandmother’s estate.
Taking note that the accident had occurred in 2010 and that both children of the deceased had since attained majority, the Bench found no justification for continuing to withhold any part of the compensation.
The Court directed that the balance amounts payable to Appellants 1 to 3, along with interest at 7% per annum as directed by the High Court, be deposited or disbursed within two months. It also ordered that the legal representatives of the deceased mother be paid their respective shares after deposit before the Tribunal.
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