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SC Restores MACT Income, Deletes Contributory Negligence Finding

Case Law Details

TaxGuru Citation
2026 taxguru.in 9640
Case Name
Prabhavathi & Ors. Vs Managing Director (Supreme Court of India)
Date of Judgement/Order
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Prabhavathi & Ors. Vs Managing Director (Supreme Court of India)

The Supreme Court considered appeals arising from the judgment and order dated 1 October 2020 passed by the High Court of Karnataka at Bengaluru in MFA No.2162 of 2018 connected with MFA No.4016 of 2018. The High Court proceedings arose from the judgment and award dated 12 December 2017 passed by the IX Additional Small Causes and Additional MACT, Bangalore (SCCH-7) in M.V.C. No.3858/2016.

The case related to a motor accident dated 6 June 2016 involving the deceased, Boobalan, aged 38 years. The deceased was travelling on his motorcycle from Krupanidhi Junction towards Madivala when a BMTC Bus bearing registration No. KA-01/F-9555 collided with him. It was alleged that the bus driver drove rashly and negligently, resulting in the death of Boobalan at the spot due to grievous injuries.

The appellants, being the dependents of the deceased, filed a claim petition before the Motor Accident Claims Tribunal seeking compensation of Rs.3,00,00,000/-. They stated that the deceased was the sole earning member of the family and was employed as an Executive in the Housekeeping Department at Hotel Royal Orchid, Old Airport Road, Bengaluru, earning up to Rs.70,000 per month.

The Tribunal, by order dated 12 December 2017, held that the accident occurred due to the rash and negligent act of the BMTC bus driver. Considering the last drawn salary of the deceased as Rs.62,725 per month, the Tribunal awarded compensation of Rs.75,97,060 with interest at 9% per annum.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,834

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