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Future prospects in motor accident compensation referred to a larger Bench amid conflicting Supreme Court precedents.
Conflicting Supreme Court authorities on addition of income for future prospects in motor accident compensation created uncertainty, particularly on whether self-employed persons and fixed-wage earners are entitled to such addition. The Court noted divergent approaches in the line of decisions from Sarla Verma, Santosh Devi, Rajesh and Reshma Kumari, and held that authoritative uniformity was lacking. The controversy was therefore referred to a larger Bench for settlement of the law, and the matter was placed before the Chief Justice of India for constitution of an appropriate Bench.
Motor Accident claims - legal heirs of deceased - compensation on the basis that the deceased was aged about thirty years - Addition to income for future prospects - standardisation of addition - rule of precedent - reference to a Larger Bench for resolution of conflicting precedents. Reference to a Larger Bench for resolution of conflicting precedents - addition to income for future prospects - Whether the divergence between precedents on addition to income for future prospects requires authoritative resolution by a larger Bench. - HELD THAT: - The Court analysed the sequence of decisions beginning with Sarla Verma [2009 (4) TMI 1030 - SUPREME COURT], Santosh Devi [2012 (4) TMI 778 - SUPREME COURT], Reshma Kumari [2013 (4) TMI 953 - SUPREME COURT] and Rajesh [2013 (4) TMI 952 - SUPREME COURT], noting that Rajesh and Reshma Kumari record divergent approaches to the question whether and in what measure addition for future prospects is to be made in respect of self-employed persons or persons on fixed wages. Having considered the doctrinal history and the fact that the decisions of Benches of equal strength are in manifest conflict on the determinative principle to be applied, the Court held that an authoritative pronouncement is necessary. The Court therefore concluded that the controversy as to the manner and quantum of addition to income for future prospects-particularly the applicability and scale of the Sarla Verma formula to self-employed and fixed-wage earners-should be referred to a Larger Bench for final resolution. [Paras 13, 14] The matter is referred to a Larger Bench for authoritative determination of the law relating to addition to income for future prospects. Grant of interim stay on deposit of security - HELD THAT: - Having considered the petition for stay and the totality of circumstances, the Court exercised its discretion to protect the interests of claimants while preserving the insurer's appellate remedy. The Court directed an interim protective deposit to be made before the tribunal, to be held and distributed in accordance with the tribunal's award, thereby balancing competing equities pending final adjudication. [Paras 3] Petitioner-insurer ordered to deposit a specified sum before the tribunal within four weeks; the tribunal to distribute it proportionately as per its award. Final Conclusion: The Court condoned delay, issued notice, directed an interim deposit by the insurer as a condition for stay, and referred the contentious question regarding addition to income for future prospects-particularly its application to self-employed and fixed-wage earners and the conflict between Rajesh and Reshma Kumari- to a Larger Bench for authoritative determination.