Motor Accident Compensation : SC To Consider If Retrospective Pay Revision Of Govt Employee After Death Should Be Taken Into Account

Whether pay revision applied retrospectively after the date of demise of a Government/public authorities employee is a factor taken into account while computing the monthly emoluments of the deceased for the purpose of determining compensation to him/her? The Supreme Court has issued notice in a special leave petition which raises this issue.

The SLP challenges the Kerala High Court judgment which held that a subsequent pay revision cannot be considered for fixing income of a victim. To hold thus, the High Court had relied on Oriental Insurance Co. Ltd. v. Jashuden and others [(2008) 4 SCC 162] in which it was observed that only because salary was revised at a later point of time, the same by itself would not have been a factor which could have been taken into consideration for determining the amount of compensation.

In this case, the deceased was a Development Officer and had died at the age of 51 year. Consequent to subsequent pay revision effected retrospectively, there was increase in the salary of the deceased. However, the Tribunal did not take into account the said pay revision for the purpose of granting compensation to the claimant. This view was later upheld by the High Court.

In appeal, It was contended before the Apex Court bench comprising Justice Sanjay Kishan Kaul and Hrishikesh Roy that the process of revision takes time in Government and public authorities. The petitioner also relied on Rajesh & Ors. v. Rajbir Singh & Ors. – (2013) 9 SCC 54 at 64, para 19 to contend that the subsequent pay revision was taken into account in the said case.

"A reading of para 19, however, only shows the computation and does not specifically deal with the proposition. We are thus, of the view that this aspect would required to be considered by a three Judges Bench.", the bench said while issuing notice.

Case: SHYNO M. AYKARA @ SHEELAMMA THOMAS vs. NEW INDIA ASSURANCE COMPANY LTD. [SLP (C) No(s). 15192/2020]

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