The Supreme Court held that there is no bar on a Motor Accident Claims Tribunal or appellate court awarding compensation greater than the sum claimed. The statutory duty under Section 168 of the Motor Vehicles Act is to award just compensation, subject only to the claimant paying court fee on the enhanced amount.
The Supreme Court held that the addition for future prospects cannot be refused merely because the victim's income was notional rather than proved. Applying the Pranay Sethi percentages to a homemaker's notional income, the Court underscored the economic value of domestic work.
The Supreme Court used a fatal bus-accident claim to bring order to motor-accident compensation, fixing an age-based multiplier table and standard slabs for deducting the deceased's personal and living expenses. The framework became the bedrock of MACT computation, later affirmed by the Constitution Bench in Pranay Sethi.