Just Compensation Paramount: J&K&L High Court Enhances MACT Award Despite No Cross-Appeal By Claimants

The Jammu & Kashmir and Ladakh High Court held that an appellate court can enhance compensation in a motor accident case even in the absence of a cross-appeal or cross-objections by the claimants, if the compensation awarded by the Tribunal is found to be inadequate.

A bench of Justice Sindhu Sharma made the observation while dismissing an appeal filed by the Union of India challenging the quantum of compensation awarded by the Motor Accident Claims Tribunal (MACT), Jammu, in a case arising out of the death of a 23-year-old Army Sepoy.

The case arose from an accident that occurred on 22.08.1993 near Kala Jaad, Jammu. P. Ramesh, a 23-year-old Sepoy in the Indian Army, lost his life when the army vehicle in which he was travelling met with an accident due to rash and negligent driving.

At the time of his death, the deceased was drawing a salary of ₹7,000 per month. His mother and brother filed a claim petition before the MACT seeking compensation of ₹40 lakhs. The driver of the vehicle, the Commanding Officer, and the Union of India were impleaded as respondents.

While the respondents admitted the accident, they contended that the mother of the deceased had already received certain benefits, including payments under Army Group Insurance and other terminal benefits.

After considering the evidence of the claimants' witnesses and noting that no evidence was led in rebuttal by the respondents, the Tribunal held that the accident occurred due to rash and negligent driving.

The Tribunal assessed the monthly income of the deceased at ₹7,000 and added future prospects, taking it to ₹10,500 per month. It deducted one-third towards personal expenses and assessed the annual dependency at ₹84,000.

Considering that the deceased was a bachelor, the Tribunal applied the multiplier based on the age of the mother (45 years). Though the applicable multiplier under the Second Schedule was 15, the Tribunal reduced it to 13, citing lump sum payment and uncertainties of life.

Accordingly, compensation of ₹10,92,000 was awarded towards loss of dependency and ₹15,000 towards funeral expenses, totaling ₹11,22,000 with interest at 7.5% per annum.

The appeal filed by the Union of India was dismissed. The High Court enhanced the compensation payable to the claimants despite there being no cross-appeal by them, reiterating that technicalities cannot prevent courts from granting just and fair compensation under the Motor Vehicles Act.

Case-Title: Union of India vs Rajammal, 2026

Click Here To Read/Download Order