ARSHADA BANU vs NEW INDIA ASSURANCE CO.LTD.

The Supreme Court modified the High Court's compensation award in a motor vehicle accident case, emphasizing the need for proper computation of loss of earning capacity. The Court determined the appellant's annual income to be Rs. 18,000 and applied a multiplier of sixteen, resulting in a revised compensation of Rs. 2,88,000 for loss of earning capacity. The Court upheld the other components of the compensation while directing the parties to bear their own costs.