MANAGING DIRECTOR, TNSTC vs SUGUNA .

The Supreme Court held that in determining compensation under Section 166 of the Motor Vehicles Act, 1988, the High Court's fixation of the deceased's income at Rs.2,500/- per month lacked evidentiary support, as no evidence was presented to substantiate this claim. The Court recalibrated the compensation amount to Rs.3,00,000/- with interest at 6% per annum from the date of filing the claim application, emphasizing the need for a reasoned basis in compensation awards. The appeal was allowed to this extent, modifying the High Court's order.