Raghuvir Singh Matolya & Ors vs Hari Singh Malviya & Ors

The Supreme Court ruled that for the purpose of calculating compensation under Section 166 of the Motor Vehicles Act, 1988, both dearness allowance and house rent allowance should be included in the deceased's income. The Court emphasized that dearness allowance is part of the income and that house rent allowance benefits the family, not just the employee. The Court upheld the High Court's decision to enhance the compensation amount to Rs. 5,28,000 by applying a multiplier of 11, thus affirming the inclusion of these allowances in the compensation calculation.