RAGHUVIR SINGH MATOLYA vs HARI SINGH MALVIYA .

The Supreme Court ruled that both dearness allowance and house rent allowance should be included in the computation of compensation under Section 166 of the Motor Vehicles Act, 1988. The Court emphasized that dearness allowance is part of the income, while house rent allowance benefits the family, thus contributing to the deceased's overall income. The Court upheld the High Court's decision to enhance the compensation to Rs. 5,28,000 by applying a multiplier of 11, thereby correcting the earlier Tribunal's oversight in calculating the deceased's income.