Raj Kumar vs Ajay Kumar & Anr

The Supreme Court examined the principles of compensation under the Motor Vehicles Act, 1988, emphasizing that compensation must restore the claimant to their pre-accident position. The Court held that the assessment of monthly income at Rs. 900/- was inadequate and that the deduction of one-third for personal expenses in calculating future loss of earnings was unwarranted. The judgment clarified that compensation should cover both pecuniary and non-pecuniary damages, including loss of future earnings due to permanent disability, and established guidelines for assessing such damages.