K.R.Madhusudan & Ors vs Administrative Officer & Anr

The Supreme Court held that the High Court erred in not considering the future prospects of the deceased's income while calculating compensation under Section 166 of the Motor Vehicles Act, 1988. The Court established that a standard addition of 50% to the actual salary should be made for future prospects, as per the principles laid down in Sarla Varma v. Delhi Transport Corporation. The Court set aside the High Court's reduced compensation of Rs.11,82,000/- and restored the original award of Rs.14,27,496/- made by the Motor Accident Claims Tribunal, along with interest at 9% p.a.