SHASHIKALA vs GANGALASHMAMMA

The Supreme Court upheld the High Court's enhancement of compensation under the Motor Vehicles Act, stating that the calculation of loss of dependency must reflect the actual income of the deceased, as evidenced by income tax returns. The Court affirmed the High Court's method of determining the deceased's net income and applying a multiplier of 14, resulting in a total compensation of Rs.14,69,372/- as opposed to the tribunal's award of Rs.7,85,000/-. The judgment reinforces the principle that compensation must adequately reflect the financial loss suffered by dependents due to the death of the breadwinner.