Sebastiani Lakra vs National Insurance Company Ltd.

The Supreme Court held that under Section 168 of the Motor Vehicles Act, 1988, the calculation of compensation must ensure 'just compensation' for claimants. The Court found that the High Court erred in reducing the compensation awarded by the MACT without providing reasons, emphasizing that judicial orders must be reasoned. The Court reinstated the original compensation amount of Rs.40,90,000, rejecting the insurance company's argument for deduction based on the Employees Family Benefit Scheme, and affirmed the need to consider future prospects in compensation calculations.