The Supreme Court applied Pranay Sethi to award future prospects to a self-employed U.S. national killed in an Indian road accident, increasing compensation to ₹1.60 crore.
SC GRANTS FUTURE PROSPECTS IN ROAD ACCIDENT COMPENSATION FOR US-BASED VICTIM
In Kulwinder Kaur & Ors. vs. Parshant Sharma & Anr., the Supreme Court addressed compensation for the accidental death of Rajinder Singh Mihnas, a 31-year-old U.S.-based self-employed driver. The High Court enhanced compensation to ₹1.17 crore based on his income but excluded “future prospects.” Applying the Pranay Sethi ruling, the Supreme Court held that self-employed persons under 40 are entitled to a 40% income addition for future prospects. The Court revised conventional head amounts and retained a multiplier of 16, increasing total compensation to ₹1.60 crore, awarding an additional ₹42.95 lakh with 6% interest, payable within four weeks.
| ASPECTS | DETAILS |
| Case Title | Kulwinder Kaur & Ors. vs. Parshant Sharma & Anr., Civil Appeal No. 820/2019 |
| Introduction | Appeal against Punjab & Haryana High Court’s judgment enhancing compensation for accidental death but excluding “future prospects” in calculation. |
| Factual Background | On 31.08.2007, Rajinder Singh Mihnas, aged 31, died in a road accident at Karnal involving a rashly driven truck. He was a U.S. national, self-employed as a transport company owner/operator in the USA, earning in USD. |
| Legal Issues | Whether future prospects should be considered in compensation for a self-employed deceased working abroad; correct application of multiplier. |
| Applicable Law |
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| Analysis | Supreme Court upheld High Court’s income assessment but found omission of future prospects benefit contrary to Pranay Sethi. Applied 40% addition to income for deceased under 40 years, adjusted conventional heads, multiplier of 16 retained. |
| Conclusion | Compensation increased from ₹1,17,20,200 to ₹1,60,15,280, with additional ₹42,95,080 plus 6% interest payable to claimants. |
| Current Scenario | Judgment delivered on 08.08.2025 by Justices K. Vinod Chandran and N.V. Anjaria, partly allowing the appeal and directing payment within 4 weeks. |
“Future prospects cannot be denied to self-employed persons; income grows with time and opportunity.”
SOURCE – SUPREME COURT OF INDIA
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