SUPREME COURT RESTORES COMPENSATION IN MOHAMMED MASOOD CASE

by | Oct 6, 2025

Supreme Court judgment restoring motor accident compensation in Mohammed Masood case.

Supreme Court restores Tribunal’s compensation award in Mohammed Masood v. New India Assurance Co. Ltd.


SUPREME COURT RESTORES COMPENSATION IN MOHAMMED MASOOD CASE


CASE SUMMARY – The Supreme Court in Mohammed Masood vs. The New India Assurance Co. Ltd. restored the compensation awarded by the Motor Accident Claims Tribunal after the High Court reduced it. The appellant, a 23-year-old loader, lost his leg in a road accident and was granted ₹19.35 lakh by the Tribunal based on ₹9,000 monthly income. The High Court, applying Workmen’s Compensation Act standards, reduced it to ₹10.41 lakh. The Supreme Court ruled that once a claimant opts for compensation under the Motor Vehicles Act, Workmen’s Compensation Act provisions cannot apply. Accordingly, the Tribunal’s award was reinstated.


ASPECTS DETAILS
Case Title Mohammed Masood vs. The New India Assurance Co. Ltd. & Anr. 
Introduction Appeal filed by claimant against Karnataka High Court’s decision reducing compensation granted by the Motor Accident Claims Tribunal (MACT).
Factual Background Accident occurred on 01.12.2015 when claimant, a 23-year-old loader, suffered grievous injuries leading to amputation of his right leg. MACT awarded ₹19,35,400/- based on ₹9,000 monthly income. High Court reduced it to ₹10,41,022/- applying Workmen’s Compensation Act parameters.
Legal Issues
  1. Whether the High Court erred in applying Workmen’s Compensation Act standards in a Motor Vehicles Act claim.
  2. Whether future prospects should have been added.
Applicable Law
  1. Section 166 & 167 of the Motor Vehicles Act, 1988; Workmen’s Compensation Act, 1923;
  2. Precedents: National Insurance Co. Ltd. vs. Mastan (2006) and Pranay Sethi (2017).
Analysis SC held that once claim is filed under MV Act, parameters of Workmen’s Compensation Act cannot be applied. High Court misdirected itself. However, future prospects cannot be added as claimant didn’t appeal against Tribunal’s award.
Conclusion SC restored Tribunal’s compensation of ₹19,35,400/-. High Court’s order set aside.
Current Scenario As of 26 Sept 2025, appeal allowed; claimant entitled to restored compensation.

 

“Once compensation is claimed under the Motor Vehicles Act, the Workmen’s Compensation Act parameters cannot be imported.”

SOURCE – SUPREME COURT OF INDIA

READ ALSOSC ENHANCES COMPENSATION IN SHARAD SINGH MOTOR ACCIDENT CASE

 

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Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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