Supreme Court Refers Expat Income Issue in Motor Accident Compensation to Larger Bench
The Supreme Court of India has referred a significant legal question to a larger bench —how should the income of Indians working abroad be assessed for calculating compensation in road accident cases within India? This development comes amid conflicting judicial precedents on whether to calculate compensation based on the deceased’s full foreign income or to adjust it in line with Indian cost-of-living standards. Background of the Case: The Death of Hari Shankar Brahma The matter arose from an appeal filed by the family of Hari Shankar Brahma , a 27-year-old system analyst employed with Nihaki Systems Inc., New Jersey (USA) , who tragically died in a road accident in India in 2009. At the time of his death, he earned $47,050 per year (around ₹21 lakh) . His parents and siblings sought compensation before the Motor Accident Claims Tribunal (MACT) under the Motor Vehicles Act, 1988 . The Tribunal calculated compensation based on his US income with standard deductions, awarding ₹...