#Pranay Sethi case

Bombay High Court revises compensation norms in fatal motor accident cases, establishing Rs. 30,000 as notional annual income for deceased graduates assisting in family businesses and awarding Rs. 48,000 consortium per dependent. The ruling reduces personal expense deduction to 1/2 for bachelors with unmarried siblings, impacting future claims under the Motor Vehicles Act.

The Madhya Pradesh High Court upheld the Tribunal’s compensation award by affirming that loss of future earnings must be calculated using verified income evidence and the correct multiplier under Pranay Sethi, rejecting reliance on the Employees' Compensation Act’s fixed disability schedules. This clarifies that medical disability percentages alone cannot override actual earning capacity assessments in motor accident claims, directly impacting claimants with permanent disabilities and insurers challenging income projections.

The Bombay High Court upheld that even without income evidence, an accident victim engaged in agriculture is entitled to future earnings calculated at minimum wage plus 40% future prospects, using the Pranay Sethi multiplier method. This sets a critical precedent for claimants in informal sectors, ensuring justice is not denied due to lack of formal documentation.