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Madras High Court· 03 August 2026

Is a judgment restricting every claimant’s annual income to the ceiling in Section 163A of the Motor Vehicles Act, 1988 per incuriam?

R.Balaji v. Rahamathullah
2026:MHC:3203 · CMA.No.930 of 2024
Coram: Justice N. Anand Venkatesh
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Answer

Yes. The Legislature fixed an income ceiling to deal with a particular category of claims, and a Court cannot render a finding disregarding the specific provision of law and hold that whatever annual income was earned by the injured or deceased the Court should restrict it to that ceiling. Such a finding is rendered in utter disregard of the specific provisions of the Act, is per incuriam, and cannot be treated as a precedent.

Headnote

Motor Vehicles Act, 1988 — s.163A — Second Schedule — Schedule-1 of the Workmen’s Compensation Act — Structured formula — Permanent disablement — Annual income ceiling — Per incuriam — Motor Vehicles Act, 1988 — s.163A — Social security scheme — Court cannot travel beyond the scheme — Held: Section 163A is a social security scheme paying compensation on a structured formula basis, and where its requirements are satisfied the Court need not go into the question of negligence. A beneficial legislation which has provided a scheme of its own cannot be extended to those not covered by it. (¶6, 7) Motor Vehicles Act, 1988 — Second Schedule — Permanent disablement — Injuries must fit a listed head — Held further: To be construed as permanent disablement under the Second Schedule, injuries must fit into Schedule-1 of the Workmen’s Compensation Act. Non-schedule injuries are covered under none of the heads provided therein and leave the very claim unsustainable. (¶9, 10) Motor Vehicles Act, 1988 — s.163A — Annual income ceiling — Finding disregarding the provision is per incuriam — Held further: The income ceiling fixed by the provision is a statutory requirement, and a claimant whose pleaded annual income exceeds it is not entitled to compensation. A finding confining every injured or deceased person’s annual income to that ceiling disregards the specific provision and is per incuriam. Appeal dismissed. (¶11, 15, 18)

In the Court's own words
Paragraph 11The Legislature thought it fit to fix an income ceiling of Rs.40,000/- to deal with a particular category of claims. Admittedly, in this case, the appellant - claimant pleaded in the claim petition that he was earning an income of Rs.10,000/- per month. This would mean that the appellant – claimant was earning a sum of Rs.1,20,000/- per annum. What has been prescribed under the provision is a maximum of Rs.40,000/- per annum.
Paragraph 15With all due respects to the Hon’ble Division Bench of the Madurai Bench of this Court, which rendered the judgment in the case of S.Jona Lourdhu Rani, a Court cannot render a finding disregarding the specific provision of law and hold that whatever the annual income was earned by the injured/deceased, the Court should restrict the annual income to Rs.40,000/-. Such a finding rendered by the Hon’ble Division Bench of the Madurai Bench of this Court has to be necessarily held to be per incuriam since it has been rendered in utter disregard to the specific provisions of the Act. In view of the same, the judgment of the Hon’ble Division Bench of this Court in S.Jona Lourdhu Rani cannot be treated as a precedent.
Acts & Sections
s.163A Motor Vehicles Act, 1988s.166 Motor Vehicles Act, 1988Second Schedule, Motor Vehicles Act, 1988Schedule-1 Workmen's Compensation Act, 1923

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Also decided in this judgment
Can compensation be awarded under Section 163A of the Motor Vehicles Act, 1988 for injuries falling outside Schedule-1 of the Workmen’s Compensation Act?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections