Summary

Shyam Prashad vs. Andhra Pradesh State Transport

Case Citation: 2025 INSC 193
Court: Supreme Court of India
Issue: Determination of multiplier and exchange rate in compensation for an NRI victim.
Judgment: The Supreme Court restored the Tribunal’s multiplier of 14 and fixed the exchange rate at the date of filing rather than the accident date, enhancing compensation.

Summary :

The deceased, a US-based software engineer, was killed in a road accident in India. Her family sought Rs. 9 crore in compensation, citing her earnings in USD. The tribunal awarded Rs. 8.03 crore, using a 14-multiplier and an exchange rate of Rs. 57/USD.

The High Court reduced the multiplier to 10, relying on previous cases involving foreign income. The Supreme Court reinstated the 14-multiplier, clarifying that income in foreign currency does not warrant deviation from standard principles. It also fixed the exchange rate at Rs. 57/USD as of the filing date.

The final award was Rs. 9.62 crore, reaffirming that claims involving foreign earnings must adhere to established methodologies.

Key Points:

• The High Court reduced the multiplier to 10, citing foreign earnings.

• The Supreme Court held that foreign earnings should not impact the standard multiplier.

• Compensation was recalculated using the exchange rate at the date of filing, increasing the total amount to ₹9.62 crore.

Analysis:
The judgment clarifies the methodology for computing NRI compensation, ensuring consistency with Pranay Sethi and Jiju Kuruvila v. Kunjujamma Mohan. It benefits claimants by aligning compensation with economic realities.