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Saturday, October 10, 2026
SC Says No To Transfer on Family Separation Ground - Students First, Teachers Second
Friday, September 25, 2026
Supreme Court Clarifies Forum for Victim's Appeal Against Acquittal by Magistrate | BNSS
Thursday, September 24, 2026
Delhi High Court: POCSO Offence Cannot Be Settled by Compromise - Anand Singh Rawat vs State
Saturday, September 19, 2026
What are the legal guidelines for releasing compensation from MACT-managed fixed deposits?
- Case Number: MAC.APP. 1004/2016.
- Parties: Sanjay Sachdeva (Appellant) vs. Bhola Mahato & Ors. (Respondents, representing M/S Reliance General Insurance Co Ltd).
- The Request: The claimant—who suffers from a 93% permanent disability—sought the release of ₹2,50,000 from his fixed deposit receipts (FDRs) to repay outstanding loans.
- Prior Rejection: The Motor Accident Claims Tribunal (MACT) had previously rejected this request on July 18, 2026, citing a lack of "verifiable material," despite a promissory note being attached.
- Purpose of Oversight: The Court clarified that while tribunals must ensure compensation is not frittered away or stolen by unscrupulous elements, they must not refuse legitimate release requests arbitrarily.
- Precedent Cited: The Court relied on historical Supreme Court rulings like Kerala SRTC v. Susamma Thomas (1994) and A.V. Padma v. R. Venugopal (2012). These emphasize that guidelines to lock funds in FDRs are meant to protect vulnerable claimants (such as minors or illiterate individuals), not to create a rigid barrier for literate claimants with genuine needs.
- Legitimate Needs: The Court pointed out that life events like medical crises, education, debt liquidation, or property purchases necessitate large chunks of cash, and claimants should be allowed to access their own money.
- The High Court allowed the application and ordered the release of ₹2,50,000 by liquidating a proportionate amount of the FDRs into the claimant's designated account.
- The Registry was instructed to circulate a copy of this order to all MACTs under its jurisdiction to recalibrate and soften their approach toward future withdrawal applications.
Supreme Court Cites Gujarat Prohibition Failures While Striking Down Maharashtra's Methanol Denaturing Rules as Unconstitutional
Tuesday, September 8, 2026
No Vicarious Criminal Liability On Landlord For Tenant's Death Due To Gas Geyser Without Proof Of Negligent Act: Allahabad High Court
Thursday, September 3, 2026
Supreme Court Refuses To Entertain PIL Against Rajasthan & UP Orders Restricting Entry Of Outsiders, YouTubers & Media In Govt Schools
Monday, August 31, 2026
Supreme Court Slams Routine Stay of Trials and Misuse of Revision Under Section 115 CPC - Sets Aside 117-Page Bombay HC Judgment
Tuesday, August 25, 2026
Supreme Court Orders Pan-India SITs to Probe Fake Motor Accident Claims - Flags "Fraud of Enormous Proportion"
Saturday, August 22, 2026
Client Confidentiality is Absolute: Supreme Court Upholds 2-Year Suspension of Advocate for Disclosing Former Client's Secrets on TV
Key Takeaway: This judgment reinforces Rule 22 of the BCI Rules and Section 126 of the Bharatiya Sakshya Adhiniyam - the lawyer-client privilege survives the end of the professional relationship, and self-defence in the media cannot be a justification for its breach.
Wednesday, July 15, 2026
Supreme Court: Magistrate Cannot Direct Police to File Charge-Sheet; Cognizance & Trial Consolidation Rest with Court
Thursday, July 9, 2026
Rajasthan HC Imposes 3-Year Social Media Ban as Bail Condition in POCSO Case
Tuesday, July 7, 2026
Jharkhand HC Acquits Man in NDPS Case: Bhang Not Covered Under NDPS Act, Distinguishes It From Ganja
"SC Strikes Down IBA Caution List for Lawyers" "Only Bar Council Can Take Disciplinary Action"
Friday, July 3, 2026
Supreme Court Distinguishes Salaried and Self-Employed Income for Motor Accident Compensation
For bringing in a consistency in the mode of calculation of a deceased's annual income for determining the motor accident compensation claims, the Supreme Court has laid down comprehensive guidelines for assessing the annual income of victims in motor accident compensation cases, drawing a clear distinction between salaried employees and self-employed persons.
A bench of Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh held that the Income Tax Return (ITR) of the immediately preceding assessment year should ordinarily be considered for salaried individuals, whereas for self-employed persons or business owners, tribunals should ordinarily take the average income reflected in the previous three years' ITRs, subject to the surrounding circumstances of each case.
The main issue before the Court was about the method for determining the annual income of a deceased person where income tax returns were available.
Since no uniform method could be applied for salaried and self-employed individuals, the Court agreed with the suggestion made by Sr. Adv. J.R. Midha and Adv. Salil Paul, who were appointed as Amicus Curiae in the matter, to apply different considerations to salaried employees and self-employed persons.
For salaried employees, the Court observed that the latest ITR generally reflects promotions, increments, and the prevailing salary immediately before the accident. Consequently, the ITR for the immediately preceding assessment year would ordinarily provide the most accurate picture of earning capacity.
“There must be a bifurcation made between salaried individuals and self-employed individuals when it comes to assessment of annual income. In our view, for salaried individuals, only the ITR of the previous year will be sufficient for showcasing the annual income from salary. The reason for considering only the preceding year is that the financial impact of promotions is significant and may be reflected in the ITR for only that year. A situation may also arise whereby the deceased/claimant might not have completed a year in the promoted position before the accident or might not have filed ITR for such period. In such cases the Court concerned shall take reference to the promotion letter and other corroboratory financial statements.”, the Court observed.
However, the Court held that such an approach may not be appropriate for self-employed persons, whose income often fluctuates because of market conditions, business cycles, and investment patterns.
“When it comes to self-employed / individuals carrying out their own business, in our view, the average of the income specified in the ITRs of up to the previous three years is to be taken as a reference point for assessment of annual income from their business.”, the Court observed.
Further, the Court pointed out that other surrounding circumstances may also be taken into consideration while computing income.
“There may also be a scenario where only one or two ITRs have been filed. Given such scenarios and the fluctuation of income in these professions, surrounding circumstances are also to be taken into consideration.
These would include:
a) The nature of the business (including geographic location, category etc.);
b) Growth pattern of the business and impact of death on the business;
c) Potential growth of business (for instance certain businesses are capital intensive at the outset and are profitable at scale/in the future);
d) Negative income (certain businesses may require losses in the initial years, which may not reflect the true financial standing); and
e) Any other relevant factor relating to the business.”, the Court said.
Background
The batch of appeals before the Supreme Court arose out of three separate motor accident compensation claims under the Motor Vehicles Act, 1988, where the principal dispute was the proper method of assessing the annual income of deceased persons for computing compensation.
In all three cases, the deceased were self-employed individuals whose income was reflected in Income Tax Returns (ITRs). However, the Motor Accident Claims Tribunals (MACTs) and the respective High Courts adopted different methods for determining their annual income. While some relied on the latest ITR, others averaged two or more years' returns, leading to inconsistent compensation awards.
Recognising the recurring nature of the issue and the divergent approaches adopted by tribunals across the country, the Supreme Court framed the following question for determination:
“whether for assessing the annual income of a deceased person or claimant under the Motor Vehicles Act 1988, the ITRs for the previous year is appropriate or average of the past two/three years is to be taken into consideration?”
Applying the method elaborated above, the Court modified the compensation in all three appeals.
Thursday, June 25, 2026
Indian passport is "primarily a travel document" and should not be regarded as proof of citizenship.
Centre issues clarification
- Citizenship by Birth
- Citizenship by Descent
- Citizenship by Registration
- Citizenship by Naturalisation
- Citizenship by Incorporation of Territory
Is there a single document that proves Indian citizenship?
No. India does not issue a single, universally held document that serves as definitive proof of citizenship for all citizens. Citizenship is established based on how it was acquired and the supporting records available under the Citizenship Act.What is direct proof of Indian citizenship?
For people who became Indian citizens through registration or naturalisation, a citizenship certificate issued by the government serves as direct proof of citizenship.Is a citizenship certificate issued to every Indian citizen?
No. Citizenship certificates are generally issued to people who acquire Indian citizenship through registration or naturalisation. Most Indians who are citizens by birth or descent do not possess a citizenship certificate.What about Indians who acquired citizenship by birth or descent?
Most Indians acquire citizenship by birth or descent and may never possess a citizenship certificate. In such cases, citizenship is established through a combination of documents relating to date and place of birth, parentage and nationality.Which documents can help establish citizenship?
Depending on the case, these may include:- Birth certificates
- Citizenship certificates of parents
- Records showing a parent's Indian citizenship
- Indian passports of parents
- Other records relating to birth, parentage and nationality

