Reliance General Insurance Co. Ltd. v. Kanika & Ors.

 Background

Appeals challenging High Court’s clarification modifying deduction of benefits.

The claimants were awarded compensation under the Motor Vehicles Act, 1988 (MVA) for a fatal accident. The High Court enhanced compensation but directed deduction of amounts received under the Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006 (“2006 Rules”).

Upon a clarification application, the High Court modified its earlier order and effectively reversed the deduction. The insurer appealed.

 

Issues Framed

1. Whether amounts received under the 2006 Rules are deductible from compensation under the MVA.
2. Whether the High Court, under the guise of clarification, could substantively alter its appellate judgment.
 

Court’s Reasoning

1. Deductibility under the 2006 Rules

• Reaffirmed Reliance General Insurance v. Shashi Sharma(2016) 9 SCC 627:
o Amounts substituting “pay and allowances” are deductible to avoid double recovery.
o Benefits such as pension, provident fund, life insurance are not deductible.
• Clarified that National Insurance Co. v. Birender (2020) 11 SCC 356 does not dilute Shashi Sharma.
o Shashi Sharma defines what is deductible.
o Birender clarifies when and how deduction should occur—only upon proof of receipt or entitlement.

Thus, deduction is permissible only to the extent of overlapping pecuniary loss.

 

2. Limits of “Clarification” Jurisdiction

• Appeals under s. 173 MVA are governed by the CPC.
• s. 152 CPC permits only correction of clerical or accidental errors (Jayalakshmi Coelho; Darshan Singh).
• s. 151 CPC cannot be used to override substantive findings (Padam Sen; My Palace Co-op Society).

The High Court’s clarification altered the quantum of compensation and thereby substantive rights—amounting in substance to review without satisfying Order XLVII CPCrequirements.

 

Decision / Disposition

Appeals allowed.
Clarification/Review Order set aside.
Main Order restored.
Amounts received under the 2006 Rules to be deducted upon affidavit before Tribunal.
Interest as awarded by Tribunal maintained.

 

Ratio

Amounts received under the Haryana 2006 Rules that substitute “pay and allowances” must be deducted from compensation under the MVA, but only upon proof of receipt or entitlement; further, a High Court cannot, under ss. 151–152 CPC, substantively alter an appellate decree under the guise of clarification.

 

Case Details

Citation: 2026 INSC 188 
Decided on: 24 February 2026
Case Title: Reliance General Insurance Co. Ltd. v. Kanika & Ors.
Court: Supreme Court of India
Bench: Sanjay Karol & Augustine George Masih, JJ.

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