Compensation in foreign currency – Exchange rate on the date of accident or filing petition
Important questions considered and decided by the Supreme Court –
Whether the Petitioner – USA resident is entitled to compensation at the exchange rate of currency on the date of accident or date of filing petition.
The offending vehicle of AP ST Corporation collided with the appellant’s car on 13.6.2009. Deceased Lakshmi died on the spot and other occupants suffered multiple injuries.
Deceased had Master’s Degree in Computer Science and was earning $11,600 per month in USA Company as Software Engineer and Real Estate Commission salesperson in the State of Georgia.
The compensation of Rs.9 crores was claimed.
The Tribunal awarded Rs.8,03,42,476/- ($16,88,960) with interest.
The High Court confirmed the findings but reduced the multiplier from 14 to 10 since the deceased was earning in foreign currency and awarded Rs.5,75,68,982/-.
HELD, on considering the earlier decisions, that the date of filing claim petition is the proper date for fixing exchange rate for compensation. The multiplier for a person aged 43 years must be 14 and no exception is made for a person earning in foreign currency.
In view of this, the compensation was re-calculated at Rs.9,64,52,220/- ($16,88,960).
Judgment dated 11.2.2025 of the Supreme Court of India in Civil Appeal No.2324 of 2025 of Shyam Prasad Nagalla and others Vs. The Andhra Pradesh State Road Transport Corporation and others
