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2017 Supreme(SC) 109

A.K.SIKRI, R.K.AGRAWAL
SANDEEP KHANUJA – Appellant
Versus
ATUL DANDE – Respondent


Advocates Appeared:
For the Appellants :C. N. Sree Kumar, Advocate.
For the Respondents:Sukant Vikram, Abinav Ankit, Advocates.

Judgement Key Points

Case Summary: Sandeep Khanuja v. Atul Dande & Anr. (Civil Appeal No. 1329 of 2017)

Parties and Facts
The appellant, a 30-year-old professional Chartered Accountant, suffered fractures in both legs in a motor accident on July 8, 2006, caused by the rash and negligent driving of respondent No. 1's car, resulting in 70% permanent disability. (!) [1000589890001][1000589890004][1000589890005][1000589890006] This disability impaired his mobility, affecting his ability to perform duties requiring movement, such as visiting clients, appearing before authorities, and conducting audits.[1000589890014]

Proceedings Below
The Motor Accidents Claims Tribunal (MACT) awarded Rs. 5,35,227, including medical/transport expenses (Rs. 3,10,227), loss of income (Rs. 1,00,000), mental/physical agony (Rs. 30,000), rod removal (Rs. 25,000), and permanent disability (Rs. 70,000).[1000589890001] MACT assessed monthly income at Rs. 10,000 but held the disability did not impact earning capacity for desk-based work, refusing multiplier application.[1000589890005][1000589890008] The High Court enhanced to a lump sum of Rs. 6,35,000, acknowledging restricted movement but not applying multiplier.[1000589890002] (!) (!)

Supreme Court Holding
The multiplier method, logically sound and based on equity, equality, and necessity, applies not only to death claims but also to permanent injuries affecting future earning capacity; departure is rare.[1000589890011][1000589890012][1000589890013] (!) (!) (!) In injury cases, courts must assess the disability's impact on earning capacity, not mechanically equate percentage disability to economic loss.[1000589890013] (!) (!) (!) (!) (!)

Here, MACT erred in finding no impact on a Chartered Accountant's earning capacity, as the profession requires mobility for client visits, statutory functions, and appearances before authorities.[1000589890014] The 70% permanent disability at a young age restricts movements, causing definite loss of efficiency and future earnings.[1000589890006][1000589890014] (!)

Compensation Awarded by Supreme Court
Using assessed income of Rs. 10,000/month (Rs. 1,20,000/year) and multiplier of 17 (based on age), loss of future earnings at 70% disability: Rs. 14,28,000. Enhanced mental/physical agony, frustration: Rs. 1,30,000. Total: Rs. 19,93,227 (plus interest and costs as per High Court).[1000589890016] (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)

Appeal Outcome
Appeal allowed; compensation enhanced. (!) [1000589890017]


JUDGMENT

A.K. SIKRI, J.

Leave granted.

2. In a motor accident, the appellant herein suffered physical injuries. It happened on July 08, 2006 when the appellant was going on a scooter to Gram Pendri in the State of Chhattisgarh. When he reached near Gram Pendri, a Hyundai Getz car bearing Registration No. MH 12 CR 6917, driven by respondent No.1, hit the scooter, as a result of which the appellant fell down and sustained fractures on both the legs, thereby suffering permanent disability to some extent. He filed claim for compensation against the respondents before the Motor Accidents Claims Tribunal (MACT), Rajnandgaon, Chhattisgarh. The MACT, vide award dated May 05, 2009, granted him compensation in the sum of Rs. 5,35,227, under the following heads:

Head

Amount (in Rs.)

Medical & Transport Expenses

3,10,227

Loss of Income

1,00,000

Mental & Physical agony

30,000

Removal of rod inserted in right leg

25,000

Permanent disability to some extent

70,000

TOTAL

5,35,227

3. Not satisfied with the quantum of compensation, the appellant approached the High Court



























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