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2018 Supreme(SC) 208

DIPAK MISRA, A. M. KHANWILKAR, D. Y. CHANDRACHUD
ICICI LOMBARD GENERAL INSURANCE CO. LTD. – Appellant
Versus
AJAY KUMAR MOHANTY – Respondent


Judgement Key Points

Key Points: - The tribunal awarded Rs. 22,85,322/-, which the High Court reduced to Rs. 12,00,000/- and interest from 7.5% to 7%; Supreme Court set out final compensation as Rs. 9,10,000/- with 9% interest (!) (!) (!) (!) - Disability certificate interpolation by the doctor indicated the disability was temporary and likely to improve; the Court held permanent disability was not established (!) (!) - Court quantified components: loss of income Rs. 5,00,000 (as lump-sum for temporary disability), trauma/pain Rs. 2,00,000, medical expenses Rs. 2,09,622, total Rs. 9,10,000; insurer to deposit within 12 weeks (!) - Tribunal’s income calculation had inconsistencies; appellate court noted contradictory income figures and recalculated loss of earning at Rs. 79,877 per year, based on 3-year average income and 55% disability (!) - Emphasized that compensation must cover physical injury, treatment, loss of earnings, and loss of normal life, not limited to medical bills (!) (!)

What is the correct compensation in a motor accident claim under Section 166 of the Motor Vehicles Act when the disability is temporary and not permanent?

What constitutes adequate compensation including loss of earning, medical expenses, and pain and suffering in a case of disability with evidence of interpolation in a disability certificate?

How should courts address a non-speaking order and ensure proper application of mind to evidence and facts in determining quantum of compensation?


JUDGMENT

Dr. D.Y. CHANDRACHUD, J

1. In a claim for compensation under Section 166 of the Motor Vehicles Act, arising out of a disability sustained by the claimant as a result of a motor accident, the Tribunal awarded an amount of Rs. 22,85,322/-. The High Court in an appeal filed by the insurer reduced the compensation to Rs. 12,00,000/-

Interest was reduced from 7.5 per cent per annum to 7.0 per cent. The only reasoning contained in support of the order of the High Court reads as follows:

“Considering the grounds taken in appeal and the submissions made by the learned counsel for the parties and keeping in view the findings of the learned Tribunal given in the impugned award with regard to the quantum of compensation amount awarded and the basis on which the same has been arrived at, I feel, the interest of justice would be best served, if the awarded compensation amount of Rs. 22,85,322/- is modified and reduced to Rs. 12,00,000/-. The award of interst @ 7.5% per annum is also modified and reduced to 7% only. Accordingly, the claimant is entitled to the modified compensation amount of Rs. 12,00,000/- along with interest @ 7% per annum from the date of filing of the Claim applicati





























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