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2009 Supreme(SC) 1866

SUPREME COURT OF INDIA
Dalveer Bhandari, A.K. Patnaik, JJ.
Arshada Banu – Appellant
Versus
New India Assurance Company Ltd. and Others – Respondents
C.A. No. 8196 of 2009
Decided On : 10-12-2009

The proper multiplier for calculating compensation in personal injury cases should be determined based on the claimant's age, income, and earning capacity.

Headnote:

Compensation - Motor Vehicle Accident - The court modified the compensation amount awarded by the High Court, taking into account the appellant's age, income, and earning capacity, and substituted the amount under the heading Loss of earning Capacity.

Fact of the Case:

The appellant filed a claim petition seeking compensation for injuries sustained in a motor vehicle accident. The High Court awarded compensation of Rs. 1,84,000/-, but the appellant contended that the amount was not properly computed.

Finding of the Court:

The court modified the compensation amount, considering the appellant's age, income, and earning capacity, and substituted the amount under the heading Loss of earning Capacity.

Issues: Proper computation of compensation amount for injuries sustained in a motor vehicle accident.

Ratio Decidendi: The proper multiplier for calculating the compensation amount should be determined based on the appellant's age, income, and earning capacity.

Final Decision: The court modified the compensation amount and disposed of the appeal, with the parties bearing their own costs.

JUDGMENT :

1. Leave granted.

This appeal is directed against the judgment of the High Court of Karnataka at Bangalore in Miscellaneous First Appeal No. 6268/2003.

2. Brief facts, which are necessary to dispose of this appeal is recapitulate as under:

The appellant filed a claim petition in Motor Vehicle Case No. 49/201 against the respondents seeking compensation of Rupees ten lakhs for person injuries said to have been sustained by her in motor vehicle accident that occurred at about 2.45 p.m. on September 20, 1999, near Hampapura gate Nagamangala road, Mandya. According to the appellant, the accident took place because of rash and negligent driving of the driver. As a result of the accident there was amputation of her right hand above the elbow joint. The appellant remained in hospital for fifteen days and she had to spend huge amount towards medical expenses, transportation, attendant charges, nourishing food etc. It is further stated that she is a tailor, stitching ladies garments and earning about 150/- per day. According to the order of the High Court, the appellant is entitled to a total compensation of Rs. 1,84,000/- as against Rs. 34,000/- awarded by the Tribunal. The High Court also awarded interest at the rate of eight per cent from the date of petition, till the date of realisation. The appellant, aggrieved by the impugned judgment of the High Court, preferred this appeal by way of special leave.

3. According to the appellant, the High Court has not properly computed the compensation amount. According to her, she was about 35 years of age at time of accident and was earning Rs. 3,000/- per month.

4. We have heard learned Counsel for the parties and perused documents on record. Looking to the fact that the appellant was working in very small village and according to the evidence on record and other factors, take that her annual income was Rs. 18,000/- from tailoring. In the facts circumstances of the case, we think that the proper multiplier should be sixty The High Court had granted Rs. 84,000/- under the heading Loss of Service of Family vide para 17 of the impugned order. Therefore, in place of Rs. 84000/- Rs. 2,88,000/- has to be substituted under the heading Loss of earning Capacity. The award under other different headings except the amount calculated regarding the income of the appellant would remains the same.

5. With this modification, the appeal is disposed of. The parties to bear their own costs.

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