2019 Supreme(SC) 250

SUPREME COURT OF INDIA
A.K. SIKRI, S. ABDUL NAZEER, JJ.
M.R. KRISHNA MURTHI – APPELLANT
VERSUS
THE NEW INDIA ASSURANCE CO. LTD. & OTHERS – RESPONDENTS
CIVIL APPEAL NOS. 2476-2477 OF 2019 (ARISING OUT OF SLP (C) NOS. 31521-31522 OF 2017)
Decided on : 05-03-2019

IMPORTANT POINT
In those cases where victim of accident is not an earning person but a student, while assessing compensation for loss of future earning, focus of examination would be career prospect and likely earning of such a person in future.

Headnote:(A) Motor Vehicles Act, 1988 – Sections 166 – Injury in accident – Quantum of compensation – Appellant was a student studying in a school – He was not doing any job or was in any vocation and was not earning anything – Loss of future earning is to be assessed on that basis – In those cases where victim of accident is not an earning person but a student, while assessing compensation for loss of future earning, focus of examination would be career prospect and likely earning of such a person in future – There may be cases where victim is not, at that stage, doing any such course to get a particular job – He may be studying in a school – In such a case, future career would

       depend upon multiple factors like family background, choice/interest of complainant to pursue a particular career, facilities available to him for adopting such a career, favourable surrounding circumstances to see which would have enabled claimant to successfully pick up said career – If chosen field is employment, then future earning can be taken on the basis of salary and allowances which are payable for such calling – In case, career is a particular profession, future earning would depend on host of other factors on the basis of which chances to achieve success in such a profession can be ascertained – Impact of injuries on functional disability is to be seen – Appellant had a bright future – His movements are restricted and he needs a Driver as he is not in a position to drive car himself – This would hinder earning capacity to some extent, though not significant extent – Though, not very seriously, functional capacity has been impaired because of disability suffered by appellant as appellant cannot run around like other young Advocates of his age – Going by overall circumstances, in case of appellant, loss of future earning can be fixed at Rs.5,000/- per month i.e. Rs.60,000/- per annum on which multiplier of 18 is to be applied – Loss future earning comes to Rs.10,80,000/- – Appellant would be paid another sum of Rs.6,54,000/- under this head along with interest as awarded by Court below. (Paras 17, 23, 24 and 26)

       (B) Road Safety and Compensation – Speedy Disposal of Claim Cases by MACTs – Government should consider feasibility of enacting Indian Mediation Act to take care of various aspects of mediation in general – Government may examine feasibility of setting up MAMA by making necessary amendments in Motor Vehicles Act – For this purpose, it can consider two flow charts given by appellant – In the interregnum, NALSA is directed to set up Motor Accident Mediation Cell which can function independently under aegis of NALSA or can be handed over to MCPC – Such a project should be prepared within a period of two months and it should start functioning immediately thereafter at various levels as suggested in this judgment – For ensuring such implementation, NALSA is directed to take up the same in coordination and cooperation with

       various High Courts. MACAD Scheme shall be implemented by all Claim Tribunals on All India basis. 21 Banks, Members of Indian Banks Association who had taken decision to implement MACAD Scheme would do the same on All India basis – There should be programmes from time to time, in all State Judicial Academies, to sensitizing Presiding Officers of Claims Tribunals, Senior Police Officers of State Police as well as Insurance Company for implementation of said Procedure. (Para 39)

       Facts of Case:

       Appellant who is a practicing Advocate, had suffered in nasty accident at the young age of 18 years. He was a student at that time studying. Though, appellant was discharged from hospital after two months, his treatment continued for over 6 years, during which period he had to undergo further operations. In all, three surgeries were performed. As per appellant, net result of accident of such severity is that he is suffering permanent disability (pain and difficulty in locomotion) even today. This disability is certified by District Government Hospital, Muzaffarnagar at 40%, as per disability certificate.

       Findings of Court:

       Direction for implementation of ‘Claims Tribunal Agreed Procedure’ which is substituted by modified procedure, are already there. However, we find that there is no proper implementation thereof by Claims Tribunals. We, thus, direct that there should be programmes from time to time, in all State Judicial Academies to sensitizing the presiding officers of the Claims Tribunals, Senior Police Officers of State Police as well as Insurance Company for the implementation of the said Procedure. Modified Claims Tribunal Agreed Procedure as approved by High Court of Delhi in its order dated 7th December, 2018 has propensity to ensure speedy disposal of MACT cases. Likewise, Operative Documents of 21 documents which have implemented Annuity Deposit Scheme can ensure that compensation is delivered to persons for whom it is meant. It has element of annuity payments as well.

       Result : Appeals disposed of with directions.