SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2020 Supreme(SC) 549

SUPREME COURT OF INDIA
Sanjay Kishan Kaul, Ajay Rastogi, Aniruddha Bose, JJ.
Lalan D. @ Lal & Anr. – Appellant(s)
Vs.
The Oriental Insurance Company Ltd. – Respondent(s)
CIVIL APPEAL NO.2855 OF 2020 (arising out of Special Leave Petition (Civil) No.2131 of 2018)
Decided On : 17-09-2020

Advocates appeared:
For the Appellant(s) :Shinoj K. Narayanan, K. Rajeev, Advocates
For the Respondent(s):Nafis A. Siddiqui, Advocates

IMPORTANT POINT
Standardisation of just compensation is to include addition of future prospects to income of victim at time of occurrence of accident.

Headnote:

Motor Vehicles Act, 1988 – Section 166 – Injury suffered in road accident – Total compensation of Rs.4,00,000/- awarded by Tribunal, later on, additional compensation of Rs.4,47,000/- awarded by High Court in appeal – Claim for more compensation – High Court has assessed monthly income of victim to be Rs.3500/- – This was enhanced from Tribunal’s quantification of Rs.2,500/- per month – Finding of High Court on this point upheld – High Court went wrong in not awarding any sum under head of loss of future prospects – Standardisation of just compensation is to include addition of future prospects to income of victim at time of occurrence of accident – Disability has rightly been assessed to be 100% by High Court – Loss of earning capacity of first appellant is 100% – On this basis, his loss of future earning would have to be calculated treating income of victim to be Rs.3,500/- per month, to which loss of future prospects at the rate of 40% thereof is to be added which would make it Rs.4900/- per month – Multiplier to be applicable in this case would be 16 – Rs.7,00,000/- ought to be awarded as lump sum, composite amount for medical attendant charges and future medical treatment – Rs.3,00,000/- awarded under head pain and suffering – Amount of compensation enhanced to Rs. 20,26,800/- alongwith 9% interest. (Paras 7, 8, 9, 10 and 11)

Facts of the case:

Appellants are victim of road accident. Appellants have asked for further enhancement of compensation. Grievance of the appellants is that victim has been under compensated, having regard to the degree of injury suffered by him. He has specifically raised the plea for award of compensation under the head of loss of future prospects. It is also his case that the High Court erred in law in applying the multiplier of 16. It has been urged on behalf of the appellants that the multiplier 17 as per the award of the Tribunal, should have been retained.

Findings of Court:

High Court has assessed the annual income to be Rs.42,000/- (Rs.3500x12). But this very fact cannot altogether deprive the victim from compensation under head pain and suffering. The High Court had awarded Rs.10,000/- only under this head. We assess the same to be Rs.3,00,000/-.

Result : Appeal disposed of.

JUDGMENT

ANIRUDDHA BOSE, J.

The appellants before us are a victim of a road accident and his wife. The first appellant is the victim. The accident occurred on 31st December 2003 while the victim was riding his bicycle along the side of Alappuzha­Kolam highway. At the time of institution of the claim petition before the Motor Accidents Claims Tribunal, Alappuzha under Section 166 of the Motor Vehicles Act, 1988 (the Act), out of which this appeal arises, the first appellant was unconscious and was represented by his wife as the legal guardian and next friend. She was also a co-applicant before the Tribunal. It was claimed before the forum of first instance that the victim was skilled labourer in a building construction project. His date of birth is 20th May 1969. Before the Tribunal, his age at the time of accident was found to be above 34 years. He suffered, inter­alia, head injury causing brain concussion, brain stems injury, diffuse axonial injury on left side. He had to undergo extensive treatment in two hospitals, being Medical College Hospital, Vandanam, Alappuzha and thereafter at Medical Trust Hospital, Ernakulam. He had to spend about six weeks in these two hospitals. Thereafter also his treatment continued. The claim was not contested by the first respondent – the owner of the vehicle and was decided ex­parte against him. Before us also, it was only the insurance company who contested the appeal. The first respondent was deleted from the array of the parties by an order of this Court passed on 9th April, 2019. The Tribunal found involvement of the vehicle registered as KL2/No.9779. Rash and negligent driving by the driver of that vehicle was also proved. As regards condition of the first appellant, the Tribunal, in its award, found that the victim had “right aided Hemiparalesis and there is weakness on the other side also. He is completely bed ridden and he could not speak properly and he has some mental problem also. Tube was fitted for the passage of urine……”. The Tribunal in its award made on 20th January, 2009 assessed permanent disability of the appellant to be 50%.

2. Compensation was awarded by the Tribunal under following heads, applying the multiplier of 17:

Compensation for loss of earning

Rs.20,000/­-

Cost of medicine and treatment charges

Rs.68,000/­-

Transportation charges

Rs. 6,000/­-

Bystander expenses

Rs. 6,000/­-

Extra nourishment

Rs. 1,500/­-

Damage to clothing

Rs.  500/­-

Compensation for pain and suffering Compensation for permanent disability

Rs.30,000/­-

And loss of earning power

Rs.2,55,500/­-

Compensation for loss of amenities

Rs.10,000/­-

Compensation for future treatment

Rs. 2,500/­-

 Total 

Rs.4,00,000/­-

3. The victim and his wife appealed to the High Court of Kerala at Ernakulam seeking enhancement of compensation. The High Court considered certain additional documents. The appellant established before the High Court the need to continue his treatment subsequent to the award of the Tribunal. It was opined in the judgment of the High Court delivered on 16th March, 2017, that the condition of the appellant was such that it was more than sufficient to arrive at a finding that he was virtually lying as vegetable. The victim had permanent locomotor disability of right hemiplegia sequelae of head injury which was not likely to improve. The High Court found that the victim needed a full­time caregiver as he was not in a position to move around on free will. The High Court assessed the degree of disability to be reckoned as 100% for working out proper compensation and applied the multiplier of 16 considering his age. We shall reproduce the High Court’s decision on quantum of compensation in the next paragraph of this judgment.

4. The Medical Board at the Medical College Hospital, Alappuzha had certified the victim’s permanen


Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top