SUPREME COURT OF INDIA
Hemant Gupta, Sudhanshu Dhulia, JJ.
Hari Om Const. – Appellant
Versus
National Insurance Company Ltd. & Ors. – Respondents
Civil Appeal Nos.7262-63 of 2022 (Arising out of SLP(Civil) Nos.8196-97 of 2018)
Decided On : 13-10-2022
Compensation - Motor Accident Claims Tribunal - 1. Leave granted. 2. The challenge in the present appeals is to an order passed by the High Court of Delhi on 03.11.2017 whereby the appellant, who was driving the motorcycle and one Rajinder Singh, who was the pillion rider met with an accident with a tempo bearing Registration No.HR 38 K 7828 in the area of Police Station Kashmiri Gate, Delhi. 3. The appellant has suffered multiple fracture and dislocation of the left elbow, nailing of right tibia and femur bone. The appellant undergone several surgical procedures including reconstruction of right elbow. The Board of Doctors assessed the permanent disability to the extent of 45%. The Tribunal while taking into consideration the emoluments of the appellant as Rs.18,941/-per month applied the multiplier of 16 keeping in view the age of the appellant as 32 years. Thus, the total compensation of Rs.21,94,082/-was awarded including the expenses towards physiotherapy, special diet and conveyance, loss of earnings and Rs.16,000/-towards future medical expenses, Rs.18,18,336/-was on account of loss of future income due to disability. The High Court in an appeal filed by the Insurance Company reduced the amount of compensation by applying the multiplier of 9 for the reason that there is no loss of employment. 4. We have heard learned counsel for the parties and find that the High Court has erred in law in reducing the amount of compensation. The appellant though continuous to be in service but his efficiency as a constable has been seriously compromised. Therefore, the amount of compensation awarded by the Motor Accident Claims Tribunal as Rs.21,94,082/-was just and proper keeping in view the injuries and its long-term effect on the person of the appellant. 5. Considering the above, we set aside the order of the High Court and restore the order of the Motor Accident Claims Tribunal. 6. The appeals are, accordingly, disposed of.
Fact of the Case:
The appellant and a pillion rider met with an accident with a tempo, resulting in severe injuries to the appellant. The Motor Accident Claims Tribunal awarded compensation, but the High Court reduced the amount based on the appellant's employment status.
Finding of the Court:
The High Court erred in law in reducing the amount of compensation as the appellant's efficiency as a constable has been seriously compromised due to the injuries. The amount of compensation awarded by the Motor Accident Claims Tribunal was just and proper.
Issues: The main issue was the assessment of compensation for the appellant's injuries and the impact on his future income due to disability.
Ratio Decidendi: The court found that the High Court erred in reducing the compensation based on the appellant's employment status, as the injuries had seriously compromised the appellant's efficiency as a constable. The court restored the order of the Motor Accident Claims Tribunal, considering the long-term effect of the injuries on the appellant.
Final Decision: The court set aside the order of the High Court and restored the order of the Motor Accident Claims Tribunal, awarding the original compensation amount to the appellant.
ORDER :
1. Leave granted.
2. The challenge in the present appeals is to an order passed by the High Court of Delhi on 03.11.2017 whereby the appellant, who was driving the motorcycle and one Rajinder Singh, who was the pillion rider met with an accident with a tempo bearing Registration No.HR 38 K 7828 in the area of Police Station Kashmiri Gate, Delhi.
3. The appellant has suffered multiple fracture and dislocation of the left elbow, nailing of right tibia and femur bone. The appellant undergone several surgical procedures including reconstruction of right elbow. The Board of Doctors assessed the permanent disability to the extent of 45%. The Tribunal while taking into consideration the emoluments of the appellant as Rs.18,941/-per month applied the multiplier of 16 keeping in view the age of the appellant as 32 years. Thus, the total compensation of Rs.21,94,082/-was awarded including the expenses towards physiotherapy, special diet and conveyance, loss of earnings and Rs.16,000/-towards future medical expenses, Rs.18,18,336/-was on account of loss of future income due to disability. The High Court in an appeal filed by the Insurance Company reduced the amount of compensation by applying the multiplier of 9 for the reason that there is no loss of employment.
4. We have heard learned counsel for the parties and find that the High Court has erred in law in reducing the amount of compensation. The appellant though continuous to be in service but his efficiency as a constable has been seriously compromised. Therefore, the amount of compensation awarded by the Motor Accident Claims Tribunal as Rs.21,94,082/-was just and proper keeping in view the injuries and its long-term effect on the person of the appellant.
5. Considering the above, we set aside the order of the High Court and restore the order of the Motor Accident Claims Tribunal.
6. The appeals are, accordingly, disposed of.
The main legal point established in the judgment is that the assessment of compensation for personal injuries should consider the long-term impact on the individual's earning capacity, even if the in....
The life-long adverse impact of the appellant's disability on his earning capacity and future income was a central legal principle established in the judgment.
The central legal point established in the judgment is the assessment of compensation for loss of future earnings based on the impact of permanent disability on earning capacity, and the application ....
The assessment of disability in compensation claims must be grounded in credible medical evidence, and any alterations to such assessments require clear justification.
The court restored the Tribunal's compensation award, correcting income assessment and future prospects in line with established legal precedents.
The court emphasized the need for adequate compensation reflecting permanent disability and income loss in motor accident claims.
The multiplier for compensation must reflect the victim's age at the time of the accident, not retirement age, and future prospects should be included in the calculation.
The assessment of disability and determination of compensation should consider the multiplier method and relevant Supreme Court judgments.
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