SUPREME COURT OF INDIA
B.R. GAVAI, VIKRAM NATH, JJ.
Rahul Ganpatrao Sable - Appellant
Versus
Laxman Maruti Jadhav (Dead) Through Lrs. And Ors. – Respondents
Civil Appeal Nos. of 2023 (arising out of S.L.P.(C) No.26871 of 2019), Civil Appeal No. of 2023 (arising out of S.L.P.(C) No. 27394 of 2019)
Decided on : 05-07-2023
Motor Accident Claims Tribunal awarded compensation to the injured-claimant. High Court enhanced the compensation. The Court referred to relevant case law, including Sarla Verma v. Delhi Transport Corporation and National Insurance Company Ltd. v. Pranay Sethi, to determine the appropriate loss of income, uncertainties of life, deduction towards personal expenses, and multiplier. The Court also considered the judgment in Lalan D. v. Oriental Insurance Company Ltd. regarding loss of income. The Court awarded compensation for attendant expenses, future medical expenses, loss of marriage prospects, and pain and suffering. The Court also addressed the issues raised in the second appeal and made rulings on loss of income, future prospects, deduction towards personal expenses, loss of consortium, and loss of estate and funeral expenses.
Fact of the Case:
The appellant, an injured-claimant, appealed against the judgment of the High Court awarding additional compensation for a motor accident. The appellant suffered severe injuries resulting in permanent disability. The High Court enhanced the compensation awarded by the Motor Accident Claims Tribunal. The appellant appealed for compensation under several heads and enhancement of the amounts awarded. The issues raised include loss of income, uncertainties of life, deduction towards personal expenses, multiplier, attendant expenses, future medical expenses, loss of marriage prospects, and pain and suffering. The Court considered each issue and made appropriate rulings.
Finding of the Court:
The Court analyzed the arguments presented by both parties and referred to relevant case law to support its rulings. It held that the loss of income should be considered as 100% due to the nature of the disability. It also ruled that no deduction should be made for uncertainties of life and personal expenses. The Court applied the appropriate multiplier for the appellant's age and awarded compensation for attendant expenses, future medical expenses, loss of marriage prospects, and pain and suffering. The Court also addressed the issues raised in the second appeal and made rulings on loss of income, future prospects, deduction towards personal expenses, loss of consortium, and loss of estate and funeral expenses.
Ratio Decidendi: The Court held that loss of income should be considered as 100% due to the nature of the disability. It ruled that no deduction should be made for uncertainties of life and personal expenses. The Court applied the appropriate multiplier for the appellant's age and awarded compensation for attendant expenses, future medical expenses, loss of marriage prospects, and pain and suffering. The Court also ruled on the issues raised in the second appeal regarding loss of income, future prospects, deduction towards personal expenses, loss of consortium, and loss of estate and funeral expenses.
Result: The appeals were allowed. The Tribunal was directed to calculate the amount of compensation afresh in accordance with the Court's rulings. The additional amount determined by the Tribunal would be subject to 7.5% interest from the date of filing the claim petition(s). The amount would be deposited and paid to the dependent/appellants according to law. No costs were awarded. Pending applications were disposed of.
JUDGMENT :
Vikram Nath, J.
S.L.P.(C) No.26871 of 2019:
Leave granted.
2. This appeal has been preferred by the injured-claimant assailing the correctness of the judgment and order dated 29.03.2019 passed by the High Court in First Appeal No.1162 of 2008 awarding additional compensation of Rs.8,66,787/-, over and above, the compensation of Rs.7,21,895/- awarded by the Motor Accident Claims Tribunal vide judgment dated 06.02.2008 in Motor Accident Claims Petition No.59 of 2000.
3. The Tribunal awarded Rs.5 lakhs as overall compensation and in addition, actual medical expenses incurred Rs.2,21,895/- making a total figure of Rs.7,21,895/-. On appeal, the High Court enhanced the overall compensation to Rs.10,71,000/-. It also enhanced the actual medical expenses incurred to Rs.3,42,682/-. Further, it awarded Rs.1 lakh under the head pain and suffering and Rs.75,000/- under the head future medical expenses, thus, making a total of Rs.15,88,682/-.
4. Aggrieved by the same, the present appeal has been preferred for seeking compensation under several heads, where no amount has been awarded by the Tribunal or the High Court and also for enhancement of the amounts awarded by the Tribunal and the High Court under different heads.
5. The appellant on the fateful day i.e. 27.04.1994 suffered severe injuries resulting into permanent disability to the extent of 60% as held by the High Court and 85% as declared under the Right to Disability Act, 2016. The major injuries suffered are (i) compression fractures of seven cervical vertebra. (ii) Paraplegia (iii) loss of bladder function (v) loss of erection of penis and (vi) loss of bowel control.
6. The arguments advanced by the learned counsel for the appellant are summarized hereunder:
(1) The High Court committed an error in deducting 50% towards loss of income considering that there was 60% permanent disability when, in fact, the disability suffered by the appellant actually resulted into 100% loss of income as the appellant had been rendered completely unfit for working and earning. It was submitted that this Court has already in a series of decisions held that even though the victim may have survived the accident but the nature of disability may result into 100% loss of earning and, therefore, it is not correct to hold that where the disability is 60%, the loss of income should be reduced by 50%. Reliance has been placed upon a judgment of this Court in Lalan D. Vs. Oriental Insurance Company Ltd., (2020) 9 SCC 805.
7. The claim of the appellant that considering his merit, he would have easily earned Rs.25,000/- per month, has not been accepted by the High Court for no justifiable reason and deduction of Rs.10,000/-has been unnecessarily made treating the income of the appellant to be Rs.15,000/- per month. This figure has been reduced by the High Court on the ground of uncertainties in life. According to the learned counsel, the said reasoning is fallacious in view of the judgment of this Court in case of Leela Gupta Vs. State, (2010) 12 SCC 37, wherein, it was held that the multiplier takes into consideration, the uncertainties of life and, therefore, there should not be any further deduction on that account. Learned counsel further relied upon the judgment of this Court in the case of Ashivinbhai Jayantilal Modi Vs. Ramkaran Ram, (2015) 2 SCC 180 fixing the income of 19 years old medical student to be Rs.25,000/- per month.
8. The next submission advanced is that the High Court erred in deducting 50% amount towards personal expenses. The submission is that it is not a case of death, but it is a case of injury and, as such, there was no question of any deduction towards personal expenses. Once again, reference was made to the judgment of this Court in Lalan D. (supra).
9. The next argument advanced relates to wrong application of multiplier of 17. The admitted age of the appellant-injured was 19 years at the time of the accident. In the case of Sarla Verma Vs. Delhi Transport Corporation, (2009) 6 SC
The main legal point established in this judgment is that loss of income should be considered as 100% in cases of severe disability, and no deduction should be made for uncertainties of life and pers....
(1) Death in motor accident – While calculating compensation, Court should take into consideration not only actual income at the time of death but should also make additions by taking note of future ....
(1) Strict rules of evidence as applicable in a criminal trial, are not applicable in motor accident compensation cases.(2) Death in motor accident – Salary certificate and pay slip are conclusive pr....
The main legal point established in the judgment is the application of legal principles related to compensation under the Motor Vehicles Act, specifically focusing on loss of dependency, future prosp....
The court established that actual income evidence must be prioritized over notional income in compensation claims under the Motor Vehicle Act.
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