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2022 Supreme(SC) 1778

SUPREME COURT OF INDIA
Surya Kant, J.B. Pardiwala, JJ.
Riyadh M @ Anes – Appellant
Versus
The Oriental Insurance Co. Limited – Respondent
Civil Appeal No. 5915 of 2022 (@ SLP(Civil) No. 15444 of 2020)
Decided On : 01-09-2022

Advocates Appeared:
Mr. L.S. Nishad, Adocate, Ms. Anzu. K. Varkey, Adocate,for the Appellant.;

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.

Headnote:

Motor Accident - Compensation - 20% disability, future earning capacity - Kerala Motor Vehicles Act, 1988 - Section 163A, Section 166 - The court discussed the assessment of compensation for loss of earning capacity due to permanent disability and future income potential of the appellant. The interpretation of the provisions of the Kerala Motor Vehicles Act, 1988, specifically Section 163A and Section 166, was crucial in determining the compensation amount. The court emphasized the life-long adverse impact of the appellant's disability on his earning capacity and future income, leading to the restoration of the compensation awarded by the Tribunal.

Fact of the Case:

The appellant, a 21-year-old electrician, suffered 10% permanent disability in a motor accident. The Motor Accidents Claims Tribunal awarded compensation, which was later reduced by the High Court on the ground of erroneously granting compensation for future prospects.

Finding of the Court:

The court found that the appellant's permanent disability would have a life-long adverse impact on his earning capacity and future income, and thus, there was no valid reason for the High Court to reduce the compensation amount. The appeal was allowed, and the compensation awarded by the Tribunal was restored.

Issues: Assessment of compensation for loss of earning capacity due to permanent disability, validity of reducing the compensation amount by the High Court.

Ratio Decidendi: The life-long adverse impact of the appellant's disability on his earning capacity and future income was a crucial factor in the court's decision to restore the compensation awarded by the Tribunal.

Final Decision: The appeal was allowed, the Judgment and Order passed by the High Court were set aside, and the compensation awarded by the Tribunal was restored. The respondent - Insurance Company was directed to make payment of the entire amount along with interest to the appellant within three months.

ORDER

1. Leave granted.

2. The appellant assails the Order dated 13-12-2019 passed by the High Court of Kerala, whereby the award dated 20-5-2015 passed by the Motor Accidents Claims Tribunal, Pathanamthitta, Kerala has been modified and the compensation to the tune of Rs.5,95,590/-with 9 per cent interest from the date of original petition along with proportionate cost of Rs.34,529/- as awarded by the Tribunal, has been reduced by Rs.1,62,000/-.

3. Notice in this appeal was issued and as per the Office Report, the respondent was duly served but has not entered appearance. The respondent - Insurance Company is, thus, proceeded against ex-parte.

4. The facts on record reveal that the appellant, a 21 years old young man, was working as an Electrician. He was travelling on a Motor Cycle bearing Registration No.KL-30/4908 as a pillion rider and when they reached at Kuttoor Panchayat Office Junction, one Ape pick-up vehicle bearing Registration No. KL-3/K-9859 insured by the respondent - Insurance Company dashed into the Motorcycle of the appellant. The van was allegedly driven in a rash and negligent manner. The appellant fell down and received multiple injuries. The accident took place on 21-01-2008. The appellant was treated at Government hospital and was discharged on 8-2-2008.

5. The appellant suffered 10% permanent disability as a result of the injuries caused to him in the accident.

6. The Tribunal, on consideration of the evidence on record, took overall disability of the appellant to be 20% and assessed his monthly notional income as Rs.7,500/-. The Tribunal applied the multiplier of 18 and thus calculated the loss of earning capacity to the tune of Rs.4,86,000/-. A sum of Rs.20,590/- was awarded for medical expenses. Besides, Rs.3,000/- was awarded for transport to the Hospital. The appellant was also granted Rs.25,000/- towards pain and sufferings and another sum of Rs.20,000/- towards loss of amenities and enjoyment of life. A sum of Rs.1500/- was awarded towards damage to clothing and Rs.3000/- for extra nutrition. In this manner, a total sum of Rs.5,95,590/- was awarded by the Tribunal to the appellant.

7. The respondent - Insurance Company challenged the above-stated award before the High Court primarily on the ground that the Tribunal erroneously granted compensation for future prospects.

8. The High Court while accepting the above-stated contention, viewed that 20% disability cannot be taken for an infinite period by awarding 50% future prospects. On this premise, the High Court reduced the compensation to an amount of Rs.1,62,000/-. In this manner, the High Court under the head of 'loss of earning capacity' reduced the compensation from Rs.4,86,000/- to Rs.3,24,000/-.

9. We have heard learned counsel appearing for the appellant and gone through the record.

10. The fact that the appellant suffered overall disability to the extent of 10% is bound to have a life-long adverse impact on his earning capacity and future income. The appellant being hardly 21 years old at the time of accident, it was legitimately expected that his earning would have increased in future, but for the impediment caused by the permanent disability.

11. We thus find no valid or good reason for the High Court to reduce the compensation amount.

12. The appeal is, accordingly, allowed; the Judgment and Order dated 13-12-2019 passed by the High Court is set aside and the compensation as awarded by the Tribunal vide Award dated 20-5-2015 is restored.

13. The respondent - Insurance Company is directed to make payment of the entire amount along with interest as awarded by the Motor Accidents Claims Tribunal to the appellant within a period of three months from the date of receipt of a copy of this order.

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