SUPREME COURT OF INDIA
Sanjay Karol, Prashant Kumar Mishra, JJ.
Hare Krushna Mahanta – Appellant
Versus
Himadari Sahu & Anr. – Respondents
Civil Appeal No. 2204 of 2025 (Arising out of SLP(C)No.5541 of 2023)
Decided On : 07-02-2025
Motor Vehicles Act, 1988 – Sections 168 and 173 – Injury in motor accident – Compensation of Rs.6,17,515/- along with 7% interest awarded by Tribunal – Additional consolidated sum of Rs.60,000/- awarded by High Court in appeal – Objective when granting compensation under Motor Vehicles Act, 1988, is to ensure that just and fair compensation is paid to aggrieved party – Amount of compensation enhanced to Rs.17,82,825/- – 7% interest to be paid as awarded by Tribunal. (Paras 9, 10 and 11)
Facts of the case:
Claimant-Appellant filed application for compensation under Motor Vehicles Act, 1988, seeking compensation of Rs. 15,00,000/-, submitting therein that he was working as a Primary School Teacher earning Rs.19,000/- per month at the time of accident and also has spent Rs.10,00,000/- towards medical treatment, also suffered pain and loss of income. Tribunal, by its Order, proceeded ex-parte against Respondent No.1 and held Respondent No.2, Insurance company, liable to pay an amount of Rs.6,17,515/- along with interest @ 7%. Tribunal considered permanent disability suffered by Appellant as 10% and took his income to be Rs. 16,340/- per month on the basis of his salary certificate. High Court, vide impugned order, enhanced the amount awarded to Claimant-Appellant with an additional consolidated sum of Rs.60,000/-.
Findings of Court:
Impugned award dated 13th December, 2019 passed in MAC No.77 of 2016 by 2nd Additional District Judge-cum-3rd Motor Accident Claims Tribunal, Cuttack as modified in terms of impugned order, stands further modified.
Result : Civil Appeal allowed.
ORDER :
| Time taken for disposal of the claim petition by MACT | Time taken for disposal of the appeal by the High Court | Time taken for disposal of the appeal in this Court |
| 3 years | 3 years | 2 years 2 months |
Leave granted.
2. This appeal is directed against the Judgment and Order dated 4th April, 2022 in MACA No.954 of 2019 passed by the High Court of Orissa at Cuttack, which in turn was preferred against the Judgment and Order dated 13th December, 2019 passed in MAC No.77 of 2016 by the 2nd Additional District Judge-cum-3rd Motor Accident Claims Tribunal, Cuttack.
3. The brief facts giving rise to this appeal are that on 6th December, 2016, the Claimant-Appellant, aged 51 years, working as a Primary School Teacher at Kadodihi, was returning from the school on his motorcycle bearing No.OR-14-V-6869 with his colleague, namely, Sabita Mahanta, riding on the extremely left side of the road. The offending vehicle bearing No.OR-19-M-4347, coming from the opposite direction of the road, driving rashly and negligently, dashed into the Claimant-Appellant from the front, thus injuring him seriously. He was taken to Lahunipada CHC for treatment and was, then, shifted to Kaling Hospital Pvt. Ltd., Chandrasekharpur, Bhubaneshwar, where he was treated from 7th December, 2013 to 22th December, 2013. Subsequently, he also got treatment at ISPAT General Hospital, Rourkela. During treatment, the Claimant-Appellant underwent surgery, and a nail was inserted in his right leg.
4. In connection with this incident, FIR No.100/2013 was registered under Sections 279, 337, 338 of the Indian Penal Code by the husband of the other injured person, Sabita Mahanta, at IIC, Lahunipada Police Station.
5. The Claimant-Appellant filed an application for compensation under the Motor Vehicle Act, 1988, seeking compensation to the tune of Rs. 15,00,000/, submitting therein that he was working as a Primary School Teacher earning Rs.19,000/-per month at the time of the accident and also has spent Rs.10,00,000/-towards medical treatment, also suffered pain and loss of income.
6. The Tribunal, by its Order, proceeded ex-parte against Respondent No.1 and held Respondent No.2, the Insurance company, liable to pay an amount of Rs.6,17,515/-along with interest @ 7%. The Tribunal considered permanent disability suffered by the Appellant as 10% and took his income to be Rs. 16,340/-per month on the basis of his salary certificate.
7. Being aggrieved with the amount of compensation awarded, the Claimant-Appellant filed an appeal before the High Court for enhancement on the ground that the Tribunal had incorrectly appreciated the nature of the injury and further claimed permanent disability to the extent of 40%.
8. The High Court, vide the impugned order, enhanced the amount awarded to the Claimant-Appellant with an additional consolidated sum of Rs.60,000/.
9. We have heard the learned counsel for the parties. It is borne from the record that the Claimant-Appellant had agreed on the additional consolidated sum granted by the High Court. It is imperative for this Court, however, to reiterate that despite such consent, the objective when granting compensation under the Motor Vehicles Act, 1988, is to ensure just and fair compensation is paid to the aggrieved party. This came to be reiterated by this Court recently in Meena Devi v. Nunu Chand Mahto, (2023) 1 SCC 204 , wherein it was observed:
10. As a result of the discussion above, the compensation payable to the Claimant-Appellant in accordance with law is as follows:
| FINAL COMPENSATION | ||
| Compensation Heads | Amount Awarded | In Accordance with: |
| Monthly Income (Salary Certificate) | Rs.16,340/- | |
Injury in motor accident – Objective when granting compensation under Motor Vehicles Act, 1988, is to ensure that just and fair compensation is paid to aggrieved party.
The court established that oral evidence is crucial for determining income in compensation claims, emphasizing the need for accurate assessment of disability.
The court established that the claimant's functional disability should be assessed at 90% due to amputation, and his age fixed at 22 years, applying a multiplier of 18 for compensation calculation.
Injury in motor accident – Quantum of compensation must be adequate and in consonance with minimum wage prevalent in the area where is an unskilled labourer.
Injury in motor accident – Quantum of compensation must be adequate and it cannot be meager.
Negligence established under the Motor Vehicles Act mandates just compensation for injured parties, even exceeding claimed amounts.
The court restored the Tribunal's compensation award, finding the High Court's reduction of the appellant's income and compensation unjustified.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.