Back
SUPREME COURT OF INDIA
J.K. MAHESHWARI, RAJESH BINDAL, JJ.
Parminder Singh – Appellant
Versus
Honey Goyal And Others – Respondents
Civil Appeal No. of 2025 (Arising out of S.L.P. (C) No. 4484 of 2020)
Decided On : 18-03-2025
(A) Motor Vehicles Act, 1988 – Sections 168 and 173 – Injuries resulting in 100% disability suffered in motor accident – Appellant-claimant aged 21 years at the time of accident – Enhanced compensation of Rs. 15,25,600/- awarded by High Court by applying multiplier of 18 – As appellant had suffered 100% permanent disability he will have to live his entire life with that condition – As a result, he will require constant support of an attendant and a special diet – Income of appellant has been taken on lower side which deserves to be enhanced – Income of appellant taken as Rs. 7,500/- per month – High Court had rightly applied multiplier of 18 but failed to grant future prospects under head ‘Loss of Income’, which in case of appellant should be 40% – Rs.2,00,000/- awarded for future medical expenses and Rs.2,00,000/- for loss of marriage prospects – lumpsum amount of Rs.50,000/- awarded on account of expenses incurred by him on Physiotherapy – Appellant held entitled to receive total compensation of Rs. 36,84,000/ – Impugned award of High Court modified to that extent – Enhanced amount of compensation to be calculated and transferred in bank account of appellant by Insurance Company within a period of six weeks. (Paras 8, 9, 10, 11, 12 and 13)
(B) Motor Vehicles Act, 1988 – Section 168 – Motor accident – Mode of payment of compensation – Large number of motor accident cases are settled in Lok Adalat at stage of Tribunal and some percentage at appeal level – After amount of compensation is deposited before Tribunal, when claimant(s) come to know about the same, they need to move application for withdrawal of same – Such application will take some time in processing as amount, which was deposited in treasury has to be withdrawn from there – On an average entire process takes about 15-20 days – Besides this, there may be delay in filing such application due to lack of knowledge of deposit – This process is besides expenses to be incurred by claimant(s) – Instead of following that process, direction can always be issued to transfer amount into bank account(s) of claimant(s) with intimation to Tribunal – With increase in income level, amount of compensation awarded by Tribunal runs into lakhs of rupees and in some cases crores – Such process will result in loss of interest to claimant(s) for those 15-20 days and more in some cases, where claimants had no knowledge about deposit of amount – Still there may be cases where amount may remain with Tribunal because of lack of knowledge to claimant and/ or non-withdrawal thereof – No uniform practice is followed regarding deposit of amount before Tribunal – This is era of technology where now Artificial Intelligence is taking over – Our country has done wonders in digital payment transactions – Now, debits and credits in accounts are instant with help of technology – Process can be streamlined by directly transferring amount in bank accounts of claimants, so that Insurance Companies and claimants are saved from hassles of court processes – Directions are being issued for bank transfer of amount of compensation in motor accident cases, but Courts/Tribunals can always follow this process in any matter, whenever any amount is to be paid by one party to another, however, ensuring proper compliance. (Paras 14, 14.3, 14.5, 14.6, 15, 15.1, 16, 17 and 20)
Facts of the case:
Aggrieved by order passed by High Court in appeal, claimant is before this Court seeking enhancement of compensation. Aggrieved against Award of Tribunal, appellant preferred appeal before High Court. Compensation was enhanced from Rs. 5,16,000/- to Rs. 15,25,600/-.
Findings of Court:
Registry is directed to send a copy of this Order to (1) Registrars General of all High Courts for placing the same before Chief Justice of the High Court for further circulation and compliance by concerned Tribunals/Courts; and (2) Directors of National Judicial Academy and State Judicial Academies.
Result : Directions issued.
Key Points: - The Supreme Court enhanced the compensation awarded to the appellant, who suffered 100% permanent disability due to a motor accident, to Rs. 36,84,000/- (!) (!) . - The enhanced compensation amount is to be calculated and transferred into the appellant's bank account by the Insurance Company within six weeks (!) . - The Court expressed concern regarding the traditional mode of payment of compensation in motor accident cases, which involves depositing the amount with the Tribunal and subsequent withdrawal by the claimant, causing delays and loss of interest (!) (!) . - The Court directed that compensation amounts in motor accident cases should be directly transferred to the claimant's bank account to streamline the process and save claimants from the hassles of court procedures (!) (!) . - Tribunals can issue directions for direct bank transfer of compensation amounts in any matter where one party is to pay another, ensuring proper compliance (!) . - Tribunals may require claimants to furnish their bank account particulars at the initial stage of proceedings to facilitate direct transfer of compensation (!) . - The Court noted that the process of withdrawing compensation from the Tribunal can take 15-20 days on average, and sometimes longer due to lack of knowledge of the deposit (!) . - The judgment highlights the advancements in technology and digital payment transactions in India, suggesting their application to streamline compensation disbursement (!) (!) . - The Court modified the High Court's award by enhancing the compensation for loss of income, attendant charges, special diet, pain and suffering, and adding amounts for physiotherapy expenses, future medical expenses, and loss of marriage prospects (!) (!) . - The Registry was directed to circulate the order to Registrars General of all High Courts and Directors of Judicial Academies for compliance (!) .
JUDGMENT :
(Rajesh Bindal, J.)
1. Leave granted.
2. Aggrieved by the order1[Dated 04.09.2019] passed by the High Court2[High Court of Punjab and Haryana at Chandigarh] in appeal3[FAO No.3726 of 2017], the claimant is before this Court seeking enhancement of compensation.
3. The brief facts are that the appellant met with an accident on 03.06.2014 when he was hit by a car bearing registration No. PB-03- X-0169 coming from the opposite direction. The appellant was driving his motorcycle. A criminal case was registered against the driver of the car. The appellant having suffered grievous injuries, resulting in his disability filed claim petition4[MACT File No.84 of 2014]. The age of the appellant at the time of the accident was 21 years. He was aiming to become veterinary doctor and pursuing his studies for that. The injuries suffered by him resulted in quadriplegia5[Paralysis of all four limbs (according to Oxford English Dictionary)]. As a consequence of which he was declared 100% disabled as per the medical certificate issued by the Orthopedic Surgeon, Civil Hospital, Bathinda. He had incurred medical expenses of Rs. 2,66,000/- on his treatment. A lump sum amount of Rs. 2,00,000/- was awarded to the appellant on account of his 100% disability. The Tribunal6[Motor Accident Claims Tribunal, Bathinda] in a very conservative estimate assessed the compensation payable to the appellant at Rs. 5,16,000/-.
4. Aggrieved against the Award of the Tribunal, the appellant preferred appeal before the High Court. The compensation was enhanced from Rs. 5,16,000/- to Rs. 15,25,600/-. The High Court has taken the income of the appellant as Rs. 5,600/- per month to assess the loss of income and applied the multiplier of 18. Under the head ‘Loss of Income’, the High Court assessed the compensation as Rs. 12,09,600/- as against Rs. 2,00,000/- awarded by the Tribunal and this was the only modification by the High Court in the Award of the Tribunal. Still dissatisfied, the appellant is before this Court.
5. Learned counsel for the appellant submitted that it is a case in which as a result of an unfortunate accident the appellant had suffered quadriplegia resulting in 100% disability. The income of the appellant has been assessed on the lower side. He was aiming to become a veterinary doctor for which he was pursuing his studies. He was a State Level player in Volleyball and had also undergone various other courses. The appellant was a young person of 21 years at the time of the accident. Now he will have to spend his entire life with 100% disability as a result of which he has to take special diet and also to engage an attendant to look after him. The High Court had failed to grant future prospects under the head ‘Loss of Income’.
6. On the other hand, learned counsel for respondent no.3/United India Insurance Co. Ltd. submitted that already reasonable amount of compensation has been awarded by the High Court. No doubt the appellant had suffered disability but there is no ground made out for further enhancement of compensation. In the absence of any proof of income, the High Court has already assessed the income of the appellant at Rs. 5,600/- per month. There is no scope for further enhancement.
7. Heard learned counsel for the parties and perused the relevant referred record.
8. In the case in hand, basic undisputed facts on record are that the appellant was a young boy of 21 years of age at the time of the accident and having suffered quadriplegia the same resulted in his 100% permanent disability. In the affidavit filed in his examination-in- chief, the appellant stated that he was learning the work for the Veterinary Doctor at Village Romana Ajit Singh, District Bathinda. He participated in 52nd International District School Games as a Volleyball player in October, 2006 when he was under 17 years of age. He had completed his course of pig farming from Punjab Agricultural University. In our opinion, as the appellant had suffered 100% permanent disabili
Mode of payment of compensation in motor accident cases – Direction can always be issued to transfer amount into bank account(s) of claimant(s) with intimation to Tribunal – Courts/Tribunals can alwa....
Accident – Death - Enhancement of compensation - Tribunal may release the money with certain stipulations and that guidelines have to be followed but not rigidly followed as precedents – Award modifi....
Motor Accident Claim – Compensation - Dependants of deceased, deduction of 1/4 to which as children of 2 years and one of 7 months Kumari Alpana have loss their father at time of accident, deduction ....
Motor Accident Claim – Compensation modified - Tribunal may release the money with certain stipulations and that guidelines have to be followed but not rigidly followed as precedents.
Accident - Enhancement of quantum of compensation - Tribunal may release the money with certain stipulations and that guidelines have to be followed but not rigidly followed as precedents.
Court records amicable settlement in motor accident compensation appeal, disposing case as per joint memo with payment terms.
Motor Accident Claims – Compensation - If amount of interest does not exceeds Rs.50,000/-in any financial year, registry of this Tribunal is directed to allow claimant to withdraw amount without prod....
The court affirmed the authority to enhance compensation awarded by the Motor Accident Claims Tribunal, ensuring timely disbursement to the claimant with provisions for interest and a management plan....
The Court emphasized the need for the Motor Accident Claims Tribunal to act on compensation disbursal swiftly, adhering to legal timelines.
Compensation under the Motor Vehicles Act cannot be reduced due to benefits received from compassionate employment; all dependents are entitled to fair compensation for their loss.
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
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
