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2025 Supreme(SC) 784

SUPREME COURT OF INDIA
Sudhanshu Dhulia, K. Vinod Chandran, JJ.
Sunil Kumar Khushwaha – Appellant
Versus
Katragadda Satyanarayana & Anr. – Respondents
Civil Appeal No. 6426 of 2025 (@Special Leave Petition (C) No. 16748 of 2024)
Decided On : 07-05-2025

Advocates appeared:
For the Petitioner(s): Mr. Sanjeev Sahay, Adv. Ms. Shagufa Salim, AOR Mr. Karan Deep Singh, Adv. Mr. Archit Rajput, Adv. Ms. Shagun Saproo, Adv.
For the Respondent(s): Mr. Ambhoj Kumar Sinha, AOR Ms. Neeti Bhardwaj, Adv.

Compensation for injuries must accurately reflect functional disability concerning the claimant's vocational capabilities, leading to a modification of total compensation to Rs.32,34,353.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for injuries sustained in a motor accident - Assessment of functional disability - The court adjusted the compensation based on 60% functional disability due to amputation, while modifying the total compensation to Rs.32,34,353/- inclusive of various heads such as loss of income, medical expenses, and pain and suffering. (Paras 5, 6, 7)

(B) The High Court's reliance on Raj Kumar v. Ajay Kumar and Anr. was affirmed, establishing that the assessment of compensation must account for the functional disability in relation to the claimant's vocational capabilities. (Paras 3, 4)

Facts of the case:
The appellant, a fruit seller, suffered grievous injuries from a truck accident leading to amputation of his right leg, resulting in loss of earnings and increased medical expenses. The Tribunal initially awarded Rs.7,09,273/-, which was inadequate according to the court's assessment.

Findings of Court:
The total modified compensation was deemed reasonable considering the adverse impact of the injury on the appellant's life and earnings, leading to a revised total of Rs.32,34,353/- with prescribed interest.

Issues: The main issues included the proper assessment of functional disability and appropriate quantum of compensation.

Ratio Decidendi: The court clarified that functional disability assessment should reflect the realistic impact of injuries on the claimant's vocational capacity.

Result: Appeal allowed with modification of compensation.

Table of Content
1. overview of the injury and compensation granted. (Para 2)
2. assessment of functional disability and its significance. (Para 3)
3. dispute over the assessment of functional disability. (Para 4 , 5)
4. details of modified compensation awarded. (Para 6)
5. conclusion and directive for payment. (Para 7 , 8 , 9 , 10)

JUDGMENT :

K. VINOD CHANDRAN, J.

1. Leave granted.

2. Two pedestrians were struck by a truck which was driven rashly and negligently, leading to one of them, the appellant/claimant herein, suffering grievous injuries leading to amputation of his right leg from knee. The injured was first taken to the local hospital, then shifted to the specialized hospital and later to Delhi from Ranchi for better treatment where the amputation was carried out. The injured was a fruit seller who had already been filing Income Tax Returns, Exhibit-5 which indicated his income to the tune of Rs.1,56,996/-. The same was adopted by the Tribunal, however no amounts were granted for loss of income due to the permanent disability suffered. The Tribunal granted an amount of Rs.7,09,273/-, the major portion of which was towards medical bills coming to Rs.5,00,949/-. The aggregate was with respect to income during treatment for one and half months, towards conveyance (air and rail) and the pain and suffering which were respectively at Rs.19,624/-, Rs.13,700/- and Rs.1,75,000/-.

3. The High Court relied on Raj Kumar v. Ajay Kumar and Anr. , (2011) 1 SCC 343 which emphasized the need to assess the functional disability in granting compensation based on the physical disability certificate. In the present case, a doctor was examined who produced Exhibit4/1, a disability certificate issued on the examination of the injured by a Medical Board. The certificate assessed the injured to have 50% permanent disability due to amputation of his right leg.

4. Mr.Karan Deep Singh, learned counsel for the appellant/injured submitted that since the appellant was a fruit seller, he could no longer carry out such sales and hence there is a 100% functional disability in so far as the chosen vocation. Mr. Ambhoj Kumar Sinha, learned counsel for the respondent-Insurance Company sought to uphold the order of the High Court.

5. We are not satisfied that a functional disability of 100% can be assessed only because he cannot carry on the vocation which he was carrying on earlier. It is not as if the appellant was vending fruit on his foot, especially when it is seen that he was filing an Income Tax Return. It is also evident from the deposition of CW-2 that the injured was having a shop in Bazar Samiti. Definitely, the disability would affect his income, and he would probably have to engage an employee in his shop. In Raj Kumar (supra), a self-employed person engaged in a business, who had to amputate his left leg, pursuant to a motor vehicle accident, was assessed with a functional disability of 60% by the Tribunal, which was found to be proper. Hence, in the present case, functional disability can be assessed at 60%.

6. In addition, because the injured had to move from the local hospital to the specialized hospital and then to the higher medical center at Delhi, the conveyance charges can be fixed at Rs.50,000/-. For pain and suffering, considering amputation of his left leg, Rs.2 lakhs can be awarded. The High Court has found a reasonable period of bed rest at 6 months and for special diet and attendant charges there shall be an amount awarded of Rs. 15,000/- per month. So far as the income during treatment it must be preserved as awarded by the Tribunal. The total compensation would stand modified as herein: -

Sr. No.

Heads of Claim

Amount

1.

Loss of income.

Rs.1,56,996 x 140% x 18 x 60%

Rs.23,73,780/-

2.

Medical expenses.

Rs.5,00,949/-

3.

Conveyance charges.

Rs.50,000/-

4.

Pain and suffering.

Rs.2,00,000/-

5.

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