SUPREME COURT OF INDIA
K. Vinod Chandran, N.V. Anjaria, JJ.
Mohammed Masood – Appellants
Versus
The New India Assurance Co. Ltd. & Anr. – Respondents
Civil Appeal No. 12567 of 2024
Decided On : 26-09-2025
Motor Vehicles Act, 1988 – Section 166 – Injury in motor accident – Amputation of leg below knee – Total compensation of Rs.19,35,400/- awarded by Tribunal by applying Multiplier of 18, subsequently, reduced to Rs. 10,41,022/- by High Court in appeal – It was not permissible in law for High Court to apply parameters under Workmen’s Compensation Act, 1923 regarding fixing of income when compensation was assessed and fixed by Tribunal in a claim petition under Section 166 of M.V. Act – Once remedy under Motor Vehicles Act, 1988 was elected to be pursued by claimant and Tribunal adjudicated compensation by applying criteria and fixing income, falling back upon parameters under Workmen’s Compensation Act, was not permissible – Insurer could not have raised such a defence seeking to apply provisions of Workmen’s Compensation Act – Both remedies are different – Compensation awarded by Tribunal on the basis of income of Rs.9,000/-has to be restored – Judgment and order of High Court set aside and Judgment and award of Tribunal restored. (Paras 5.1, 5.2, 6 and 6.2)
Facts of the case:
Present appeal preferred by original claimant is directed against judgment and order dated 23.01.2020 of High Court of Karnataka in M.F.A. No.2903 of 2018 (MV), whereby High Court allowed in part appeal of insurance company, reducing amount of compensation, and giving consequential directions.
Findings of Court:
As far as ground of non-adding of ‘future prospects’ raised by appellant is concerned, it would not be permissible for this Court to go into it and entertain the same in view that appellant did not file any appeal to challenge judgment and order of Tribunal. It was insurance company who approached High Court.
Result : Appeal allowed.
JUDGMENT :
N.V. Anjaria, J.
Heard learned counsels for the respective parties.
2. The present appeal preferred by the original claimant is directed against the judgment and order dated 23.01.2020 of the High Court of Karnataka in M.F.A. No.2903 of 2018 (MV), whereby the High Court allowed in part the appeal of the insurance company, reducing the amount of compensation, and giving consequential directions.
3. The facts briefly stated are inter alia that the appellant-claimant suffered serious injuries in the vehicular accident which took place on 01.12.2015. He was a loader in the lorry travelling from Kunigal to Nelamangala. At about 2.50 a.m. near NH-75 Road, the said lorry driven at a high speed and in negligent manner, dashed with an unknown ongoing vehicle. The appellant sustained injuries in the right leg and his leg was required to be amputated below the knee. A claim petition under Section 166 of the Motor Vehicles Act, 1988 came to be filed before the Motor Accident Claims Tribunal (hereinafter referred to as ‘the Tribunal’) seeking compensation of Rs.35,00,000/-
3.1 While assessing the compensation for the 23 years injured appellant, the took the monthly income of the appellant-claimant to be Rs.9,000/- at the time of the accident. However, the claimant (PW-1) asserted his monthly wages to be Rs.15,600/. Because of amputation of the right leg, the medical evidence registered that the disability of the left lower limb was 70%. The Tribunal took the disability for the whole body to be 85%. Multiplier of 18 was applied to calculate the compensation. The final compensation totalling Rs.19,35,400/- was awarded.
3.2 The different heads under which the amounts were awarded, as under,
| Pain and sufferings | 50,000/- |
| Food and attendant charges | 48,000/- |
| Future loss of income | 16,52,400/- |
| Loss of enjoyment of life | 50,000/- |
| Conveyance charges | 10,000/- |
| Future medical treatment | 1,00,000/- |
| Loss of marriage prospects | 25,000/- |
| Total | Rs. 19,35,400/- |
3.3 Against the aforesaid judgment and award of the Tribunal, the insurance company preferred an appeal before the High Court. The High Court took a different view in respect of the income of the injured- appellant to take it to be Rs.8,000/- instead of Rs.9,000/- taken by Tribunal.
3.4 The High Court was of the view that since under the Workmen’s Compensation Act, 1923 the maximum income that could be considered is Rs.8,000/- the said figure should have been adopted towards the income of the injured appellant. It was observed by the High Court as under, extracting from paragraph 10,
3.5 Consequentially, as per the calculation provided in paragraph 11 of the impugned judgment, the compensation was reduced by the High Court from 19,35,400/- to 10,41,022/-.
4. In the present appeal, the appellant-claimant has raised two contentions. Firstly that the High Court committed an error in taking the income with reference to the Workmen’s Compensation Act, thereby reducing the figure of income which was considered and applied by
Remedies under Motor Vehicles Act, 1988 and Workmen’s Compensation Act, 1923 are different – Once remedy under Motor Vehicles Act, 1988 is elected to be pursued by claimant and Tribunal adjudicated c....
(1) Injury in accident – Amount of compensation is to be calculated on the basis of last drawn salary of injured/deceased in respect of salaried persons.(2) Compensation – Pension and retirement bene....
The main legal point established in the judgment is the court's authority to award just compensation exceeding the claimed amount under the Motor Vehicles Act, 1988, and the need for a realistic appr....
The court ruled that compensation must be re-assessed based on accurate income and disability evaluations, enhancing the award to reflect just compensation for road traffic accident injuries.
The court emphasized the principle of just and fair compensation under the Motor Vehicles Act, mandating a holistic approach to calculating damages, including future prospects and medical expenses.
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.