SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(AP) 13

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
B.V.L.N.CHAKRAVARTHI, J.
Reddy Narsinga Rao, S/o. Somu Naidu – Appellant
Versus
A.V.V.Ramakrishna, S/o.Late Pydibabu – Respondent
M.A.C.M.A.No.828 of 2016
Decided on : 24-03-2023

Advocates:
Advocate Appeared:
For the Appellants : Sri S.N.K.Mahanthi

The loss of earning capacity of a claimant in a motor vehicle accident should be computed on the basis of loss of functional disability, and not on the basis of permanent disability.

Headnote:

MOTOR VEHICLE ACCIDENT - COMPENSATION - PERMANENT DISABILITY - LOSS OF EARNING CAPACITY - CALCULATION - COURT ANALYSIS AND CONCLUSION - The court held that the Tribunal erred in mechanically applying the percentage of permanent disability as the percentage of loss of earning capacity. The court held that the loss of earning capacity of the appellant should be computed on the basis of loss of functional disability as 100%. The court also held that the appellant is entitled to a total compensation of Rs.11,00,000/- with interest @ 7.5% p.a. from the date of filing of claim petition, till the date of deposit, instead of Rs.5,30,000/- as awarded by the Tribunal.

Fact of the Case:

The appellant, a lorry cleaner, sustained grievous injuries in a motor vehicle accident, resulting in the amputation of his right leg below the knee. He filed a claim petition seeking compensation of Rs.8,00,000/-. The Tribunal partly allowed the petition and awarded compensation of Rs.5,30,000/- with interest @ 7.5% p.a. from the date of petition, till the date of realisation.

Finding of the Court:

The court held that the Tribunal erred in mechanically applying the percentage of permanent disability as the percentage of loss of earning capacity. The court held that the loss of earning capacity of the appellant should be computed on the basis of loss of functional disability as 100%. The court also held that the appellant is entitled to a total compensation of Rs.11,00,000/- with interest @ 7.5% p.a. from the date of filing of claim petition, till the date of deposit, instead of Rs.5,30,000/- as awarded by the Tribunal.

Issues: 1. Whether the Tribunal erred in mechanically applying the percentage of permanent disability as the percentage of loss of earning capacity? 2. Whether the appellant is entitled to a total compensation of Rs.11,00,000/- with interest @ 7.5% p.a. from the date of filing of claim petition, till the date of deposit, instead of Rs.5,30,000/- as awarded by the Tribunal?

Ratio Decidendi: The court relied on the following principles laid down by the Hon'ble Apex Court: 1. The Tribunal should not mechanically apply the percentage of permanent disability as the percentage of economic loss or loss of earning capacity. 2. In most cases, the percentage of economic loss, that is, the percentage of loss of earning capacity, arising from a permanent disability will be different from the percentage of permanent disability. 3. The Tribunal has to first ascertain what activities the claimant could carry on in spite of the permanent disability and what he could not do as a result of the permanent disability. 4. The second step is to ascertain his avocation, profession and nature of work before the accident, as also his age. 5. The third step is to find out whether (i) the claimant is totally disabled from earning any kind of livelihood, or (ii) whether in spite of the permanent disability, the claimant could still effectively carry on the activities and functions, which he was earlier carrying on, or (iii) whether he was prevented or restricted from discharging his previous activities and functions, but could carry on some other or lesser scale of activities and functions so that he continues to earn or can continue to earn his livelihood.

Final Decision: The court allowed the appeal and modified the order and decree passed by the Tribunal. The court held that the appellant is entitled to a total compensation of Rs.11,00,000/- with interest @ 7.5% p.a. from the date of filing of claim petition, till the date of deposit, instead of Rs.5,30,000/- as awarded by the Tribunal.

JUDGMENT:

This appeal is preferred by the claimant, challenging the award dated 10.11.2014 passed in M.V.O.P.No.275/2012 on the file of Motor Accidents Claims Tribunal-cum-I Addl.District Judge, Visakhapatnam, (for short ‘the Tribunal’), wherein the Tribunal partly allowed the petition, awarded compensation of Rs.5,30,000/-with interest @ 7.5% p.a. from the date of petition, till the date of realisation, for the injuries sustained by him in a motor vehicle accident.

2. For the sake of convenience, the parties are arrayed as parties before the tribunal.

3. As seen from the record, the petitioner filed the application U/s.166 of the Motor Vehicles Act, 1988 (for brevity “the Act”) claiming a compensation of Rs.8,00,000/-on account of the injuries and disability sustained by the petitioner in a motor vehicle accident that occurred on 28.05.2010.

4. The facts would show that on 28.05.2010 at about 10.30 hours while the petitioner was going in tanker lorry bearing No.AP31X 4239 being its cleaner and reached Kotha Narayanapuram village, Thallada Mandal, Khammam District, which was driven by its driver, in a rash and negligent manner, at high speed and without following the traffic rules, dashed one stationed lorry bearing No.AP 28 TB 3678, resulting which the petitioner sustained grievous multiple injuries and bleeding injuries all over the body, including grievous crush injury to his right leg ankle bone. Immediately, the petitioner was shifted to Khammam Head Quarters Hospital, wherein the petitioner underwent treatment as in-patient and also undergone major operation to his right leg and that right leg was amputated. The petitioner incurred huge amount towards medicine, extra nourishment and operation charges. Thallada police registered a case in Cr.No.57/2010 for the offence punishable U/s.337, 338 of Indian Penal Code against the driver of said tanker lorry. Due to the said accident, the petitioner permanently disabled and lost his earning power, and became mentally disturbed. The petitioner is only earning person of his entire family. The petitioner is unable to walk and leading a miserable life. The 1st respondent is the owner of tanker lorry, and the 2nd respondent is insurer of the said lorry, and both the respondents are jointly and severally liable for compensation.

5. Before the Tribunal, the 1st respondent filed counter, denying the material averments of the claim application, contended that the 1st petitioner worked as cleaner on the tanker lorry belongs to respondent, but he was taken in service as cleaner on temporary basis and it is duly insured with the 2nd respondent. This respondent is not aware how the accident took place and so also the amputation of the leg of petitioner, due to the said accident. The 1st respondent is not responsible for the alleged accident. The claim is exaggerative and petitioner is not entitled for compensation of Rs.8,00,000/-.

6. The 2nd respondent/Insurance Company filed written statement, while traversing the material averments with regard to manner of accident, rash and negligence on the part of the driver of the crime vehicle, nature of injuries, medical expenditure, age and avocation of the petitioner, alleged permanent disability, liability to pay compensation, and contended that without causing prejudice to the rights of 2nd respondent, it does not admit that the vehicle belongs to the 1st respondent was insured with the 2nd respondent and even if any policy was issued, unless the said policy was complied U/s.64-VB of the Insurance Act, the 2nd respondent is not liable to pay compensation. There is no negligent act on the part of driver of 1st respondent. The 1st respondent is not holding a valid and effective driving license by the time of accident, and he was not qualified for holding or obtaining such driving license. The 1st respondent contravened the provisions of M.V.Act and

        Click Here to Read the rest of this document
        1
        2
        3
        4
        5
        6
        7
        8
        9
        10
        11
        SupremeToday Portrait Ad
        supreme today icon
        logo-black

        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

        qr

        Scan Me!

        India’s Legal research and Law Firm App, Download now!

        For Daily Legal Updates, Join us on :

        whatsapp-icon Back to top