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2026 Supreme(Kar) 535

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
Jayant Banerji, Vijaykumar A. Patil, JJ.
Sri. Korgu Nayka - Appellant
Versus
Sri .K. Raghavendra Raju - Respondent
Miscellaneous First Appeal No.4195 of 2016 (MV-I)
Decided On : 14-07-2026

Advocates Appeared:
For the Appellant : Sri. Nagaraja Hegde, Adv.
For the Respondent: Sri. A.N. Krishna Swamy, Adv., Sri. Revanasiddappa H.K. Adv.

Important Points

Functional disability is the loss of earning capacity relative to a claimant's specific vocation. For drivers or manual laborers, impairments that prevent them from practicing their trade result in 100% functional disability, regardless of the anatomical percentage of physical disability.

Subject

Civil Law - Motor Accident Compensation

Act Referred

Headnote

(A) Motor Vehicles Act, 1988 - Section 166 - Quantum of compensation - Functional disability - Assessment of earning capacity - The assessment of compensation for permanent disability involves determining the effect of such disability on earning capacity, which is distinct from the anatomical percentage of physical disability (Paras 10(e), 10(f)) - The Tribunal must ascertain the activities the claimant can no longer perform, the nature of their previous vocation, and whether they are totally disabled from earning any livelihood - For individuals in manual vocations, such as driving, neurological injuries causing loss of memory, power of recall, and reduced motor mobility can render them completely unfit for their trade, justifying a functional disability of 100% (Paras 10(c), 10(h)).

(B) Determination of Income - In the absence of documentary evidence to prove a specific monthly income, the court may rely on notional income assessments for unskilled laborers as a baseline, adjusting for the specific vocation of the injured party (Para 10(b)).

Facts of the case:
A pillion rider sustained severe head injuries and neurological disability in a road traffic accident. The claimant, who worked as a lorry driver, underwent brain surgery and suffered from loss of memory, loss of power of recall, and reduced body balance. The lower Tribunal had assessed the whole-body disability at 40% and awarded compensation of Rs. 5,69,200/-. The claimant appealed seeking enhancement of the compensation amount based on a 100% functional disability and a revision of the assessed income.

Findings of Court:
The court found that the medical evidence and the claimant's inability to respond to basic queries during the proceedings established that he was in a state where he could not pursue his vocation as a driver or engage in any other manual labor. Consequently, the functional disability was upgraded to 100%. The monthly income was re-assessed at Rs. 10,000/- based on notional income for unskilled laborers, with an additional 10% for future prospects.

Issues: Whether the lower Tribunal's assessment of the claimant's monthly income and functional disability was correct and whether the total compensation awarded required enhancement.

Ratio Decidendi: Functional disability is the actual loss of earning capacity and is not necessarily equivalent to the physical percentage of disability reported by a doctor. If a physical or neurological impairment prevents a claimant from pursuing their specific profession and any other alternative manual livelihood, the loss of earning capacity must be assessed at 100%.

Result: Appeal allowed-in-part. The total compensation is enhanced from Rs. 5,69,200/- to Rs. 20,07,000/- with interest at 8% p.a.

JUDGMENT :

VIJAYKUMAR A. PATIL, J.

This appeal is filed challenging the judgment and award dated 04.03.2016 passed in MVC No.651/2014 by the Additional District and Sessions Judge and MACT, Udupi (sitting at Kundapura) (for short, ‘Tribunal’).

2. Though this appeal is listed for admission, with consent of the learned counsel for the parties, it is taken up for final disposal.

3. The brief facts leading to the filing of this appeal are that the appellant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the injuries suffered by him in a road traffic accident that occurred on 09.05.2014. It is averred that the appellant was proceeding as a pillion rider in a motorcycle bearing registration No.KA-55-H-129 from Bhogadi to Nanjangud and one Santosh Naik was riding the motorcycle in a rash and negligent manner and when they reached near Maramma Temple on Ring Road, Mysuru, the rider lost control over the motorcycle which resulted in the accident and the pillion rider sustained injuries all over the body including a head injury. It is further averred that the appellant was shifted to Panacea Hospital, Mysuru, he was provided treatment for the injuries suffered, underwent surgery to the head injury. It is also averred that the appellant has suffered physical disablement due to the accidental injuries and is unable to carry out his vocation of driving the heavy vehicle and hence, sought for damages from the Insurance Company.

4. The respondent No.2 filed written statement denying the claim averments, the aspect of negligence, income and vocation of the appellant and sought for dismissal of the claim petition.

5. The Tribunal framed the issues, recorded the evidence. The claimant’s wife examined herself as PW-1, Dr.Jaspreeth Singh Dil as PW-2 and got marked Exs.P1 to P16. The respondent did not adduce any evidence. The Tribunal awarded total compensation of Rs.5,69,200/- with interest @ 8% p.a. from the date of petition till its realization. Being aggrieved, the claimant is in appeal seeking for higher compensation.

6. Sri.Nagaraja Hegde, learned counsel for the appellant submits that the Tribunal has committed a grave error in assessing the income as well as the disability of the injured. It is submitted that the evidence of the Doctor clearly indicates that the appellant is unable to continue his driving and to do any work due to his disability caused by the road accident and hence, the functional disability is required to be assessed at 100%. It is further submitted that the appellant is in a vegetative state and an attendant is required to attend his daily activities and considering the said aspect, the compensation awarded by the Tribunal under the heads of pain and suffering, loss of amenities and future attendant charges are required to be enhanced appropriately by allowing the appeal.

7. There is no representation for the respondents. On 06.07.2026, it was recorded that there was no appearance for the respondents and the matter was adjourned to today with an understanding that if the learned counsel for the respondents are not present, the matter would be heard in their absence.

8. We have heard the arguments of the learned counsel appearing for the appellant and meticulously perused the material available on record.

9. The only point that would arise for consideration in this appeal is:

"Whether the impugned judgment and award passed by the Tribunal calls for any interference?"

10. The aforesaid point is answered in the affirmative for the following reasons:

a) The material on record indicates that the appellant was proceeding as a pillion rider in a motor cycle bearing registration No.KA-55 H-129 from Bhogadi to Nanjangud and one Santosh Naik was riding the motorcycle in a rash and negligent manner and when they reached near Maramma Temple on Ring Road, Mysuru, the rider lost control over the motorcycle which resulted in the accident and the pillion rider sustained injuries all over the bo

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