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2023 Supreme(Del) 2306

IN THE HIGH COURT OF DELHI AT NEW DELHI
Rekha Palli, J.
Manoj Kumar – Appellant
Versus
Pankaj Nagar – Respondent
MAC.APP. 210 of 2022
Decided On : 11-01-2023

Advocates appeared:
S.N. Parashar, Advocate, for the Appellant.
Sameer Nandwani and Rohin Singh Pande, Advocates for R-3.

The main legal point established is that compensation for loss of future earnings should be determined based on the claimant's functional disability and monthly salary.

Headnote:

Motor Vehicles Act - Compensation for Loss of Future Earnings - The court enhanced the compensation awarded for loss of future earnings from Rs.2 lakhs to Rs.5 lakhs, taking into account the appellant's 20% functional disability and monthly salary of Rs. 32,160.

Fact of the Case:

The appellant appealed the award passed by the Motor Accidents Claims Tribunal seeking enhancement of compensation for loss of future prospects due to a 20% functional disability.

Finding of the Court:

The court found that the compensation awarded for loss of future earnings was inadequate and enhanced it from Rs.2 lakhs to Rs.5 lakhs, considering the appellant's 20% functional disability and monthly salary.

Issues: The issues revolved around the assessment of functional disability and the adequacy of compensation for loss of future earnings.

Ratio Decidendi: The court determined that the appellant's 20% functional disability would impact his future earnings and therefore enhanced the compensation to Rs.5 lakhs based on his monthly salary.

Final Decision: The court disposed of the appeal by enhancing the compensation for loss of future earnings from Rs.2 lakhs to Rs.5 lakhs, resulting in a total compensation of Rs.9,94,002, to be paid within 6 weeks.

JUDGMENT

Rekha Palli, J. (Oral)

1. The present appeal under Section 173 of the Motor Vehicles Act seeks to assail the award dated 20.01.2022 passed by the learned Motor Accidents Claims Tribunal in claim petition bearing MACP No. 564/2016 insofar as the quantum of compensation is concerned.

2. Vide the impugned award, the learned Tribunal has awarded compensation of Rs.6,94,022/- alongwith interest @6% per annum in favour of the petitioner. The said amount includes a lumpsum amount of Rs.2 lakhs awarded towards loss of future prospects.

3. The appellant seeks enhancement on two grounds, the first being that once the medical certificate clearly showed that the appellant was suffering from 34% permanent physical disability, the learned Tribunal could not have assessed his functional disability to be only 20%. The second ground on which enhancement is sought is that the amount of Rs.2 lakhs awarded towards loss of future earnings was highly inadequate.

4. Learned counsel for the appellant submits that the finding of the Tribunal that the petitioner's functional disability was only 20% is perverse and the petitioner is entitled to receive compensation by treating his disability at 34%. Furthermore, the loss of future earnings ought to have been computed by taking into account the annual income of the appellant and applying the multiplier of 9.

5. On the other hand, learned counsel for the respondent supports the impugned award by placing reliance on the decision of the Apex Court in "Raj Kumar vs. Ajay Kumar" 2011(1) SCC 343 as also on the decision of a Coordinate Bench of this Court in MAC.APP. 1074/2011 titled as "The Oriental Insurance Co. Ltd. V. Sangeeta Nanda & Ors." decided on 08.11.2017 and submits that despite the physical disability certificate, it is always open for the learned Tribunal to determine the functional disability after taking into account all the relevant factors including the fact as to whether the claimant is in a position to continue to work without any reduction in his salary. He submits that in the present case, it is an admitted position that the appellant is continuing to perform his job which he was doing on the date of the accident i.e. on 22.02.2016 and in fact, as admitted by the appellant's own witness during cross-examination, he does not require any attendant for carrying out his day to day activities. He, therefore, contends that the determination of the appellant's functional disability at 20% by the learned Tribunal was just and proper, warranting no interference by this Court. He further submits that once the appellant is continuing to carry out his normal functions without any difficulty and there has been no reduction whatsoever of his salary, the petitioner cannot claim loss of future earnings by applying the multiplier of 9 to his annual income. He is however not in a position to seriously dispute the appellant's claim that even if his functional disability is treated as 20%, the amount of Rs 2 lakhs awarded towards loss of future prospects is inadequate.

6. At this stage, learned counsel for the appellant submits on instructions that he does not press his plea for treating the functional disability of the appellant at 34%, but prays that the amount of Rs.2 lakhs awarded by the learned Tribunal towards loss of future earnings be suitably enhanced by taking into account his functional disability at 20%.

7. In the light of the aforesaid rival stands taken by the parties, it is evident that the only question which needs to be determined is regarding the grant of compensation towards loss of future earnings. In my view, since the appellant is suffering from 20% functional disability, there will evidently be a loss in his future earnings as his functional disability will affect him even after his superannuation. Taking into account the appellant's monthly salary of Rs. 32,160/-, the amount of Rs. 2 lakhs awarded on the ground of loss of future earnings is undoubtedly on the lower sid

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