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1992 Supreme(Guj) 321

Gujarat High Court
Judgename :B.S.KAPADIA, C.V.Jani
STATE OF GUJARAT - Appellant
Versus
SOMABHAI DHURABHAI SINDHAVA - Respondent
C.A. 236 of 1983
Decided On : 12/16/1992

Advocates Appeared: B.R.SHAH, MOHIT S.SHAH, S.R.DIVETIA

Headnote:Compensation - Computation of future economic loss - Court has to apply its mind not only to abstract percentage of loss of earning capacity, loss on basis of medical certificate, but also to actual economic loss sustained or likely to be sustained by injured - In the instant case injured claimant promoted twice after accident therefore his loss of earning capacity could be assessed only after retirement for a period of about 5 years - Court assessed at Rs. 60 p.m. and a total of Rs. 3600. for the period of five years.

       Now for computing the future economic loss of an injured person, the court has to apply its mind not only to the abstract percentage of loss of earning capacity, but also the actual economic loss sustained or likely to be sustained by the injured person. Merely computing the economic loss on the basis of the medical certificate regarding physical disability will amount to turning a blind eye to the reality of actual economic loss. It is admitted by all concerned at the Bar that has been promoted twice after the accident and Saburbeg was promoted in the year 1987.Thus, the disability certified by the Doctor has not actually resulted in economic loss and it is not likely to result in such a loss till their retirement. It can of course be said that loss of earning capacity on account of physical disability would materialise after their retirement when in normal physical conditions they would be expected to do some private work on re-employment or some security job. Such a loss can be assessed for a period of about 5 years after retirement.

       [Para 16]

       We may, therefore, proceed on the basis that if a physically robust police man would get an amount Rs.1000/- in private employment after retirement, the injured Jiva Ji with six percent disability would get Rs. 940/- and he would suffer economic loss of Rs. 60/- p.m. This loss would come to Rs. 3600/- for a period of five years.

       [Para 17]

       Compensation - Award of interest & rate thereof - Interest must be awarded on delayed payment and even at higher rate on additional amount of compensation awarded for non-pecuniary damage an account of pain & suffering or acutal economic loss suffered.

       Compensation - Multiple mal-united fracture of ribs and several other injuries causing 19.25 percent disability - Quantum - Injured claimant J undergone intense physical pain during the four months of stay at home and after resuming Service - Court awarded Rs.15000 under the head pain & suffering instead of Rs. 6000 awarded by Tribunal

       Compensation - Fatal accident - Claimants parents, widow and one daughter - Quantum of - Deceased A was police Constable and drawing Rs. 409 P.m. in pay scale of Rs. 200 to 260 which was soon revised to Rs. 800-1150 after his death - Benefit to claimants assessed at Rs. 600 P.m. & adopting multiplier of 15 years awarded compensation of Rs. 1,08000 with Rs. 15000 for pain & suffering and Rs. 10,000 as conventional amount a total of Rs.1,33,000 - But claim amount being restricted to Rs.1,25,000 court allowed additional amount of Rs. 70500 only.

JANI, J.

( 1 ) [his Lordships after stating the facts of the case, further observed:]

( 2 ) NOW for computing the future economic loss of an injured person, the Court has to apply its mind not only to the abstract percentage of loss of earning capacity, but also the actual economic loss sustained or likely to be sustained by the injured person. Merely computing the economic loss on the basis of the medical certificate regarding physical disability will amount to turning a blind eye to the reality of actual economic loss. It is admitted by all concerned at the Bar that Jivaji has been promoted twice after the accident and Saburbeg was promoted in the year 1987. Thus, the disability certified by the Doctor has not actually resulted in economic loss and it is not likely to result in such a loss till their retirement. It can of course be said that loss of earning capacity on account of physical disability would materialise after their retirement when in normal physical conditions they would be expected to do some private work on re-employment or some security job. Such a loss can be assessed for a period of about 5 years after retirement. It is not disputed that on pay revision effected from 1986, the pay-scale of a Constable is raised to Rs. 800-1150, that of a Head constable Grade-11 has been raised to Rs. 950-1400, and that of a Head constable Grade-1 has been raised to Rs. 1200-1800. The injured claimant would certainly get the benefit of these pay-scales during their service, but after the retirement they could not have expected to get the same salary even if they were physically fit.

( 3 ) WE may, therefore, proceed on the basis that if a physically robust police man would get an amount of Rs. 1,000. 00in private employment after retirement, the injured Jivaji with six per cent. disability would get Rs. 940/ - and he would suffer economic loss of Rs. 60. 00 p. m. This loss would come to Rs. 3,600. 00 for a period of five years. That is the reason why we have not disturbed the finding regarding future economic loss rendered by the tribunal in the case of Jivaji, but we have arrived at the same conclusion on the basis of a more rational principle.

( 4 ) IN the same way, Suburbeg would roughly suffer a loss of Rs. 200/ - per month after the retirement due to his disability of 19. 25% certified by the Doctor. The total future economic loss would therefore be Rs. 12,000/ -. Saburbeg would, therefore, apparently be entitled to the additional compensation of Rs. 3,000. 00 after his retirement, but since he has already received the amount of Rs. 9,000. 00 under this head, with interest at the rate of 6% per annum, he is adequately compensated for this loss by interest received by him during the last about 10 years. This may be a little unusual, but the prevailing practice of awarding interest on future economic loss which is likely to come into effect at a future date requires rethinking, as the obvious purpose of awarding interest is to compensate delayed payment.


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