IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
GITA GOPI, J.
Ramsinh Dhulsinh Zala - Appellant
Versus
Kamleshbhai Dhulabhai Prajapati – Defendant
R/First Appeal No. 1866 Of 2023
Decided On : 04-05-2023
Prospective Rise in Income - Motor Accident Claim - Pappu Deo Yadav v. Naresh Kumar & Ors, AIR 2020 SC 4424 - The court discussed the aspect of prospective rise in income and referred to the decision in the case of Pappu Deo Yadav v. Naresh Kumar & Ors, AIR 2020 SC 4424. The court held that 25% addition is to be made towards future prospective rise in income and calculated the compensation based on this principle.
Fact of the Case:
The claimant, a paid driver, was involved in a motor accident resulting in bodily injuries. The court found that the learned Tribunal failed to consider the prospective rise in income of the claimant.
Finding of the Court:
The court found that the learned Tribunal erred in not considering the addition to the rise in prospective income and in not appropriately granting amount under the head of pain, shock, and suffering, loss of amenities, and attendant charges.
Issues: Failure to consider prospective rise in income, inadequate compensation for pain, shock, and suffering, loss of amenities, and attendant charges.
Ratio Decidendi: The court applied the principle of prospective rise in income as established in the case of Pappu Deo Yadav v. Naresh Kumar & Ors, AIR 2020 SC 4424 to calculate the compensation for future loss of income and other related heads.
Final Decision: The court partly allowed the appeal and directed the insurance company to deposit the enhanced amount of compensation within eight weeks from the date of receipt of the writ of this Court.
JUDGMENT :
1. Draft amendment is granted. To be carried out forthwith.
2. The injured claimant is challenging the judgment and award passed by the learned Tribunal dated 11.4.2022 passed in MACP no.679/11 by the MACT (Main), Mehsana. With the consent of both the advocates on record, the matter is taken up for final hearing.
3. Mr. Jay Shah along with Mr. Ankit Shah submitted that the learned Tribunal has failed to consider the aspect of prospective rise in income, which has been considered by the Hon'ble Apex Court. Referring to the decision in the case of Pappu Deo Yadav v. Naresh Kumar & Ors, AIR 2020 SC 4424, it is submitted that the learned Tribunal has erred in not considering the addition to the rise in prospective income. It is stated that though 17% disability has been assessed, the learned Tribunal has failed to appreciate that over and above the physical disability, the claimant had suffered neurological permanent disability of 12% and because of that, he is suffering from memory loss and also has speech impediment and thus, stated that amount under the head of pain, shock and suffering has not been appropriately granted. It is further stated that the medical condition of the claimant would require an attendant and the learned Tribunal could have also granted amount under the head of loss of amenities.
4. While Mr. Palak Thakkar stated that the learned Tribunal has granted reasonable and just amount under the head of pain, shock and suffering. Taking into consideration the mental and physical disability of the claimant, total medical charges of Rs.2,70,000/- has been granted and under the head of special diet, attendance charges and transportation charges, reasonable amount has been awarded by the Tribunal and has also stated that the income per month is assessed as per the evidence and thus, submitted that interference of this Court is not warranted at this stage.
5. On the facts of the case as can be succinctly noted that on 13.2.2011, the claimant who was a paid driver of jeep no. GJ-02 AP-9028 along with other persons was heading towards Varana Village and while returning back home at about 1:30 p.m. near Sarval Village, suddenly one Nilgay (bluebuck) came in the way and the claimant who was driving the vehicle lost control over the jeep and the jeep turned turtle. The claimant as well as other occupants received bodily injuries. The claimant was taken to Sai Krishna Hospital, Mehsana and he sustained mental and physical injury. The age of the claimant at the time of the accident was 47 years. The learned Tribunal has considered the income at Rs.4,500/- per month while considering income from agricultural work and driving work. This Court finds that the said monthly income so assessed is in accordance to the evidence produced on record. However, no assessment has been made regarding the prospective rise in income.
6. In the case of Pappu Deo Yadav (supra), it has been held as under:-
“2. …There cannot be actual compensation for anguish of the heart or for mental tribulations. The quintessentiality lies in the pragmatic computation of the loss sustained which has to be in the realm of realistic approximation. Therefore, Section 168 of the Motor Vehicles Act, 1988 (for brevity “the Act”) stipulates that there should be grant of “just compensation”. Thus, it becomes a challenge for a court of law to determine “just compensation” which is neither a bonanza nor a windfall, and simultaneously, should not be a pittance.”
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Loss of earnings
20. Both the courts below have held that since the girl was a young child of 12 years only notional income of Rs 15,000 p.a. can be taken into conside
The principle of prospective rise in income should be considered in calculating compensation for future loss of income in motor accident claims.
Calculation of future income and compensation in motor accident claims.
Future loss of income in personal injury claims must consider both current earnings and potential increases, especially in cases of permanent disability.
Assessment of claimant's income based on minimum wages schedule, calculation of future loss of income, and consideration of additional expenses in determining compensation
In cases of permanent disability due to motor accidents, courts must consider proven income, future prospects, and the severity of injuries when determining compensation.
The main legal point established in the judgment is the assessment of prospective rise in income and functional disability in motor accident claims, emphasizing the need to consider the injured and t....
It is a matter of record that Tribunal considered permanent disability of the body as a whole to extent of 90% and assessed compensation under head of loss of future income
Motor Vehicles Act only provides for award of interest and not its rate.
The court established that the assessment of compensation must reflect the claimant's actual earning capacity and the impact of permanent disability on future earnings, applying the correct multiplie....
A self employed person between the age group of 40-50 years is entitled to 25% more as future prospects.
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