IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Gita Gopi, J.
Prakash Dilipbhai Pagi – Appellant
Versus
Shailesh Kantibhai Pagi – Defendant
R/First Appeal No. 2630 of 2023
Decided On : 05-09-2023
Mallikarjun - Motor Accident Claims - Second Schedule to Motor Vehicle Act - 14 SCC 396, 2011 1 SCC 343 - The court discussed the application of the Second Schedule to Motor Vehicle Act in cases of child victims and the assessment of compensation for disability. It highlighted the yardstick for compensation based on the degree of disability and the need to consider non-pecuniary damages for child victims. The court emphasized the assessment of permanent disability and its impact on earning capacity, providing guidance on the assessment of future loss of income due to permanent disability.
Fact of the Case:
The appellant challenged the judgment and award by the Motor Accident Claims Tribunal, arguing that the compensation awarded was inadequate due to the failure to adopt the yardstick laid down by the Hon’ble Supreme Court in Mallikarjun Vs. Divisional Manager, National Insurance Company Limited. The appellant contended that the disability was not permanent and should have been compensated as per the degree of disability suffered by the child.
Finding of the Court:
The court found that the Tribunal had failed to compensate the claimant child as per the degree of disability suffered, and modified the judgment to award enhanced compensation based on the yardstick laid down in Mallikarjun. The court emphasized the need to consider non-pecuniary damages for child victims and the assessment of permanent disability and its impact on earning capacity.
Issues: The main issue was the adequacy of compensation for the claimant child's injuries, considering the degree of disability and the application of the yardstick laid down in Mallikarjun for child victims.
Ratio Decidendi: The court's decision was based on the assessment of permanent disability and the need to compensate the claimant child as per the degree of disability suffered, following the yardstick laid down in Mallikarjun. The court emphasized the assessment of non-pecuniary damages and the impact of permanent disability on earning capacity.
Final Decision: The appeal was allowed, and the judgment and award passed by the Motor Accident Claims Tribunal were modified to award enhanced compensation to the claimant child based on the yardstick laid down in Mallikarjun.
JUDGMENT :
1. Advocate Mr. Adnan A.Khan for Advocate Mr. V.A. Mansuri for the appellant submitted that the challenge is given by the claimant-injured to the judgment and award dated 24.11.2022 by Motor Accident Claims Tribunal (Main), Panchmahals at Godhra in MACP No.133 of 2018, only on the ground that though the learned Tribunal has followed the judgment of Hon’ble Supreme Court of Mallikarjun Vs. Divisional Manager, National Insurance Company Limited And Another, reported in (2014) 14 SCC 396, and had also considered the disability of 15% for body as a whole; however, has failed to adopt the same; though the Hon’ble Supreme Court has observed the yardstick laid down that in case of disability up to 10 to 30%, a lumpsum and rough estimate of Rs.3,00,000/- is to be awarded.
2. Advocate Mr. Khan submitted that the exceptional circumstances, as has been laid down, to take a different yardstick would be the cases, where the matters would stand on different footing like a permanent disability in the form of bedridden condition of the child, where he would be totally reliant on attendance and there would be necessity of future medical expenses or other needs, where the compensation is to be awarded beyond the maximum limit of six lakhs. While, the Hon’ble Supreme Court in Mallikarjun (supra) has laid down the yardstick relying upon the fact that the structure formula, as per Second Schedule to Motor Vehicle Act, would be unfair and improper to be followed in case of the child victims, claimants. For children there is no income, and, therefore observed that the main elements of damage in case of child victim are the pain, shock, frustration, deprivation of ordinary pleasures and enjoyment associated with healthy and mobile limbs.
3. Advocate Mr. Khan submitted that the learned Tribunal relied on the disability certificate at Exhibit-38, which was actually for 35%, but since the parties had accepted to adopt 15% disability for body as a whole by way of pursis at Exhibit-31, the disability factor got slash down, and according to the disability certificate, the effect of the accidental injuries are difficulty in walking, difficulty in sitting, pain at the site of injury, dribbling of urine and burning maturation. Though that fact has been observed in the judgment, the learned Tribunal has considered that, those evidence of physical impairment are not permanent in nature and, therefore, came to an opinion to grant only the award of Rs.1,50,000/- with medical expenses, as proved at Exh.37, of Rs.49,000/-.
4. Advocate Mr. V.C. Thomas submitted that the learned Tribunal has relied on the judgment of Mallikarjun (supra), and has also observed the proposition of law laid down therein, and came to an opinion that physical impairment are not permanent in nature. Advocate Mr. Thomas stated that the amount granted by the Tribunal is just and reasonable.
5. In case of Mallikarjun (supra), the Hon’ble Apex Court was dealing with the case of a minor aged about 12 years, who was hit by a motorcycle, who suffered the injuries, as under:
(b) Two abrasions over left elbow posteriorly over olecranon both measuring 4 x 1 cm.
(c) Abrasion over dorsal aspect right hand at the base of index finger.”
6. The Apex Court while dealing with the damage in case of the child victims, has observed in para-8 as under:
Arvind Kumar Mishra v. New India Assurance Co. Ltd.
Mallikarjun Vs. Divisional Manager, National Insurance Company Limited And Another
The central legal point established in the judgment is the need to compensate child victims based on the degree of disability suffered, considering non-pecuniary damages and the impact of permanent d....
The assessment of compensation must reflect the unique circumstances of child victims and consider all factors including pain, suffering, and future medical needs.
Section 168 of the Motor Vehicles Act, 1988 deals with the concept of ‘just compensation’ and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptabl....
The competency of a minor witness to give evidence and the determination of compensation for permanent disability, future loss of income, pain and suffering, and non-pecuniary damages are crucial leg....
The court upheld the principle of 'just compensation' under the Motor Vehicles Act, emphasizing the need to account for the claimant's severe permanent disability and future needs in determining comp....
The main legal point established is the liberal determination of just and reasonable compensation in personal injury cases, considering factors such as loss of future earning capacity, pain and suffe....
The main legal point established in the judgment is the need to consider non-pecuniary damages in addition to the actual amounts incurred for treatment, transportation, and assistance of attendant, e....
The court upheld the assessment of negligence and compensation, considering the provisions of the Second Schedule to the Motor Vehicles Act and the case of Master Mallikarjun.
The assessment of compensation for permanent disability must consider its impact on earning capacity, not just the percentage of disability.
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