The amendment to the 2nd Schedule of the M.V Act, 1988 has retrospective effect in pending claims and appeals, and the assessment of permanent disability should consider its impact on earning capacity.

JUDGMENT :

Michael Zothankhuma, J.

Heard, Mr. Lalfakawma, learned counsel for the appellant/Insurance Company. Also heard Mr. L.H Lianhrima, learned counsel for the claimant/respondent No. 1 and Mr. Jonathan L. Sailo, for the respondent No. 2/owner of the accident vehicle.

1. The appellant has challenged the impugned Judgment & Order dated 27.04.2018 passed by the MACT, Lunglei, in MACT No. 13/2007, stating that the learned Tribunal has not followed the 2nd Schedule of the M.V Act, 1988, while awarding compensation to the claimant, who was injured in a vehicular accident in the year 2007 and his permanent disability percentage was recorded as 50%-60%. The appellant's counsel submits that the compensation amount of Rs. 4,73,007/- awarded by the learned Tribunal is without any basis, keeping in mind the fact that the respondent No. 1 was a student.

2. The appellant's counsel submits that as the claim petition has been made under Section 163A of the M.V Act, 1988, compensation has to be awarded under the 2nd Schedule. The appellant's counsel also submits that the 2nd Schedule to the M.V Act, 1988 provides for payment of medical expenses up to Rs. 15,000/- only, as onetime payment. Thus, the medical expenses of the respondent No. 1, which is Rs. 73,007/-, would have to be limited to Rs. 15,000/- only, as the claim has been made under Section 163A of the M.V Act, 1988.

3. Mr. L.H Lianhrima, learned counsel for the respondent No. 1 and Mr. Jonathan L. Sailo, learned counsel for the respondent No. 2 submit that there is no infirmity with the decision of the learned Tribunal. They submit that though an amendment has been made to the 2nd Schedule vide Notification dated 22.05.2018, whereby compensation payable in cases of death and permanent disability under Section 163A has been amended, the amendment would be applicable only from the date of its publication in the Gazette of India, i.e., on 22.05.2018. This has also been held by this Court in the case of S.B.I General Insurance Co. Ltd. v. Smti. Laithanthuami & Another, MAC Appeal No. 19/2019, which was disposed of vide order dated 26.07.2019.

4. I have heard the learned counsels for the parties.

5. On perusing the impugned Judgment & Order dated 27.04.2018 passed by the MACT, Lunglei in MAC Case No. 13/2007, this Court finds that the compensation amount of Rs. 4,73,007/- has been awarded by the learned Tribunal without giving any reasons for the same, that is to say that there is no break up made by the learned Tribunal, to show as to how the compensation amount could come to the figure of Rs. 4,73,007/-. As the evidence shows that the medical expenses of the respondent No. 1 was Rs. 73,007/-, it can be safely assumed that the amount of Rs. 73,007/- was a part of the total compensation amount awarded by the learned Tribunal. However, as stated above, there is nothing to show as to how the learned Tribunal had awarded the remaining Rs. 4 (four) lakhs. It is settled law that Courts are to give reasons for their judgments and their findings have to be based on evidence and reasons. The only reason given by the learned Tribunal for awarding the compensation amount of Rs. 4,73,007/- is that "the amount claimed for is not exaggerated and is in fact meager". This Court accordingly finds that the reason given by the learned Tribunal for awarding the compensation amount is not based on any reason, as the 2nd Schedule to the M.V Act, 1988 should have been followed. In that view of the matter, the impugned Judgment & Order dated 27.04.2018 passed in MAC No. 13/2007 is hereby set aside.

6. As the claim has been made under Section 163A of the M.V Act, 1988, compensation would have to be awarded as per the 2nd Schedule to the M.V Act, 1988. The 2nd Schedule of the M.V Act, 1988 has been amended by the Central Government vide Notification dated 22.05.2018 and the amended 2nd Schedule came into effect from 22.05.2018. The same is reproduced below:-

"S.O. 2022(E).- In exercise of the powers conferred by sub-