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2008 Supreme(Mad) 4267

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE R. SUDHAKAR
The New India Assurance Co. Ltd., Chennai & Another
Versus
Senthil Kumar & Others
C.M.A.Nos.1485 and 1545 of 2002
Decided On : 20-11-2008

Advocates Appeared:
For the Petitioners:T.M. Venkatraman, Salim Fathima, Manoranjitham, Advocates.
For the Respondents: No appearance.

The main legal point established in the judgment is the application of the multiplier method in assessing compensation for loss of earning power and disability, emphasizing the need for uniformity and certainty in awarding compensation.

Headnote:

Compensation - Motor Accident Claims - 2006(4)C.T.C. 433, 2005 ACJ 1483, (1994)1 ACC 346 (SC) = AIR 1994 SC 1631 - The court discussed the application of the multiplier method in assessing compensation for loss of earning power and disability, considering factors such as nature and extent of disablement, avocation of the injured, and age. The court also highlighted the need for uniformity and certainty in awarding compensation, disapproving departures from the multiplier method except in rare and exceptional circumstances.

Fact of the Case:

The case involved a motor accident resulting in the claimant suffering a paraplegic injury. The injured claimant sought compensation for medical expenses, loss of earning power, disability, pain and suffering, and other related expenses. The insurance company challenged the quantum of compensation granted by the Tribunal.

Finding of the Court:

The court found that the injured claimant was entitled to enhanced compensation due to the severity of the injury and the need for constant medical attention and support. The court also addressed the issues raised by the insurance company regarding the quantum of compensation and modified the award accordingly.

Issues: The main issues revolved around the quantum of compensation, application of the multiplier method, and the assessment of various components of the compensation, including loss of earning power, disability, and medical expenses.

Ratio Decidendi: The court applied the multiplier method to ascertain the future loss of income or earning power, considering factors such as nature and extent of disablement, avocation of the injured, and age. The court emphasized the need for uniformity and certainty in awarding compensation, disapproving departures from the multiplier method except in rare and exceptional circumstances.

Final Decision: The court dismissed the appeal filed by the insurance company and allowed the appeal filed by the injured claimant in part, enhancing the compensation awarded by the Tribunal and granting the insurance company eight weeks to deposit the enhanced award amount with interest.

Judgment :-

Both the above appeals have been filed against the award dated 29. 2001 passed in M.C.O.P.No.1003 of 1998 on the file of the Motor Accidents Claims Tribunal (II Judge, Small Causes Court), Chennai.

2. C.M.A.No.1485 of 2002 has been filed by the New India Assurance Company, challenging the award seeking reduction in the compensation.

3. C.M.A.No.1545 of 2002 has been filed by the injured claimant seeking enhancement of the compensation.

4. It is a case of injury. The brief facts of the case are as follows:- The accident in this case happened on 210. 1997. The injured claimant Senthilkumar, aged 24 years, employed in ESI Hospital, K.K. Nagar, was about to cross the road at Anna Salai, near Pay & Accounts Office, Chennai. He was hit by a van TN-07-F-9072 driven by its driver in a rash and negligent manner. In that accident he suffered fracture and injuries as follows:-

"Fracture and Compression of spinal chord which has been diagnosed as paraplegic injury."

A sum of Rs.12 lakhs was originally claimed as compensation and subsequently amended to Rs.25,35,000/- stating that the disability suffered by the injured claimant is 100%. According to the injured claimant, he was treated in the Government Hospital as inpatient from 210. 1997 to 12. 1998 and thereafter from 12. 1998 to 6. 1998. On the third occasion he was treated at Sri Ramachandra Hospital from 6. 1998 to 111. 1998. He was treated for nearly 399 days as inpatient.

5. In support of the claim, the injured claimant Senthilkumar was examined as P.W.1. P.W.2 is the claimant in another case relating to the same accident. P.W.3 is the mother of the injured claimant. P.W.4 is the co-worker of the injured claimant. P.W.5 is Dr.Thiagarajan, who assessed the disability of the injured claimant. P.W.6 is the Inspector of Police. P.W.7 is the employer of ESI Corporation. Exs.A-1 to A-17 were marked as detailed below:-

Exs.A-1 to A-3 are the discharge summaries,

Ex.A-4 series are the medical bills,

Ex.A-5 is the doctors estimate,

Ex.A-6 is the salary certificate,

Ex.A-7 is the leave certificate,

Ex.A-8 is the F.I.R.,

Ex.A-9 is the sketch,

Ex.A-10 is the O.P. Chit,

Ex.A-11 is the service certificate of P.W.4, Sanjeevi,

Ex.A-12 is the disability certificate of the injured claimant,

Ex.A-13 is the disability certificate of Padhmini, the claimant in another case,

Ex.A-14 is the details of leave certificate,

Ex.A-15 is the letter from medical department,

Ex.A-16 is the certificate stating that the claimant cannot work and

Ex.A-17 is the certificate for retirement from service.

No oral or documentary evidence was let in on behalf of the insurance company.

6. As per the evidence of the doctor supported by medical records and Ex.P-12 disability certificate, it is assessed at 100% and also taking into consideration the age, occupation, nature of injury, period of treatment and the treatment given, the Tribunal granted the following amounts as compensation with interest at 9% per annum:-

7. The insurance company has filed the appeal C.M.A.No.1485 of 2002 stating that the compensation granted in this case is erroneous and has to be reduced and modified.

8. The finding of negligence on the part of the driver of the van and the liability of the insurance company to compensate the claimant is not disputed by the counsel appearing for the insurance company, the only contention raised by the counsel for the insurance company is with regard to the quantum of compensation.

9. According to the counsel appearing for the insurance company, the sum of Rs.2,00,000/- granted towards loss of earning power and Rs.1,00,000/- granted towards disability cannot be granted in view of the Full Bench decision of this Court in Cholan Roadways Corporation Ltd., -vs.-Ahmed Thambi reported in 2006(4)C.T.C. 433. Further, there is an error in compensation granted based on the medical bills in a sum of Rs.3,35,500/-. The actual amount payable to the injured claimant is Rs.2,85,000/-only as per bills. An exce






























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