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2002 Supreme(P&H) 1431

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
YASHVIR SINGH RATHOR, J.
Labh Singh - Appellant
Versus
Subhash Chander And Others - Respondent
FAO-2587-2002 (O&M)
Decided On : 07-04-2026

Advocates:
Advocate Appeared:
For the Appellant :Mr. Paramveer Singh, Advocate
For the Respondent:Mr. Naveen Sharma, Advocate Mr. Karan Singla, Advocate
Mr. Sandeep Suri, Advocate

In motor accident claims, compensation must be just and reasonable. Appellate courts are empowered to re-evaluate compensation when the lower forum fails to correctly assess income, ignores future prospects, or neglects non-pecuniary heads like pain and suffering, ensuring the award reflects the actual loss of earning capacity.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor accident - Compensation - Enhancement - Assessment of income - Future prospects - Permanent disability - Multiplier - Pain and suffering.

(B) Appellate jurisdiction - Interference with compensation - When the lower forum fails to appreciate evidence or applies incorrect income standards, the appellate court is justified in re-evaluating the compensation under pecuniary and non-pecuniary heads. (Paras 17, 18, 22)

Facts of the case:
The claimant sustained injuries in a motor accident, resulting in permanent disability. The lower forum awarded compensation, which the claimant challenged in appeal, contending that the assessment of income was low, future prospects were ignored, and no compensation was awarded for pain and suffering.

Findings of Court:
The court determined that the lower forum erred in its assessment of monthly income and failed to award damages for pain and suffering. The court recalculated the compensation by applying a higher monthly income, adding future prospects, and adjusting the amounts for pain and suffering and transportation.

Issues: Whether the compensation awarded by the lower forum was just and adequate, and whether the forum erred in its assessment of income and failure to award damages for pain and suffering.

Ratio Decidendi: Compensation must be just and reasonable. In cases of permanent disability, the court must account for loss of future earnings, future prospects, and non-pecuniary damages like pain and suffering, ensuring the assessment reflects the actual loss of earning capacity and the impact on the victim's life.

Result: Appeal partly allowed; compensation enhanced.

Table of Content
1. procedural history and factual overview of claim. (Para 1 , 2 , 3 , 4 , 5)
2. determining scope of appeal restricted to compensation. (Para 6 , 7)
3. parties' contentions regarding quantum of compensation. (Para 8 , 9)
4. evaluating medical evidence and treatment-related expenses. (Para 10 , 11)
5. assessment of income for skilled professional work. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18)
6. application of future prospects and correct multipliers. (Para 19 , 20 , 21)
7. head-wise computation of enhanced compensation awards. (Para 22 , 23 , 24 , 25 , 26)
8. final award of enhanced compensation and directives. (Para 27 , 28 , 29)

JUDGMENT :

YASHVIR SINGH RATHOR , J. (Oral)

1. This appeal has been instituted against the Award dated 31.07.2001 passed by MACT, Ambala (for short “Tribunal”) for enhancement of compensation awarded in MACT Case No.87 of 23.05.1998 in a petition under Section 166 of Motor Vehicles Act, 1988 vide which a sum of Rs.1,97,060/- has been awarded as compensation to the claimant/appellant along with interest at the rate of 9% per annum due to injuries suffered by him in a motor vehicular accident on account of rash and negligent driving by respondent No.1, while driving offending vehicle bearing No.HP-31-3561 (for short ‘offending vehicle’), owned by respondent No.2, which was insured with respondent No.3.

2. From the pleadings of parties, following issues were framed by the learned Tribunal:-

1. Whether the claimant had sustained injuries in an accident caused by Vehicle No.HP-31-3561 due to rash and negligent driving on the part of respondent No.1? OPP

2. To what amount of compensation, if any, the claimant is entitled to and from whom?OPP

3. Whether respondent No.3 is not liable to pay compensation, as alleged? OPR-3.

4. Relief.

3. Thereafter, the parties led evidence in support of their case.

4. After hearing the parties and going through the material on the file, learned Tribunal awarded a sum of Rs.1,97,060/- as compensation to the claimant, on account of injuries suffered by him along with interest @ 9% per annum from the date of filing of claim petition till realization, payable by respondents No.1 to 3, jointly and severally.

5. Feeling aggrieved, the appeal in hand has been preferred. The material on file has been perused and parties have been heard.

6. The only issue required to be determined in the present appeal relates to the assessment of compensation. Therefore, the entire facts regarding the manner of the accident are not required to be reproduced in detail, as the Tribunal has already held under issue No.1 that the accident in question had taken place due to the rash and negligent driving on the part of respondent No.1, while driving offending vehicle and respondents No.1 to 3 were held liable to pay compensation jointly and severally. No appeal or cross-objections have been filed by the respondents, challenging the said finding and accordingly, finding on issue No.1 is not required to be interfered with and the same is affirmed.

7. It is pertinent to mention that the record of the present appeal and the Tribunal has got burnt in a fire incident in the High Court Branch and the present appeal has to be decided on the basis of the facts and evidence discussed by the Tribunal in the impugned award.

8. Learned counsel for the appellant argued that the Tribunal has not appreciated the facts of the case and evidence on file in the correct perspective while assessing the compensation which is grossly inadequate. The claimant had suffered 30% permanent disability and he has been awarded a total compensation of Rs.1,97,060/-, for medical expenses, permanent disability, transportation, loss of income, nutritious diet and attendant charges. Learned counsel further argued that no compensation has been awarded under the head of ‘pain and sufferings’, whereas on account of permanent disability suffered by him, the claimant will suffer ‘loss of income’ in future as well and adequate compensation has not

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