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 compensation.

JUDGMENT

Meenakshi Madan Rai, J. - The three grounds agitated in this Appeal are;

(i) That, the rate of interest placed at 9% on the Award, by the Learned Motor Accidents Claims Tribunal, Gangtok (hereinafter, the 'Learned Claims Tribunal') is exorbitant and ought to be decreased;

(ii) That, Rs. 13,00,000/- (Rupees thirteen lakhs) only, awarded under the 'other heads' has no basis and ought to be reduced; and

(iii) That, the disability certificate of the victim indicates that he suffered a 90% disability but the Learned Claims Tribunal considered it to be 100% disability while computing the compensation. Hence, the compensation awarded to the Claimant/Respondent No.1 is required to be reduced.

2. Elaborating on the grounds raised hereinabove, Learned Counsel for the Appellant contended that interest @ 9% imposed by the Learned Claims Tribunal on the awarded amount is not in conformity with the interest rates of various Banks prevailing during the period of the accident. While relying on Dharampal and Others vs. U.P. State Road Transport Corporation, (2008) 12 SCC 208, it was canvassed that the Supreme Court has held therein that the interest to be awarded is normally dependent upon the prevailing rate of interest of Banks at the time of granting the Award. That, on the date of Award the rate of bank interest was 6% which therefore ought to be the interest imposed and not 9%. That, the amount of Rs. 13,00,000/- (Rupees thirteen lakhs) only, granted under the 'other heads' is excessive and arbitrary awarded sans reasons, which requires reconsideration. That, the Learned Claims Tribunal has also arbitrarily considered the disability of the victim as 100% instead of 90% as actually indicated in his disability certificate Exhibit 10, issued by the office of the Chief Medical Officer (West Sikkim), duly signed by three doctors. Besides, no evidence was adduced with regard to the permanent disability, by the authority issuing the certificate, which has been accepted without proof. Hence, the compensation granted be recomputed in light of the grounds raised above.

3. Learned Senior Counsel for the Respondents per contra submitted that the Supreme Court has held in a plethora of cases that not only 90% physical disability but even 50% disability can be considered as 100% disability if the earning capacity of the victim is compromised on account of the accident. That, the rate of interest of 9% is not exorbitant as it is the discretion of the Learned Claims Tribunal to Award the rate of interest and there is no hard and fast rule that provides that the rate of interest ought to be as per the prevailing bank rate. The compensation awarded under the 'other heads' are in terms of the Judgment of the Supreme Court in Raj Kumar vs. Ajay Kumar and Another, (2011) 1 SCC 343 and nothing irregular or arbitrary can be said to have been made in the Award. There being no merit in the Appeal, it ought to be dismissed.

4. The Respondent No.1, the victim of the accident, who was the Claimant (hereinafter referred to as 'Claimant'), before the Learned Claims Tribunal in MACT Case No.46 of 2019 (Amrit Kumar Manger vs. Cholamandalam MS General Insurance Company and Others) was eighteen years of age on the date of the accident, which occurred on 16-05-2018 at around 1645 hours. He was employed as a conductor/helper in the Eicher truck, bearing registration no.SK-02-D-0560 owned by Respondent No.2 herein. When the truck approached 'Kaleg' Bridge, Legship, West Sikkim, the driver made way to allow the vehicle behind it to overtake and in the process the truck went off the road to 100 feet below. The driver of the vehicle succumbed to his injuries. The Claimant suffered from 90% disability which fact he sought to fortify by furnishing Exhibit 10 a certificate issued by the office of the Chief Medical Officer (West Sikkim), duly signed by three doctors revealing his physical impairment. It was observed in the document that his condition was not likely to improve, ho