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2017 Supreme(All) 1926

IN THE HIGH COURT OF ALLAHABAD, LUCKNOW BENCH
Sudhir Agarwal, Ravindra Nath Mishra-II, JJ.
National Insurance Company Limited, Lucknow – Appellant
Versus
Lavkush and Another – Respondents
First Appeal From Order No. 199 of 2017
Decided On : 21-03-2017

Advocates Appeared:
For the Appellant : Sri Deepak Kumar Agarwal.
For the Respondent: Sri Anoop Kumar Srivastava.

Headnote:

MOTOR ACCIDENT CLAIM - DETERMINATION OF COMPENSATION - JUST COMPENSATION - RULE 220A OF U.P. MOTOR VEHICLES RULES, 1998 - GUIDELINES - TRIBUNAL'S POWER TO DETERMINE JUST COMPENSATION - PERMANENT DISABILITY - LOSS OF EARNING CAPACITY - ASSESSMENT - ARTIFICIAL LIMBS - IMPLANTATION - COMPENSATION.

Fact of the Case:

Claimant, a young unskilled labourer, sustained serious injuries in a road accident resulting in amputation of his right leg below the knee. The Tribunal, holding that the amputation caused 100% loss of earning capacity, applied a multiplier of 18 to the notional income of Rs. 3000/- per month and awarded compensation under various heads, including Rs. 6,48,000/- towards loss of earning.

Finding of the Court:

1. Rule 220A of the U.P. Motor Vehicles Rules, 1998, which provides for fixed amounts of compensation under different heads, is only a guideline. The Tribunal has the ultimate authority to determine and award appropriate compensation which is "just". 2. Amputation of a limb does not necessarily mean total loss of earning capacity. However, in the present case, considering the claimant's unskilled labour status and the fact that he will require assistance throughout his life, the Tribunal's finding of 100% disability is justified. 3. Tribunals should explore the possibility of getting artificial limbs implanted in cases of amputation and award the cost and expenses thereof as part of compensation.

Issues: 1. Whether the Tribunal erred in determining compensation treating disability of the Claimant, i.e., loss of capacity to earn, to the extent of 100% and applying relevant provisions accordingly or it should have confined to only 50% which was certified vide disability certificate due to amputation of right leg below knee. 2. Whether compensation under different heads awarded by Tribunal necessarily should be the amount mentioned in Rule 220A of U.P. Rules, 1998 or the said Rules are directory and Tribunal can award appropriate amount of compensation other than what is mentioned in Rule 220A. 3. Whether power of Tribunal to determine amount of compensation can be controlled, restricted or checked by subordinate legislation, i.e., by enacting rules, laying down specific amounts payable under different heads, in a claim petition under Section 166 read with Section 168 of Act, 1988.

Ratio Decidendi: 1. The power of the Tribunal to determine "just compensation" under Section 168 of the Motor Vehicles Act, 1988 cannot be controlled or restricted by subordinate legislation, such as Rule 220A of the U.P. Motor Vehicles Rules, 1998, which provides for fixed amounts of compensation under different heads. 2. In determining compensation for permanent disability, the Tribunal should consider the nature of the disability, the claimant's age, education, occupation, and other relevant factors to assess the loss of earning capacity. 3. Amputation of a limb does not necessarily mean total loss of earning capacity. However, in the present case, considering the claimant's unskilled labour status and the fact that he will require assistance throughout his life, the Tribunal's finding of 100% disability is justified.

Final Decision: The appeal filed by the Insurance Company challenging the quantum of compensation awarded by the Tribunal was dismissed.

JUDGMENT :

1. Sri Deepak Kumar Agarwal, learned counsel for appellant and Sri Anoop Kumar Srivastava, learned counsel for claimant-respondent no. 1. Both counsel for the parties requested that issue raised in this appeal is basically legal and there is no factual dispute, hence appeal may be heard at this stage on the basis of record of memo of appeal and decided finally as no useful purpose will be served by keeping it pending. Learned counsel for appellant also stated that award is not being challenged on the question, whether there was accident or not or that accident took place due to negligence of vehicle owned by Respondent 2. All these aspects are not being agitated and to this extent findings of Tribunal qua appellant are final. Appellant is confining relief in this appeal only on the quantum of compensation awarded to Claimant-Respondent 1.

2. Hence we proceed to decide this appeal after hearing learned counsel for parties at this stage.

3. This appeal has come up at the instance of National Insurance Company Limited (hereinafter referred to as the "Insurer") under Section 173 of Motor Vehicles Act, 1988 (hereinafter referred to as the "Act, 1988") assailing judgment and award dated 07.12.2016 passed by Sri Veerbhadra, Additional District Judge (Court No. 8), Barabanki/Motor Accident Claims Tribunal (hereinafter referred to as the "Tribunal") in Motor Accident Claim Petition (hereinafter referred to as the "MACP") No. 140 of 2015, awarding compensation of Rs. 7,10,319/- payable by Appellant-Insurer to Claimant-Respondent 1 along with 6% interest. Amount of compensation included (i) Rs. 6,48,000/- towards loss of earning; (ii) Rs. 10,000/- towards pain and sufferings; (iii) Rs. 10,000/- for loss of limb; (iv) Rs. 10,000/- towards expenses on assistant and, (v) Rs. 30319/- towards medical expenses.

4. Brief facts giving rise to this appeal are; On 03.05.2015, Luvkush, (hereinafter referred to as the "Claimant") aged about 20 years while coming from Barabanki, riding an Auto Rickshaw, reached near Baraiyya crossing at around 11.00 am, when Tempo No. UP 41 T 5229 collided with Auto Rickshaw as a result whereof Claimant sustained severe injuries. He was referred to District Hospital, where after Doctors referred him to Lucknow and thereat he was admitted in Priti Hospital. His right leg was amputed. In the course of treatment, expenses of more than Rs. 66,000/were incurred. Claimant is an unskilled labour and due to amputation of right leg, has lost his source of livelihood entirely inasmuch as now it has become impossible for him to do the job of unskilled labour and, therefore, Claimant has suffered functional disability of 100%. Hence, MACP was filed before Tribunal seeking compensation of 35,70,200/along with interest on the ground that Claimant has suffered 100% disability towards earning livelihood for himself and even otherwise has to seek assistance throughout the life, hence deserves compensation in the light of aforesaid circumstances.

5. Claim was contested by Insurer as well as owner of Tempo. Appellant-Insurer contested claim by denying most of the assertions contained in MACP. It also pleaded in written statement usual defence, namely, driver of vehicle did not possess valid and effective licence, driver was not in employment of owner of insured tortfeaser vehicle, Claimant did not suffer injury in the accident with insured vehicle and Insurer has no liability for payment of compensation. It was further pleaded that Claimant has not given details of Insurance Policy as also details of owner of tortfeaser vehicle and lastly that Claimant is not entitled for any amount of compensation whatsoever.

6. Sri Prem Prakash Shukla-Respondent 2, owner of tortfeaser vehicle, i.e., Tempo, pleaded that he carried all relevant documents, namely, registration certificate, driving licence, insurance certificate, fitness certi



































































































































































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