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2025 Supreme(MP) 280

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
HIMANSHU JOSHI, J.
Neeraj Kumar Sahu 
Versus 
Ashok Kumar Jain And Others - Respondent 
Misc. Appeal No. 4971 Of 2009
Decided On : 14-08-2025

Advocates:
Advocate Appeared:
For the Appellant : Shri Sushil Kumar Jha Adv.
For the Respondent: Ku. Sabhyata Yadav, Shri Rakesh Kumar Jain Adv.

The assessment of compensation in personal injury cases must fairly reflect the impact of permanent disability on the claimant's future earning capacity, not merely the physical impairment percentage.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 140 and 166 - Compensation for personal injury in a road accident resulting in permanent disability - Appellant, a minor, sustained amputation of one leg due to negligent driving; the Tribunal awarded Rs.1,49,635/- which was deemed inadequate for the extent of disability and long-term consequences - The improper assessment of notional income at Rs.15,000/- per annum was rectified in line with Supreme Court precedents, increasing it to Rs.30,000/- per annum, applying a multiplier of 15, along with considerations for future prospects and pain and suffering. (Paras 1-24)

(B) Compensation Assessment - The court clarified factors including permanent disability and the relevance of future earning capacity, highlighting that the percentage of permanent disability does not directly equate to economic loss. (Paras 6-12)

Facts of the case:
The claimant, a minor boy, was injured in an accident on 30.09.1997 due to the rashness of vehicle operation, resulting in the amputation of his right leg. He filed a claim for Rs.9,34,300/- but was awarded Rs.1,49,635/- with interest at 9% per annum by the Tribunal.

Findings of Court:
The court reassessed the notional income, determining fairness in compensation and ultimately awarding Rs.4,68,635/- including interest at 6% from the claim petition filing date.

Issues: The issues revolved around whether the Tribunal correctly assessed the notional income and accounted for future prospects in compensation.

Ratio Decidendi: The court emphasized that awards must restore claimants equitably, ensuring that disability impacts on earning capacity are adequately considered, and set compensation must reflect fair loss.

Result: The appeal is allowed, enhancing compensation to Rs.4,68,635/-.

Table of Content
1. accident details and claimant's injury. (Para 1 , 2)
2. arguments regarding compensation assessment. (Para 3 , 4 , 5)
3. review of tribunal's award structure. (Para 6 , 8)
4. guidelines for assessing compensation in injury cases. (Para 9 , 10 , 11)
5. criteria for permanent disability and future income assessment. (Para 12 , 13 , 19)
6. determination of pain and suffering compensation. (Para 18 , 20 , 21)
7. final decision and compensation increase. (Para 23 , 24)

ORDER :

HIMANSHU JOSHI, J.

The instant Miscellaneous Appeal assails the correctness of award dated 27.07.2001 passed by Second Additional Motor Accident Tribunal, Tikamgarh, in Claim Case No.26/2001, whereby learned Tribunal had awarded a sum of Rs.1,49,635/- towards compensation; the same was in respect of a road accident which occurred on 30.09.1997 in which the appellant​/claimant was injured resulting into amputation of his one leg.

2. It is undisputed that on 30.09.1997, when the appellant/claimant was standing besides the shop of one Sumat Chandra Jain situated at village- Bamhouri Barana, he met with an accident due to rash and negligent driving of respondent No.2 who was driving the truck bearing Registration No.MP- 15-D-4475. The said offending vehicle, on the date of accident, was owned by respondent No.1 and insured with respondent No.3. On the date of accident, the appellant/claimant was a minor aged about 08 years only. He had filed a claim petition against the respondents before learned Tribunal through his natural guardian (father) for realization of compensation of Rs.9,34,300/-, but learned Tribunal awarded only Rs.1,49,635/- with interest @ 9% per annum.

3. It is contended by learned counsel for the appellant/claimant that learned Tribunal did not consider the aspect that as a result of the accident, the appellant became permanently disabled as his right leg had to be amputated and on account of such injury, he is unable to discharge even his daily routine activities. The appellant/claimant has become more than 50% disabled; his future earning capacity has also been affected. He has further contended that learned Additional Motor Accident Claims Tribunal erred in passing the impugned award, by not assessing the quantum of award properly. The appellant/claimant deserves to be awarded more amount under all the heads. In the light of various judgments passed by the Hon'ble Supreme Court, the amount under the head of 'Future Prospects' should also be granted in favour of the appellant. With the aforesaid submissions, he has prayed for allowing the appeal.

4. Per contra, learned counsel for respondent No.1 has submitted that respondent No.1 is the owner of the offending vehicle and a formal party in the instant appeal as the liability is upon respondent No.3/Insurance Company.

5. Learned counsel for respondent No.3 has submitted that in fact, taking into consideration the relevant factors for assessing the claim at the relevant point of time, the compensation awarded by learned Tribunal is just and proper, has prayed for dismissal of appeal.

6. I have heard the submissions advanced by learned counsel for the parties and also perused the material available on record.

7. The learned Tribunal has awarded the compensation as shown in the table below -

HeadCompensation Amount awarded by MACT

P.D./Injuries

(Rs.15,000/- notional income per annum with multiplier of 15 on 50% disability

1,13,000/-

Pain and Suffering

10,000/-
Medical Expenses8,635/-
Attendant Expenses3,000/-
Special Diet5,000/-
Transport10,000/-
Total Award Amount1,49,635/-

8. The sum and substance of the contentions of learned counsel for the appellant/claimant is that learned Tribunal did not assess the quantum in different heads properly and no amount has been awarded under the head of "Future Prospects".

9. Before proceeding to consider the appeal on merits, it would be useful to refer to the judgment of the Hon'ble Supreme Court passed in the case of Raj Kumar vs. Ajay Kumar & Another [(2011) 1 SCC 3

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