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2026 Supreme(Online)(Mad) 44981

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. Karthykeyanand, K. Rajasekar, JJ
Vigneshwar – Appellant
Versus
Yogendrakumar – Respondent
Civil Miscellaneous Appeal Nos.1374 & 1919 of 2022 | Civil Miscellaneous Petition No.14212 of 2022



Advocates:
For the Appellants/Petitioners: S.P. Yuvaraj
For the Respondents: P. Suresh Srinivasan

Compensation for loss of earning capacity should be calculated based on an appropriate notional income linked to educational qualifications, incorporating future prospects and a multiplier aligned with age and disability percentage.

Headnote:The appeals involve claims under Section 166 and Section 173 of the Motor Vehicles Act, 1988, arising from a road accident where a two-wheeler was struck by a lorry, resulting in grievous injuries, including amputation above the knee and foot drop for the claimant. The claimant sought enhancement of compensation, while the insurance company challenged the overall quantum and the award for an artificial limb. The court found that the accident was caused by the negligent driving of the lorry driver. The primary issues concerned the determination of the appropriate notional income based on educational qualifications and the assessment of loss of earning capacity. The court reasoned that given the claimant's B.Com and MBA studies, a notional income of Rs.16,000/- was appropriate. Following the ratio in Sarla Verma and Erudhaya Priya, the court applied a 40% future prospect increase and a multiplier of 18, while maintaining a 90% disability assessment. Both the Appeals are disposed of. The compensation awarded by the Tribunal at Rs.71,65,238/- is hereby enhanced to Rs.87,03,878/- along with interest at the rate of 7.5% per annum from the date of filing of Claim Petition till the date of deposit, excluding the default period, if any.

Table of Content
1. procedural history and factual background of the motor accident claim. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. contending arguments regarding income, disability, and liability. (Para 8 , 9 , 10 , 11)
3. calculation of earning capacity using notional income, multiplier, and future prospects. (Para 12 , 13 , 14 , 15)
4. assessment of non-pecuniary damages and specific medical requirements. (Para 16 , 17 , 18 , 19)
5. final modification and enhancement of the compensation award. (Para 20 , 21)

Common Prayer Civil Miscellaneous Appeals filed under Section 173 of Motor Vehicles Act, 1988 against the Award and Decree dated 27.01.2022 passed in M.C.O.P.No.1527 of 2019 on the file of the Motor Accident Claims Tribunal, Special Sub Court No.1, Salem.

For Appellant in CMA.No.1374/2022

& R2 in CMA No.1919/2022 : Mr.S.P.Yuvaraj

For R2 in CMA No.1374/2022 &

Appellant in CMA No.1919/2022 : Mr.P.Suresh Srinivasan

For R2 in CMA No.1374/2022 &

R1 in CMA No.1919/2022 : Not ready in Notice

COMMON JUDGMENT

(Judgment of the Court was made by Mr.K.RAJASEKAR,J.)

Two separate appeals have been filed by the claimant as well as Insurance Company, respectively, challenging the quantum of compensation awarded to the claimant in M.C.O.P. No.1527 of 2019, dated 27.01.2022, on the file of the Motor Accident Claims Tribunal, Special Sub Court No.1, Salem.

2.For the sake of convenience, the parties are referred to hereunder according to their litigative status and ranking before the Tribunal.

3.The case of the claimant is that on 26.01.2018 at about 2.45 A.M., while he was riding his two-wheeler bearing Registration No.TN 45 K 6257 on the White Field Road, Karnataka State, Bangalore City, while reached near Lowry Signal, a Lorry bearing Registration No.KA 53 C 5648 came in rash, negligent manner, dashed against the two-wheeler, which resulting in causing grievous injuries to the petitioner. Immediately, he was admitted in to the Hospital for treatment. In this regard, a police complaint has been registered before the K.R.Puram Police Station, Bangalore City in Crime No.21/2018 under Sections 279 and 338 of IPC offence and Section 134 (A&B), 187 of the Motor Vehicles Act, 1988. Subsequently, the claimant has filed Claim Petition under Section 166 of the Motor Vehicles Act, claiming compensation of Rs.1,35,00,000/- for the injuries sustained by him in the road accident.

4.The owner of the vehicle has not contested the claim. The Insurance Company filed counter and contended that the injury was not sustained by the claimant as stated by him, they have also disputed the age, avocation, income and disability sustained by the claimant and they also disputed the quantum of compensation awarded by the Tribunal under various heads. Hence prays to dismiss the claim.

5.The Tribunal after considering the evidence placed on record has held that the accident had occurred due to the negligent act on the part of the driver of the first respondent vehicle and also quantified the compensation, awarded a sum of Rs.71,65,238/- along with interest at the rate of 7.5% per annum from the date of filing of petition till the date of realisation.

6.Aggrieved over the quantum of compensation, the Insurance Company has filed C.M.A. No.1919 of 2022 and for seeking enhancement of compensation, the claimant has filed C.M.A. No.1374 of 2022.

7.Since both the appeals questioning the quantum of compensation awarded by the Tribunal, both taken up together and we have independently analyzed the appropriate amount of compensation to be awarded to the claimant.

8. The learned counsel for the claimant submitted that the claimant was aged about 24 years old, and was studying MBA graduate. Due to the accident, he suffered amputation above knee, left foot drop and several injuries and that he could not able to do any work. The Medical Board assessed his disability at 90%. He further submitted that the compensation awarded by the Tribunal under various heads are very meagre and prayed for enhance

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