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2026 Supreme(Online)(P&H) 4669

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
Sudeepti Sharma, J
BILLU RAM – Appellant
Versus
PARMOD KUMAR AND ORS – Respondent
FAO-1150-2019 (O&M)



Advocates:
For the Appellants/Petitioners: Arvind Kumar Yadav
For the Respondents: Punit Jain

Functional disability for compensation purposes must be assessed based on the actual impact of the injury on the victim's earning capacity and physical functioning, rather than just a medical percentage, especially in cases of amputation.

Headnote:The appeal was filed under Section 166 of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Rewari, for injuries sustained in a motor vehicular accident. The claimant, a fitter earning approximately ₹ 15,000 per month, suffered a traumatic amputation of the lower part of the left thigh. The court found that the Tribunal erred in assessing functional disability at 50% without cogent reasons, despite medical evidence confirming the severity of the amputation. The primary issue was the determination of the just quantum of compensation. The court reasoned that permanent disability, particularly amputation, has a deleterious impact on normal physical functioning and working capacity. Relying on established precedents, the court held that the functional disability should be quantified at 80% and that compensation for pain and suffering must account for the loss of dignity and the inability to lead a productive life. In view of the above, the present appeal is allowed and award dated 25.01.2018 is modified.

Table of Content
1. appeal for enhancement of compensation in a motor accident claim. (Para 1 , 2)
2. competing arguments regarding the adequacy of the tribunal's compensation award. (Para 3 , 4 , 5)
3. application of supreme court guidelines for assessing disability and pecuniary damages. (Para 6 , 7 , 8)
4. reassessment of functional disability based on medical evidence of amputation. (Para 9 , 10 , 11 , 12)
5. enhancement of non-pecuniary damages for pain, suffering, and loss of dignity. (Para 13 , 14 , 15 , 16)
6. incorporation of future prospects and other medical/amenity expenses. (Para 17 , 18)
7. final modification of the award and direction for payment with interest. (Para 19 , 20 , 21 , 22)

Whether only the operative part of the judgment is pronounced? NO

Whether full judgment is pronounced? YES

****

SUDEEPTI SHARMA J.

1. The present appeal has been preferred against the award dated 25.01.2018 passed in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 (in short ‘1988 Act’), by the learned Motor Accident Claims Tribunal, Rewari (in short ‘the Tribunal’) for enhancement of compensation, granted to the appellant/claimant to the tune of Rs.15,24,000/- along with interest @ 7.5 % per annum on account of injuries sustained by the appellant/claimant – Billu Ram in a motor vehicular accident, occurred on 31.03.2015.

2. As sole issue for determination in the present appeal is confined to quantum of compensation awarded by the learned Tribunal, a detailed narration of the facts of the case is not required to be reproduced and is skipped herein for the sake of brevity.

SUBMISSIONS OF THE LEARNED COUNSELS FOR THE PARTIES

3. The learned counsel for the appellant/claimant contends that the compensation awarded by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present appeal be allowed and the compensation awarded to the appellant/claimant be enhanced, as per latest law.

4. Per contra, learned counsel for the respondent No.3-Insurance Company, however, vehemently argues on the lines of the award and contends that the amount of compensation as assessed by Ld. Tribunal, has rightly been granted to the appellant/claimant. Therefore, he prays for dismissal of the present appeal.

5. I have heard learned counsel for the parties and perused the whole record of this case with their able assistance.

SETTLED LAW ON COMPENSATION

6. Hon’ble Supreme Court has settled the law regarding grant of compensation with respect to the disability. The Apex Court in the case of Raj Kumar Vs. Ajay Kumar and Another (2011) 1 Supreme Court Cases 343, has held as under:-

General principles relating to compensation in injury cases

5. The provision of the Motor Vehicles Act, 1988 ('Act' for short) makes it clear that the award must be just, which means that compensation should, to the extent possible, fully and adequately restore the claimant to the position prior to the accident. The object of awarding damages is to make good the loss suffered as a result of wrong done as far as money can do so, in a fair, reasonable and equitable manner. The court or tribunal shall have to assess the damages objectively and exclude from consideration any speculation or fancy, though some conjecture with reference to the nature of disability and its consequences, is inevitable. A person is not only to be compensated for the physical injury, but also for the loss which he suffered as a result of such injury. This means that he is to be compensated for his inability to lead a full life, his inability to enjoy those normal amenities which he would have enjoyed but for the injuries, and his inability to earn as much as he used to earn or could have earned. (See C.K. Subramonia Iyer v. T. Kunhikuttan Nair, AIR 1970 Supreme Court 376, R.D. Hattangadi v. Pest Control (India) Ltd., 1995 (1) SCC 551 and Baker v. Willoughby, 1970 AC 467).

6. The heads under which compensation

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