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2026 Supreme(Online)(P&H) 77860

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Kanwar Singh – Appellant
Versus
Vijay Kumar – Respondent
FAO-6624-2018



Advocates:
For the Appellants/Petitioners: Amardeep Sheoran
For the Respondents: Jitender Kaur, Samrita Devi

In personal injury cases, compensation for permanent disability must be assessed based on the claimant's functional disability and loss of earning capacity, rather than just medical percentage, while incorporating future prospects and realistic attendant charges to ensure just and fair restorative damages.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Enhancement of compensation - Assessment of functional disability vis-a-vis medical disability - Importance of loss of earning capacity - Determination of future prospects and conventional heads - Court observed that functional disability must be evaluated in terms of impact on earning capacity rather than mere percentage of medical disability found by experts in cases of significant injury. (Paras 11, 12, 13)

(B) Attendant Charges - Multiplier method - Principles derived for assessment of attendant charges for long-term care of disabled claimants as laid down by the Supreme Court - Requirement to account for inflation and longevity in lump sum awards. (Paras 19, 36, 37)

Facts of the case:
The appellant sustained injuries in a motor vehicle accident and was awarded Rs.2,50,000/- by the Tribunal. He appealed seeking enhancement of compensation, contending the original award was insufficient and did not properly assess permanent functional disability, future prospects, or fair compensation for pain, suffering, and attendant services.

Findings of Court:
The court held that the Tribunal failed to account for loss of future earning capacity appropriately, ignoring medical evidence regarding the appellant's inability to perform manual work. Consequently, the court re-calculated compensation by adding future prospects, increasing the disability percentage for earnings calculation, and awarding higher amounts under non-pecuniary heads.

Issues: Whether the compensation awarded was insufficient and whether it failed to adhere to settled legal principles regarding permanent disability, future prospects, and attendant charges.

Ratio Decidendi: Functional disability must be assessed based on the specific impact on the claimant's occupation and quality of life, not just medical percentage. Compensation must be fair and equitable, covering both pecuniary and non-pecuniary losses using the multiplier method to ensure consistency and future-proofing against inflation.

Result: Appeal allowed. Compensation enhanced to Rs.14,06,750/- with 9% interest.

Table of Content
1. overview of the claim and the dispute regarding compensation quantum. (Para 1 , 2)
2. contentions of the parties in the appeal for compensation enhancement. (Para 3 , 4 , 5)
3. settled legal framework regarding injury compensation and multiplier method. (Para 7 , 8 , 9)
4. analysis of functional disability, future prospects, and attendant care costs. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
5. final calculation of enhanced compensation and interest award. (Para 22 , 23 , 24)

****

SUDEEPTI SHARMA J.

1. The present appeal has been preferred against the award dated 22.02.2018 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.2,50,000/- along with interest @ 7.5 % per annum on account of injuries sustained by the appellant/claimant – Kanwar Singh in a motor vehicular accident, occurred on 19.10.2016.

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.1/driver-cum-owner, however, vehemently argues that compensation awarded by learned Tribunal is on the higher side. He further contends that learned Tribunal has erred in giving recovery rights to respondent No.2-Insurance Company to recover the compensation from respondent No.1/driver-cum-owner. He further contends that he has preferred separate appeal i.e. FAO-1737-2018, titled as “Vijay Kumar Vs. Kanwar Singh and another” challenging the issue of liability to pay compensation. Therefore, he prays for dismissal of the present appeal.

5. Learned counsel for respondent No.2-Insurance Company 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.

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

SETTLED LAW ON COMPENSATION

7. 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

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