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2026 Supreme(Online)(P&H) 79820

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Yashvir Singh Rathor, J
Satyawan – Appellant
Versus
Balwan – Respondent
FAO-2762-2003



Advocates:
For the Appellants/Petitioners: K.S. Malik, S.K. Hooda
For the Respondents: Vinod Gupta

In motor vehicle accident injury cases, 'just compensation' requires determining both pecuniary and non-pecuniary damages, including future prospects and loss of amenities, by applying appropriate multipliers and disability percentages, while ensuring the assessment serves to restore the victim's economic and personal position efficiently.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Enhancement of compensation - Permanent disability (60%) - Calculation - Future prospects - Multiplier - It is well settled that compensation should be 'Just' and 'Reasonable' - 40% future prospects added to monthly income of Rs.1500/- - Multiplier of 18 applied in accordance with Sarla Verma and Pranay Sethi - Additional heads for pain and suffering, loss of amenities and future medical expenses included - Total compensation enhanced to Rs.4,17,160/-. (Paras 9, 13, 16, 18, 22)

Facts of the case:
The appellant (claimant) was working as a cleaner in a truck when it struck a stationary vehicle on 28.08.1996. He suffered grievous injuries, including fracture and paralysis of the lower limb, eventually assessed at 60% permanent disability. The Tribunal initially granted Rs.2,17,800/-. The appellant challenged this as inadequate.

Findings of Court:
The court held the initial compensation was inadequate. It recalculated the loss of future earnings, added future prospects, increased the multiplier, and granted additional amounts for pain, suffering, loss of amenities, and future medical treatment. The Insurance Company was directed to pay the enhanced amount with a right to recover from the owner.

Issues: Whether the compensation awarded by the Tribunal was just and adequate in light of the 60% permanent disability and the claimant's future loss of prospects and medical needs.

Ratio Decidendi: In personal injury cases, compensation must be just and reasonable to restore the victim to their previous position. Awards must account for pecuniary and non-pecuniary damages, including future prospects, pain, and loss of amenities, consistent with established Supreme Court precedents on multiplier and income assessment.

Result: Appeal partly accepted with costs; compensation enhanced by Rs.1,99,500/-, total being Rs.4,17,160/-.

Table of Content
1. overview of appeal, lower court award details, and issues determined by the tribunal. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments concerning inadequate assessment of compensation, future prospects, and permanent disability. (Para 7 , 8)
3. general principles of 'just compensation' and methodology for assessing personal injury damages. (Para 9 , 10 , 11 , 12 , 13 , 14)
4. detailed computation of income, future prospects, multiplier, and various heads of damages. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22)
5. final order granting enhanced compensation with interest and recovery rights. (Para 23 , 24 , 25)

*****

YASHVIR SINGH RATHOR, J. (Oral)

1. This appeal has been instituted against the Award dated 06.09.2002 passed by MACT, Fatehabad (for short “Tribunal”) for enhancement of the compensation awarded in MACT Case No.32 of 1996/2000 in a petition under Section 166 of the Motor Vehicles Act, 1988 vide which a sum of Rs.2,17,800/- has been awarded as compensation to the claimant/appellant along with interest @ 9% per annum, due to injuries suffered by him in a motor vehicular accident on account of rash and negligent driving on the part of respondent No.1 while driving offending vehicle bearing No.HR-46-8395 (for short ‘offending vehicle’), owned by respondent No.2, which was insured with respondent No.3.

2. From the pleadings of parties, following issues were framed by the learned Tribunal:-

“1. Whether respondent No.1 was driving his truck No.HR-46-8395 in a rash and negligent manner as on 28.8.96 in the area of Bahadurgarh thereby caused injuries on the person of Satyawan? OPP

2. Whether the petitioner is entitled for compensation if so to what amount? OPP

3. Whether the petition is not maintainable on the grounds mentioned in the preliminary objections of the written statement? OPR

4. Relief.”

3. Thereafter, the parties led evidence in support of their case.

4. After hearing the parties and going through the material on the file, learned Tribunal awarded a sum of Rs.2,17,800/- as compensation to the claimant on account of injuries suffered by him along with interest @ 9% per annum from the date of filing of claim petition till realization. However, it was held that the driver of the offending vehicle did not possess a valid and effective driving licence and in view of violation of terms and conditions of the insurance policy, Insurance Company was exonerated of its liability to indemnify the insured. However, it was ordered that respondent No.3-Insurance Company shall first of all make the payment of the awarded amount to the claimant and thereafter, it shall have a right to recover the same from respondent No.2-insured.

5. Feeling aggrieved, the appeal in hand has been preferred. The material on file has been perused and parties have been heard.

6. The only issue required to be determined in the present appeal relates to the assessment of compensation. Therefore, the entire facts regarding the manner of the accident are not required to be reproduced in detail, as the Tribunal has already held under issue No.1 that the accident occurred due to the rash and negligent driving on the part of respondent No.1 while driving offending vehicle. No appeal or cross-objections have been filed by respondents, challenging the said finding and accordingly finding on issue No.1 is not required to be interfered with and the same is affirmed.

7. Learned counsel for the appellant argued that the Tribunal has not appreciated the facts of the case and evidence on file in the correct perspective while assessing the compensation which is grossly inadequate. Learned counsel contended that income of the claimant has been assessed on lower side. No future prospects have been added to the income of the injured. The claimant had suffered 60% permanent disability due to paralysis of lower limb and shortening of leg with deformity in the foot. The claimant was 23 years of age but multiplier of 16 has been applied instead of 18 while assessin

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