2021 Supreme(SC) 644

SUPREME COURT OF INDIA
R. SUBHASH REDDY, HRISHIKESH ROY, JJ.
JITHENDRAN - APPELLANT
VERSUS
THE NEW INDIA ASSURANCE CO. LTD. & ANR - RESPONDENTS
CIVIL APPEAL NO. 6494 OF 2021 (ARISING OUT OF SLP (C) NO.13213 OF 2019)
DECIDED ON : 27-10-2021

IMPORTANT POINTS
(1) Motor Vehicles Act is in nature of social welfare legislation and compensation should be justly determined.
(2) Permanent disability suffered in course of accident – Courts should strive to provide a realistic recompense having regard to realities of life, both in terms of assessment of extent of disabilities and its impact including income generating capacity of claimant – Extent of economic loss arising from a disability may not be measured in proportions to extent of permanent disability.
(3) Just compensation is adequate compensation and Award must be just that.

Headnote:

(A) Motor Vehicles Act, 1988 – Sections 168 and 173 – Permanent disability suffered in course of accident – Enhanced compensation of Rs. 14,31,752/- awarded by High Court – A person therefore is not only to be compensated for injury suffered due to accident but also for loss suffered on account of injury and his inability to lead life he led, prior to the life-altering event – Appellant has suffered 69% permanent disability and without assistance, cannot perform everyday functions – Claimant with seriously impaired cognitive and physical capabilities would surely need full time assistance even for confined life that he is leading – In such circumstances, disabled claimant cannot be expected to rely only upon gratuitous services of his well-wishers and family members – It is appropriate to quantify annual expenses at Rs.60,000/- and applying multiplier of 18, additional compensation payable under bystander head quantified at Rs.10,80,000/- – Appellant has produced adequate medical documents before High Court to show recurring needs for testing, treatment and further hospitalisation for which, considerable expenses were incurred even after initial 191 days of hospitalization – Future medical expenses enhanced to Rs.3,00,000/- (from Rs.1,00,000/-) – Courts should strive to provide a realistic recompense having regard to realities of life, both in terms of assessment of extent of disabilities and its impact including income generating capacity of claimant – In cases of similar nature, wherein claimant is suffering severe cognitive dysfunction and restricted mobility, Courts should be mindful of fact that even though physical disability is assessed at 69%, functional disability is 100% in so far as claimant’s loss of earning capacity is concerned – Extent of economic loss arising from a disability may not be measured in proportions to extent of permanent disability – Earning life for appellant is over and as such his income loss has to be quantified as 100% – Amount for 6 months earning loss during hospitalization, must also be corrected – Quantum of compensation enhanced to Rs.27,67,800/-. (Paras 8 to 13, 16, 17 and 18)

(B) Torts – Road Accident – Permanent disability suffered in course of accident – Permanent disability suffered by individual not only impairs his cognitive abilities and his physical facilities but there are multiple other non-quantifiable implications for victim – Very fact that a healthy person turns into an invalid, being deprived of normal companionship, and incapable of leading a productive life, makes one suffer loss of self-dignity – Efforts must be to substantially ameliorate misery of claimant and recognize his actual needs by accounting for ground realities – Measures should however be in correct proportion – Just compensation is adequate compensation and Award must be just that- no less and no more – Plea of victim suffering from a cruel twist of fate, when asking for some more, is not extravagant but is for seeking appropriate recompense to negotiate with unforeseeable and fortuitous twists is his impaired life. (Para 19)

Facts of the case:

Present appeal arises out of a motor accident claim following the serious injuries suffered by the appellant on 13.4.2001 when the motor cycle (where the appellant was riding pillion), was hit by a car. Both riders were impacted, resulting in severe head injuries to the appellant. He was bedridden, totally immobilized and initially, remained admitted in hospital for 191 days. The appellant has also suffered severe impairment of cognitive power with hemiparesis and total aphasia and the prognosis for him is 69% permanent disability.

Findings of Court:

While the money awarded by Courts can hardly redress the actual sufferings of injured victim (who is deprived of the normal amenities of life and suffers the unease of being a burden on others), the courts can make a genuine attempt to help restore the self-dignity of such claimant, by awarding ‘just compensation’.

Result : Appeal allowed.