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C. Mohanraju vs Divisional Manager, United India Assurance Company Limited and another

Supreme Court4 April 2011Asok Kumar Ganguly · G.S. Singhvi

Ratio decidendi

The rule this decision rests on

When assessing disability in motor accident compensation claims, the court must examine the nature of the victim's occupation and the specific injuries sustained, and disability must be calculated not merely on a medical percentage but with reference to the victim's actual earning capacity in light of the nature of the work performed. Where medical evidence establishes disability of 25-30%, and the victim's specific occupation requires use of limbs affected by the injury, the court may apply a disability percentage at the higher end of the medical assessment that reflects the occupational impairment.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

Non-Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.2931 OF 2011
(Arising out of Special Leave Petition (C) No.2751/2011)
C. Mohanraju ...Appellant(s)
- Versus -
Divisional Manager, United India, ...Respondent(s)
Assurance Co. Ltd. and another
J U D G M E N T
GANGULY, J.
1. Leave granted.

2. On 2.09.2002, at about 2.30 pm, the appellant-

claimant was walking on the Byatarayanapura road

near the bus stop, when the driver of a motorcycle

(bearing no. KA-03-X-8591) came and dashed against

the appellant, as a result of which the appellant

sustained serious head injuries leading to weakness

of his right hand and leg. The respondents are the

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insurance company and the owner of the offending

vehicle respectively.

3. The appellant filed a claim petition under

Section 166 of the Motor Vehicles Act, 1988,

claiming compensation to the tune of Rs.4,00,000/-.

4. The Motor Accident Claims Tribunal (MACT), vide

award dated 22.06.2006, concluded that the accident

had occurred due to the rash and negligent driving

of the motorcycle, resulting injuries to the

appellant. Though the doctor had assessed

disability at 25% to the whole body, the Tribunal

took it at 10%. The appellant was aged 35 years and

was involved in silk winding. He claimed to be

earning Rs.4,500 per month but there was no

documentary evidence to prove his income. Hence,

the Tribunal assessed it at Rs.50/- per day, which

amounted to Rs.18,000/- annually and Rs.6,30,000/-

during his whole life. As 10% loss was caused due

to disability, the Tribunal held that the appellant

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was entitled to Rs.63,000/- towards loss of future

income. The Tribunal also awarded Rs.20,000/- for

pain and suffering, Rs.10,000/- for loss of future

amenities, Rs.1,200/- for medical expenses,

Rs.5,000/- for future medical treatment and

conveyance. Accordingly, total compensation was

fixed at Rs.1,02,200/-, payable with interest @ 6%

p.a. from the date of the claim petition till date

of deposit by the insurance company on behalf of

the owner of the offending vehicle.

5. Aggrieved by the compensation awarded by the

Tribunal, the appellant appealed to the High Court

of Karnataka at Bangalore. The High Court partly

allowed the appeal by enhancing the compensation

amount. It held that as the appellant was a silk

weaver, he could not have been earning less than

Rs.3,500/- per month. Thus, it awarded loss of

income during laid-up period as Rs.10,500/-

(Rs.3,500 X 3 months). The High Court calculated

the disability of the whole body at 25%. It held

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that annual loss of income would be Rs. 10,500. As

the claimant was aged 34 years, the applicable

multiplier would be 16. Thus, loss of future income

was calculated at Rs.1,68,000/- (Rs.10,500 X 16).

Considering the nature of injuries suffered by the

appellant, the High Court also enhanced amount

awarded for pain and suffering to Rs.35,000/-, for

loss of amenities to Rs.50,000/-, for medical and

allied expenses to Rs.10,000/-. Accordingly, total

compensation amounted to Rs.2,78,500/- along with

interest on the enhanced amount @ 6% p.a. from the

date of the claim petition till date of payment.

6. Being still aggrieved by the judgment of the

High Court, the appellant filed the present appeal

claiming further enhancement of compensation.

7. Having heard the parties and perused the

materials on record, we are of the opinion that the

appeal deserves to be allowed.

4 8. The High Court, in calculating future loss of

income, took the monthly income of the appellant to

be Rs.3,500/-; thus annual income would amount to

Rs.42,000/-. Accordingly, annual income of

Rs.42,000/- at a multiplier of 16 amounts to

Rs.6,72,000/-. The next question for consideration

is the percentage of disability.

9. As per the doctor's evidence, doctor assessed

disability as hemiperesis right side at 40%, severe

headache 10%, blurring of vision 10% and recent

loss of memory at 10%. He assessed 25-30%

disability of the whole body. The doctor also added

that as a result of the disability, the appellant

was incapable of doing silk winding work or any

other manual work. It seems that there is severe

weakness of the right hand and leg. The appellant

is a silk winder, an occupation for which he needs

to use his hands. Weakening of his right hand would

adversely affect his ability to perform his

occupation as he had been doing before the

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accident. As a result, we assess the disability of

the victim to earn in future at 30% as against 25%

assessed by the High Court.

10. Thus, loss of future income amounts to

Rs.2,01,600/- (30% of Rs.6,72,000/-). We also

enhance the compensation awarded for future medical

expenses to Rs.10,000/-. The compensation awarded

by the High Court under the remaining heads is

sustained. Thus, it comes to Rs.3,17,100/-, which

we round off to Rs.3,20,000/-. Interest will be

payable on the enhanced amount at 6% from the date

of the claim petition till date of realization.

11. Accordingly, the appeal is allowed.

12. No order as to costs.

.......................J.

(G.S. SINGHVI)

.......................J.

New Delhi (ASOK KUMAR GANGULY)

April 04, 2011

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