Hare Krushna Mahanta vs Himadri Sahu
- Neutral2025 INSC 165
Ratio decidendi
The rule this decision rests on
Even where a claimant has agreed to the compensation awarded by the lower court, the tribunal or court must award just and fair compensation under the Motor Vehicles Act, 1988, which is reasonable on the facts and evidence on record, and any undervaluation in the claim petition does not preclude the award of compensation exceeding the claimed amount. The multiplier method for calculating loss of earning capacity applies as follows: the monthly income is multiplied by twelve to derive yearly income; future prospects (calculated as a percentage increase on yearly income to account for career progression) are added; and this total is multiplied by the appropriate multiplier based on age and life expectancy to determine compensation for loss of earning capacity. Permanent disability is assessed as a percentage of loss of earning capacity and calculated by applying that percentage to the total compensation for loss of earning capacity derived from the multiplier method. Medical expenses, attendant charges, special diet, transportation costs, pain and suffering, and loss of income during the period of treatment are separate and distinct heads of compensation that must each be calculated and awarded on the basis of evidence and established precedent, in addition to compensation for loss of earning capacity.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION 2025 INSC 165 CIVIL APPEAL NO. 2204 OF 2025 (Arising out of SLP(C)No.5541/2023)
HARE KRUSHNA MAHANTA … APPELLANT(S)
VERSUS HIMADARI SAHU & ANR. … RESPONDENT(S)
ORDER
Time taken for disposal Time taken for disposal Time taken for disposal of the claim petition by of the appeal by the of the appeal in this MACT High Court Court 3 years 3 years 2 years 2 months
Leave granted.
2. This appeal is directed against the Judgment and Order dated 4th April, 2022 in
MACA No.954 of 2019 passed by the High Court of Orissa at Cuttack, which in turn
was preferred against the Judgment and Order dated 13 th December, 2019 passed in
MAC No.77 of 2016 by the 2nd Additional District Judge-cum-3rd Motor Accident
Claims Tribunal, Cuttack.
3. The brief facts giving rise to this appeal are that on 6 th December, 2016, the
Claimant-Appellant, aged 51 years, working as a Primary School Teacher at Kadodihi,
was returning from the school on his motorcycle bearing No.OR-14-V-6869 with his
colleague, namely, Sabita Mahanta, riding on the extremely left side of the road. The Signature Not Verified
offending vehicle bearing No.OR-19-M-4347, coming from the opposite direction of Digitally signed by RAJNI MUKHI Date: 2025.02.07 18:14:31 IST Reason:
the road, driving rashly and negligently, dashed into the Claimant-Appellant from the
1 front, thus injuring him seriously. He was taken to Lahunipada CHC for treatment
and was, then, shifted to Kaling Hospital Pvt. Ltd., Chandrasekharpur,
Bhubaneshwar, where he was treated from 7th December, 2013 to 22th December,
2013. Subsequently, he also got treatment at ISPAT General Hospital, Rourkela.
During treatment, the Claimant-Appellant underwent surgery, and a nail was
inserted in his right leg.
4. In connection with this incident, FIR No.100/2013 was registered under
Sections 279, 337, 338 of the Indian Penal Code by the husband of the other injured
person, Sabita Mahanta, at IIC, Lahunipada Police Station.
5. The Claimant-Appellant filed an application for compensation under the Motor
Vehicle Act, 1988, seeking compensation to the tune of Rs. 15,00,000/, submitting
therein that he was working as a Primary School Teacher earning Rs.19,000/- per
month at the time of the accident and also has spent Rs.10,00,000/- towards medical
treatment, also suffered pain and loss of income.
6. The Tribunal, by its Order, proceeded ex-parte against Respondent No.1 and
held Respondent No.2, the Insurance company, liable to pay an amount of
Rs.6,17,515/- along with interest @ 7%. The Tribunal considered permanent disability
suffered by the Appellant as 10% and took his income to be Rs. 16,340/- per month on
the basis of his salary certificate.
7. Being aggrieved with the amount of compensation awarded, the Claimant-
Appellant filed an appeal before the High Court for enhancement on the ground that
2 the Tribunal had incorrectly appreciated the nature of the injury and further claimed
permanent disability to the extent of 40%.
8. The High Court, vide the impugned order, enhanced the amount awarded to the
Claimant-Appellant with an additional consolidated sum of Rs.60,000/.
9. We have heard the learned counsel for the parties. It is borne from the record
that the Claimant-Appellant had agreed on the additional consolidated sum granted by
the High Court. It is imperative for this Court, however, to reiterate that despite such
consent, the objective when granting compensation under the Motor Vehicles Act,
1988, is to ensure just and fair compensation is paid to the aggrieved party. This came
to be reiterated by this Court recently in Meena Devi v. Nunu Chand Mahto1,
wherein it was observed:
“17. The Tribunal/Court ought to award "just" compensation which is reasonable in the facts relying upon the evidence produced on record. Therefore, less valuation, if any, made in the claim petition would not be impediment to award just compensation exceeding the claimed amount.”
10. As a result of the discussion above, the compensation payable to the Claimant-
Appellant in accordance with law is as follows:
FINAL COMPENSATION Compensation Heads Amount Awarded In Accordance with:
Monthly Income Rs.16,340/- National Insurance Co. Ltd. v.
(Salary Certificate) Pranay Sethi Yearly Income 16,340 X 12 = (2017) 16 SCC 680 Rs.1,96,080/- Para 42 & 59 Future Prospects 1,96,080 + 58,824 (30%) age 51 years = Rs.2,54,904/- Multiplier (11) 2,54,904 x 11 = Rs.28,03,944/- Permanent Disability Rs.11,21,578/-
1 (2023) 1 SCC 204
3 (40%) Medical Expenses Rs.3,08,827/- Kajal v. Jagdish Chand Attendant Charges 16,340 x 11 = (2020) 4 SCC 413 Rs.1,79,740/- Para 19 and 25 Special Diet & Rs.40,000/- Sidram v. Divisional Transportation Manager, United India Insurance Ltd. (2023) 3 SCC 439 Para 89 Pain and Suffering Rs.1,00,000/- K.S. Muralidhar v. R. Subbulakshmi and Anr. 2024 SCC Online SC 3385 Para 13 and 14 Loss of Income during 16,340 X 2 Raj Kumar v. Ajay Kumar treatment (2011) 1 SCC 343 = Rs.32,680/- For 2 months Para 6 TOTAL Rs.17,82,825/-
Thus, the difference in compensation is as under:
MACT High Court This Court Rs. 6,17,515 Rs. 6,77,515 Rs.17,82,825/-
11. The Civil Appeal is allowed in the aforesaid terms. The impugned award dated
13th December, 2019 passed in MAC No.77 of 2016 by the 2 nd Additional District
Judge-cum-3rd Motor Accident Claims Tribunal, Cuttack as modified in terms of the
impugned order, stands further modified to the above extent. Interest is to be paid as
awarded by the Tribunal.
Pending application(s), if any, shall stand disposed of.
……………………………………J. (SANJAY KAROL)
…………………………………….J. (PRASHANT KUMAR MISHRA) New Delhi;
February 7, 2025.
4
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