The New India Assurance Co. Ltd. vs Gajender Yadav And Ors.

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 9006 OF 2017 [@ SPECIAL LEAVE PETITION (C) NO. 25827 OF 2015 ]

THE NEW INDIA ASSURANCE CO. LTD. Appellant(s)

VERSUS

GAJENDER YADAV AND ORS. Respondent(s)

WITH

CIVIL APPEAL NO. 9007 OF 2017 [@ SPECIAL LEAVE PETITION (C) NO. 35084 OF 2015 ]

J U D G M E N T

KURIAN, J.

1. Leave granted.

2. The learned counsel for the insurance company as

well as the claimant are before this Court, aggrieved

by the order passed by the High Court of Punjab and

Haryana in FAO No. 4219 of 2005.

3. The claimant met with an accident on 28.01.2004.

His left leg below the knee was amputated. He was

working as a Security Officer in Bennett & Coleman.

He was aged 37 years at the time of the incident. Signature Not Verified The Tribunal awarded an amount of Rs. 6,87,000/- with Digitally signed by JAYANT KUMAR ARORA Date: 2017.08.05 12:51:40 IST Reason: interest at the rate of 9% per annum from the date of

the claim petition. The High Court modified the

compensation as follows :-

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(A) Pecuniary Compensation

(i) Compensation assessed on Rs. 1,14,835/-

account of medical expenses and hospitalisation

ii) Compensation assessed on Rs. 50,000/-

account of services of attendant, speial diet and conveyance

(iii) Compensation assessed on Rs. 1,00,000/- account of expenses incurred on physiotherapy and implant to set off the amputation by way of artificial limb

(iv) Compensation assessed on Rs. 8,00,000/- account of physical disability

(v) Compensation assessed on Rs. 1,50,000/- account of loss of earnings during hospitalisation

(vi) Compensation assessed on Rs. 13,00,000/-

account of future loss of earnings

(B) Non-Pecuniary Compensation

(i) Compensation assessed on Rs. 50,000/-

account of physical pain, mental agony and sense of wrong

(ii) Compensation assessed on Rs. 1,00,000/- account of loss of pleasures of life, longevity

(iii) Compensation assessed on Rs. 50,000/-

account of loss of beauty

Total Rs. 27,14,835/- 3

4. Both the learned counsel appearing for the

Insurance Company and the claimant have referred to

several Judgments extensively and have canvassed for

their respective position for reduction and

enhancement, as the case may be. However, we propose

to refer only to two judgments since those two

judgments have discussed the first principles on the

method of calculation and more so, because the latter

Judgment is the latest one which has taken into

consideration the previous Judgments as well.

5. In Raj Kumar Vs. Ajay Kumar & Anr. (2011) 1 SCC

343, the Court has laid down the principle regarding

assessment of future loss of earning due to permanent

disability. The same issue was discussed in more

detail in the case of a chartered accountant in the

recent judgment in Sandeep Khanuja Vs. Atul Dande &

Anr. (2017) 2 SCALE 314. In the latter case, this

Court has awarded compensation applying the

multiplier for the permanent disability to the tune

of 70% for the Chartered Accountant. In Raj Kumar's

case (supra), this Court has discussed about the

functional disability and has held that compensation

would vary from case to case depending on how much

the person has been affected as far as his earning

capacity is concerned.

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6. In the case before us, it is in evidence that

there is 85% permanent disability as far as left leg

is concerned. It is also in evidence that he had

been working as a Security Officer in a reputed

company and from the evidence of Deputy Chief Manager

before the Tribunal, it has come out that “prior to

accident Gajender was doing duty in our office

established at Bahadur Shah Zafar Marg and he was in

active job and after his accident when he joined the

duty he had been shifted to our office established at

Dariya Ganj where he has to do lesser work i.e.

sedentary duty in which no physical work is required.

The future of employee Gajender has been sealed and

he will not be able to get any promotion in future.”

7. Having heard the learned counsel on both sides

and having regard to the fact that the claimant has,

in fact, suffered a serious injury leading to

amputation of the left leg below the knee and which

has certainly caused a functional disability since he

had been in employment as a Security Officer and

since according to the Management, his future

promotions have been sealed, we are of the view that

in the facts of this case, the computation of

compensation for the disability is also to be worked

out by applying a multiplier. The monthly salary

which the claimant was drawing in 2004 was around Rs. 5

14,000/-. If the future prospects in terms of Sarla

Verma (Smt.) & Ors. Vs. Delhi Transport Corporation &

Anr. (2009) 6 SCC 121 is added, it will be

Rs.21,000/- per month. Having regard to the

disability suffered by the claimant, we are of the

view that without any further deduction, if the total

disability factor is taken as 40%, the claimant would

be entitled to an amount of Rs. 8,400/- per month

towards the loss of future earnings. The age being

37 years, the multiplier 15 has to be applied. Thus,

the compensation towards future earnings comes to

Rs.15,12,000/- (Rupees Fifteen Lakhs and Twelve

Thousand).

8. The High Court, in the pecuniary part, has

awarded Rs.8 Lakhs on account of physical disability

and for future loss of earnings Rs. 13 Lakhs. This

is certainly a duplication. What is to be

compensated is only the loss on account of

disability. The said total amount of Rs. 21 Lakhs

will stand substituted by Rs.15,12,000/- (Rupees

Fifteen Lakhs and Twelve Thousand) and the rest of

the High Court order is maintained.

9. Towards the claim for change of artificial limb

at least once in two years, we are of the view that 6

it will be just and proper that a further amount of

Rs.2,00,000/- (Rupees Two Lakhs) is awarded. These

appeals are thus disposed of by holding that the

claimant shall be entitled to a total compensation of

Rs. 23,26,835/- (Rupees Twenty Three Lakhs Twenty Six

Thousand Eight Hundred and Thirty Five). The

claimant shall also be entitled to interest at the

rate of 8% from the date of the claim petition.

No costs.

.......................J. [ KURIAN JOSEPH ]

.......................J. [ R. BANUMATHI ]

New Delhi;

July 13, 2017.