What did the Court rely on for the principle of just compensation?
Coram: Justice Sanjay Karol · Justice Prashant Kumar Mishra
Motor Vehicles Act, 1988 — s.168 — Just compensation — Consent to a lesser enhancement — Duty of the Court — Held: The object of awarding compensation under the Motor Vehicles Act is to ensure just and fair compensation; even where the claimant has consented to a modest enhancement by the High Court, that consent does not relieve the Court of its duty to award just compensation, and a lower valuation in the claim petition is no impediment to awarding more than the amount claimed. Motor Vehicles Act, 1988 — Permanent disability — Future prospects — Re-computation of heads — Held further: On a correct appreciation of the forty per cent permanent disability, the salary-certificate income of Rs.16,340, a thirty per cent addition for future prospects at the age of fifty-one and a multiplier of eleven, together with medical expenses, attendant charges, special diet, transportation, and pain and suffering, the compensation is re-worked in accordance with the settled heads. Motor Vehicles Act, 1988 — Enhancement — Disposition — Held further: The compensation payable to the claimant is enhanced to Rs.17,82,825, and the Tribunal's award as modified by the High Court stands further modified to that extent, interest being paid as awarded by the Tribunal. Appeal allowed.
Can compensation be enhanced even though the claimant accepted the High Court's award?
Yes. The duty to award just and fair compensation is not displaced by the claimant's consent to a lesser enhancement, and the Court may award more than what was claimed where the earlier valuation was inadequate.
What did the Court rely on for the principle of just compensation?
Meena Devi v. Nunu Chand Mahto, which holds that a lower valuation in the claim petition is no impediment to awarding just compensation exceeding the claimed amount.
To what figure was the compensation finally enhanced?
To Rs.17,82,825, re-worked on 40% permanent disability, salary-certificate income of Rs.16,340, 30% future prospects at age 51 and a multiplier of 11, with the conventional heads added.
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Leave granted.
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.
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 offending vehicle bearing No.OR-19-M-4347, coming from the opposite direction of 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.
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.
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.
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.
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%.
The High Court, vide the impugned order, enhanced the amount awarded to the Claimant-Appellant with an additional consolidated sum of Rs.60,000/.
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 Mahto[^1], 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.”
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/- 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/-
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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