Supreme Court Enhances Compensation for Amputation Victim in Motor Accident Case — Functional Disability Assessed at 90% Based on Loss of Earning Capacity. Claimant's Age Determined as 22 Years Using Documentary Evidence, Multiplier of 18 Applied Under Motor Vehicles Act, 1988.

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Case Note & Summary

The Supreme Court allowed the appeal of the claimant-appellant, Sanjay Rajpoot, against the judgment of the Allahabad High Court which had enhanced the compensation awarded by the Motor Accident Claims Tribunal (MACT), Jhansi. The claimant, aged 23 years at the time of the accident on 3rd April 2018, was riding his motorcycle when a bus coming from the wrong side dashed into him, causing severe injuries leading to amputation of his right leg above the knee. He filed a claim petition under the Motor Vehicles Act, 1988 seeking compensation of Rs.67,00,000/-. The MACT awarded Rs.6,70,000/- with 6% interest, considering notional income of Rs.6,000/- per month and 50% disability. The High Court enhanced the award to Rs.10,10,004/- by granting Rs.1,00,000/- for pain and suffering and 40% future prospects. The Supreme Court examined two main issues: the assessment of functional disability and the determination of the claimant's age. The Court held that due to the amputation, the claimant's ability to move and run his business is severely affected, and thus the functional disability should be assessed at 90% instead of 50%. Regarding age, based on the Matriculation Certificate, Aadhar Card, and Pan Card showing date of birth as 13.11.1995, the Court fixed his age at 22 years at the time of the accident, applying a multiplier of 18 as per Sarla Verma v. DTC. The Court recalculated the compensation, applying 40% future prospects as per Pranay Sethi, and awarded Rs.28,93,494/- under various heads including medical expenses, attendant charges, loss of marriage prospect, special diet and transportation, pain and suffering, and assistant device. The appeal was allowed, modifying the impugned orders accordingly, with interest as awarded by the Tribunal.

Headnote

A) Motor Accident Compensation - Functional Disability - Assessment of Permanent Disability - Loss of Earning Capacity - Motor Vehicles Act, 1988 - Claimant suffered amputation of right leg above knee, affecting mobility and ability to run coaching centre and work as accountant - Held that functional disability should be assessed at 90% as the injury severely impacts earning capacity (Paras 10-12).

B) Motor Accident Compensation - Determination of Age - Documentary Evidence - Matriculation Certificate, Aadhar Card, Pan Card - Claimant's date of birth was 13.11.1995, making him 22 years at time of accident in 2018 - Held that age should be fixed at 22 years, applying multiplier of 18 as per Sarla Verma v. DTC (2009) 6 SCC 121 (Para 11).

C) Motor Accident Compensation - Future Prospects - Self-Employed Person - 40% addition for future prospects as per National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 - Held that claimant, being self-employed, is entitled to 40% future prospects (Para 12).

D) Motor Accident Compensation - Heads of Compensation - Medical Expenses, Attendant Charges, Loss of Marriage Prospect, Special Diet & Transportation, Pain and Suffering, Assistant Device - Various precedents cited - Held that compensation under these heads is payable as per settled law (Para 12).

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Issue of Consideration

Whether the functional disability of the claimant-appellant, who suffered amputation of his right leg above the knee, should be assessed at 90% instead of 50%, and whether his age should be determined as 22 years instead of 26 years for computation of compensation under the Motor Vehicles Act, 1988.

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Final Decision

The Supreme Court allowed the appeal, modifying the compensation awarded by the MACT and High Court. The total compensation was enhanced to Rs.28,93,494/- with interest as awarded by the Tribunal. The functional disability was assessed at 90%, age fixed at 22 years with multiplier of 18, and 40% future prospects applied.

Law Points

  • Assessment of functional disability for amputation
  • Determination of age based on documentary evidence
  • Application of multiplier as per Sarla Verma
  • Future prospects for self-employed persons
  • Compensation heads for permanent disability
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Case Details

2025 LawText (SC) (2) 115

Civil Appeal No. 2321 of 2025 (Arising out of SLP(C) No. 16541/2024)

2025-02-11

Sanjay Karol, Prashant Kumar Mishra

2025 INSC 188

Sanjay Rajpoot

Ram Singh & Ors.

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Nature of Litigation

Civil appeal against judgment of High Court in a motor accident compensation claim.

Remedy Sought

Enhancement of compensation awarded by MACT and High Court for injuries suffered in a road accident.

Filing Reason

Dissatisfaction with the amount of compensation awarded by the High Court, particularly regarding assessment of functional disability and age.

Previous Decisions

MACT awarded Rs.6,70,000/- with 6% interest; High Court enhanced to Rs.10,10,004/-.

Issues

Whether the functional disability of the claimant-appellant should be assessed at 90% instead of 50%. Whether the age of the claimant-appellant should be determined as 22 years instead of 26 years for computation of compensation.

Submissions/Arguments

Claimant-appellant argued that his monthly income was not appropriately considered and future prospects were not awarded as per settled principles. Claimant-appellant contended that he holds a Diploma in Mechanical Engineering and should be treated as a skilled labourer for notional income. Claimant-appellant submitted that his functional disability should be 90% due to amputation affecting daily tasks. Claimant-appellant argued that his age should be 22 years based on documentary evidence.

Ratio Decidendi

In motor accident compensation cases, functional disability for amputation should be assessed based on loss of earning capacity, not merely physical impairment. Age should be determined from reliable documentary evidence like matriculation certificate. Multiplier and future prospects as per Sarla Verma and Pranay Sethi apply.

Judgment Excerpts

We are unable to agree with the view taken by the Tribunal and High Court on the functional disability suffered by him and also the determination of his age. Therefore, the correct view would be to assess the disability of the Claimant-Appellant as 90%. Given this evidence on record, this Court fixes his age at the time of the incident in 2018 as 22 years of age.

Procedural History

The claimant-appellant filed M.A.C.P No.188 of 2018 before the Motor Accident Claims Tribunal, Jhansi, which awarded Rs.6,70,000/- on 20th November 2019. The claimant appealed to the Allahabad High Court in First Appeal From Order No.210 of 2020, which enhanced the award to Rs.10,10,004/- on 14th October 2022. The claimant then filed SLP(C) No.16541/2024 before the Supreme Court, which was converted into Civil Appeal No.2321 of 2025 and allowed on 11th February 2025.

Acts & Sections

  • Motor Vehicles Act, 1988:
  • Indian Penal Code, 1860: 279, 337, 338, 427
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