Bombay High Court Allows Enhancement of Compensation for Amputation Victim in Motor Accident Case — Permanent Disability Assessed at 75% with Multiplier of 18. The Court enhanced compensation from Rs.5,81,000 to Rs.16,21,000 for loss of earning capacity, pain and suffering, and loss of amenities under the Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The appellant, Abdul Salim, was a passenger in a travel bus on 11/10/2002 when the bus overturned due to rash and negligent driving. He sustained severe injuries including traumatic amputation of his left hand below elbow, degloving injury on right thigh, and fracture of right fibula. He underwent skin grafting and was left with 75% permanent disability as certified by the Medical Board. He filed a claim petition before the Motor Accident Claims Tribunal, Nagpur, seeking compensation. The Tribunal awarded Rs.5,81,000/-. Dissatisfied, the appellant appealed for enhancement. The High Court considered the issues of disability assessment, multiplier, and non-pecuniary damages. The Court held that the Tribunal erred in taking disability at 50% without basis and accepted the 75% disability certificate. Applying the multiplier of 18 as per Sarla Verma v. DTC for the appellant's age group (25-30 years), the Court recalculated loss of earning capacity. The Court also enhanced compensation for pain and suffering and loss of amenities to Rs.1,00,000/- each. The total compensation was enhanced to Rs.16,21,000/- with interest at 7.5% per annum from the date of petition.

Headnote

A) Motor Accident Claims - Compensation for Permanent Disability - Assessment of Disability - The appellant sustained traumatic amputation of left hand below elbow and other injuries resulting in 75% permanent disability - The Tribunal erred in taking disability at 50% without proper basis - Held that the disability certificate issued by the Medical Board showing 75% disability should be accepted (Paras 8-9).

B) Motor Accident Claims - Loss of Earning Capacity - Multiplier Method - The appellant was a cloth merchant earning Rs.9000/- per month - The Tribunal applied multiplier of 15 instead of 18 as per Sarla Verma v. DTC - Held that multiplier of 18 is applicable for age group of 25-30 years (Para 10).

C) Motor Accident Claims - Non-Pecuniary Heads - Pain and Suffering, Loss of Amenities - The Tribunal awarded Rs.25,000/- for pain and suffering and Rs.25,000/- for loss of amenities - Held that these amounts are inadequate and enhanced to Rs.1,00,000/- each (Paras 11-12).

D) Motor Accident Claims - Medical Expenses - The Tribunal awarded Rs.1,00,000/- towards medical expenses - Held that the same is just and proper and no interference is called for (Para 13).

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the appellant is entitled to enhancement.

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Final Decision

The appeal is allowed. The judgment and award dated 18/04/2007 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.630/2003 is modified. The appellant is entitled to enhanced compensation of Rs.16,21,000/- with interest at 7.5% per annum from the date of petition till realization. The respondent No.2 is directed to deposit the enhanced amount within six weeks.

Law Points

  • Motor Accident Claims
  • Compensation for Permanent Disability
  • Multiplier Method
  • Loss of Earning Capacity
  • Non-Pecuniary Damages
  • Medical Expenses
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Case Details

2023 LawText (BOM) (06) 172

First Appeal No.1574 of 2008

2023-06-05

Urmila Joshi-Phalke, J.

Shri S.S. Alaspurkar for appellant, Shri S.D. Zoting for respondent No.2

Abdul Salim s/o Abdul Sattar

Rana s/o Tilakraj Khurana and The Manager, The National Insurance Company Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal seeking enhancement of compensation for injuries sustained in a motor accident.

Remedy Sought

Enhancement of compensation from Rs.5,81,000 to a higher amount.

Filing Reason

The appellant was dissatisfied with the compensation awarded by the Tribunal for the injuries and permanent disability suffered in a bus accident.

Previous Decisions

The Motor Accident Claims Tribunal, Nagpur, passed an award dated 18/04/2007 in Claim Petition No.630/2003 awarding Rs.5,81,000/-.

Issues

Whether the Tribunal correctly assessed the percentage of permanent disability? Whether the multiplier of 15 applied by the Tribunal is correct? Whether the compensation under non-pecuniary heads is adequate?

Submissions/Arguments

Appellant argued that the Tribunal erred in taking disability at 50% instead of 75% as per medical certificate. Appellant argued that multiplier of 18 should be applied as per Sarla Verma v. DTC. Appellant argued that compensation for pain and suffering and loss of amenities is inadequate. Respondent No.2 (Insurance Company) supported the Tribunal's award.

Ratio Decidendi

In motor accident claims, the disability certificate issued by a Medical Board should be accepted unless rebutted. The multiplier as per Sarla Verma v. DTC for the age group of 25-30 years is 18. Compensation for pain and suffering and loss of amenities should be just and reasonable, not nominal.

Judgment Excerpts

The Tribunal has not considered the disability certificate issued by the Medical Board which shows 75% permanent disability. As per the law laid down by the Apex Court in Sarla Verma v. DTC, the multiplier for the age group of 25-30 years is 18. The compensation under the head of pain and suffering and loss of amenities is enhanced to Rs.1,00,000/- each.

Procedural History

The appellant filed Claim Petition No.630/2003 before the Motor Accident Claims Tribunal, Nagpur, which awarded Rs.5,81,000/- on 18/04/2007. Aggrieved, the appellant filed First Appeal No.1574 of 2008 before the Bombay High Court, Nagpur Bench, which was reserved on 24/03/2023 and pronounced on 05/06/2023.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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