Case Note & Summary
The appellant, Prabhakar Motiram Ganbhoj, filed an appeal against the judgment and award dated 25.10.2004 passed by the Motor Accident Claims Tribunal, Akola in M.A.C.P. No.119 of 1999, whereby compensation of Rs.2,00,000 was awarded to the claimant Gajanan Pralhad Sapkal for injuries sustained in a motor vehicle accident. The claimant, aged 28 years and a labourer, was traveling in a tractor-trolley on 10.8.1998 when the driver drove rashly and negligently, causing the trolley to overturn. The claimant suffered a fracture of the left leg and became permanently disabled. He claimed compensation of Rs.2,00,000, which was awarded by the Tribunal. The appellant, the owner of the vehicle, challenged the award on the ground that the driver was not negligent. The High Court, after considering the evidence, found that the driver was negligent and the accident occurred due to his rash driving. The court noted that the Medical Board had assessed the claimant's permanent disability at 40%. The Tribunal had not considered this disability while awarding compensation. The High Court held that the claimant is entitled to compensation for loss of earning capacity based on the multiplier method. Taking the claimant's income at Rs.5,000 per month, applying a multiplier of 18 (as per Sarla Verma v. DTC), and considering 40% disability, the loss of earning capacity was calculated as Rs.4,32,000. Additionally, medical expenses of Rs.50,000 were awarded. The court also enhanced the interest rate from 6% to 7.5% per annum. The total compensation was enhanced to Rs.4,82,000 with interest at 7.5% per annum from the date of petition till realization. The appeal was partly allowed, and the respondent no.3 (State Bank of India) was directed to pay the enhanced compensation.
Headnote
A) Motor Accident Claims - Compensation for Permanent Disability - Assessment of Disability - The claimant suffered a fracture of the left leg and permanent disability assessed at 40% by the Medical Board - The Tribunal erred in not considering the disability and loss of earning capacity - Held that compensation must be computed considering the percentage of disability and multiplier method (Paras 5-7). B) Motor Accident Claims - Multiplier Method - Loss of Earning Capacity - The claimant was aged 28 years and a labourer earning Rs.5,000 per month - Applying multiplier of 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121 - Loss of earning capacity calculated as Rs.5,000 x 12 x 18 x 40% = Rs.4,32,000 - Held that the Tribunal's award of Rs.2,00,000 was inadequate (Paras 6-8). C) Motor Accident Claims - Medical Expenses - The claimant incurred medical expenses of Rs.50,000 - The Tribunal did not award separate medical expenses - Held that medical expenses of Rs.50,000 are to be awarded in addition to compensation for loss of earning capacity (Para 8). D) Motor Accident Claims - Interest Rate - The Tribunal awarded interest at 6% per annum - Held that interest at 7.5% per annum is appropriate from the date of petition till realization (Para 9).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the appellant is entitled to enhanced compensation for permanent disability and loss of earning capacity.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The claimant is entitled to enhanced compensation of Rs.4,82,000 with interest at 7.5% per annum from the date of petition till realization. The respondent no.3 (State Bank of India) is directed to pay the enhanced compensation.
Law Points
- Motor Accident Claims
- Compensation for permanent disability
- Multiplier method
- Loss of earning capacity
- Medical expenses
- Interest rate
