Supreme Court Allows Appeal for Enhanced Compensation in Motor Accident Case — Prosthetic Limb Compensation Mandated for Amputee Driver. Life Expectancy of 70 Years and 5% Annual Inflation Applied for Prosthetic Limb Replacement Costs Under Section 168 of Motor Vehicles Act, 1988.

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Case Note & Summary

The appellant, a 32-year-old driver, suffered a severe accident on 02.05.2007 when a Haryana Roadways bus dashed into his motorcycle from behind, resulting in the amputation of his right leg below the knee. The Motor Accident Claims Tribunal awarded Rs. 8,73,211/- as compensation, which was enhanced by the Rajasthan High Court to Rs. 13,02,043/-. Aggrieved, the appellant appealed to the Supreme Court seeking further enhancement, particularly under the head of prosthetic limb, which had not been awarded by either the Tribunal or the High Court. The Supreme Court framed the issue of whether the appellant was entitled to further enhancement. The appellant argued that no provision was made for prosthetic limb and its maintenance, relying on Mohd. Sabeer v. U.P. State Road Transport Corporation, where compensation for prosthetic limb was awarded for a 37-year-old claimant with a life expectancy of 70 years, requiring replacement every 5 years. The appellant suggested taking life span as 70 years, inflation at 5% per annum, and claimed that his monthly income should be taken as Rs. 6,000/- instead of Rs. 4,500/-. The respondents, Haryana Roadways and the insurance company, contended that compensation should be just and not a windfall, and suggested inflation at 4% per annum. The court analyzed the concept of 'just compensation' under Section 168 of the Motor Vehicles Act, 1988, emphasizing that compensation for loss of limbs cannot be weighed in golden scales but must be rational and fair. The court held that life expectancy should be taken as 70 years, following Hardeo Kaur v. Rajasthan State Transport Corpn. For prosthetic limb, the court directed that the cost be determined based on price quotations from at least two or three service providers, as held in Chandra Mogera v. Santosh A. Ganachari. The court also held that the appellant's functional disability should be taken as 100% as he could no longer drive heavy vehicles, and future prospects at 40% should be added. The court enhanced the compensation under various heads, including loss of future income, prosthetic limb, and attendant charges, and directed payment with interest at 9% per annum from the date of the claim petition. The appeal was partly allowed, and the compensation was enhanced to a total of Rs. 25,00,000/-.

Headnote

A) Motor Accident Compensation - Prosthetic Limb - Just Compensation - Section 168 Motor Vehicles Act, 1988 - The court considered the jurisprudential basis for computing compensation for prosthetic limb in motor accident cases. The appellant, a 32-year-old driver, suffered amputation of his right leg below the knee. The court held that compensation for prosthetic limb must be awarded to restitute the claimant to the original position as far as possible, and that life expectancy should be taken as 70 years. The court directed that the cost of prosthetic limb be determined based on price quotations from service providers, with replacement every 5 years and maintenance costs, and that inflation be factored in at 5% per annum. (Paras 18-25)

B) Motor Accident Compensation - Functional Disability - Loss of Future Income - Section 168 Motor Vehicles Act, 1988 - The court examined the assessment of functional disability for an amputee driver. The appellant claimed 100% functional disability as he could no longer drive heavy vehicles. The court held that where the claimant is rendered permanently unfit for his occupation, functional disability may be taken as 100%, and future prospects at 40% should be added as per Pranay Sethi. (Paras 12, 26-27)

C) Motor Accident Compensation - Income Assessment - Notional Income - Section 168 Motor Vehicles Act, 1988 - The court considered the appellant's claim of monthly income of Rs. 6,000/- as a driver, despite lack of documentary evidence. Relying on Chandra v. Mukesh Kumar Yadav and Ramachandrappa v. Royal Sundaram, the court held that for persons in unorganized sectors, notional income can be assessed reasonably, and the difference between Rs. 4,500 and Rs. 6,000 is not significant. (Paras 11, 26)

D) Motor Accident Compensation - Additional Heads - Attendant, Future Medical Treatment, Litigation Expenses - Section 168 Motor Vehicles Act, 1988 - The court addressed claims for attendant/assistant, future medical treatment, and litigation expenses. The High Court had awarded Rs. 1,00,000/- for attendant. The court held that future medical treatment and litigation expenses should also be compensated, but the amounts are to be determined based on evidence. (Paras 13, 28-29)

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Issue of Consideration

Whether the appellant has made out a case for further enhancement of compensation, particularly under the head of prosthetic limb?

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Final Decision

Appeal partly allowed. Compensation enhanced to Rs. 25,00,000/- with interest at 9% per annum from the date of claim petition till payment. Directions issued for determination of prosthetic limb cost based on price quotations, replacement every 5 years, maintenance costs, and 5% annual inflation.

Law Points

  • Just compensation under Motor Vehicles Act
  • 1988
  • Prosthetic limb compensation
  • Life expectancy assumption
  • Functional disability assessment
  • Future prospects addition
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Case Details

2026 LawText (SC) (04) 91

Civil Appeal No. 4642 of 2026 (@ Special Leave Petition (C) No. 8756 of 2024)

2026-04-21

J. B. PARDIWALA J. , K. V. VISWANATHAN J.

2026 INSC 396

Mr. Anuj Bhandari, Mr. Akshay Amritanshu, Mr. Vishnu Mehra

Prahlad Sahai

Haryana Roadways & Anr.

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Nature of Litigation

Civil appeal against High Court order enhancing compensation in motor accident claim

Remedy Sought

Appellant seeks further enhancement of compensation, particularly under the head of prosthetic limb

Filing Reason

Appellant aggrieved by inadequate compensation awarded by High Court for amputation of right leg

Previous Decisions

Tribunal awarded Rs. 8,73,211/-; High Court enhanced to Rs. 13,02,043/-

Issues

Whether the appellant is entitled to compensation for prosthetic limb and its maintenance? Whether the appellant's monthly income should be taken as Rs. 6,000/-? Whether functional disability should be assessed at 100%? Whether future prospects at 40% should be added? Whether compensation for future medical treatment and litigation expenses should be awarded?

Submissions/Arguments

Appellant: No provision for prosthetic limb; life expectancy 70 years; replacement every 5 years; maintenance costs; income Rs. 6,000/-; 100% functional disability; 40% future prospects; 9% interest. Respondent Haryana Roadways: Compensation should be just and not windfall; inflation at 4% per annum; price quotations from service providers. Respondent Insurance Company: No evidence of Rs. 6,000/- income; claims on higher side; government notification suggests lower prosthetic cost.

Ratio Decidendi

Just compensation under Section 168 of Motor Vehicles Act, 1988 requires restitution of claimant to original position as far as possible. For prosthetic limb, life expectancy of 70 years, replacement every 5 years, maintenance costs, and inflation at 5% per annum should be considered. Functional disability of amputee driver assessed at 100% with 40% future prospects.

Judgment Excerpts

For amputees, a prosthetic limb would get them closest to the life experienced, before the onset of their disability. The primary issue in this case concerns the jurisprudential basis for the computation and award of compensation under the head of 'Prosthetic Limb', in motor accident cases. Compensation for loss of limbs can hardly be weighed in golden scales and one cannot expect a mathematical exactitude in arriving at a just and reasonable recompense.

Procedural History

Accident on 02.05.2007. Claim petition filed before Motor Accident Claims Tribunal, Jaipur. Tribunal awarded Rs. 8,73,211/- on Not mentioned. Appellant filed appeal before Rajasthan High Court, which enhanced compensation to Rs. 13,02,043/- on 21.08.2023. Appellant filed SLP before Supreme Court, which granted leave and heard as Civil Appeal No. 4642 of 2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 168
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