Full Judgment Text
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No.9676 OF 2011
(Arising out of SLP(C)No.14560 OF 2010)
SRI LAXMAN @ LAXMAN MOURYA .......APPELLANT
VERSUS
DIVISIONAL MANAGER, ORITL.INS.CO.LTD& ANR .....RESPONDENTS
J U D G M E N T
G.S. Singhvi, J.
1. This appeal is directed against the judgment of the
Division Bench of the Karnataka High Court whereby the
compensation awarded to the appellant by Motor Accident Claims
Tribunal-4 Metropolitan Area, Bangalore (for short, 'the
Tribunal') in MVC No. 860/2004 was enhanced by a paltry sum of
Rs. 31,000/-
2. The appellant became a victim of road accident which
occurred on 8.9.2003 when he was hit from behind by bus bearing
No. KA-04-A-3784 belonging to respondent No. 2. As a result of
accident, the appellant sustained grievous injuries on different
parts of the body. On the same day, he was admitted in Bowring
and Lady Curzon Hospital, Banglore. He was discharged on
22.9.2003.
3. In the petition filed by him under Section 166 of the
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Motor Vehicles Act, 1988 (for short, 'the Act'), the appellant
claimed compensation of Rs.5,00,000/- with interest by making the
following assertions:
(i) that at the time of accident, his age was 24
years;
(ii) that the accident was caused due to the rash and
negligent driving of the bus;
(iii)that due to the accident, he had sustained
grievous injuries and remained in the hospital and that
his treatment was still continuing;
(iv)that he had spent Rs.5,000/- by way of medical
expenses;
(v)that he was apprehensive of becoming disabled and
that the same would result in loss of earning and
affect his livelihood; and
(vi)that he would have to suffer constant pain and
discomfort throughout his life.
4. In their written statements respondent Nos. 1 & 2
denied the allegation of rash and negligent driving of the bus
and pleaded that they were not liable to pay compensation.
5. After considering evidence produced by the parties, the
Tribunal held that the accident was caused due to rash and
negligent driving of the bus owned by respondent No. 2. The
Tribunal then considered the issue of compensation, referred to
statement made by the appellant in the form of affidavit as also
the statement of Dr. S. Ranjanna, Orthopaedic Surgeon at Bowring
and Lady Curzon Hospital, who was examined as PW-2 and held that
the appellant is entitled to compensation of Rs.45,000/- with
interest at the rate of 8% from the date of application till the
date of deposit.
6. Dissatisfied with the award of the Tribunal, the
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appellant filed an appeal under Section 173 of the Act. The
Division Bench of the High Court did notice that as per PW-2, the
appellant had suffered 26% disability in the right lower limb,
25% urethral injury and 38% disability to the whole body but
granted a meager enhancement of Rs.31,000/- and declared that
appellant is entitled to total compensation of Rs.76,000/- with
interest at the rate of 6% on the enhanced compensation from the
date of petition till the date of realisation.
7. We have heard Mr. V.N. Raghupathy, learned counsel for
the appellant and perused the record. No one has appeared on
behalf of the respondents to assist the Court.
8. The personal sufferings of the survivors of the road
accidents and those who are disabled in such accidents are
manifold. Some time they can be measured in terms of money but
most of the times it is not possible to do so. If an individual
is permanently disabled in an accident, the cost of his medical
treatment and care is likely to be very high. In cases involving
total or partial disablement, the term ‘compensation’ used in
Section 166 of the Motor Vehicles Act, 1988 (for short, ‘the
Act’) would include not only the expenses incurred for immediate
treatment, but also the amount likely to be incurred for future
medical treatment/care necessary for a particular injury or
disability caused by an accident. A very large number of people
involved in motor accidents are pedestrians, children, women and
illiterate persons. Majority of them cannot, due to sheer
ignorance, poverty and other disabilities, engage competent
lawyers for proving negligence of the wrongdoer in adequate
measure. The insurance companies with whom the vehicles involved
in the accident are insured usually have battery of lawyers on
their panel. They contest the claim petitions by raising all
possible technical objections for ensuring that their clients are
either completely absolved or their liabilities minimized. This
results in prolonging the proceedings before the Tribunal.
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Sometimes the delay and litigation expenses’ make the award
passed by the Tribunal and even by the High Court (in appeal)
meaningless. It is, therefore, imperative that the officers, who
preside over the Motor Accident Claims Tribunal adopt a proactive
approach and ensure that the claims filed under Sections 166 of
the Act are disposed of with required urgency and compensation is
awarded to the victims of the accident and/or their legal
representatives in adequate measure. The amount of compensation
in such cases should invariably include pecuniary and non-
pecuniary damages. In R.D. Hattangadi v. Pest Control (India)
Private Limited (1995) 1 SCC 551, this Court while dealing with a
case involving claim of compensation under the Motor Vehicles
Act, 1939, referred to the judgment of the Court of Appeal in
Ward v. James (1965) 1 All ER 563, Halsbury’s Laws of England,
th
4 Edition, Volume 12 (page 446) and observed:
“Broadly speaking while fixing an amount of
compensation payable to a victim of an accident,
the damages have to be assessed separately as
pecuniary damages and special damages. Pecuniary
damages are those which the victim has actually
incurred and which are capable of being
calculated in terms of money; whereas non-
pecuniary damages are those which are incapable
of being assessed by arithmetical calculations.
In order to appreciate two concepts pecuniary
damages may include expenses incurred by the
claimant: ( i ) medical attendance; ( ii ) loss of
earning of profit up to the date of trial; ( iii )
other material loss. So far non-pecuniary damages
are concerned, they may include ( i ) damages for
mental and physical shock, pain and suffering,
already suffered or likely to be suffered in
future; ( ii ) damages to compensate for the loss
of amenities of life which may include a variety
of matters i.e. on account of injury the claimant
may not be able to walk, run or sit; ( iii )
damages for the loss of expectation of life,
i.e., on account of injury the normal longevity
of the person concerned is shortened; ( iv )
inconvenience, hardship, discomfort,
disappointment, frustration and mental stress in
life.”
In the same case, the Court further observed:
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“In its very nature whenever a tribunal or a
court is required to fix the amount of
compensation in cases of accident, it involves
some guesswork, some hypothetical consideration,
some amount of sympathy linked with the nature of
the disability caused. But all the aforesaid
elements have to be viewed with objective
standards.”
9. In Reshma Kumari v. Madan Mohan (2009) 13 SCC 422, this
Court reiterated that the compensation awarded under the Act
should be just and also identified the factors which should be
kept in mind while determining the amount of compensation. The
relevant portions of the judgment are extracted below:
“The compensation which is required to be
determined must be just. While the claimants are
required to be compensated for the loss of their
dependency, the same should not be considered to
be a windfall. Unjust enrichment should be
discouraged. This Court cannot also lose sight of
the fact that in given cases, as for example
death of the only son to a mother, she can never
be compensated in monetary terms.
The question as to the methodology required to be
applied for determination of compensation as
regards prospective loss of future earnings,
however, as far as possible should be based on
certain principles. A person may have a bright
future prospect; he might have become eligible to
promotion immediately; there might have been
chances of an immediate pay revision, whereas in
another ( sic situation) the nature of employment
was such that he might not have continued in
service; his chance of promotion, having regard
to the nature of employment may be distant or
remote. It is, therefore, difficult for any court
to lay down rigid tests which should be applied
in all situations. There are divergent views. In
some cases it has been suggested that some sort
of hypotheses or guess work may be inevitable.
That may be so.
In the Indian context several other factors
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should be taken into consideration including
education of the dependants and the nature of
job. In the wake of changed societal conditions
and global scenario, future prospects may have to
be taken into consideration not only having
regard to the status of the employee, his
educational qualification; his past performance
but also other relevant factors, namely, the
higher salaries and perks which are being offered
by the private companies these days. In fact
while determining the multiplicand this Court in
Oriental Insurance Co. Ltd. v. Jashuben held that
even dearness allowance and perks with regard
thereto from which the family would have derived
monthly benefit, must be taken into
consideration.
One of the incidental issues which has also to be
taken into consideration is inflation. Is the
practice of taking inflation into consideration
wholly incorrect? Unfortunately, unlike other
developed countries in India there has been no
scientific study. It is expected that with the
rising inflation the rate of interest would go
up. In India it does not happen. It, therefore,
may be a relevant factor which may be taken into
consideration for determining the actual ground
reality. No hard-and-fast rule, however, can be
laid down therefor.”
)
(emphasis supplied
10. In Arvind Kumar Mishra v. New India Assurance Company
Limited (2010) 10 SCC 254, the Court considered the plea for
enhancement of compensation made by the appellant, who was a
student of final year of engineering and had suffered 70%
disablement in a motor accident. After noticing factual matrix of
the case, the Court observed:
“We do not intend to review in detail state of
authorities in relation to assessment of all
damages for personal injury. Suffice it to say
that the basis of assessment of all damages for
personal injury is compensation. The whole idea
is to put the claimant in the same position as he
was insofar as money can. Perfect compensation is
hardly possible but one has to keep in mind that
the victim has done no wrong; he has suffered at
the hands of the wrongdoer and the court must
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take care to give him full and fair compensation
for that he had suffered.”
(emphasis supplied)
11. In Raj Kumar v. Ajay Kumar (2011) 1 SCC 343, the Court
considered some of the precedents and held:
“The provision of the Motor Vehicles Act, 1988
(“the Act”, for short) makes it clear that the
award must be just, which means that compensation
should, to the extent possible, fully and
adequately restore the claimant to the position
prior to the accident. The object of awarding
damages is to make good the loss suffered as a
result of wrong done as far as money can do so,
in a fair, reasonable and equitable manner. The
court or the Tribunal shall have to assess the
damages objectively and exclude from
consideration any speculation or fancy, though
some conjecture with reference to the nature of
disability and its consequences, is inevitable. A
person is not only to be compensated for the
physical injury, but also for the loss which he
suffered as a result of such injury. This means
that he is to be compensated for his inability to
lead a full life, his inability to enjoy those
normal amenities which he would have enjoyed but
for the injuries, and his inability to earn as
much as he used to earn or could have earned.
The heads under which compensation is awarded in
personal injury cases are the following:
Pecuniary damages (Special damages)
(i) Expenses relating to treatment,
hospitalisation, medicines, transportation,
nourishing food, and miscellaneous expenditure.
(ii) Loss of earnings (and other gains) which the
injured would have made had he not been injured,
comprising:
(a) Loss of earning during the period of
treatment;
(b) Loss of future earnings on account of
permanent disability.
(iii) Future medical expenses.
Non-pecuniary damages (General damages)
(iv) Damages for pain, suffering and trauma as a
consequence of the injuries.
(v) Loss of amenities (and/or loss of prospects
of marriage).
( vi ) Loss of expectation of life (shortening of
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normal longevity).
In routine personal injury cases, compensation
will be awarded only under heads ( i ), ( ii )( a ) and
( iv ). It is only in serious cases of injury,
where there is specific medical evidence
corroborating the evidence of the claimant, that
compensation will be granted under any of the
heads ( ii )( b ), ( iii ), ( v ) and ( vi ) relating to
loss of future earnings on account of permanent
disability, future medical expenses, loss of
amenities (and/or loss of prospects of marriage)
and loss of expectation of life.”
(emphasis supplied)
12. The ratio of the above noted judgments is that if the
victim of an accident suffers permanent or temporary disability,
then efforts should always be made to award adequate compensation
not only for the physical injury and treatment, but also for the
pain, suffering and trauma caused due to accident, loss of
earning and victim's inability to lead a normal life and enjoy
amenities, which he would have enjoyed but for the disability
caused due to the accident.
13. In the light of the above, we shall now consider
whether the compensation awarded to the appellant is just or he
is entitled to enhanced compensation under any of the following
heads:
(i) Loss of earning and other gains due to
the accident.
(ii) Loss of future earning on account of the
disability.
(iii)Expenses for future treatment.
(iv) Compensation for pain, suffering and trauma caused
due to the accident.
(v) Loss of amenities including loss of the prospects
of marriage.
(vi) Loss of expectation of life.
14. In the affidavit filed by him before the Tribunal, the
appellant categorically stated that due to accident he had
suffered injuries on the abdomen and other parts of the body;
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that he was shifted to Bowring Hospital, where he remained for 15
days; that thereafter, he went to his native place at Gorakhpur
and remained admitted in Royal Hospital from 29.9.2003 to
10.10.2003; that he had also taken treatment at Sri Krishna
Hospital and Urology Centre as indoor patient from 12.10.2003 to
13.10.2003 and that he had spent Rs. 40,000/- towards medicines,
conveyance and other charges. He further stated that due to
accident, he was finding it difficult to pass urine and was
having severe pain in the lower part of the abdomen; that the
Doctors had advised him to undergo an operation to set right the
problem but due to financial constraint he was not in a position
to undergo the surgery. As regards his earning, the appellant
gave out that at the time of accident, he was working as
Carpenter and was earning Rs. 5,000/- per month and that after
the accident he was not in a position to work as carpenter.
15. In his affidavit, PW-2 Dr. S.Ranjanna confirmed that
the appellant was admitted in Bowring and Lady Curzon Hospital on
8.9.2003 and was discharged on 22.9.2003; that he had examined
the patient on 2.5.2005 and found that he was having altered
gait, frequency of inculcation and was finding difficult to sit
with cross-legs or squat. In cross-examination, Dr. Ranjanna
made the following statement:
1) Patient walks with a riding gait.
“
2) Tenderness present over pubic region.
3) His movements on right side are restricted
by 30%.
4) Wasting of right pelive surrender by 6
cms.
5) Wasting of right leg muscles by 3 cms.
6) Difficulty to pass urine.
As per urologist opinion he need surgery for
STRUCTURE URETHRA.
Check X-ray shows 698/10.1.2003 evidence
of old fracture of both rams of both pelive
bones noted with altered shape of selive inset.
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Due to above disabilities he cannot pass the
urine smoothly he will have disturbed sleep due
to frequency of ... He cannot sit crossed,
difficulty to squat difficulty to lift any
weight. He cannot do any hard manual work.
After referring to various guidelines and
including Alimco manual I am the opinion that
the petitioner is having disability 26% of
right lower limb & 25% due to urethral injury
and 38% disabilities to the whole body. In view
of this disabilities, the petitioner cannot
work as a Carpenter and cannot do any other
manual work also.
I am herewith producing the following
documents. Such as,
1) Case Sheet.
2) Recent examination O . P . Book
3) Recent check X-ray.”
16. Unfortunately, neither the Tribunal nor the High Court
adverted to the criteria laid down by this Court for award of
compensation under the two broad heads, i.e., pecuniary and non-
pecuniary damages and awarded compensation, which cannot but be
described as wholly unjust.
17. The respondents have not controverted the appellant's
assertion that at the time of accident his age was 24 years; that
he was earning Rs.5,000/- per month as a Carpenter and that as a
result of accident he had to remain in hospitals for different
durations. Therefore, under the first head i.e, loss of earning
and other gains during the period of hospitalisation (one month),
the appellant is entitled to compensation of Rs.5,000/-
18. It is also not in dispute that as a result of accident,
the appellant suffered 26% disability of the right lower limb,
25% disability due to urethral injury and 38% disability to the
whole body. Although, the percentage of the disability of whole
body is 38, the evidence produced by the appellant in the form of
his own affidavit and the affidavit of PW-2 shows that he will
not be able to work as carpenter or do any manual work throughout
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his life. In other words, even though the disability suffered by
the appellant is not 100 per cent, his working capacity has been
reduced to zero. However, keeping in view the degree of
disability, i.e. 38%, we hold that he shall be entitled to
compensation of Rs.3,32,640/- (38% of Rs.5,000.00 = Rs.1,540/- x
12 x 18) for loss of future earning.
19. The issue regarding expenses for future treatment is
required to be decided in the light of the evidence produced by
the parties. Although, in his evidence, PW-2 Dr. S Ranjanna has
stated that the appellant would require future treatment but no
concrete evidence was produced by him, i.e. appellant, about the
possible expenses which he may incur for treatment in future.
This phenomenon is not unusual in such cases particularly when
the claimant belongs to financially weaker strata of the society.
He cannot engage a competent lawyer to effectively prosecute his
case before the Tribunal and the High Court. However, as held in
R. D. Hattangadi v. Pest Control (India) Private Ltd. (supra) the
Tribunal and the Court can fix the amount of compensation by
making some guess work. Keeping in view the nature of injuries
suffered by the appellant and the fact that he will have to take
treatment throughout life, we feel that ends of justice will be
met by awarding him a sum of Rs.1,50,000/- under that head.
20. For pain, suffering and trauma caused due to the
accident, a sum of Rs.1,50,000/- deserves to be awarded to the
appellant. Likewise, for the loss of amenities including the
loss of prospects of marriage which has become an illusion for
the appellant, it will be just and proper to award a sum of Rs.2
lacs.
21. It is true that in the petition filed by him under
Section 166 of the Act, the appellant had claimed compensation of
Rs.5,00,000/- only, but as held in Nagappa vs. Gurudayal Singh
(2003) 2 SCC 274, in the absence of any bar in the Act, the
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Tribunal and for that reason any competent Court is entitled to
award higher compensation to the victim of an accident.
22. In the result, the appeal is allowed. The impugned
judgment is set aside and it is declared that the appellant shall
be entitled to total compensation of Rs.8,37,640/- with interest
at the rate of 8% from the date of filing the petition till the
date of realisation. Respondent No. 1 is directed to pay the
balance amount of compensation to the appellant with interest
within a period of three months from the date of
receipt/production of the copy of judgment by preparing a draft
in his name.
..............................J.
( G.S.SINGHVI )
..............................J.
( SUDHANSU JYOTI MUKHOPADHAYA )
NEW DELHI;
NOVEMBER 8, 2011.
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