A child with 40% permanent disability is entitled to ₹4 lakh under Mallikarjun, besides medical expenses.

On 11 March 2007, the minor claimant was struck by a tractor and attached trolley while riding his bicycle, sustaining serious injuries, including urethral and perineal injuries.

He underwent surgery and remained hospitalised from 11 to 26 March 2007. A disability certificate assessed his permanent disability at 40%.

The Motor Accident Claims Tribunal awarded Rs. 3,56,948, but excluded interest for the period from 30 April 2007 to 14 October 2009 because the claimant had not made the matter ready and had not produced certain certified documents.

The claimant appealed under Section 173 of the Motor Vehicles Act, challenging the adequacy of compensation and the exclusion of interest for that period.

1. Whether the Tribunal erred in assessing compensation for the minor claimant’s permanent disability, having regard to the principles in Master Mallikarjun v. Divisional Manager, National Insurance Company Limited.

2. Whether the Tribunal was justified in denying interest for the period from 30 April 2007 to 14 October 2009 on procedural grounds.

Section 173 of the Motor Vehicles Act provides for an appeal to the High Court against an award of the Claims Tribunal.

Applying Master Mallikarjun v. Divisional Manager, National Insurance Company Limited, AIR 2014 SC 736, the Court stated that, for a child suffering permanent disability in a motor accident, compensation on heads other than actual treatment and attendant expenses should be Rs. 4 lakh where disability is above 30% and up to 60%; actual medical expenses are awarded in addition.

The Court also held that interest on compensation should not be denied on an unduly technical or restrictive procedural basis in the circumstances of this case.

The Court treated the claimant’s 40% permanent disability as his functional disability. It reasoned that the urethral and perineal injuries were not confined to a particular limb or part of the body, and that the Tribunal’s assessment appeared to have been influenced by an endorsement accepting 34% disability without support in the record.

Under Master Mallikarjun, 40% disability attracted Rs. 4 lakh for permanent disability; the Court added the claimant’s medical expenses of Rs. 1,03,948, rounded to Rs. 1,05,000, producing total compensation of Rs. 5,05,000.

It further found that withholding interest because the minor claimant had not made the matter ready or produced certified documents was an unduly technical approach, and therefore rejected the exclusion of the specified period.

The Insurance Company was directed to deposit the additional compensation, after credit for amounts already deposited, within eight weeks of receiving the judgment.