Compensation for permanent disability and overlapping loss-of-earning heads cannot be duplicated.

The claimant was injured in a collision involving a Government bus in which he was travelling and an insured vehicle.

The Motor Accident Claims Tribunal found both vehicle drivers negligent and awarded ₹2,40,000 with interest at 7.5% per annum.

The Insurance Company appealed under Section 173 of the Motor Vehicles Act, 1988, limiting its challenge to the quantum and alleging overlap among the amounts awarded under different heads.

Whether the Tribunal’s award of compensation was correct, particularly in light of alleged overlap between compensation for disability and loss of earnings or earning capacity.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988.

The Court applied the principle that compensation should not be duplicated under overlapping heads; however, it cited no specific statutory provision or precedent for that principle.

The Insurance Company did not contest the finding on negligence and challenged only the quantum.

The Court considered the Tribunal’s awards under the different heads and found overlap in the amounts relating to disability and loss of earnings or earning capacity. It therefore held that the combined award under those heads was not justified and reduced the total compensation by ₹40,000, from ₹2,40,000 to ₹2,00,000.

The judgment’s account of the overlapping heads is not entirely consistent: the award table lists ₹30,000 for permanent disability, ₹40,000 for loss of earning capacity and ₹50,000 for partial loss of income, while the discussion also refers to ₹40,000 for loss of earning.

The Insurance Company was directed to deposit the reduced amount and accrued interest within the period specified by the Court; any excess already deposited could be withdrawn by the Company. There was no order as to costs.