MP HC Raises Injured Halwai’s Compensation To ₹1.57 Lakh, Assessing 14% Earning-Capacity Loss From 28% Disability

The appellant sought enhancement of compensation awarded by the 2nd AMACT, Mandla, for injuries sustained in a road accident on 6 January 2007.

The Tribunal awarded Rs.83,463, including amounts for loss of income, medical expenses, pain and suffering, transportation and special diet, but declined to recognise permanent disability.

The appellant relied on a Medical Board certificate assessing 28% permanent physical disability and sought further compensation for its effect on his earning capacity and for loss of income during treatment.

Under Raj Kumar v. Ajay Kumar, the percentage of permanent physical disability does not automatically equal the percentage of loss of earning capacity; functional loss must be assessed by the Tribunal in light of the evidence, including the claimant’s occupation and the disability’s impact on the work performed.

The Court also applied the principles in National Insurance Co. Ltd. v. Pranay Sethi on future prospects for a self-employed claimant and Sarla Verma v. Delhi Transport Corporation on the appropriate multiplier.

In the absence of reliable proof of actual income, the Court assessed income by reference to the applicable minimum-wage notification under the Minimum Wages Act, 1948.

The Court held that the Medical Board’s certificate, considered alongside the injuries and treatment evidence, established permanent physical disability; the Tribunal had erred in rejecting it solely because the medical officer had not explained the assessment methodology.

Because the appellant worked as a halwai, an occupation requiring effective use of both hands, the Court assessed his functional loss of earning capacity at 14%, rather than equating it with the certificate’s 28% physical disability.

It rejected the claimed income of Rs.7,000 per month for want of supporting business documents and assessed monthly income at Rs.2,476, added 10% for future prospects, and applied a multiplier of 13.

The Court also found six months’ inability to work reasonable in light of the treatment period and allowed an additional Rs.4,000 for medical expenses.

It enhanced compensation by Rs.73,462, with interest at 7.5% per annum from the date of filing the claim petition until realisation, subject to adjustment of amounts already paid or deposited.

The enhanced sum was to be deposited before the Tribunal within three months of receipt of a certified copy; the Tribunal was directed to disburse it, and the other unmodified findings and directions were left intact.

The appeal was allowed.