Permanent disability compensation enhanced to ₹8,000 per percentage point for a 2021 accident.

The appellant, a 47-year-old Track Maintainer with Indian Railways, sustained serious leg injuries in a road accident on 20 January 2021 involving a bus owned by the first respondent.

The Tribunal found the bus driver negligent and, on the basis of a Medical Board certificate assessing 51% permanent disability, awarded ₹7,41,651, including ₹2,55,000 for disability calculated at ₹5,000 per percentage point.

The claimant appealed, seeking enhancement, including compensation for loss of earning capacity and leave used during treatment.

The High Court noted that he continued in Railway employment and had received salary during the treatment period, though specified allowances were unpaid.

Whether the claimant’s 51% permanent disability warranted compensation under the multiplier method for loss of future earning capacity, or an increased amount under the percentage method

Whether the claimant was entitled to additional compensation for leave used during treatment, beyond the compensation already awarded for unpaid allowances

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against a motor accident compensation award.

Under Raj Kumar v. Ajay Kumar, compensation in personal-injury cases may include pecuniary losses, including loss of earnings and future earnings, and non-pecuniary losses; future earning loss due to disability requires consideration of the evidence and its effect on earning capacity.

The Court applied Suthakar v. Geetha, which fixed ₹8,000 per percentage point of disability for an accident in 2020, as a guide to valuing disability in this case.

It also considered Rules 503, 526 and 550 of the Railway Services (Liberalised Leave) Rules, 1949, concerning the grant of leave, leave on half average pay, and cash payment for unutilised leave on retirement.

The Court held that the claimant had not established entitlement to compensation for leave used during treatment; it distinguished the authorities cited for the claimant as factually inapplicable.

The claimant remained employed by the Railways and the evidence showed no loss of income or earning power attributable to his injuries; accordingly, the Court rejected the multiplier method and upheld use of the percentage method.

However, considering the 51% permanent disability and applying Suthakar, it increased the rate from ₹5,000 to ₹8,000 per percentage point, making the disability award ₹4,08,000.

As to treatment-period loss, the claimant had received salary while on leave, and the Court found that the record did not establish whether he had exhausted his leave entitlement or what service rules applied to his leave balance.

It therefore declined to award additional compensation for leave used, while leaving undisturbed the Tribunal’s ₹57,672 award for unpaid risk and transport allowances.

The Court enhanced the total compensation from ₹7,41,651 to ₹8,94,651 by increasing the disability component to ₹4,08,000; it affirmed the awards under the other heads and rejected the claim for compensation for leave used during treatment.

The respondents were directed to deposit the amount, less any sum already deposited, within four weeks, with interest at 7.5% per annum from the date of the claim petition until deposit; no interest was payable for the default period.