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Showing posts with label MOTOR VEHICLES ACT COMPENSATION. Show all posts
Showing posts with label MOTOR VEHICLES ACT COMPENSATION. Show all posts

Saturday, October 20, 2012

the compensation would be payable on the headings, namely, transport charges, extra-nourishment, medical expenses, additional medical expenses, additional transport charges, pain and suffering, loss of earning capacity and permanent disability and the amount on the aforesaid scores would be, in toto, Rs.13,48,000/-. The said amount shall carry interest at the rate of 7.5% from the date of application till the date of payment. The same shall be deposited before the tribunal within a period of two months and the tribunal shall disburse 50% of the amount in favour of the claimant and the rest of the amount shall be deposited in a nationalized bank for a period of three years. Be it clarified if the earlier awarded sum has been deposited, the differential sum shall be deposited within the stipulated time as mentioned hereinabove and the disbursement shall take place accordingly. “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 normal longevity).”


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                    CIVIL APPEAL No.  7603          2012
                  (Arising out of SLP (C) No. 3487 of 2011)


K. Suresh                                                ….. Appellant

                             Versus

New India Assurance Co. Ltd. and another       .… Respondents







                             J U D G M E N T


Dipak  Misra, J


      Leave granted.


2.    Despite many  a  pronouncement  in  the  field,  it  still  remains  a
challenging  situation  warranting  sensitive  as  well   as   dispassionate
exercise how to determine the incalculable sum in calculable terms of  money
in cases of personal injuries.  In such assessment  neither  sentiments  nor
emotions have any role.  It has been stated  in  Davies  v.  Powell  Duffryn
Associate Collieries Ltd.[1] that it is a matter of  Pounds,  Shillings  and
Pence.  There cannot be actual compensation for anguish of the heart or  for
mental  tribulations.   The  quintessentiality   lies   in   the   pragmatic
computation of the loss sustained which has to be in the realm of  realistic
approximation.  Therefore, Section 168 of the Motor Vehicles Act, 1988  (for
brevity  ‘the  Act’)  stipulates  that  there  should  be  grant  of   “just
compensation”.  Thus,  it  becomes  a  challenge  for  a  court  of  law  to
determine “just compensation” which is neither a  bonanza  nor  a  windfall,
and simultaneously, should not be a pittance.

3.    In Jai Bhagwan v. Laxman Singh and others[2], a three-Judge  Bench  of
this Court, while considering the assessment of damages in  personal-injury-
actions, reproduced the following passage from the decision by the House  of
Lords in H.West & Son, Ltd. v. Shephard[3] : -

           “My Lords, the damages which are to be awarded for  a  tort  are
           those which ‘so far as  money  can  compensate,  will  give  the
           injured party reparation for the wrongful act and  for  all  the
           natural and direct consequences of the wrongful act’  [Admiralty
           Comrs. v. Susquehanna (Owners), The Susquehanna[4]].  The  words
           ‘so far as money can compensate’ point to the  impossibility  of
           equating money with human suffering or personal deprivations.  A
           money award can be calculated so as to  make  good  a  financial
           loss. Money may be awarded so that  something  tangible  may  be
           procured to replace something else of like nature which has been
           destroyed or lost. But money cannot renew a physical frame  that
           has been battered and shattered. All that judges and courts  can
           do is to award sums which must be regarded as giving  reasonable
           compensation. In the process there  must  be  the  endeavour  to
           secure some uniformity in the general  method  of  approach.  By
           common assent awards must be reasonable  and  must  be  assessed
           with moderation. Furthermore, it is eminently desirable that  so
           far as possible comparable injuries  should  be  compensated  by
           comparable awards. When all this is said it still must  be  that
           amounts  which  are  awarded  are  to  a   considerable   extent
           conventional.”



In the said case reference was made to a passage from Clerk and Lindsell  on
Torts (16th Edn.) which is apposite  to  reproduce  as  it  relates  to  the
awards for non-pecuniary losses: -

           “In all but a few  exceptional  cases  the  victim  of  personal
           injury suffers two distinct kinds of damage which may be classed
           respectively as pecuniary and non-pecuniary. By pecuniary damage
           is meant that which is susceptible of  direct  translation  into
           money terms and includes  such  matters  as  loss  of  earnings,
           actual and prospective, and out-of-pocket expenses,  while  non-
           pecuniary damage includes such immeasurable elements as pain and
           suffering and loss of amenity or enjoyment of life.  In  respect
           of the former, it is submitted, the  court  should  and  usually
           does seek  to  achieve  restitutio  in  integrum  in  the  sense
           described above, while for the latter it seeks  to  award  ‘fair
           compensation’.  This  distinction  between  pecuniary  and  non-
           pecuniary damage by no  means  corresponds  to  the  traditional
           pleading distinction between ‘special’  and  ‘general’  damages,
           for while  the  former  is  necessarily  concerned  solely  with
           pecuniary losses — notably accrued loss of earnings and  out-of-
           pocket expenses — the latter comprises  not  only  non-pecuniary
           losses but also prospective loss of earnings  and  other  future
           pecuniary damage.”



4.    In this regard, we may refer with profit the decision  of  this  Court
in Nagappa v. Gurudayal Singh and  others[5]  wherein  the  observations  of
Lord Denning M.R. in Lim Poh  Choo  v.  Camden  and  Islington  Area  Health
Authority[6] were quoted with approval.  They read thus: -

           “The practice is now established and cannot be gainsaid that, in
           personal injury cases, the award of damages  is  assessed  under
           four main heads: first, special damages in the  shape  of  money
           actually expended; second, cost of future nursing and attendance
           and medical expenses; third, pain  and  suffering  and  loss  of
           amenities; fourth, loss of future earnings.”

5.    While having respect for  the  conventional  determination  there  has
been evolution of a pattern and the same, from time to time, has  been  kept
in accord with the changes in the value of money.  Therefore,  in  the  case
of Ward v. James[7] it has been expressed thus: -

           “Although you cannot give a man so gravely injured much for  his
           ‘lost years’, you can, however,  compensate  him  for  his  loss
           during his shortened span, that is, during his  expected  ‘years
           of survival’. You can compensate him for his  loss  of  earnings
           during that time, and for the cost  of  treatment,  nursing  and
           attendance. But how can you compensate him for being rendered  a
           helpless invalid? He may, owing to  brain  injury,  be  rendered
           unconscious for the rest of  his  days,  or,  owing  to  a  back
           injury, be unable to rise from his bed. He has  lost  everything
           that makes life worthwhile. Money is no good to him. Yet  judges
           and juries have to do the best they can and give him  what  they
           think is fair. No wonder they find it well nigh insoluble.  They
           are being asked to calculate the  incalculable.  The  figure  is
           bound to be for the most part a  conventional  sum.  The  judges
           have worked out a pattern, and they keep it  in  line  with  the
           changes in the value of money.”

6.     While  assessing  the  damages  there  is  a   command   to   exclude
considerations which are in the realm of speculation or  fancy  though  some
guess work or some conjecture to a limited extent is  inevitable.   That  is
what has been stated in C.K. Subramania  Iyer  v.  T.  Kunhikuttan  Nair[8].
Thus, some guess work, some hypothetical considerations  and  some  sympathy
come into play but, a significant one, the ultimate determination is  to  be
viewed with some objective standards.  To elaborate,  neither  the  tribunal
nor a court can take a flight in fancy and award an exorbitant sum, for  the
concept of conventional sum, fall of money value and reasonableness  are  to
be kept in view.  Ergo, in conceptual eventuality “just compensation”  plays
a dominant role.

7.    The conception of “just compensation” is fundamentally concretized  on
certain well established principles and accepted legal  parameters  as  well
as principles of equity and good conscience.  In Yadav Kumar  v.  Divisional
Manager, National Insurance Company  Limited  and  another[9],  a  two-Judge
Bench, while dealing with the  facet  of  “just  compensation”,  has  stated
thus: -

          “It goes without saying  that  in  matters  of  determination  of
          compensation both the tribunal  and  the  court  are  statutorily
          charged with a responsibility of fixing  a  “just  compensation”.
          It is obviously true  that  determination  of  just  compensation
          cannot be equated to a bonanza.  At the same time the concept  of
          “just compensation” obviously suggests application  of  fair  and
          equitable principles and a reasonable approach on the part of the
          tribunals and the courts.  This reasonableness on the part of the
          tribunal and the court must be on a large peripheral field.”

8.    In Concord of India Insurance Co. Ltd. v. Nirmala Devi[10] this  Court
has expressed thus: -

           “The determination of the quantum must be liberal, not niggardly
           since the law values life and limb in free country  in  generous
           scales.”

9.    In Mrs.  Helen  C.  Rebello  and  others  v.  Maharashtra  State  Road
Transport Corpn. and  another[11],  while  dealing  with  concept  of  “just
compensation”, it has been ruled that the word ‘just’, as its  nomenclature,
denotes equitability, fairness and reasonableness  having  large  peripheral
field.  The largeness is, of course, not arbitrary; it is restricted by  the
conscience which is fair, reasonable and equitable, if  it  exceeds;  it  is
termed as unfair, unreasonable, unequitable, not just.  The field  of  wider
discretion of the tribunal has to be within the  said  limitations.   It  is
required to make an award determining the amount of  compensation  which  in
turn appears to be “just and  reasonable”,  for  compensation  for  loss  of
limbs or life can hardly be weighed in golden scales as has been  stated  in
“State of Haryana and another v. Jasbir Kaur and others”[12].

10.   It is noteworthy  to  state  that  an  adjudicating  authority,  while
determining quantum of compensation, has to keep in view the  sufferings  of
the injured person which would include his inability to lead  a  full  life,
his incapacity to enjoy the normal amenities which  he  would  have  enjoyed
but for the injuries and his ability to earn as much as he used to  earn  or
could have earned.  Hence, while computing compensation the approach of  the
tribunal or a court has to be  broad  based.   Needless  to  say,  it  would
involve some guesswork as there cannot be any mathematical exactitude  or  a
precise formula to determine the quantum of compensation.  In  determination
of compensation the fundamental criterion of “just compensation”  should  be
inhered.

11.   Keeping in view the aforesaid aspects we shall proceed  to  state  the
factual score.  The factual matrix as unfurled, exposits that  on  11.3.2002
about 4.00 p.m. the claimant-appellant  (hereinafter  referred  to  as  ‘the
claimant) was hit from the behind by an auto bearing registration number TN-
9 C 7755 which was driven  in  a  rash  and  negligent  manner  and  in  the
accident he sustained triple fracture in spinal cord, fracture in  left  leg
neck of femur, fracture in right  hand  shoulder,  deep  cut  and  degloving
injury over right left thigh bone and multiple injuries all over the body.

12.   After the accident the claimant was admitted in  M.R.  Hospital  where
he availed treatment.  After the treatment, the  dislocation  of  the  bones
got reduced, pedical screws were inserted into pedicles of D11 vertebra  and
pedicle screws were passed into pedicles of  L1  vertebra.   Two  screws  on
left thigh were fixed using a rod each.  That apart,  decompression  of  D12
vertebra was done and bone chips were placed in the intertransverse area  on
both sides.  He was hospitalized for  28  days.   The  victim  had  numbness
below  the  knee  joint  and  was  facing  difficulty  to  stand   and   sit
comfortably.  As the evidence on record would reveal he has been  constantly
availing physiotherapy treatment  facing  difficulty  in  carrying  out  his
normal activities.  A disability certificate contained as  Ex.P4  was  filed
before the tribunal which showed permanent disability at 75%.

13.   The tribunal, as it appears from the  award,  had  also  assessed  the
permanent disability at 75% as fixed  by  PW-4,  Dr.  Thiagarajan.   It  had
awarded Rs.25,00,000/-  under  various  heads,  namely,  transport  charges,
extra nourishment, medical expenses, additional medical expenses,  pain  and
sufferings suffered  by  family  members  of  the  claimant,  mental  agony,
additional transport charges, inability of the appellant to  participate  in
public functions, loss  of  marital  life,  pain  and  suffering,  permanent
disability and loss of earning capacity.

14.   Before the High Court as serious objections were raised pertaining  to
percentage of disability, the claimant was referred  to  the  Medical  Board
and it was found that he had compression  fracture  which  had  healed  with
persistence of pain in the back  with  root  involvement  causing  grade  IV
power in left lower limb and, accordingly, the  Board  fixed  the  permanent
disability at 40%.   The  High  Court  adverted  to  the  concept  of  “just
compensation” and opined that the quantum of  damages  fixed  should  be  in
proportionate to the injuries caused.  It referred  to  certain  authorities
and opined that Rs.2,00,000/- towards medical expenses, Rs.5,000/- each  for
transport charges and extra  nourishment,  Rs.2,50,000/-  towards  pain  and
suffering, Rs.50,000/- for medical expenses and Rs.4,68,000/-  towards  loss
of earning capacity would be the just amount  of  compensation.   Thus,  the
total amount as determined by the High Court  came  to  Rs.9,78,000/-.   The
High Court reduced the interest to 7.5% from 9% as granted by the  tribunal.
 Be it noted, the said judgment and order  dated  27.1.2010  passed  by  the
High Court of Judicature at Madras in Civil Miscellaneous  Appeal  No.  1989
of 2005 whereby the High Court has reduced the compensation granted  by  the
Motor Accident Claims Tribunal (II  Small  Causes  Court),  Chennai,  on  an
application being moved under Section 166 of the Act is  the  subject-matter
of challenge herein.

15.   Mr. Vipin Nair, learned  counsel  appearing  for  the  appellant,  has
contended that the High Court has erroneously  held  that  there  cannot  be
grant of compensation under two heads, namely,  “permanent  disability”  and
“loss of earning  power”.   It  is  urged  by  him  that  the  tribunal  had
correctly appreciated the evidence on record and  fixed  certain  sum  under
various heads but the High Court on unacceptable  reasons  has  deleted  the
same.  It is also canvassed by him that the  High  Court  without  ascribing
any cogent reasons has reduced the expenses for  continuous  treatment  from
Rs.2,00,000/- to Rs.50,000/- as a  result  of  which  the  amount  had  been
substantially reduced and the concept of “just compensation”  has  lost  its
real characteristics.

16.   Ms. Aishwarya Bhati, learned counsel appearing for the respondent  No.
1, supported the order passed by the  High  Court  contending,  inter  alia,
that the analysis made by the learned single Judge  is  absolutely  flawless
and the interference in the  quantum  cannot  be  faulted  inasmuch  as  the
tribunal has awarded  a  large  sum  on  certain  heads  which  are  totally
impermissible in law.  It is also urged by her that certain  sums  had  been
allowed by the tribunal without any material on record and,  therefore,  the
High Court has correctly interfered with the award.

17.   The seminal issues that really emanate for consideration  are  whether
the analysis made by the High  Court  in  not  granting  compensation  under
certain heads  and  further  reduing  the  amount  on  certain  scores,  are
justified.   Regard  being  had  to  the  fundamental   essence   of   “just
compensation”, we shall presently deal with the manner  in  which  the  High
Court has dwelled upon various heads in respect of which  the  tribunal  had
granted certain sums towards  compensation.   On  a  perusal  of  the  order
passed by the High Court, it is manifest that  the  High  Court  relying  on
certain authorities of the said court has expressed the  view  that  once  a
particular amount  has  been  awarded  towards  `permanent  disability’,  no
further amount can be awarded relating to `loss of earning  capacity’.   The
learned counsel for the appellant has commended us to the  pronouncement  of
this Court in B. Kothandapani v.  Tamil  Nadu  State  Transport  Corporation
Ltd.[13], wherein the High Court had  placed  reliance  on  the  Full  Bench
decision in Cholan Roadways Corporation  Ltd.  v.  Ahmed  Thambi[14].   This
Court referred to the pronouncement in Ramesh Chandra v. Randhir  Singh[15],
wherein it has been stated thus: -



          “With regard to ground 19 covering  the  question  that  the  sum
          awarded for pain, suffering and loss of enjoyment of  life,  etc.
          termed as general damages  should  be  taken  to  be  covered  by
          damages granted for loss of earnings is  concerned  that  too  is
          misplaced and without any basis. The pain and suffering and  loss
          of enjoyment of life which is  a  resultant  and  permanent  fact
          occasioned by the nature of injuries received by the claimant and
          the ordeal he had to undergo.”


18.   In Ramesh Chandra (supra) the learned Judges proceeded to address  the
issue of difficulty or incapacity to earn and how it stands on  a  different
footing than pain and suffering affecting enjoyment of life  and  stated  as
under: -

          “The inability to earn livelihood on the basis of  incapacity  or
          disability which is quite different. The incapacity or disability
          to earn a  livelihood  would  have  to  be  viewed  not  only  in
          praesenti but in futuro on  reasonable  expectancies  and  taking
          into account deprival of earnings of a conceivable  period.  This
          head being totally different cannot in our view overlap the grant
          of compensation under the head of pain,  suffering  and  loss  of
          enjoyment of life. One head relates to the impairment of person’s
          capacity to earn, the other relates to the pain and suffering and
          loss of enjoyment of life by the person himself.”

19.   After referring to the said passage,  the  Bench  proceeded  to  state
that it is true that compensation for loss of earning power/capacity has  to
be   determined   based   on    various    aspects    including    permanent
injury/disability, but at the same time, it cannot be  construed  that  that
compensation cannot be granted for permanent disability of any  nature.   It
has been mentioned by way of an example that in  a  case  of  a  non-earning
member of a family who  has  been  injured  in  an  accident  and  sustained
permanent disability due  to  amputation  of  leg  or  hand,  it  cannot  be
construed that no amount needs to be granted for permanent  disability.   It
cannot be disputed that apart from the fact that  the  permanent  disability
affects the earning capacity of the person concerned, undoubtedly,  one  has
to forego other personal comforts and even for normal  avocation  they  have
to depend on others.

20.   In view of the aforesaid enunciation of law,  the  view  of  the  High
Court that no compensation can be granted towards permanent disability  once
compensation is computed for the  loss  of  earning  capacity  and  loss  of
future earnings is unsustainable.  As is perceivable,  the  High  Court  has
computed the loss of earning power at Rs.4,68,000/- instead of Rs.5,00,000/-
 as determined by the tribunal and deleted sum  of  Rs.3,00,000/-  that  was
awarded by the tribunal towards permanent  disability.   In  our  considered
opinion, total  deletion  is  absolutely  unjustified  and,  in  fact,  runs
counter to the principles laid down by this Court in Ramesh Chandra  (supra)
and B. Kothandapani (supra).

21.   At this juncture, we think it seemly to state that it is a case  where
the victim has suffered serious  injuries.   As  far  as  the  injuries  are
concerned, there is concurrence of opinion by the tribunal  as  well  as  by
the High  Court.   The  High  Court  has  only  reduced  the  percentage  of
permanent disability on the basis of assessment made by  the  Medical  Board
as there was a serious cavil with regard  to  the  said  percentage.   While
determining compensation payable to a victim of an accident  the  parameters
which are to be kept in view have been succinctly stated in R.D.  Hattangadi
v. Pest Control (India) Pvt. Ltd. and others[16]: -

           “9. 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.”



22.   In Arvind Kumar Mishra v. New  India  Assurance  Company  Limited  and
another[17] a two-Judge Bench referred to the authority in  Kerala  SRTC  v.
Susamma Thomas[18] and  applied  the  principle  of  multiplier  for  future
earnings in a case of  permanent  disability.   We  have  referred  to  this
decision solely for the purpose that  multiplier  principle  has  been  made
applicable to an application preferred under Section 166 of the Act.

23.   In this context it is useful to refer to Raj Kumar v. Ajay  Kumar  and
Another[19], wherein a two-Judge Bench  after  referring  to  the  award  of
compensation in personal injury cases reiterated the concepts  of  pecuniary
damages (special damages) and non-pecuniary damages (general damages).   The
Bench referred to the  decisions  in  C.K.  Subramania  Iyer  (supra),  R.D.
Hattangadi (supra) and Baker v. Willoughby[20] and expressed the  view  that
it is obligatory on the part of the court or  the  tribunal  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.   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.

24.    It is worthy noting that the Bench referred to the pecuniary  damages
and non-pecuniary damages and opined thus: -

           “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   normal
           longevity).”




25.   After so stating the Bench  proceeded  to  opine  that  assessment  of
pecuniary damages under Item (i) and under Item (ii)(a)  do  not  pose  much
difficulty  as  they  involve  reimbursement  of  actuals  and  are   easily
ascertainable from the evidence. Award under  the  head  of  future  medical
expenses—Item (iii)—depends upon specific medical  evidence  regarding  need
for  further  treatment  and  cost  thereof.  Assessment  of   non-pecuniary
damages—Items (iv), (v) and (vi)—involves determination of lump sum  amounts
with   reference   to    circumstances    such    as    age,    nature    of
injury/deprivation/disability  suffered  by  the  claimant  and  the  effect
thereof on the future life of the claimant. It  has  been  observed  therein
that what usually poses some difficulty is the assessment  of  the  loss  of
future  earnings  on   account   of   permanent   disability—Item   (ii)(a).
Thereafter, the Bench adverted to the features  which  are  necessary  while
assessing the loss of future earnings on account  of  permanent  disability.
In the said case it has been opined that permanent disability can be  either
partial or total and the assessment of compensation under the heads of  loss
of future  earnings  would  depend  upon  the  factum  and  impact  of  such
permanent disability on his earning capacity.  It has been  laid  down  that
the tribunal should not  mechanically  apply  the  percentage  of  permanent
disability as the percentage of economic loss or loss of  earning  capacity.
It has been further observed that in most of the cases,  the  percentage  of
economic loss, i.e., the percentage of loss  of  earning  capacity,  arising
from a permanent  disability  will  be  different  from  the  percentage  of
permanent disability.  However, in some cases on  appreciation  of  evidence
and assessment the percentage of loss of earning capacity  as  a  result  of
the permanent disability would be approximately the same as  the  percentage
of permanent disability in which case, of  course,  the  court  or  tribunal
would adopt the said  percentage  for  determination  of  compensation.   To
arrive at the said conclusion reliance was placed  on  Arvind  Kumar  Mishra
(supra) and Yadav Kumar (supra).

26.   In the case at hand the High Court has determined the loss of  earning
capacity on the base of multiplier method and reduced  the  quantum  awarded
by the tribunal from Rs.5,00,000/- to Rs.4,68,000/-.  Applying the ratio  in
Yadav Kumar (supra) and Arvind Kumar  Mishra  (supra)  and  also  Raj  Kumar
(supra) and regard being had to the serious nature of injury we do not  find
any error in the said method of calculation and, accordingly, we uphold  the
method of computation as well as the quantum.

27.   Presently to the  grant  of  compensation  on  other  scores.   It  is
noticeable that the High Court has reduced the additional  medical  expenses
from Rs.2,00,000/- to Rs.50,000/-.  In our considered opinion, the  same  is
not correct as there is ample evidence on record as  regards  the  necessity
for treatment in future.   It  is  demonstrable  that  pedicle  screws  were
passed into pedicles of  D11  vertebra;  pedicle  screws  were  passed  into
pedicles of L1 vertebra; and two screws on left thigh were  connected  using
a rod each.  That may be required to be removed  or  scanned  from  time  to
time depending upon other aspects.  That apart,  there  is  persistent  pain
and as medically advised physiotherapy is necessary  and  hence,  continuous
treatment has to be availed of.  Thus, the High Court was not  justified  in
reducing the said amount.

28.   The High Court has  maintained  the  award  in  respect  of  transport
charges, extra nourishment, medical  expenses  and,  accordingly,  they  are
maintained.  It has enhanced the award from Rs.2,00,000/- to Rs.2,50,000  on
the head of pain and suffering,  but  has  deleted  the  amount  awarded  on
permanent disability from the total compensation awarded by the tribunal  by
relying on the decision in Cholan Roadways  Corporation  Ltd.  (supra).   As
has been stated earlier,  the  said  decision  has  been  considered  in  B.
Kothandapani (supra) and is not accepted, and this Court has  expressed  the
view  that  grant  of   compensation   towards   permanent   disability   is
permissible.   Regard  been  had  to  the  totality   of   the   facts   and
circumstances, we are inclined to think that compensation  of  Rs.2,50,000/-
should be granted towards permanent  disability  and  Rs.2,00,000/-  towards
pain and suffering.  We have so held as the injury is of serious nature  and
under the heading of non-pecuniary damages compensation is  awardable  under
the headings of pain and suffering and damages  for  loss  of  amenities  of
life on account of injury.   In the case of  R.D.  Hattangadi  (supra)  this
Court  has  granted  compensation  under  two  heads,  namely,   “pain   and
suffering”  and  “loss  of  amenities  of  life”.   Quite  apart  from  that
compensation was granted towards future earnings.  In Laxman  v.  Divisional
Manager, Oriental Insurance Co. Ltd.  and  another[21]  it  has  been  ruled
thus: -


           “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
           earnings 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.”

Thus, the deletion by the High Court was not justified.   However,  we  have
restricted to the amount as stated hereinbefore.

29.   The High Court has deleted the additional transport charges.   We  are
disposed to think that while availing treatment the said expenses  would  be
imperative.  Hence, there was no  justification  to  reduce  the  same  and,
accordingly, we restore it.

30.   It is perceptible that the High Court has deleted the  amount  awarded
under the head of pain and suffering by family members of the  claimant  and
the amount granted towards loss of  marital  life.   There  is  no  iota  of
evidence with regard to loss of marital life, hence,  we  do  not  find  any
error in the said deletion.  As far as grant of compensation  on  the  score
of pain and  suffering  suffered  by  the  family  members  of  claimant  is
concerned, the same is not permissible and, accordingly, we hold  that  that
has been correctly deleted.

31.   The High Court has deleted an amount of Rs.3,00,000/-  and  a  sum  of
Rs.2,00,000/- towards  mental  agony  and  inability  on  the  part  of  the
claimant to participate in public functions respectively.  We  have  already
determined Rs.2,00,000/- under the heading of  pain  and  suffering  already
suffered  and  to  be  suffered  and  Rs.2,50,000/-  under  the  heading  of
permanent disability and hence, no different sum need be awarded  under  the
heading of mental agony.  As far as participation  in  public  functions  is
concerned, there is no evidence  in  that  regard  and,  therefore,  we  are
disposed to think that the finding of  the  High  Court  on  that  score  is
totally justified and does not call for any interference.

32.   Calculated on the aforesaid base, the compensation  would  be  payable
on the  headings,  namely,  transport  charges,  extra-nourishment,  medical
expenses, additional medical expenses, additional  transport  charges,  pain
and suffering, loss of earning capacity and  permanent  disability  and  the
amount on the aforesaid scores would be, in toto, Rs.13,48,000/-.  The  said
amount  shall  carry  interest  at  the  rate  of  7.5%  from  the  date  of
application till the date of payment.  The same shall  be  deposited  before
the tribunal within a period of two months and the tribunal  shall  disburse
50% of the amount in favour of the claimant  and  the  rest  of  the  amount
shall be deposited in a nationalized bank for a period of three  years.   Be
it  clarified  if  the  earlier  awarded  sum  has   been   deposited,   the
differential sum shall be deposited within the stipulated time as  mentioned
hereinabove and the disbursement shall take place accordingly.

32.   Consequently, the appeal is allowed in part  leaving  the  parties  to
bear their respective costs.




                                                             ……………………………….J.
                                                       [K. S. Radhakrishnan]



                                                             ……………………………….J.
                                                               [Dipak Misra]

New Delhi;
October 19, 2012.
-----------------------
[1]    1942 AC 601
[2]    (1994) 5 SCC 5
[3]    (1963) 2 All ER 625
[4]    (1926) All ER 124 : 1926 AC 655
[5]    (2003) 2 SCC 274
[6]    (1979) 1 All ER 332
[7]    (1965) 1 All ER 563
[8]    AIR 1970 SC 376
[9]    (2010) 10 SCC 341
[10]   (1979) 4 SCC 365
[11]   AIR 1998 SC 3191
[12]   (2003) 7 SCC 484
[13]   (2011) 6 SCC 420
[14]   (2006) 4 CTC 433 (Mad)
[15]   (1990) 3 SCC 723
[16]   (1995) 1 SCC 551
[17]   (2010) 10 SCC 254
[18]   (1994) 2 SCC 176
[19]   (2011) 1 SCC 343
[20]   1970 AC 467 : (1970) 2 WLR 50 : (1969) 3 All ER 1528 (HL)
[21]   2012 ACJ 191

Saturday, February 11, 2012

Fixing compensation in Motor accident case=The High Court opined that the deceased would have contributed an amount of Rs.16,000/- per month to the dependents, whereas the Tribunal opined that the deceased would have contributed an amount of Rs.5,000/-. Both the Courts below proceeded to arrive at the abovementioned amounts on the basis

Non-reportable IN THE SUPREME COUR OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 1987 OF 2012 (Arising out of SLP (Civil) No.17186 of 2009) New India Assurance Co. Ltd. ....Appellant Versus Yogesh Devi & Ors. ....Respondents J U D G M E N T Chelameswar, J. Leave granted. 2. One Vijender Singh along with two others Bhagwan Das and Manish, was travelling by a motor cycle on 10-12-2002. The said motor cycle was hit by a truck bearing registration No. RJ-14G- 1556, resulting in the death of both Vijender Singh and Bhagwan Das. Respondent No.1 is the wife, Respondents 2 to 5 are the children, Respondent No.6, we are informed, is the mother of the deceased Vijender Singh. Respondents 1 to 6 herein filed an application against the appellant herein and others for compensation. The appellant, admittedly, is the insurer of the abovementioned truck. A huge claim of Rs.1,86,30,000/-, was 2 made towards compensation on the ground that the deceased Vijender Singh was earning more than Rs.35,000/- per month. The Tribunal, by its Judgment dated 06-02-2006, awarded an amount of Rs.10,00,000-00 and provided for appropriate deductions for the amounts, which had already been paid and also gave necessary directions for safeguarding the interest of the minor children. 3. From the Judgment of the Tribunal it appears that the claimants based their claim on the facts that the deceased Virender Singh was the owner of three vehicles (mini buses) and also certain agricultural land. It appears from the record that no evidence regarding the amount of income derived from the above mentioned properties is adduced. The only evidence available is the statement of the 1st respondent that the deceased used to give her an amount of Rs.35,000/- per month. She also admitted in her cross examination that the deceased was not filing any income tax returns. Therefore, the Tribunal reached a conclusion that the The petitioners are not entitled to any other compensation and they are held entitled to receive the following amount of compensation: 1. On a/c of loss of dependency from income = Rs.9,60,000.00 2. For loss of consortium to Petitioner No.1 = Rs. 10,000.00 3. For loss of love and affection to petitioner No.2 to 6 @ 5000/- each = Rs. 25,000.00 4. For funeral expenses = Rs. 5,000.00 ----------------------- Total Rs. 10,00,000.00 3 statement of the 1st respondent, that the deceased was earning more than Rs.35,000/-, cannot be believed. However, the Tribunal opined as under: "Thus keeping in view the fact of ownership of two buses and one bus given on contract and the agriculture land it can be said that the deceased was earning Rs.3900/-per month in the capacity of the driver of a bus. Keeping in view the remaining buses and agriculture land it will be appropriate to hold the income of the deceased at Rs.7380/- because in case he would have earned more than the said amount, he must have filed the income tax return. If the deceased would remain alive he must have spent 1/3rd upon himself, therefore it would be appropriate to hold the monthly dependency at Rs.5000/-." 4. Aggrieved by the said determination of the compensation made by the Tribunal, the claimants as well as the appellant herein carried the matter in Appeal to the High Court of Rajasthan. Admittedly, the Appeal preferred by the appellant herein was dismissed, whereas the Appeal preferred by the claimants (S.B. Civil Misc. Appeal No.1222 of 2006) was partially allowed modifying the Award of the Tribunal. The High Court by its Judgment dated 30-01-2009 opined that the deceased Vijender Singh's income should be taken at Rs.24,000/- per month of which 1/3rd is treated to be an amount, which the deceased would have spent on himself and the balance on the claimants. Therefore, the High Court concluded that the claimants are entitled for a compensation of Rs.30,72,000/-, and directed: "However, the rest of the award is confirmed. The Insurance Company is directed to pay the enhanced amount along with an interest @ 6% per annum from the date of the filing of the claim petition i.e. 24.3.03 till the realization 4 to the claimants within a period of two months. The learned Tribunal is directed to insure that the enhanced amount of compensation is paid to the claimants within a period of two months from the date of receipt of the certified copy of this judgment." Hence, the present Appeal. 5. The learned counsel for the appellant Sri M.K. Dua argued that the High Court grossly erred in coming to a conclusion that the income of the deceased should be determined at Rs.24,000/- per month. Such a determination is without any factual basis or evidence on record and therefore, contrary to the principle of law laid down by this Court in a catena of decisions, more particularly, in State of Haryana & Anr. Vs. Jasbir Kaur & Ors., (2003) 7 SCC 484, and, therefore, the Judgment under appeal cannot be sustained. 6. On the other hand, it is very strenuously argued by Sri Ashwani Garg, learned counsel for the claimants, that in view of the fact that there are six dependents on the deceased, of whom, four are school-going children, who are required to be educated by the 1st respondent widow, the High Court rightly enhanced the compensation and the Judgment under Appeal does not call for any interference by this Court. 7. This Court in Jasbir Kaur case (supra) held that the Tribunal is required to make a just and reasonable Award determining the compensation to be paid to the dependents of the victim of a fatal motor vehicle accident. Explaining the concept of just and 5 reasonable Award in the context of a motor vehicle accident claim, this Court held as follows: "It has to be kept in view that the Tribunal constituted under the Act as provided in Section 168 is required to make an award determining the amount of compensation which is to be in the real sense "damages" which in turn appears to it to be 'just and reasonable'. It has to be borne in mind that compensation for loss of limbs or life can hardly be weighed in golden scales. But at the same time it has be to be borne in mind that the compensation is not expected to be a windfall for the victim. Statutory provisions clearly indicate the compensation must be "just" and it cannot be a bonanza: not a source of profit; but the same should not be a pittance. The Courts and Tribunals have a duty to weigh the various factors and quantify the amount of compensation, which should be just. What would be "just" compensation is a vexed question. There can be no golden rule applicable to all cases for measuring the value of human life or a limb. Measure of damages cannot be arrived at by precise mathematical calculations. It would depend upon the particular facts and circumstances, and attending peculiar or special features, if any. Every method or mode adopted for assessing compensation has to be considered in the background of "just" compensation which is the pivotal consideration. Though by use of the expression "which appears to it to be just" a wide discretion is vested on the Tribunal, the determination has to be rational, to be done by a judicious approach and not the outcome of whims, wild guesses and arbitrariness. The expression "just" denotes equitability, fairness and reasonableness, and non-arbitrary. If it is not so it cannot be just. (See Helen C. Rebello Vs. Maharashtra State Road Transport Corporation, AIR1998SC3191)." 8. Keeping the above principle in view, we must now examine the correctness of the conclusion arrived at by the Judgment under Appeal that the income of the deceased Virender Singh is to be taken at Rs.24,000/- per month. The reasoning of the High Court in that regard is as follows: 6 " While trying to assess his income, the learned Tribunal has conclused that as a driver he must have been earning Rs.3900/- per month and his total income would have been 7500/- per month. However, considering the fact that Vijendra Singh would have earned Rs.3900/- per month as a driver, it is difficult to believe that he would have earned merely Rs.3600/- from the two buses owned by him. There is no evidence produced by the respondent No.3 to show that the buses were not being plied. Considering the lack of transportation buses are plied. Thus, it is difficult to believe that in the transportation business, owner of two buses would have earned merely Rs.3600/- per month from two buses. Therefore, the logic of the learned Tribunal is highly questionable. If the figure of Rs.3900/- has a reasonable assessment of the salary of a driver, obviously the owner of two buses would have earned more than Rs.3900/- to the driver of his own bus. Thus, a reasonable assessment would be that the owner of bus would be earning atleast Rs.10,000/- from each bus. Therefore, Vijendra Singh's income should be taken as Rs.23,900/- per month or Rs.24,000/- in the round." In other words, in view of the Tribunal's conclusion that Vijender Singh was earning an amount of Rs.3900/- in his capacity as the driver of the bus per month, the High Court reached the conclusion that in his capacity as the owner of three buses, he must be deriving a much higher income from the buses. We agree with the logic of the High Court. However, the quantum of such income would depend upon various factors, such as; whether it is a stage carriage or a contract carriage, the condition of the bus, its seating capacity, the route on which it is plying, the cost of maintenance, the taxes to be paid on such business etc. But, the question is whether the income (either gross or net) derived by the owner of a bus could legally form the basis for determining the amount of compensation payable to his dependents, if he happens to die in a motor vehicle accident. 7 9. In our opinion, such an income cannot form the legal basis for determining the compensation. 10. In Jasbir Kaur case (supra), the claim was based on an assertion that the deceased was an agriculturist earning an amount of Rs.10,000/- per month by cultivating his land. Dealing with the question, this Court held: "8. xxxxxxxxx. The land possessed by the deceased still remains with the claimants as his legal heirs. There is however a possibility that the claimants may be required to engage persons to look after agriculture. Therefore, the normal rule about the deprivation of income is not strictly applicable to cases where agricultural income is the source. Attendant circumstances have to be considered." 11. Coming to the case on hand, the claim is based on the assertion that the deceased owned agricultural land apart from the abovementioned three mini-buses. The High Court rejected the claim insofar as it is based on the income from the land, on the ground that the income would still continue to accrue to the benefit of the family. Unfortunately, the High Court failed to see that the same logic would be applicable even to the income from the abovementioned three buses. The asset (three mini-buses) would still continue with the family and fetch income. The only difference, perhaps, would be that during his life time the deceased was managing the buses, but now, the claimants may have to engage some competent person to manage the asset, which, in turn, would require some payment to be made to such a manager. To the extent of such payment, there would be a depletion in the net 8 income accruing to the claimants out of the asset. Therefore, the amount required for engaging the service of a manager and the salary payable to a driver - as it is asserted that the deceased himself used to drive one of the three buses - would be the loss to the claimants. In the normal course the claimants are expected to adduce evidence as to what would be the quantum of depletion in the income from the abovementioned asset on account of the abovementioned factors. Unfortunately, no such evidence was led by the claimants. 12. In the circumstances, the Judgment under Appeal cannot be sustained as the finding of the High Court that the claimants lost an amount of Rs.16,000/- per month due to the death of Vijender Singh is neither based on any evidence nor the logic adopted by the High Court for arriving at such a conclusion is right. In the normal course, the matter should have been remitted to the Tribunal for further evidence for ascertaining of the basis upon which the compensation is to be determined. But having regard to the fact that the accident occurred a decade ago, we do not propose to remit the matter for further evidence. 13. The High Court opined that the deceased would have contributed an amount of Rs.16,000/- per month to the dependents, whereas the Tribunal opined that the deceased would have contributed an amount of Rs.5,000/-. Both the Courts below proceeded to arrive at the abovementioned amounts on the basis 9 that as a driver of one of the buses, he was getting a salary of Rs.3,900/- per month. In the circumstances, making a reasonable conjecture that somebody to be employed for the purpose of managing the business of the three mini-buses, would certainly demand a higher salary than a driver, we think it reasonable to notionally fix the salary of such manager at Rs.10,000/- per month. The said amount coupled with the salary of one driver, i.e., Rs.3,900/- would be the loss sustained by the family from the income arising out of the asset. Computed on the basis of the said figure and applying the same multiplier of 16 which was applied by both the courts below, the amount of compensation payable to the claimants would be: 13,900 x 12 x 16 = Rs.26,68,800/- 14. The Judgment under Appeal shall stand modified accordingly and remain unaltered in all other respects. Appeal stands disposed of. ........................................J. ( P. SATHASIVAM ) ........................................J. ( J. CHELAMESWAR ) New Delhi; February 10, 2012.

Thursday, January 12, 2012

how to fix compensation when leg was ampituted= The decision reported in 2011 ACJ 1 (cited supra) has been relied upon both by the insurer as well as the claimant. In the said decision, the Apex Court has laid down that the ascertainment of the effect of permanent disability on the actual earning capacity involves three steps and the same has been laid down in paragraph 10, which reads as follows :

In the High Court of Judicature at Madras Dated : 04/1/2012 Coram : The Honourable Mr.Justice K.MOHAN RAM and The Honourable Mr.Justice G.M.AKBAR ALI CIVIL MISCELLANEOUS APPEAL(NPD)Nos.2597 and 2630 of 2011 and all connected pending MPs AND MP.NO.5 OF 2011 United India Insurance Co.Ltd., Rattan Bazaar, Chennai-3. Appellant in CMA No.2597/2011 and R2 in CMA.No.2630 Of 2011 Vs 1.K.Pachiappan R1 in CMA.No. 2597/2011 and appellant in CMA.No. 2630/2011 2.M/s.Sanco Trans Limited, Chennai-1. R2 in CMA.No. 2597/2011 & R1 in CMA.No.2630/2011 APPEALS under Section 173 of the Motor Vehicles Act against the award and decree dated 6.4.2011 made in MCOP.No.350 of 2009 on the file of the Motor Accidents Claims Tribunal (Fifth Judge, Small Causes Court), Chennai. For Appellant in CMA.No.2597 of 2011 & R2 in CMA.No.2630 of 2011 : Mr.S.Arunkumar For Respondent-1 in CMA.No.2597 of 2011 and appellant in CMA.No.2630 of 2011 : Mr.M.Swamikannu R2 in CMA.No.2597/2011 & R1 in CMA.No.2630/2011 : set Ex parte before the Court below COMMON JUDGMENT K.MOHAN RAM,J Being aggrieved by the award dated 6.4.2011 made in MCOP. No.350 of 2009 on the file of the Motor Accidents Claims Tribunal (Fifth Judge, Small Causes Court), Chennai, the insurer, which is the second respondent in the claim petition, has filed CMA.No.2597 of 2011. Not being satisfied with the quantum of compensation awarded, the claimant has filed CMA.No.2630 of 2011. 2. The brief facts, which are necessary for the disposal of these appeals are as follows : The claimant filed the aforesaid original petition claiming a total compensation of Rs.66 lakhs in respect of the injuries sustained by him in a road accident that took place at 14.30 hours on 24.11.2008. The case of the claimant is that when he was standing near the container lorry at the loading yard of M/s.Sanco Transport Limited, No.592, Ennore Express High Road, Ennore, Chennai-57, the Linde Fort container crane came in a very high speed in a rash and negligent manner unmindful of the person standing near the container lorry and dashed against the claimant, due to which, he had fallen down and the wheel ran over his right leg resulting in amputation of his right leg and other multiple injuries. According to the claimant, the driver of the crane is solely and directly responsible for the accident and as such, the owner of the crane and insurer are liable to pay the compensation. He was a heavy vehicle (container lorry) driver and was earning between Rs.15,000/- and Rs.20,000/- per month. In view of the amputation of his right leg, he can no longer continue his avocation of driving and he does not know any other avocation. 3. The claim was contested by the insurer alone, as the owner of the crane remained ex parte before the Tribunal. 4. The insurer, in their counter statement, inter alia contended as follows : The age and occupation of the claimant were not admitted. The various claims made under several heads were not admitted. The place, date, time, alleged narration of the accident, nature of injuries sustained, period of treatment taken and medical expenses have been specifically denied and the claimant was put to strict proof of the same. The negligence attributed to the driver of the crane has been denied and in any case, the insurer pleaded contributory negligence. On the aforesaid pleadings, the insurer contested that it is not liable to pay any compensation. 5. Before the Tribunal, on the side of the claimant, the claimant examined himself as PW1 and four other witnesses have also been examined. ExP1 to ExP10 have been marked on the side of the claimant. On the side of the insurer, one witness has been examined as RW1 and ExR1 has been marked. On a consideration of the evidence adduced before it, the Tribunal came to the conclusion that the accident had occurred only due to the rash and negligent driving of the driver of the crane bearing Regn.No.L1-10-0820 and in view of the same, the owner of the crane as well as the insurer are liable to pay compensation. 6. So far as quantum of compensation is concerned, the Tribunal, on the basis of the evidence of the claimant as well as the doctor PW4 and other documentary evidence, fixed the disability at 90% and also came to the conclusion that the disability is total and permanent and applied 17 as the multiplier, as the age of the claimant was 25 on the date of accident. The Tribunal fixed the monthly income of the claimant at Rs.8,000/- and accordingly assessed the pecuniary loss at Rs.16,32,000/-. The Tribunal awarded a sum of Rs.1 lakh towards pain and suffering; Rs.50,000/- towards mental agony; another sum of Rs.50,000/- towards expectancy of life; again a sum of Rs.50,000/- for fixing the artificial limb; Rs.25,000/- towards loss of amenities in life; another sum of Rs.25,000/- towards extra nourishment, transport to hospital, medical expenses, etc.; and Rs.24,000/- towards loss of earnings for a period of three months. Being aggrieved by the award, both the insurer as well as the claimant have filed the above appeals. 7. Heard both. 8. Mr.Arunkumar, learned counsel for the insurer made the following submissions : The assessment of percentage of disability by the doctor PW4 is not in accordance with the Schedule to the Workmen s Compensation Act, as the Tribunal has fixed the monthly income placing reliance on the minimum wages fixed under the Minimum Wages Act. The percentage of disability for the amputation of leg is only 60% as per the provisions of the Workmen s Compensation Act and it should not have been fixed at 90%. The claimant is not completely disabled from doing any job and hence, appropriate deduction should have been made from the pecuniary loss arrived at by taking into consideration the fact that the claimant could have earned some amount from some other avocation. 9. Learned counsel for the insurer further submitted that the Tribunal has erred in not deducting some amount towards personal expenses/lumpsum payment. The Tribunal is not correct in granting a sum of Rs.50,000/- towards mental agony; Rs.50,000/- towards expectancy of life; Rs.25,000/- towards extra nourishment, transport to hospital, etc.; and Rs.50,000/- towards medical expenses without proper proof; so also the amount of Rs.1 lakh towards pain and suffering and the amount of Rs.25,000/- towards loss of amenities. 10. Learned counsel for the insurer submitted that the claimant s case that after the accident, he is left with no other alternative employment has been accepted by the Tribunal whereas the claimant is attending to some other job, which was revealed during the course of further investigation done by the insurer. Learned counsel further submitted that the claimant himself has issued a letter dated 17.11.2011 to the Investigator M/s.Vasu Associates that he is fixed with artificial limb and is working as a care taker/security guard in an abandoned petrol pump near Priya Kalyana Mandapam, Mogappair West, Chennai-37 and is being paid a sum of Rs.3,000/- as salary. In such circumstances, the subsequent developments should be taken into consideration and to prove the same, the following documents have been produced namely (i) photo ID card of the petitioner; (ii) discharge summary copy/disability certificate; (iii) letter from petitioner; (iv) photograph of the petitioner; and (v) video CD as additional evidence in the above matter. Learned counsel for the insurer submitted that unless the aforesaid additional evidence is received, cause of justice will be affected. 11. In support of his submissions, learned counsel for the insurer placed reliance on the following decisions: (i) Sri.Kumaresh Vs. The Divisional Manager, National Insurance Co.Ltd. {reported in 2011 (2) TN MAC 10 (SC)}; (ii) Tamilnadu State Transport Corporation Limited, Villupuram Vs. R.C.Selvakumar {reported in 2010 (2) TN MAC 211 (DB)}; (iii) Pal Raj Vs. Divisional Controller, North East Karnataka Road Transport Corporation {reported in 2010 ACJ 2859}; (iv) Arvind Kumar Mishra Vs. New India Assurance Co. Ltd (reported in 2010 ACJ 2867); (v) Govind Yadav Vs. The New India Insurance Company Limited (reported in CDJ 2011 SC 1131); and (vi) Raj Kumar Vs. Ajay Kumar (reported in 2011 ACJ 1). 12. Countering the aforesaid submissions, Mr.M.Swamikannu, learned counsel for the claimant made the following submissions : The Tribunal cannot take the monthly income of the claimant at Rs.8,000/-, when it is the categorical evidence of the claimant that he was earning Rs.15,000/- to Rs.20,000/- per month; the Tribunal has erred in awarding only Rs.24,000/- towards loss of earnings by taking three months income alone taking into consideration of the fact that he lost his income only for three months whereas considering the nature of injuries sustained by him and the nature of treatment taken by him, for more than one year, he was not able to do any work and he is now jobless; the Tribunal is not correct in awarding a sum of Rs.25,000/- only towards extra nourishment, transport to hospital, etc., when the claim itself was for Rs.1,50,000/-; the Tribunal has not awarded any amount towards attendant charges, as the claimant cannot attend to his daily needs without any assistance; the compensation awarded towards loss of expectation of life is too low; further, the sum of Rs.25,000/- awarded towards loss of amenities is meagre; the sum of Rs.50,000/- awarded towards mental agony, torture and humiliation at the young age is also too low; and the sum of Rs.1 lakh towards pain and suffering is less. 13. Learned counsel for the claimant submitted that the Tribunal has not awarded any compensation towards continuing permanent disability, when the claimant is entitled to the same as per the decision of the Apex Court dated 12.5.2011 in Civil Appeal Nos.4330 and 4331 of 2011 in the case of B.Kothandapani Vs Tamilnadu State Transport Corporation Limited. Learned counsel further submitted that the Tribunal ought to have awarded interest at 9% instead of 7.5% per annum. Learned counsel further submitted that though the claimant, in his chief examination, has stated that because of amputation of his right leg just below the hip, he has lost his job as a driver and he cannot be a driver any more and he cannot attend to any other clerical work, as he studied only upto 9th standard and he also cannot attend to any other work involving physical exertion and he had to depend upon somebody else for his livelihood, no cross examination has been done on these aspects and not even a suggestion has been put to him questioning the aforesaid evidence of PW1. 14. Learned counsel for the claimant submitted that the doctor PW4, in his chief examination, has stated that after amputation of his right leg, bone has grown upto 6 cms in a triangular shape and because of that, there has been infection in that portion and the claimant is having pain, due to which, artificial limb cannot be fitted to the claimant. The doctor also deposed that he can no longer drive any vehicle and cannot attend to any job involving physical exertion. But, no suggestion has been put to the doctor PW4 that the claimant can attend to some other alternate job. Therefore, the contention of the learned counsel for the insurer that the claimant can attend to alternate job cannot be countenanced. 15. Learned counsel for the claimant further submitted that the claimant has examined his employer as PW5, who deposed that he was paying a sum of Rs.5,000/- and 10% of the transportation charges earned by him and that the claimant was getting not less than Rs.15,000/- to Rs.20,000/- per month. But, the Tribunal is not right in disbelieving his evidence. 16. At the outset, Mr.Arunkumar, learned counsel for the insurer submitted that the finding of the Tribunal regarding negligence is not being disputed in the appeal filed by the insurer. But, they only challenged the quantum of compensation. Hence, we are not going into the question of negligence in detail. A perusal of the award passed by the Tribunal shows that the Tribunal has considered the entire evidence adduced before it and rightly come to the conclusion that the accident was caused due to the rash and negligent driving by the driver of the crane and hence, the finding of negligence recorded by the Tribunal is confirmed. MP.NO.5 OF 2011 : 17. The insurer has filed MP.No.5 of 2011 to receive (i) photo ID card of the petitioner; (ii) discharge summary copy/disability certificate; (iii) letter from petitioner; (iv) photograph of the petitioner; and (v) video CD as additional evidence in the above matter. In the affidavit, it has been stated that since the evidence relates to subsequent developments that have occurred after disposal of the said original petition, the same could not be filed before the Tribunal and the said documents are relevant for fixing the just compensation payable. The said averments in the affidavit were reiterated by the learned counsel for the insurer. 18. But, Mr.M.Swamikannu, learned counsel for the claimant submitted that the documents now sought to be produced as additional evidence cannot be received, as the veracity of the same could not be established without adducing oral evidence and subjecting the witnesses to cross examination. As far as the letter said to have been issued by the claimant is concerned, the same is also disputed by the learned counsel. As far as the discharge summary copy/disability certificate is concerned, according to the counsel, the same could not be received without examining the doctor concerned. 19. We have carefully considered the aforesaid submissions of the learned counsel on either side and perused the materials available on record. 20. As rightly contended by the learned counsel for the claimant, without examining the witnesses to prove the letter said to have been issued by the claimant and without examining the doctor said to have issued the discharge summary copy/disability certificate, the same could not be received as additional evidence. The photo ID card and the photograph of the claimant and also the video CD can only depict the nature of amputation undergone by the claimant. As the nature of amputation is already available on record by way of medical evidence, the same will not be of any assistance to assess the disability. Therefore, we do not find any valid reason for entertaining MP.No.5 of 2011 and accordingly, the same is dismissed. CMA.NOS.2597 AND 2630 OF 2011 : 21. The admitted facts in this case are that the claimant was 25 years old at the time of accident and was having a valid driving licence under ExP3 to drive heavy transport vehicles as well as light motor vehicles. His right leg five inches below the hip has been amputated. He was a driver by profession at the time of accident and because of amputation of his right leg, he can no longer drive any vehicle and the same is corroborated by the evidence of the doctor PW4. The doctor PW4 has assessed the permanent disability at 90% due to amputation of leg and other disabilities have been assessed at 10%. But, considering the nature of avocation namely driving, the Tribunal has taken the disability as 100% and applied multiplier method for assessing the pecuniary loss. It is also not disputed by the learned counsel for the insurer. 22. The main contention of the learned counsel for the insurer is that in spite of amputation of his right leg, the claimant can attend to some other avocation and earn some amount and that has to be deducted from the pecuniary loss assessed. In the alternative, learned counsel submitted that the functional disability alone should have been taken into consideration and accordingly, pecuniary loss should have been arrived. Learned counsel further submitted that the claimant is now engaged himself as a security guard in a petrol pump and he has admitted the same in his letter given to the Investigator. As we have rejected the petition for adducing additional evidence, the said contention cannot be accepted in the absence of any supporting material evidence. 23. It is pertinent to point out that PW1, in his evidence, has categorically stated that he had studied upto 9th standard and because of amputation of his right leg, he cannot drive any vehicle, he cannot sit and do any clerical job or any other job and he also cannot do any other job involving physical exertion. But, in the cross examination, the same has not been questioned nor even suggested to him that he can attend to some other job. The claimant has categorically stated that he has lost his earning capacity. But, the same has not been questioned in the cross examination. 24. The said evidence of PW1 has been corroborated by the doctor PW4, who has categorically stated that because of amputation of his right leg, he cannot attend to the avocation of driving and cannot attend to any other avocation. The doctor has categorically stated that 5 inches below the hip, the right leg has been amputated and after amputation, the bone has grown for 6 cms in a triangular shape and because of it, there has been infection and the claimant was having pain and artificial limb cannot be fitted. No cross examination has been done on this aspect also. Nothing has been elicited in the cross examination of either PW1 or PW4 to disbelieve their evidence. When such evidence is available on record, it is futile on the part of the insurer to contend that the claimant can attend to some other avocation and earn some amount and that such amount should be deducted from the pecuniary loss assessed. The doctor has categorically stated that even the artificial limb cannot be fitted to the claimant, that he has to walk with crutches, that he cannot even sit on his own from a standing position and that he cannot raise from a sitting position without the assistance of another. The doctor further deposed that it will be difficult for him to use Indian toilet and that he cannot spat in the floor. With this permanent disability, it will be difficult for him to attend any family or social functions and in his day to day life, throughout his life, he has to face all these difficulties. Therefore, the Tribunal is right in awarding Rs.25,000/- towards loss of amenities in life. 25. Learned counsel for the claimant is right in contending that the Tribunal has erred in not granting proper compensation towards permanent disability, as per decision of the Apex Court in B.Kothandapani s case. Even if multiplier method is applied and pecuniary loss is assessed, yet, the claimant is entitled to compensation towards permanent disability. 26. As far as the salary of the claimant is concerned, according to the claimant, he was earning a sum of Rs.15,000/- to Rs.20,000/- per month from his employer and PW5 his employer also corroborated the same. But, the employer has not produced any account book. The Tribunal has not accepted it and chose to fix the monthly income of the claimant as Rs.8,000/- on the basis of the Minimum Wages Act. We do not find any reason to interfere with the same. 27. In the decision reported in 2011 (2) TN MAC 10 (SC) (cited supra), the claimant in that case was aged about 20 years and he was a building centring worker and he suffered amputation of right leg below the knee. The doctor assessed the disability at 70% of right lower limb and at 35% of whole body. The High Court and the Apex Court fixed the disability at 50% and accordingly assessed the pecuniary loss. The said principle is sought to be applied in this case by the learned counsel for the insurer. The facts of this case and the fact of the said case are totally different. There, the amputation was below the right knee and there also, the Apex Court applied the multiplier method and therefore, the said decision will not, in any way, advance the case of the insurer. 28. In the decision reported in 2010 (2) TN MAC 211 (DB) (cited supra), a Division Bench of this Court, while considering the case of an injured, who is a marine radio officer and who got his left hand amputated, fixed the disability at 80% and after considering Section 4 and Part II Schedule I of the Workmen s Compensation Act, this Court awarded a sum of Rs.7.5 lakhs as compensation for the amputation of left hand. The said decision is not applicable to the facts of this case, as, in this case, the right leg 5 inches below the hip has been amputated and the claimant has lost his job as a driver and he cannot be employed as a driver ever in future. 29. The facts of the case reported in 2010 ACJ 2867 (cited supra) are totally different and therefore, this decision is not applicable to the facts of this case. 30. In the decision reported in 2010 ACJ 2859 (cited supra), the claimant was a driver of a corporation bus and the bus met with the accident during the course of his employment, due to which, he sustained injuries and was no longer able to drive a vehicle and the corporation retained him as a peon on the same salary. In such a factual background, the compensation was assessed. The Apex Court observed that the workman has lost his capacity to function as driver, but with the help of external aids, his mobility has been restored to some extent and he is able to perform the work suitable to his physical condition and that the injuries did not disable the workman permanently from earning his living other than as a driver. The Apex Court further held that the alternate employment given to the claimant on the same salary which he was enjoying before the accident has to be kept in mind while computing loss of earning capacity. In this case, it is not the case of the insurer that the claimant has got alternate employment for the same salary whereas the finding in this case is that the claimant has lost his employment as a driver and is unfit to be a driver in future and it is proved by medical evidence as pointed above that the claimant is not able to attend any other alternate employment. Therefore, the said decision is not applicable to this case. 31. In the decision reported in CDJ 2011 SC 1131 (cited supra), the claimant was a helper and he had not produced any evidence to prove the factum of employment and the payment of salary by his employer. In such circumstances, the Apex Court held that the salary payable to a worker under Minimum Wages Act should be taken into consideration. But, in this case, the claimant was a driver and the Tribunal, having disbelieved the evidence regarding salary of the claimant, has applied minimum wages as prescribed under the Minimum Wages Act. 32. The decision reported in 2011 ACJ 1 (cited supra) has been relied upon both by the insurer as well as the claimant. In the said decision, the Apex Court has laid down that the ascertainment of the effect of permanent disability on the actual earning capacity involves three steps and the same has been laid down in paragraph 10, which reads as follows : The Tribunal has to first ascertain what activities the claimant could carry on in spite of the permanent disability and what he could not do as a result of the permanent disability (sic disability) (this is also relevant for awarding compensation under the head loss of amenities of life). The second step is to ascertain his avocation, profession and nature of work before the accident, as also his age. The third step is to find out whether (i) the claimant is totally disabled from earning any kind of livelihood, or (ii) whether in spite of the permanent disability, the claimant could still effectively carry on the activities and functions, which he was earlier carrying on, or (iii) whether he was prevented or restricted from discharging his previous activities and functions, but could carry on some other or lesser scale of activities and functions so that he continues to earn or can continue to earn his livelihood. For example, if the left hand of a claimant is amputated, the permanent physical or functional disablement may be assessed around 60%. If the claimant was a driver or a carpenter, the actual loss of earning capacity may virtually be hundred per cent, if he is neither able to drive or do carpentry. On the other hand, if the claimant was a clerk in government service, the loss of his left hand may not result in loss of employment and he may still be continued as a clerk as he could perform his clerical functions, and in that event the loss of earning capacity will not be 100% as in the case of a driver or carpenter, nor 60% which is the actual physical disability, but far less. In fact, there may not be any need to award any compensation under the head of loss of future earnings , if claimant continues in government service, though he may be awarded compensation under the head of loss of amenities as a consequence of losing his hand. Sometimes the injured claimant may be continued in service, but may not be found suitable for discharging the duties attached to the post or job which he was earlier holding, on account of his disability, and may therefore be shifted to some other suitable but lesser post with lesser emoluments, in which case there should be a limited award under the head of loss of future earning capacity, taking note of the reduced earning capacity. It may be noted that when compensation is awarded by treating the loss of future earning capacity as 100 per cent (or even anything more than 50 per cent), the need to award compensation separately under the head of loss of amenities or loss of expectation of life may disappear and as a result, only a token or nominal amount may have to be awarded under the head of loss of amenities or loss of expectation of life, as otherwise there may be a duplication in the award of compensation. A reading of the aforesaid extracted passage of the Apex Court s decision shows that the Apex Court itself has pointed out that if the left hand of a claimant is amputated, the permanent physical or functional disability may be assessed around 60%. If the claimant was a driver or carpenter, the actual loss of earning capacity may virtually be 100%, as he is not able to do either driving or carpentry. 33. Therefore, when the claimant in this case has suffered 80% permanent disability due to the amputation of his right leg 5 inches below the hip and he has lost his job as a driver and he cannot drive any vehicle any more, the actual loss of earning capacity is virtually 100%. Therefore, the Tribunal is right in coming to the conclusion that the permanent disability is 100%. In the absence of any acceptable evidence that in spite of amputation of his right leg, the claimant is able to do some other alternate job and earn, the contention of the learned counsel for the insurer that he can attend to some other alternate employment cannot be countenanced. 34. As far as the fixation of monthly salary of Rs.8,000/- and the adoption of multiplier as 17 by the Tribunal are concerned, we are of the considered view that the Tribunal is right. Therefore, we do not find any reason to interfere with the pecuniary loss, which has been assessed at Rs.16,32,000/-. 35. As far as the other conventional damages awarded by the Tribunal are concerned, the sum of Rs.1 lakh awarded towards pain and suffering cannot be said to be on the higher side and hence, the same is confirmed. But, the Tribunal is not justified in granting a sum of Rs.50,000/- towards mental agony. Therefore, the same is set aside. As far as the sum of Rs.50,000/- awarded towards loss of expectancy is concerned, the same appears to be reasonable and hence, the same is confirmed. The Tribunal is not right in awarding a sum of Rs.50,000/- for fixing the artificial limb, when it is the evidence of the doctor PW4 that no artificial limb can be fitted to the claimant and therefore, the award of the said sum of Rs.50,000/- is set aside. Certainly, the claimant will be having several inconveniences in his day to day life and he cannot act independently and hence, the award of Rs.25,000/- towards loss of amenities is confirmed. Further, the award of Rs.25,000/- towards extra nourishment, transport to hospital, medical expenses and damages is also found to be reasonable and therefore, the same is confirmed. In our considered view, the sum of Rs.24,000/- awarded towards loss of earnings for a period of three months is not correct, since, admittedly, the claimant was taking treatment not only as an inpatient, but also thereafter as an outpatient for a number of months and considering the nature of injuries sustained by him, the loss of earnings should have been awarded for a minimum period of one year and accordingly, for twelve months at Rs.8,000/-, Rs.96,000/- is awarded. 36. Mr.M.Swamikannu, learned counsel for the claimant, placing reliance on the decision in Kothandapani s case, has rightly contended that even though the pecuniary loss has been arrived by applying multiplier method, the claimant is entitled to compensation towards permanent disability. In this case, the permanent disability has been assessed at 80% by the doctor and accordingly, the claimant is entitled to a compensation of Rs.1,60,000/-. Thus, in total, the claimant is entitled to a sum of Rs.20,88,000/- with interest at 7.5%. 37. For the aforesaid reasons, CMA.NPD.No.2597 of 2011 filed by the insurer is dismissed and CMA.NPD.NO.2630 of 2011 filed by the claimant is partly allowed. The claimant is entitled to a sum of Rs.20,88,000/- (Rupees twenty lakhs eighty eight thousand only) together with interest along with accrued interest and costs awarded by the Court below. It is seen that this Court, at the time of granting interim stay on 12.8.2011, directed the insurer to deposit a sum of Rs.12 lakhs with proportionate interest to the credit of the said original petition and it is represented that a sum of Rs.10 lakhs has also been directed to be withdrawn by the claimant by an order dated 26.9.2011. Therefore, the insurer is directed to deposit the difference in the award amount to the extent indicated above in this judgment together with interest to the credit of the said original petition within a period of eight weeks from the date of receipt of a copy of this order and on such deposit, the claimant is permitted to withdraw the entire amount lying to the credit of the said original petition. Consequently, all connected pending MPs are closed. No costs. RS To The Registrar, Small Causes Court Chennai