Holding

Compensation must be computed as per the Motor Vehicles Act, applying a multiplier of 16 for a 36‑year‑old claimant, resulting in a total award of Rs.35,00,000.

Summary

Dr. Sukanta Kumar Behera, a senior medical officer, suffered a motor vehicle accident on 9 September 2001 resulting in 60% permanent disability and multiple injuries. The insurer, New India Assurance Co. Ltd., appealed the High Court of Orissa's award of Rs.55,00,000 without any computation. The Supreme Court examined the appropriate method of calculating compensation under the Motor Vehicles Act, 1988, considering loss of earning capacity, medical expenses, pain and suffering, attendant costs, and special diet. Using a multiplier of 16 for the claimant's age of 36, the Court calculated loss of earnings at Rs.15,000 per month and added other heads to arrive at a total of Rs.35,00,000, with interest at 6% per annum from the filing date. The appeal was partly allowed, reducing the compensation to Rs.35,00,000 and directing payment within two months.

Issues considered

What is the correct quantum of compensation payable under the Motor Vehicles Act, 1988 for a claimant with 60% permanent disability?
Whether the High Court's award of Rs.55,00,000 without detailed computation is justified.
Which multiplier is applicable for a claimant aged 36 years.

Subjects

Motor Vehicles Act, 1988CompensationPermanent disabilityMultiplierLoss of earning capacityPain and sufferingMedical expensesInterest

Judgment

[2015] 2 S.C.R. 236

A NEW INDIAASSURANCE CO. LTD.
v.
DR. SU KANTA KUMAR BEHERA & ORS.
(Civil Appeal No. 2078of2015)
FEBRUARY 20, 2015
B
[RANJAN GOGOi AND ARLIN MISHRA, JJ.]
Motor Vehicles Act, 1988 - Motor accident- resulting in
60% permanent disability - Compensation for - Held:
Considering the nature of disability, expenditure incurred on
C treatment attendant and special .diet, loss of working capacity,
loss of earning during course of treatment, physical pain and
suffering, and by using multiplier of 16, compensation
amount is determined at Rs. 35 lakhs.

D Partly allowing the appeal, the Court
HELD: Considering the fact that 60% permanent
disability has been incurred and considering overall
injuries caused, there was a loss of working capacity to
E the said extent. Monthly loss of earning capacity comes
to Rs.15,000/-.Multiplier of 16 is applicable at the age of
36 years. Expenditure for surgery of right leg for and for
insertion of two plates are quantified at Rs.20,000/-. There
was loss of earning during course of treatment which
F has been determined by the Claims Tribunal and medical
expenditure in another Hospital, comes to Rs.66,566/-.
Compensation for pain and suffering, expenditure on
attendant and on special diet has also to be awarded.
The compensation after deducting medical
G reimbursement already received, compensation amount
of Rs.35,00,000/- (Rupees Thirty Five lacs only) is
awarded along with interest at the rate of 6% P.A. with
effect from the date of filing of claim petition. [Para 7]
[239-A-D; 240-A-B]
H 236
NEW INDIAASSURANCE CO. LTD. v. 237
DR. SU KANTA KUMAR BEHERA

CIVIL APPELLATE JURISDICTION : Civil Appeal No. A
2078 of 2015
From the Judgment and Order dated 09.05.2014 of the
High Court of Orissa, Cuttack in M.A. C. A. No. 576 of 2008
M. K. Dua, Kishore RawatfortheAppellant. B
Robin David, Chitranshul Sinha, Febin Mathew, Dua
Associates for the Respondents.
The Judgment of the Court was delivered by
ARUN MISHRA, J. 1. Leave granted.
c
2. The appeal has been preferred by the insurer against
the order dated 9.5.2014, passed by the High Court of Orissa
at Cuttack in M.A.C.A. No.576 of 2008 awarding
compensation of Rs.55,00,000/- to the respondent, Dr. D
Sukanta Kumar Behera for the injuries sustained and
permanent disability incurred by him in the accident dated
9.9.2001. The Claims Tribunal had awarded compensation of
Rs.4,01,414/-.
E
3. The appellant was working as Senior Medical Officer
in Bhilai Steel Plant. He met with an accident and ultimately
due to permanent disability incurred by him, his services were
terminated on 29.8.2007. He incurred 60% permanent
disability owing to various injuries sustained in the accident. F
The question to be considered is whether the High Court is
justified in awarding compensation of Rs.55,00,000/-without
any discussion and computation. The approach of the High
Court cannot be said to be justified in such cases of injury. It is
necessary to make computation of compensation to be G
awarded on account of pecuniary and non-pecuniary heads.
4. The claimant suffered fracture in the right foreann, right
femur neck, fracture of right radius midshaft and fracture of
right ulnar midshaft in the right hand and grievous fracture of
tebia in the left leg. His cervical spinal cord was also injured. H
238 SUPREME COURT REPORTS [2015] 2 S.C.R.

A He also suffered grievous abdomen injury for which he had to
be operated. Besides, he also suffered injury in the chest.
5. He was admitted in various hospitals as indoor
patient. Firstly from 9.9.2001 to 24.9.2001, he was treated in
SCB Medical College and Hospital, Cuttack where his left leg
8
was operated, operation of abdomen, traction of right leg was
done and a slab was put in right hand. Secondly, he was treated
in Shanti Hospital, Cuttack, from 24.9.2001 to 30.9.2001 where
he was operated upon for implanting two steel plates in right
C leg. Thirdly, he was admitted in Kalinga Hospital, Bhubaneswar,
for treatment from 1.10.2001 to 15.10.2001 for abdominal
surgery in which considerable part of his stomach and large
intestine was removed to save his life. Thereafter, he was
admitted in C.M.C. Hospital, Vellore as indoor patient from
16.10.2001 to 25.5.2002 for 7-1/2 months and again in the
D month of February 2004 he was admitted there for a period of
8 days. At Vellore in CMC Hospital, several surgeries were
performed, besides bone grafting in left leg and removal of
implanted right femur due to infection and discharging sinus.
The amount spent by him at Vellore CMC Hospital towards
E treatment and medical expenditure was reimbursed to the
extent of Rs.10,72,013/-.
6. As per Dr. R.K. Pandey, the claimant Dr. Sukanta
Kumar Behera sustained injuries resulting into 60% permanent
F disability. In future, treatment of left ankle, foot drop and right
hip replacement surgery may also be required. It is also
apparent that due to removal of large part of intestine the
claimant will have to remain on special diet and his digestion
capacity has been declined to a great extent due to abdominal
G surgery for rest of his life. It is also apparent that he had also
suffered grievous injuries resulting into 60% permanent
disability besides one inch shortening of right limb.
7. The insurer company has contended that claimant was
getting Rs.23,000/- per month at the time of accident. It
H appears that he was getting non-practitioner allowance also
NEW INDIAASSURANCE CO. LTD. v. 239
DR. SUKANTAKUMAR BEHERA[ARUN MISHRA, J.]

in addition to the salary. It would be appropriate to take his A
salary at Rs.25,000/- per month. Considering the fact that 60%
permanent disability has been incurred and considering over
all injuries caused, there is a loss of working capacity to the
said extent. Monthly loss· of earning capacity comes to
Rs.15,000/-. Multiplier of 16 is applicable at the age of 36 B
years. Expenditure must have been incurred in 8 days when
claimant was treated in Shanti Hospital when surgery of right
leg was performed and two plates were inserted which we
quantify at Rs.20,000/-. There was loss of earning during
course of treatment which has been determined by the Claims c
Tribunal and medical expenditure in SCB Medical College and
Hospital, Cuttack comes to Rs.66,566/-. Compensation for
pain and suffering, expenditure on attendant and on special
diet has also to be awarded. The compensation after deducting
medical reimbursement already received, is awarded in the D
following manner:

Description Amount (Rs.}
For loss of earning capacity due to
permanent disability (Rs.15,000x12x16) 28,80,000/- E
Loss of salary during treatment
in the year 2001-2002 2,14,848/-
Expenditure incurred in SCB
Medical College & Hospital, Cuttack 66,566/-
F
Expenditure incurred in Shanti Hospital 20,0001-
Physical pain and sufferings 2,00,0001-
Expenditure incurred on attendant
for 9 months during treatment 90,0001-
Special diet 28,500/- G
····················
Grand Total: 34,99,914/-
rounded off
35,00,000/-
H
······················
240 SUPREME COURT REPORTS [2015] 2 S.C.R.

A Accordingly, the appeal is allowed in part. Compensation
amount of Rs.35,00,000/- (Rupees Thirty Five lacs only) is
awarded to the claimant along with interest at the rate of 6%
per annum with effect from the date of filing of claim petition.
The said amount be paid within a period of two months from
B today. No costs.
Kalpana K. Tripathy Appeal partly allowed