YADAVA KUMARversusTHE DIVISIONAL MANAGER, NATIONAL INSURANCE CO. LTD. & ANOTHER

                      [2010] 10 S.C.R. 746


A                       YADAVA KUMAR
                                v.
     THE DIVISIONAL MANAGER, NATIONAL INSURANCE
                    CO. LTD. & ANOTHER
               (Civil Appeal No. 7223 of 2010)
B
                        AUGUST 31, 2010
      [G.S. SINGHVI AND ASOK KUMAR GANGULY, JJ.]

        Motor Vehicles Act, 1988:
c
       ss. 163A and 5 - Disability in non-fatal accidents -
  Calculation of compensation - Painter sustained injuries in
  a road accident - Compensation of Rs.52,0001- awarded by
  tribunal - High Court enhanced it to Rs. 72,0001- - On appeal,
0 held: High Court while granting compensation refused to
  award any amount towards loss of future earning - Doctor
  opined that claimant svffered disability of 33% of right upper
  limb, 21% of left upper limb and 20% total disability of the
  whole body - Claimant is bound to suffer loss in earning
E capacity as a painter and has to earn his livelihood by virtue
  of physical work - In order to do complete justice,
  compensation assessed - Multiplier of 17 applied - Thus,
  claimant awarded two lakh rupees as compensation with 8%
  interest - Constitution of India, 1950 - Article 142.

F       'Just compensation' - Concept of

        'Compensation' and 'damage' - Distinction between.

      The appellant-painter, aged 30 years sustained
  several injuries in a road accident. He was hit by a tempo.
G The appellant filed a claim petition. PW-2, Orthopaedic
  Surgeon, opined that the appellant suffered a disability
  of 33% of right upper limb and 21% of left upper limb and
  20% total disability of the whole body and as a result he
  could not work as a painter nor could he do any other
H                             746
 YADAVA KUMAR v. DIVISIONAL MANAGER, NATIONAL          747
                  INSURANCE
manual work. The tribunal awarded compensation of Rs.         A
52,000/-. The High Court enhanced the cotnpensation to
Rs.72,000/-. Both the tribunal and the High Court did not
incorporate any thing by way of compensation in the
category of 'loss of future earnings'. Therefore, the
appellant filed the instant appeal claiming higher            B
compensation.

     Partly allowing the appeal, the Court

     HELD: 1.The Second Schedule under Section 163A
of the Motor Vehicles Act, 1988 gives a structured            C
formula for the calculation of compensation in accident
cases. Section 5 of the Schedule deals with disability in
non-fatal accidents. The multiplier method is to be applied
in cases of injuries also. [Paras 10 and 11) [752-E-F; 753-
E]                                                            D
     2.1 In the instant case, the appellant sustained a
fracture of distal end of left radius with fracture of left
ulnar styloid process and fracture distal end of right
radius with mild diastosis and soft tissues swelling          E
around wrist joint. The doctor assessed the disability at
33% in respect of the right upper limb and 21% towards
left upper limb and 20% in respect of the whole body,
which prevented the appellant from painting in view of
multiple injuries sustained by him. The High Court while
granting compensation refused to award any amount
                                                              F
towards loss of future earning, inter-alia, on the ground
that the appellant did not produce an iota of document
to substantiate his stand. This view of the High Court
cannot be accepted. [Paras 14, 15 and 16) [754-A-D]
                                                              G
    2.2 While assessing compensation in accident cases,
the High Court or the tribunal must take a reasonably
compassionate view of things. It cannot be disputed that
the appellant being a painter has to earn his livelihood
by virtue of physical work. The nature of injuries which      H
    748     SUPREME COURT REPORTS            [2010] 10 S.C.R.


A   he admittedly suffered, and about which the evidence of
    PW-2 is quite adequate, amply demonstrates that
    carrying those injuries he is bound to suffer loss of
    earning capacity as a painter and a consequential loss
    of income is the natural outcome. (Para 17] [754-E-F]
B
       2.3 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 a just compensation
  cannot be equated to a bonanza. At the same time, the
C concept of 'just compensation' obviously suggests
  application of fair and equitable principles and a
  reasonable approach on the part of the tribunals and
  courts. This reasonableness on the part of the tribunal
  and the court must be on a large peripheral field. Both
D the courts and tribunals in the matter of this exercise
  should be guided by principles of good conscience so
  that the ultimate results become just and equitable. [Para
  18] [754-G-H] (755-A-B] ·

E       Mrs. Helen C. Rebello and Ors. vs. Maharashtra State
    Road Transport Corpn. and Anr. AIR 1998 SC 3191 - relied
    on.

        2.4 In the determination of the quantum of
    compensation, the court must be liberal and not niggardly
F   in as much as in a free country law must value life and
    limb on a generous scale. [Para 19] (755-C]          ·

        Hardeo Kaur and Ors. vs. Rajasthan State Transport
    Corporation and Anr. (1992) 2 sec 567 - relied on.
G
        2.5 The High Court and the tribunal must realize that
    there is a distinction between compensation and damage.
    The expression compensation may include a claim for
    damage but compensation is more comprehensive.
    Normally damages are given for an injury which is
H
 YADAVA KUMAR v. DIVISIONAL MANAGER, NATIONAL           7 49
                  INSURANCE

suffered, whereas compensation stands on a slightly            A
higher footing. It is given for the atonement of injury
caused and the intention behind grant of compensation
is to put back the injured party as far as possible in the
same position, as if the injury has not taken place, by way
of grant of pecuniary relief. Thus, in the matter of           B
computation of compensation, the approach will be
slightly more broad based than what is done in the matter
of assessment of damages. At the same time, it is true that
there cannot be any rigid or mathematical precision in the
matter of determination of compensation. Therefore, the        c
approach of the High Court in totally refusing to grant any
compensation for loss of future earning is not a correct
one. [Paras 20 and 21] (755-D-G]
    2.6 To shorten litigation, and having regard to the
power of this Court under Article 142 of the Constitution      D
to do 'complete justice between the parties, the
compensation is assessed. The loss of future income
may"be calculated using the multiplier method. The yearly
income of the appellant is Rs.36,000/-. Multiplier according
to age (30 years) as per Schedule is 17. The total comes       E
to: Rs.36,000/- x 17=Rs.6, 12,000/-. Percentage of
disablement is 20% .. Therefore, loss of future earnings
would come to Rs.1,22,400/-. On adding this to the
compensation provided by the High Court, the total
compensation comes to Rs.1,22,400/- +Rs.72,000/-=              F
Rs.1,94,400/-. Therefore, a lump sum of Two Lakh Rupees
is granted by way of compensation plus 8% interest.
(Paras 22, 23, 24] (756-A-F]
                    Case Law Reference:
                                                               G
    2008 ACJ 9               Referred to.         Para 12
    AIR 2010 SC 40.          Referred to.         Para 13
    2006 ACJ 1792            Referred to.        Para 13
    2003 (5) Karn. L.J. 186 Referred to.         Para 13       H
    750      SUPREME COURT REPORTS               [2010] 10 S.C.R.


A         AIR 1998 SC 3191         Relied on.            Para 18
          (1992) 2 sec ss1         Relied on.            Para 19
        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    7223 of 2010.
B
        From the Judgment & Order dated 12.08.2009 of the High
    Court of Karnataka at Bangalore in M.F.A. No. 5718 of 2006
    (M.V.).

          V.N. Raghupathy for the Appellant.
c
          M.K. Dua, Kishore Rawat for the Respondents.

          The Judgment of the Court was delivered by

          GANGULY, J. 1. Delay condoned.
D
          2. Leave granted.

          3. Assailing the Division Bench judgment of the Karnataka
    High Court dated 12.8.2009, whereby compensation of
E   Rs.52,000/- granted by the Tribunal was enhanced to
    Rs.72,000/-, this appeal claiming higher compensation was
    filed by the appellant.

        4. The Hon'ble High Court has awarded compensation
    under the following heads:
F                1.   Towards pain and suffering: Rs.20,000/-
                 2.    Loss of income from the period of treatment:
                       Rs.9,000/-
                 3.   Towards medical expenses, conveyance,
G                     nourishing food and attendant charges:
                      Rs.8,000/-
                 4.   Towards loss of amenities: Rs.35,000/-
                      Total: Rs.72,000/- + 8% p.a. interest from the
H                     date of the petition till realization.
  YADAVA KUMAR v. DIVISIONAL MANAGER, NATIONAL                 751
      INSURANCE [ASOK KUMAR GANGULY, J.]
     5. The material facts of the case are that, the appellant, a     A
painter by profession, was 30 years old at the time of
sustaining the injury in a road accident which took place on 24th
March 2003 while the appellant was standing on the side of
Nagavara Ring Road to cross it from south to north. The
offending Tempo bearing No.KA-04-C/6030 came at a great               B
speed from west to east and hit the appellant as a result of
which he fell down and sustained several injuries. The appellant
was rushed to Al-Habeeb Hospital where he was treated. The
claim petition was filed on 3rd February, 2006.

      6. About the nature of the injury sustained by the appellant,   C
the evidence of PW-2 Dr. S. Ranjanna, Orthopaedic Surgeon,
Bowring & Lady Curzon Hospital, Bangalore is very crucial.
PW-2 examined the appellant on 26.11.05. As per the wound
certificate and X-ray report of Al-Habeeb Hospital, Bangalore,
PW-2 noted that the appellant sustained the following injuries:       D

     "(1) Fracture of distal end of left radius with fracture of
     left ulnar styloid process.

     (2) Fracture of distal end of right radius with mild
     diastases is Radioulnar joint and soft tissue swelling           E
     around wrist joint."

      7. Even on examination on 26.11.05,which is after two and
a half years after the date of incident, PW-2 found the following
injuries on the appellant:                                            F

             (1)   Deformity of right wrist

             (2)   Limitation of right wrist movements by 40%

             (3)   Limitation of right forearm movements by
                                                                      G
                   30%

             (4)   Wasting of right forearm muscles by 3 ems

             (5)   Weak Right hand grip
                                                                      H
    752       SUPREME COURT REPORTS                   [2010] 10 S.C.R.


A                 (6)   Limitation of left wrist movement by 25%

                  (7)   Tenderness over left wrist

                  (8)   Instability of left in favour of Radio ulnar joint

B                 (9)   Weakness of left hand

       8. PW-2 opined that in view of the injuries the appellant
  cannot perform any hard work, cannot lift any weight and cannot
  perform any work smoothly and after referring to various
  guidelines in manual PW-2 opined that the appellant has
C disability of 33% of right upper limb and 21% to left upper limb
  and 20% total disability of the whole body. In view of such
  disability, appellant cannot work as a painter and cannot do any
  other manual work also. In cross-examination also PW-2
  admitted that even if the appellant continues his old vocation
D as a painter, he has to do it with difficulty.

          9. Both the Tribunal and the High Court have failed to
    incorporate any thing by way of compensation in the category
    of 'loss of future earnings' in spite of recognizing the fact that
E   there is disability of 33% in the right upper limb, 21 % in the left
    upper limb and 20% in respect of the whole body, which does
    not allow the appellant to paint as he did earlier.

         10. The Second Schedule under Section 163A of the
    Motor Vehicles Act, 1988 gives a structured formula for the
F   calculation of compensation in accident cases. Section 5 of the
    Schedule deals with disability in non-fatal accidents and reads
    as follows:

          "5. Disability in non-fatal accidents:
G                The following compensation shall be payable in
                 case of disability to the victim arising out of non-
                 fatal accidents: Loss of income, if any, for actual
                 period of disablement not exceeding fifty two
                 weeks.
H
 YADAVA KUMAR v. DIVISIONAL MANAGER, NATIONAL               753
     INSURANCE [ASOK KUMAR GANGULY, J.]

    PLUS either of the following:-                                  A

            (a)   In case of permanent total disablement the
                  amount payable shall be arrived at by
                  multiplying the annual loss of income by the
                  Multiplier applicable to the age on the date      B
                  of determining the compensation, or
                                  '
            (b)   In case of permanent partial disablement
                  such percentage of compensation which
                  would have been payable in the case of
                  permanent total disablement as specified          C
                  under item (a) above.

                  Injuries deemed to result in Permanent Total
                  Disablement/Permanent Partial Disablement
                  and percentage of loss of earning capacity        o
                  shall be as per Schedule I under Workmen's
                  Compensation Act, 1923."

      11. Thus, the multiplier method is to be applied in cases
of injuries also and it has been applied in a number of accident
cases by High Courts and this Court.                                E

      12. This Court in Sunil Kumar Vs. Ram Singh Gaud and
others - 2008 ACJ 9, awarded compensation in case of injury
for loss of future earnings and applied the multiplier method for
calculation of the same. The same principle was recognized          F
by this Court in Priya Vasant Kalgutkar Vs. Murad Shaikh &
Ors. - AIR 2010 SC 40.

     13. In Mukesh Kumar Sharma Vs. Ramdutt and Ors. -
2006 ACJ 1792, Madhya Pradesh High Court applied the
multiplier method keeping in mind the percentage by which the       G
injured person's earning capacity was reduced. A similar
calculation was made by the Division Bench of Karnataka High
Court in Syed Nisar Ahmed Vs. The Managing Director,
Bangalore Metropolitan Transport Corporation - 2003 5 Karn.
L.J. 186.                                                           H
    754       SUPREME COURT REPORTS                (2010] 10 S.C.R.

A      14. In this case, the appellant has sustained a fracture of
  distal end of left radius with fracture of left ulnar styloid process
  and fracture distal end of right radius with mild diastosis and
  soft tissues swelling around wrist joint. The doctor has
  assessed the disability at 33% in respect of the right upper limb
B and 21% towards left upper limb and 20% in respect of the
  whole body, which prevents the appellant from painting in view
  of multiple injuries sustained by him.

       15. The Hon'ble High Court while granting compensation
  refused to award any amount towards loss of future earning.
C Though that point was specifically urged before the Hon'ble
  High Court, the Hon'ble High Court refused any compensation
  towards loss of future earning by, inter alia, holding that:

          "We are of the view that, the said submission has no force
D         for the reason that, the appellant has not produced an iota
          of document to substantiate his stand."

        16. We are unable to agree with the aforesaid view of the
    High Court.
E      17. While assessing compensation in accident cases, the
  High Court or the Tribunal must take a reasonably
  compassionate view of things. It cannot be disputed that the
  appellant being a painter has to earn his livelihood by virtue of
  physical work. The nature of injuries which he admittedly
F suffered, and about which the evidence of PW-2 is quite
  adequate, amply demonstrates that carrying those injuries he
  is bound to suffer loss of earning capacity as a painter and a
  consequential loss of income is the natural outcome.

G       18. 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 a just compensation
  cannot be equated to a bonanza. At the same time the concept
H of 'just compensation' obviously suggests application of fair and
   YADAVA KUMAR v. DIVISIONAL MANAGER, NATIONAL               755
       INSURANCE [ASOK KUMAR GANGULY, J.]
 equitable principles and a reasonable approach on the part of        A
 the Tribunals and Courts. This reasonableness on the part of
 the Tribunal and Court must be on a large peripheral field. Both
 the Courts and Tribunals in the matter of this exercise should
 be guided by principles of good conscience so that the ultimate
 result become just and equitable (See Mrs. Helen C. Rebello          B
 and others Vs. Maharashtra State Road Transport Corpn. and
 another-AIR 1998 SC 3191).

      19. This Court also held that in the determination of the
  quantum of compensation, the Court must be liberal and not
  niggardly in as much as in a free country law must value life       C
  and limb on a generous scale (See Hardeo Kaur and others
· Vs. Rajasthan State Transport Corporation and another -
  (1992) 2 sec 567).

      20. The High Court and the Tribunal must realize that there     0
 is a distinction between compensation and damage. The
 expression compensation may include a claim for damage but
 compensation is more comprehensive. Normally damages are
 given for an injury which is suffered, whereas compensation
 stands on a slightly higher footing. It is given for the atonement   E
 of injury caused and the intention behind grant of compensation
 is to put back the injured party as far as possible in the same
 position, as if the injury has not taken place, by way of grant of
 pecuniary relief. Thus, in the matter of computation of
 compensation, the approach will be slightly more broad based         F
 than what is done in the matter of assessment of damages. At
 the same time it is true that there cannot be any rigid or
 mathematical precision in the matter of determination of
 compensation.

       21. Going by these principles, as we must, this Court is       G
 constrained to observe that in this case the approach of the
 High Court in totally refusing to grant any compensation for loss
 of future earning is not a correct one.

      22. This Court could have remanded the matter to the High       H
    756        SUPREME COURT REPORTS               (2010] 10 S.C.R.


A Court for assessment of compensation on the aforesaid lines
  but the accident took place in March 2003 and a remand to
  the High Court for determination of compensation will further
  delay the matter. Therefore, to shorten litigation, and having
  regard to this Court's power under Article 142 of the
B Constitution to do complete justice between the parties, this
  Court itself assesses the compensation as follows:

           Therefore, in the present case, the loss of future income
           may be calculated using the multiplier method as follows:

c                 Income of the appellant (as accepted by the High
                  Curt) is Rs.3,000/- p.m. Therefore, the yearly
                  income is Rs.36,000/-.

                  Multiplier according to age (30 years) as per
D                 Schedule is 17.

                 Thus, the total comes to:

                  Rs.36,000/- x 17   =Rs.6,12,000/-.\
E
                  Percentage of disablement is 20%

                 Therefore, loss of future earnings would come to
                 Rs.1,22,400/-.

        23. If this is added to the compensation provided by the
F   High Court in other categories, the total compensation comes
    to Rs.1,22,400/- + Rs.72,000/-, that is Rs.1,94,400/-.

      24. This Court, therefore, grants a lump sum of Rupees
  Two Lakhs by way of compensation plus 8% interest as
G granted by the High Court.

        25. The appeal is allowed to the extent indicated above.
    There will be no order as to costs.

    N.J.                                      Appeal partly allowed.
H