Effect of permanent disability on earning capacity of injured must be considered while awarding compensation under MV Act: SC  

Supreme Court: The Bench comprising of Rohinton Fali Nariman and Indu Malhotra, JJ. allowed an appeal filed against the order of Bombay High Court passed in a claim under Motor Vehicles Act, 1988.

The appellant, 29 years of age, suffered multiple injuries in an accident with a car driven by Respondent 1. He suffered permanent disability to the extent of 75%. The Courts below found, on evidence, that Respondent 1 was driving the car rashly and negligently. As a consequence, the appellant lost his livelihood – job of a driver. It is pertinent to note that before the accident, he was drawing a monthly salary of Rs 8500. The appellant filed a claim petition before the Motor Accident Claims Tribunal which was partly allowed. However, dissatisfied with the quantum of compensation, an appeal was filed before the High Court which erroneously concluded that it would be just and appropriate if monthly income of the appellant was considered to be Rs 5000. Aggrieved thus, the appellant filed the instant appeal.

The Supreme Court, at the outset, observed that in cases of motor accidents leading to injuries and disablement, it is a well-settled principle that a person must be compensated for physical injuries as well as non-pecuniary losses suffered due to the injury. It was reiterated that the purpose of compensation under the Act is to fully and adequately restore the aggrieved to the position prior to the accident. Reference was also made to Yadav Kumar v. National Insurance Co. Ltd., (2010) 10 SCC 341; Sarla Verma v. DTC, (2009) 6 SCC 121 and Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343. It was held that effect of permanent disability on the earning capacity of the injured must be considered while awarding the compensation. Considering all the facts, the Supreme Court computed the just compensation amounting to Rs 20,29,000 to be awarded to the appellant. The civil appeal was accordingly allowed. [Anant v. Pratap,  2018 SCC OnLine SC 1082, dated 21-08-2018]

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