Compensation for Functional Disability: Supreme Court Orders ₹10 Lakh Compensation to Injured Driver

The Supreme Court of India recently adjudicated upon a significant case concerning the compensation of a driver who suffered amputation of his right leg. The case, Arun Kumar Jha vs. Ranvir Singh & Anr., raised critical questions about functional disability and the entitlement to adequate compensation under the Workmen Compensation Act.

The appellant, Arun Kumar Jha, challenged the compensation awarded to him by the Commissioner of Workmen Compensation, which was limited to ₹3,87,187 along with a penalty. The crux of the matter was the extent of his functional disability and whether the amendment introduced in 2009 could be applied to his case, given that the accident occurred before the amendment.

Petitioner’s Arguments

The counsel for the appellant contended that his injury, which resulted in the amputation of his right leg below one-third of the thigh, effectively rendered him completely disabled from continuing his profession as a driver. The petitioner relied on the Supreme Court judgment in K. Janardhan v. United India Insurance Company Limited & Another [(2008) 8 SCC 518], which established that a driver suffering such an injury should be considered as having 100% functional disability. Accordingly, the petitioner sought a substantial increase in compensation, estimating his claim at around ₹20 lakh, including penalties.

Respondent’s Arguments

The Insurance Company, representing the respondents, strongly opposed the claim for higher compensation. They argued that the amendment introduced in 2009 could not be retrospectively applied to the case, as the accident occurred prior to the amendment. This formed the core of their legal defense against an enhanced compensation award.

Supreme Court’s Ruling

The Supreme Court, led by a bench comprising Justices Kurian Joseph, A.M. Khanwilkar, and Dr. Dhananjaya Y. Chandrachud, rejected the Insurance Company’s contention. The court referred to Kalema Tumba v. State of Maharashtra & Another [(1999) 8 SCC 257], which set a precedent that amendments beneficial to claimants should be interpreted in their favor.

The Court observed:

“Being a driver, in the nature of injury resulting in amputation of the right leg below one-third of the thigh, there cannot be any dispute that there is 100% functional disability.”

Taking into account the entire circumstances, the Supreme Court ruled that the appellant was entitled to a lump sum compensation of ₹10 lakh. The court directed the Insurance Company to pay this amount within three months. Additionally, if the payment was delayed beyond this period, an interest rate of 12% per annum from the date of the accident would apply.

Final Decision

The appeal was thus allowed, and the Supreme Court enhanced the compensation amount significantly in favor of the injured driver.

Conclusion

This judgment reinforces the principle that functional disability should be assessed in terms of the claimant’s profession and that legal interpretations should favor victims in cases of ambiguity. The Supreme Court’s decision ensures justice for injured workers and sets a precedent for future compensation cases.

Petitioner Name: Arun Kumar Jha.
Respondent Name: Ranvir Singh & Anr..
Judgment By: Justice Kurian Joseph, Justice A.M. Khanwilkar, Justice Dr. Dhananjaya Y. Chandrachud.
Judgment Date: 01-11-2018.

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