Court Enhances Compensation for Amputee Victim in Motor Accident: A Landmark Judgment

The case of Mohd. Sabeer @ Shabir Hussain versus Regional Manager, U.P. State Road Transport Corporation revolves around a tragic road accident that left the appellant with severe injuries, including a 70% permanent disability due to the amputation of his right leg. The Supreme Court of India, in its final judgment, substantially enhanced the compensation previously awarded by the lower courts. This case not only highlights the importance of just compensation but also sets a precedent for how courts should assess functional disability and its impact on an individual’s earning capacity.

Background of the Case

The appellant, a scrap dealer, was traveling on a bus from his native place Noor Pur, Gajrola to Delhi. The bus driver, in a rash and negligent manner, collided with a parked tempo near the Jindal Pipe Factory in Ghaziabad. The accident, which occurred at around 12:30 am, resulted in grave injuries to the appellant and other passengers. At the time of the accident, the appellant was 37 years old and earning approximately Rs. 10,000 per month.

Following the accident, the appellant was diagnosed with multiple injuries, including a crushed right leg, fractures in the tibia, and exposed blood vessels. Due to the severity of the injuries, his right lower limb had to be amputated, leaving him permanently disabled.

Legal Proceedings and Compensation Awarded

In response to the accident, the appellant filed a claim petition before the Motor Accident Claims Tribunal (MACT) at Dwarka Court, New Delhi, seeking compensation of Rs. 20,00,000/-.

The MACT, after reviewing the evidence, concluded that the accident was indeed caused by the negligence of the bus driver. Consequently, the tribunal awarded Rs. 15,76,465/- as compensation with an interest of 7.5% per annum. The breakdown of this amount was as follows:

Cost of artificial limb and maintenance: Rs. 5,70,000/-
Loss of future earnings: Rs. 6,09,345/-
Medical expenses: Rs. 57,650/-
Attendant charges: Rs. 11,802/-
Conveyance: Rs. 10,000/-
Special diet: Rs. 15,000/-
Pain and suffering: Rs. 1,00,000/-
Loss of amenities of life: Rs. 1,00,000/-
Loss due to disability and disfigurement: Rs. 1,00,000/-

High Court’s Modifications

Dissatisfied with the tribunal’s ruling, the appellant appealed to the Delhi High Court (MAC App. No. 444/2013), arguing that the tribunal had miscalculated his loss of earning capacity and future prospects.

The High Court revised the compensation, enhancing it to Rs. 16,70,932/- with an increased interest rate of 9% per annum. The court also reassessed the appellant’s functional disability and future earnings capacity. However, the appellant, believing that the revised compensation was still inadequate, filed a review petition (Review Petition No. 391 of 2018), seeking Rs. 20,00,000/-. The High Court dismissed the review petition, prompting the appellant to approach the Supreme Court.

Supreme Court’s Verdict

Before the Supreme Court, the appellant argued that:

The High Court erroneously assessed his loss of earning capacity at 35% despite his 70% permanent disability.
The compensation for the purchase and maintenance of the prosthetic limb was grossly insufficient.
The amounts awarded for pain and suffering, disability, and disfigurement were inadequate.

The respondents countered these claims, stating that:

The appellant’s disability did not significantly affect his earning potential as he operated a scrap dealership from a fixed location.
His income had actually increased after the accident, negating claims for future loss of earnings.
The appellant had already sought a review before the High Court, which was rightfully dismissed.

Analysis and Key Observations by the Supreme Court

The Supreme Court carefully examined the evidence and held that the High Court had erred in assessing the appellant’s functional disability at 35%. The Court noted:

“The functional disability of the Appellant will severely impact his earning capacity, and the 35% functional disability calculated by the High Court is incorrect in the facts and circumstances of the case. In our view, the loss of future earning capacity must be calculated at 60%.”

Additionally, the Court ruled that the High Court incorrectly denied future prospects compensation. Citing National Insurance Co. Ltd. v. Pranay Sethi, the Court held that the appellant was entitled to a 40% enhancement under future prospects.

Final Compensation Awarded

Based on its findings, the Supreme Court awarded Rs. 38,70,120/- in compensation, detailed as follows:

Cost of artificial limb and maintenance: Rs. 12,80,000/-
Loss of earning capacity due to functional disability: Rs. 11,34,000/-
Future prospects: Rs. 7,61,668/-
Medical expenses: Rs. 57,650/-
Attendant charges: Rs. 11,802/-
Conveyance: Rs. 10,000/-
Special diet: Rs. 15,000/-
Pain and suffering: Rs. 2,00,000/-
Loss of amenities of life: Rs. 2,00,000/-
Disability and disfigurement: Rs. 2,00,000/-

Conclusion

The Supreme Court’s ruling in this case underscores the importance of considering functional disability holistically when awarding compensation. It sets a precedent that courts must take into account not just the medical percentage of disability but also how it impacts the individual’s ability to earn and live a normal life.

This judgment ensures that accident victims are adequately compensated, particularly those from economically weaker backgrounds who face additional hardships. By enhancing the compensation significantly, the Supreme Court has reinforced the principle of “just compensation” under the Motor Vehicles Act.

Petitioner Name: Mohd. Sabeer @ Shabir Hussain.
Respondent Name: Regional Manager, U.P. State Road Transport Corporation.
Judgment By: Justice Krishna Murari, Justice S. Ravindra Bhat.
Place Of Incident: Ghaziabad.
Judgment Date: 09-12-2022.

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