Supreme Court Increases Compensation for Chartered Accountant Injured in Road Accident

Introduction

In a significant ruling, the Supreme Court of India increased the compensation awarded to a Chartered Accountant who suffered severe injuries in a road accident. The case highlights the legal principles involved in determining compensation for permanent disability due to motor vehicle accidents.

Background of the Case

The appellant, Sandeep Khanuja, was injured in a motor accident on July 8, 2006, when a Hyundai Getz car, driven negligently by respondent No. 1, hit his scooter. The accident resulted in multiple fractures in both his legs, leading to a permanent disability of 70%. He filed a claim for compensation before the Motor Accidents Claims Tribunal (MACT), which awarded him Rs. 5,35,227 under various heads, including medical expenses, loss of income, and permanent disability.

Appeal Before the High Court

Dissatisfied with the compensation amount, the appellant approached the High Court. The High Court, while acknowledging his injuries and their impact, increased the compensation to Rs. 6,35,000 but did not apply the multiplier method for determining future loss of income.

Supreme Court’s Ruling

Unsatisfied with the High Court’s approach, the appellant appealed to the Supreme Court, arguing that proper legal principles, including the multiplier method, should have been applied. The Supreme Court observed:

• The appellant was a Chartered Accountant, and his disability significantly impacted his professional mobility and efficiency.
• The MACT and High Court failed to consider the long-term impact of his disability on his earnings.
• Using the multiplier method, the Court recalculated the compensation, considering his permanent disability of 70%.

Final Compensation Awarded

The Supreme Court revised the compensation as follows:

The Supreme Court also ordered that interest be paid on the revised amount as awarded by the High Court.

Conclusion

This judgment underscores the importance of applying appropriate legal principles when determining compensation for accident victims. The Supreme Court’s application of the multiplier method ensured a fairer and more just compensation for the appellant.

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Download Judgment: Sandeep Khanuja vs Atul Dande & Anr. Supreme Court of India Judgment Dated 02-02-2017.pdf