ORIENTAL INSURANCE CO. LTD. versus MOHD. NASIR AND ANR.

Citation: [2009] 8 S.C.R. 829 · Decided: 12-05-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Disposed off
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Judgment (excerpt)

• 
[2009] 8 S.C.R. 829 
~ 
A 
ORIENTAL INSURANCE CO. LTD. 
v. 
MOHD. NASIR AND ANR. 
(Civil Appeal No.3486 of 2009) 
MAY 12, 2009 
B 
[S.B. SINHA AND DR. MUKUNDAKAM SHARMA, JJ.] 
Workmen Compensation Act, 1923/Motor Vehicle Act, 
1988: 
c 
Disability -
Compensation -
Both the Acts are 
beneficient legislations in so far as they provide for payment 
of compensation - Both the statutes provide for the mode and 
manner in which the percentage of loss of earning capacity 
D 
is required to be calculated - While determining the amount 
of loss of earning capacity, the Tribunal or High Court must 
record reasons for arriving at the conclusion. 
Words and Phrases: 
'permanent total disablement' and 'permanent partial 
E 
disablement' - Distinction between. 
National Insurance Co. Ltd. v. Mubasir Ahmed & Anr. 
(2007) 2 SCC 349; Ramprasad Balmiki v. Anil Kumar Jain 
& Ors. (2008) 9 SCC 492; Shyama Devi v. Union of India & 
F 
Anr. (2005) 12 SCC 217; Nagappa v. Gurudaya/ Singh & Ors. 
(2003) 2 SCC 274; Syed Bashee Ahmed & Ors. v. Mohd. 
Jameel & Anr. (2009) 2 SCC 225; National Insurance Co. Ltd. 
v. Laxmi Narain Dhut (2007) 3 SCC 700; Punjab State 
Electricity Board Ltd. v. Zora Singh & Others (2005) 6 SCC 
G 
. 
~ 
776 and State of Haryana & Ors. v. shakuntla devi (2008) 13 
SCALE 621, referred to. 
829 
H 
830 
SUPREME COURT REPORTS 
[~009] 8 $.C.R. 
' 
A 
Case Law Reference : 
(2001) 2 sec 349 
Referred to 
Para 15 
(2008) 9 sec 492 
Referred to 
Para 17 
B 
(2oos) 12 sec 211 
Referred to 
Para 25 
(2003) 2 sec 214 
Referred to 
Para 27 
>~ 
(2009) 2 sec 225 
Referred to 
Para 27 
(2001) 3 sec 100 
Referred to 
Para 27 
c 
(2005) s sec 11s 
Referred to 
Para 27 
(2008) 13 SCALE 621 
Referred to 
Para 27 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
D 3486 of 2009. 
From the Judgment & Order dated 24.02.2006 of the High 
Court of Judicature at Allahabad in First Appeal from order No. 
516 of 2006. 
E 
WITH 
C.A. No. 3495, 3496, 3484, 3497/2009. 
Dr. Meera Agarwal and Ramesh Chandra Mishra for the 
F 
Appellant. 
A.V. Rao, Prabhakar P. Arnam, Venkateswara Rao 
Anumolu, G.V.R. Choudhary, K. Shivraj Choudhuri, R. Santhana 
Krishnan, P. Radha Rani P. Vijava Kumar, Praveen Kumar 
Pandey, D. Mahesh Babu, K. Sarada Devi, Sushil Bahvada and 
G Brij Bhusan for the Respondents. 
' 
The Judgment of the Court was delivered by 
S.B. SINHA, J. 1. Leave granted. 
H 
.. 
ORIENTAL INSURANCE CO. LTD. v. MOHD. NASIR 
831 
... 
AND ANR. [S.B. SINHA, J.] 
2. Applicability of the respective provisions of the 
A 
Workmen Compensation Act, 1923 (1923 Act) and Motor 
Vehicles Act, 1988 (1988 Act) in respect of the claimants who 
had suffered disability is the question involved in this appeal. 
3. The factual matrix involved in these cases would be 
B 
noticed by us separately . 
• 
SLP (C) N0.11215 OF 2006 
. 
First respondent in this appeal was the driver of a truck 
bearing registration No.UP-21-9636. Respondent No.2 was its c 
owner. An accident took place on 2.10.2004 wherein first 
respondent suffered an injury in his right leg besides others. He 
filed an application for award of compensation in terms of the 
provisions of the 1923 Act before the Commissioner of 
; 
Workmen Compensation, Moradabad claiming a sum of D 
Rs.1,50,000/- with interest. The Commissioner opined that 
-.although the workmen had suffered 15% disability but loss of 
his earning capacity was 100%. Noticing that he was aged 
about 35 years and his salary was Rs. 3,200/- per month, a sum 
,_ 
of Rs. 3,78,355.20 was awarded with interest at the rate of 12% 
per annum from the date of accident till payment. 
E 
The High Court dismissed the appeal in limine. 
SLP (C} N0.16171 OF 2006 
Respondent No.1 was a cleaner in a truck. It collided with 
F 
a tanker on 17.7.2002 resulting in fracture of his femur right 
thigh. Respondent No.1 was hospitalized from 19.7.2002 to 
7.8.2002. He filed claim petition under the 1923 Act for a sum 
of Rs.3,00,000/-. 
G 
By an order dated 8.9.2003, the Commissioner awarded 
a sum of Rs.93,302/- on the premise that he was aged 22 years 
and his income was Rs.2003/- per month. Although the disability 
was determined at 20% to 25%, the loss of earning capacity 
H 
832 
SUPREME COURT REPORTS 
[2009] 8 S.C.R. 
A was de!termined at 35%. The doctor who had treated him, in 
his deposition, stated that disability of the first respondent was 
between 20% to 25%. 
The High Court, by reason of its impugned judgment dated 
8 
14.6.2006 determined his loss
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