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RAMACHANDRAPPA versus THE MANAGER, ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LIMITED

Citation: [2011] 9 S.C.R. 922 · Decided: 09-08-2011 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Case Partly allowed

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Judgment (excerpt)

[2011] 9 S.C.R. 922 
A 
RAMACHANDRAPPA 
• • 
v. 
THE MANAGER, ROYAL SUNDARAM ALLIANCE 
INSURANCE COMPANY LIMITED 
(Civil Appeal No 6481 of 2011) 
B 
AUGUST 9, 2011 
~ 
~ 
[G. S. SINGHVI AND H.L. DATIU, JJ.] 
MOTOR VEHICLES ACT, 1988: 
c 
s. 166 - Motor accident - Permanent disability- Suitable 
compensation - Expression 'disability' - Connotation of -
Claimant, a coolie, aged about 35 years, suffered grievous 
injuries - Permanent physical disability of right upper limb -
D Tribunal awarded total compensation of Rs. 1, 13,9001- - High 
Court enhanced the compensation to Rs. 1,33,9001- - Held: 
Compensation to be awarded is not measured by the nature, 
location' or degree of the injury, but rather by the extent or 
degree of the incapacity resulting from the injury - Tribunals 
E 
are expected to make an award determining the amount of 
compensation which should appear to be just, fair and proper 
- In the instant case, the claim of claimant that his annual 
income was Rs.45001- is honest and bona fide - The doctor 
assessed permanent physical disability at 41% and stated that 
~ .. 
F 
the claimant cannot do any manual work as a coolie - Taking 
into consideration the future economic loss, the claimant 
would suffer because of permanent partial disability, the 
medical expenses incurred, pain and sufferings, loss of 
income during treatment, period of loss of future amenities 
G 
and discomfort, interest of justice will be served if an additional 
amount of Rs.2,00,0001- is granted to the appellant by way of 
compensation -Insurance company directed to deposit before 
.. 
the Tribunal the enhanced compensation amount together 
with interest from the date of petition till the date of deposit. 
H 
922 
RAMACHANDRAPPA~MANAGER,ROYALSUNDARAM 923 
ALLIANCE INSURANCE CO. LTD . 
• .J 
The appellant, who was aged about 35 years and A 
was working as a coolie, met with a motor accident and 
was grievously injured. He filed a petition stating that his 
right hand was completely disabled and he was unable 
to do the work of coolie; and claimed a compensation of 
-.. 
Rs. 5,50,000/-. In support of his claim, he examined the B 
doctor (PW 2), who deposed that the appellant could not 
work as a coolie by using his right hand and could not 
do any other manual work. The Tribunal awarded a total 
compensation of Rs. 1, 13,900/·. On appeal, the High 
Court enhanced the compensation to Rs. 1,33,900/·. 
c 
Partly allowing the appeal filed by the claimant, the 
Court 
., 
HELD: 1.1 The compensation is usually based upon 
the loss of the claimant's earnings or earning capacity, D 
or upon the loss of particular faculties or members or use 
of such members, ordinarily in accordance with a definite 
schedule. The courts have time and again observed that 
the compensation to be awarded is not measured by the 
nature, location or degree of the injury, but rather by the E 
extent or degree of the incapacity resulting from the 
injury. The Tribunals are expected to make an award 
.. 
"' 
determining the amount of compensation which should 
appear to be just, fair and proper. [para 8) [928-E-F] 
1.2 The term "disability", as so used, ordinarily F 
means loss or impairment of earning power and has been 
held not to mean loss of a member of the body. ·1f the 
physical efficiency because of the injury has substantially 
impaired or if the claimant is unable to perform the same 
work with the same ease as before he was injured or is G 
unable to do heavy work which he was able to do 
previous to his injury, he will be entitled to suitable 
compensation. Disability benefits are ordinarily graded on 
the basis of the character of the disability as partial or 
total, and as temporary or permanent. No definite rule can H 
924 
SUPREME COURT REPORTS 
[2011] 9 S.C.R. 
A be established as to what constitutes partial incapacity 
•• 
in cases not covered by a schedule or fixed liabilities, 
since facts will differ in practically every case. [para 9] 
[928-G-H; 929-A-B] 
B 
Ramesh Chandra Vs. Randhir Singh 1990 (3) SCR 1 = 
(1990) 3 SCC 723; KG. Poovaiah (Or) v. G.M./Managing 
,. 
'-
Director, Kamataka KSRTC, (2001) 9 SCC 167; Kapi/ Kumar 
v. Kudrat Ali, (2002) 4 SCC 337, Raj Kumar v. Ajay Kumar, 
2010 (13) SCR 179 = (2011) 1 sec 343 - relied on. 
c 
1.3 In the instant case, it is not in dispute that the 
appellant was aged about 35 years and was working as 
·a coolie and was earning Rs.4500/- per month at the time 
of accident. This claim is reduced by the T

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