S. THANGARAJ versus NATIONAL INSURANCE CO. LTD. REP. BY THE BRANCH MANAGER

Citation: [2018] 3 S.C.R. 12 · Decided: 06-03-2018 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

Cited by 7 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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SUPREME COURT REPORTS
[2018] 3 S.C.R.
S. THANGARAJ
v.
NATIONAL INSURANCE CO. LTD. REP. BY
THE BRANCH MANAGER
(Civil Appeal No. 3152 of 2017)
MARCH 06, 2018
[DIPAK MISRA, CJI, A.M. KHANWILKAR AND
DR. D.Y. CHANDRACHUD, JJ.]
Motor Vehicles – Disability sustained as a result of motor
accident – Appellant-victim, a loadman engaged by a building
contractor, was 26 years old at the time of the accident – Tribunal
determined the disability at 70%, and granted compensation of
Rs 11,27,359/- with interest @ 12% per annum – High  Court reduced
the interest awarded by the Tribunal to 7.5% per annum while
maintaining the award of compensation – On appeal, held: Injuries
sustained by appellant are serious – As a result of multiple fractures
sustained by him, appellant has lost complete sensation below the
abdomen – Evidently he cannot work anymore as loadman – In the
circumstances, assessment of disability at 70% is incorrect – On a
realistic view of the matter, the nature of the disability must be
regarded as being complete – Compensation granted by Tribunal
accordingly enhanced by Rs 3,00,000/- — Appellant entitled to
interest @ 9 % per annum, on total amount of compensation (instead
and in substitution of 7.5% per annum awarded by the High Court).
The appellant sustained serious injuries in a motor accident.
The Tribunal computed the compensation payable to the appellant
on account of the loss of income occasioned by the disability at
Rs 9,72,000/-.  However, on the basis of the opinion of the doctor
that the disability was to the extent of 70%, the net amount was
determined at Rs 6,80,400/-. After taking into account the medical
and other expenses, the Tribunal awarded a total compensation
of Rs 11,27,359/- together with interest of 12% per annum.  The
High Court maintained the award of compensation but reduced
the interest component from 12% per annum to 7.5% per annum.
  [2018]  3 S.C.R. 12
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In appeal to this Court, the appellant pleaded that the High Court
has not assessed the compensation in a correct manner.
Allowing the appeal, the Court
HELD : 1. The submission of the insurer that there was a
concession on the part of the appellant before the High Court
which must bind him, cannot be accepted. The statement made
by counsel for the appellant before the High Court was on whether
the Tribunal had granted just and reasonable compensation.
Whether in fact the compensation which has been granted is just
and reasonable cannot hence be construed as a matter of
concession and it would not preclude the appellant from raising a
contest in these proceedings. [Para 7] [15-D-E]
2. On perusing the record it is evident that the injuries
sustained by the appellant are indeed of a serious nature.  As a
result of the multiple fractures sustained by him, the appellant
has lost complete sensation below the abdomen.  Evidently he
cannot work anymore as loadman.  In these circumstances, the
assessment of disability at 70 per cent is incorrect. On a realistic
view of the matter, the nature of the disability must be regarded
as being complete.  In the circumstances, there is no reason or
justification for the deduction of an amount of Rs.2,91,600/-  by
the Tribunal (Rs. 9,72,000/- minus Rs 6,80,400/-).  The amount
so deducted must be restored and is rounded off to Rs. 3,00,000/-.
Moreover, the appellant is entitled to interest at the rate of 9 per
cent per annum from the date of the claim petition.  [Para 8]
[15-F-H]
CIVIL APPELLATE JURISDICTION:  Civil Appeal No. 3152
of 2017.
From the Judgment and Order dated 05.06.2012 of the High Court
of Madurai Bench of Madras in Cross Objection No. 24 of 2012 in
CMA (MD) No.499 of 2008.
R. Nedumaran, Adv for the Appellant.
Ambhoj Kumar Sinha, Adv for the Respondent.
S. THANGARAJ  v. NATIONAL INSURANCE CO. LTD.
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
The Judgment of the Court was delivered by
DR. D.Y. CHANDRACHUD, J. 1. Delay condoned.
2. The claim arises out of a disability sustained as a result of a
motor accident.  The Tribunal granted compensation to the claimant in
the amount of Rs 11,27,359 together with interest at 12 per cent per
annum.  The High  Court has simply reduced the interest awarded by
the Tribunal to 7.5 per cent per annum while maintaining the award of
compensation. The claimant is in appeal.
3. The accident took place on 1 August 2004.  The appellant was
26 years old at the time of the accident.  The accident took place when
the

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