SRI NAGARAJAPPA versus DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. LTD.

Citation: [2011] 6 S.C.R. 70 · Decided: 11-04-2011 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Appeal(s) allowed

Cited by 3 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
8 
(2011] 6 S.C.R. 70 
SRI NAGARAJAPPA 
v. 
DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. 
LTD. 
(Civil Appeal No.3203 of 2011) 
APRIL 11, 2011 
[G.S. SINGHVI AND ASOK KUMAR GANGULY, JJ.] 
Motor Vehicles Act, 1988 - s.166 - Compensation -
C Adequacy of- Due to motor accident, appellant-claimant, who 
was working as a coolie, suffered from gross deformity of his 
left upper limb - Doctor assessed permanent residual 
physical disability of the appellant's upper limb at 68% and 
his whole body at 22-23% - Tribunal took the income of 
D appellant to be Rs.3,0001- p.m., his disability at 20%, and his 
age as 55 years (for which it adopted a multiplier of 11) and 
accordingly calculated loss of future income to be 
Rs. 79,2001- and total compensation to be Rs.1, 70,2001- -
High Court, however, took the age of the appellant to be 50 
E years and adopting a multiplier of 13, calculated loss of future 
income at Rs.93,0001- and enhanced total compensation to 
Rs.2,22,6001- - Held: Total compensation awarded by the 
High Court was inadequate considering the nature of injuries 
suffered by the appellant and the consequent adverse effect 
F it had on the performance of his avocation - Appellant is a 
manual labourer, for which he requires the use of both his 
hands but the accident left him with one useless hand - This 
disability is bound to affect the quality of his work and also 
his ability to find work - Hence, while computing loss of future 
G income in respect of the appellant, disability should be taken 
to be 68% and not 20%, as was done by the Tribunal and the 
High Court - Amount towards loss of future income enhanced 
to Rs.3, 18,2401- - Total compensation raised to Rs.4, 77,6401 
- (rounded off to Rs.4, 77, 0001-) to be paid at an interest of 6% 
from the date of claim petition till realization. 
H 
70 
NAGARAJAPPAv. DIVISIONAL MANAGER, ORIENTAL 
71 
INS. CO. LTD. 
The appellant was working as a coolie. He met with 
A 
a motor accident and sustained multiple injuries. He filed 
claim petition under Section 166 of the Motor Vehicles 
Act, 1988 claiming compensation of Rs.5 lacs showing 
monthly in;:ome of Rs.4500/- p.m. The Tribunal found that 
the appellant had sustained injuries of compound fracture 
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of ulnar styloid process of the left hand and subluxation 
of the left. wrist and that the doctors assessed· disability 
at' 23% ·of the whole body and accordingly awarded 
Rs.20,000/- for loss of amenities, Rs.30,000/- for pain and 
suffering, Rs.30,000/- for medical expenses and c. 
conveyance and Rs.2,000/- for future medical treatment. 
For loss l)f income during the period of treatment, _the 
Tribunal found that due to the nature of the disability, the 
appellant was unable to work as a coolie or do other 
manual work; that since appellant was an indoor patient D 
for 55 days the Tribunal presumed that he was .unable to 
work for 3 months and further, though the appellant 
claimed to be earning Rs.4,500/- p.m., it was not 
supported by documentary evidence. Hence, the Tribunal 
presumed his income to be Rs.3000/- p.m. and awarded 
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Rs.9,000/- for loss of income during the period of 
treatment. For computation of loss of future income due 
to disability, the Tribunal took into consideration that 
disability of the whole body of the appellant had been 
assessed at 23%, however, his right hand was still free 
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to work and thus, It assessed disability at 20%. Taking 
the age of the appellant to be around 55 years at the time 
of the accident, the Tribunal adopted a multiplier of 1 ~. 
Accordingly, loss of future income was calculated to be 
Rs.79,200/- (Rs.3000/- X 12 X 11 X 20/100) and the total· G 
compensation at Rs.1,70,200/-. 
On appeal, the High Court enhanced compensation 
for pain and suffering, medical expenses, future medical 
expenses, Joss of amenities and loss of future income as 
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SUPREME COURT REPORTS 
[2011] 6 S.C.R. 
A against the amount awarded by the Tribunal. For loss of 
future Income, the High Court took the age of the 
appellant to be 50 years and adopted a multiplier of 13, 
Income as Rs.3000/· p.m. and disability @ 20%. 
Accordingly, loss of future Income was calculated at Rs. 
B 93,6001·. Compensation was thus enhanced to 
Rs.2,22,600/-. Still dissatisfied, the appellant filed the 
instant appeal praying for further enhancement of 
compensation. 
c 
D 
Allowing the appeal, the Court 
HELD:1. Rs.2,22,600/· awarded by the High Court is 
inadequate considering the nature of injuries

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