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Synopsis

The Supreme Court on February 7, 2025, enhanced compensation for a man from Rs 6.61 lakh to Rs 20.55 lakh under the Motor Vehicle Act after treating his functional disability to that of 80% as his right hand was amputated due to injuries in an accident in 2016.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra allowed an appeal against the Madhya Pradesh High Court's order of August 21, 2023.

As per facts of the matter, on September 25, 2016, at 8:45 p.m., the appellant, aged 25 years, was extracting soybean from the thresher machine installed in the tractor of respondent No.1, Sadiya.

The driver of the tractor, respondent No.2, reversed the vehicle in a rash and negligent manner, due to which the claimant-appellant’s hand went into the thresher machine and, thus, he suffered serious injuries on his hand, shoulder, head, near the ear and other parts of the body.

Subsequently, he was taken to Sanyog Hospital in Indore, and upon treatment, his hand was amputated below the elbow.

In connection with this incident, on October 4, 2016, an FIR was lodged against the driver of the offending vehicle – respondent No.2 at Police Station Depalpur, Indore under Sections 279, 337, 338, and 287 of the Indian Penal Code.

The claimant-appellant filed an application for compensation under the Motor Vehicle Act, seeking compensation to the tune of Rs 20,00,000, submitting therein that he was the only earning member of his family and due to the amputation, he was unable to carry out his daily routine.

He submitted that he was working as a labourer, earning Rs 9,000 per month at the time of the accident.

The Tribunal, by its judgment and order, held that the insurance company was liable to pay an amount of Rs 3,76,090, along with interest at rate of 6% considering 20% permanent disability suffered by the appellant. It took the appellant’s income as Rs 60,000 per annum on the basis of notional income.

Being aggrieved with the amount of compensation awarded, the claimant appellant filed an appeal before the high court on the ground that the Tribunal had incorrectly appreciated the permanent disability suffered by him, future prospects, and expenses incurred during the treatment.

The high court, by the order, enhanced the amount awarded to the claimant-appellant with an additional sum of Rs 2,85,600 towards compensation totalling up to Rs 6,61,690. The high court enhanced the percentage of disability suffered by him to 40%.

Yet dissatisfied, the claimant-appellant approached the apex court. He raised points of challenge including that as per the certificate, he had suffered 60% permanent disability, leading to 100% functional disability as he was unable to undertake his occupation as a labourer.

He also contended that his income should have been ascertained more than Rs 5000, as the minimum wage itself was Rs 6,850 in 2016.

After hearing counsel for the appellant, the bench said, "We are unable to agree with the view taken by the Tribunal and High Court on the income of the appellant and the functional disability suffered by him."

The bench referred to the exposition of the top court in Gurpreet Kaur and Ors Vs United India Insurance Company Ltd and Ors (2022), wherein it was stated the notifications under the Minimum Wages Act can be a guiding factor in cases where there is no evidence available to evaluate monthly income.

Adverting to the facts at hand, the court noted that the minimum wage prevalent in the area for unskilled workers was Rs 6850.

"In view of the exposition of this court, we are inclined to accept this submission of the appellant. On the aspect of his functional disability, this court recognises that due to the amputation of his right hand, his ability to work as a labourer would be significantly hampered. Therefore, in the interest of justice, we deem it appropriate to increase the percentage of functional disability to 80%," the bench said.

Case Title: Jitendra Vs Sadiya & Ors