SUNIL KUMAR versus RAM SINGH GAUD AND ORS.

SUNIL KUMAR versus RAM SINGH GAUD AND ORS.

The Tribunal and High Court erred by not awarding compensation for loss of earning capacity due to permanent disability. The correct approach is to assess the prospective loss of income using the established multiplier method based on age and degree of disability as per the Second Schedule to Section 163A. Hence, additional compensation for loss of income is awarded.

Parties
Appellant: Sunil Kumar; Respondent: Ram Singh Gaud and Ors.
Jurisdiction
India
Judgment Date
02 November 2007
Procedural Posture
Civil Appeal / From the Final Judgment and Order of the High Court of Madhya Pradesh at Jabalpur Dismissing Appeal; Before Supreme Court on Appeal
Outcome
appeal allowed; order of lower courts modified
Legal Topics
Compensation for Permanent Disability, Assessment of Earning Capacity, Multiplier Method, Motor Vehicle Accident Claim
Motor Vehicles Law Tort Law Compensation for Permanent Disability Assessment of Earning Capacity Multiplier Method Motor Vehicle Accident Claim

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Parties

Sunil Kumar

Appellant

Ram Singh Gaud and Ors.

Respondent

Procedural Posture

Civil Appeal / From the Final Judgment and Order of the High Court of Madhya Pradesh at Jabalpur Dismissing Appeal; Before Supreme Court on Appeal

Legal Issues

  1. 1 Whether compensation awarded by MACT and High Court was inadequate for loss of future earning resulting from permanent disability.
  2. 2 Whether appellant is entitled to additional compensation towards loss of earning capacity due to injuries in a motor vehicle accident.

Ratio Decidendi

The Tribunal and High Court erred by not awarding compensation for loss of earning capacity due to permanent disability. The correct approach is to assess the prospective loss of income using the established multiplier method based on age and degree of disability as per the Second Schedule to Section 163A. Hence, additional compensation for loss of income is awarded.

Court Disposition

appeal allowed; order of lower courts modified

Orders

  • Appellant awarded additional sum of Rs.2,59,200/- towards loss of future income with interest at 6% per annum from date of claim petition till realization, in addition to amounts already awarded by Tribunal and upheld by High Court.