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Equivalent Citations
citation codes
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Disposition
Attorney(S)
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Acts
  • Section 168(1) of the Motor Vehicles Act, 1988
  • Section 110-B of the Motor Vehicles Act, 1939
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 168(1) of the Motor Vehicles Act, 1988
  • Section 110-B of the Motor Vehicles Act, 1939
Smart Summary

Factual and Procedural Background

On 21 May 1998 the appellant sustained multiple injuries in a motor vehicle accident involving a bus owned by Tamil Nadu State Transport Corporation (Villupuram Division III), Kancheepuram. He sought compensation of Rs 12 lakh before the Motor Accidents Claims Tribunal, Chennai in O.P. No. 3868 of 1998.

By award dated 20 December 2000, the Tribunal found the Corporation’s driver negligent and awarded the appellant Rs 5,05,053.45, which included Rs 1,50,000 for “permanent disability.”

The Corporation appealed (CMA No. 103 of 2001) disputing quantum, while the claimant cross-appealed (CMA No. 122 of 2001) for enhancement. On 13 December 2006 the High Court of Madras disposed of both appeals by reducing the overall compensation by Rs 1,00,000 to Rs 4,05,053.45, holding that a separate award for permanent disability could not stand alongside the sum granted for loss of earning capacity.

The claimant sought special leave and these appeals followed, limited to reinstating the amount deleted by the High Court.

Legal Issues Presented

  1. Whether the claimant is entitled to an additional Rs 1,00,000 (originally part of the Tribunal’s Rs 1,50,000 award for permanent disability) in addition to the compensation already granted for loss of earning capacity.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Cholan Roadways Corpn. Ltd. v. Ahmed Thambi, (2006) 4 CTC 433 (Mad.) (Full Bench) Held that compensation for permanent disability may overlap with loss of earning capacity. The High Court had relied on this decision to delete Rs 1,50,000 for permanent disability. The Supreme Court distinguished its effect, emphasising that separate heads can coexist.
Ramesh Chandra v. Randhir Singh, (1990) 3 SCC 723 Recognised that damages for pain, suffering and loss of enjoyment of life are distinct from loss of earnings. The Supreme Court invoked this precedent to reaffirm that compensation for permanent disability (pain, suffering, loss of amenities) is a separate head and does not merge into loss of earning capacity.

Court's Reasoning and Analysis

The Supreme Court confined its inquiry to quantum. It noted:

  • Medical evidence (Exts. P-9 & P-10) showed 85% permanent disability, including partial loss of eyesight and amputation of the middle finger of the right hand.
  • The appellant’s occupation as a foreman required manual dexterity and normal vision; thus the injuries affected both his earning capacity and everyday activities.
  • Drawing on Ramesh Chandra, the Court stressed the legal distinction between (a) impairment of earning capacity and (b) pain, suffering and loss of amenities flowing from permanent disability.
  • Consequently, a separate award for permanent disability is permissible even after calculating loss of earning capacity.

The Court found the Tribunal’s award of Rs 1,50,000 for permanent disability “fully justified” and held the High Court erred in deleting Rs 1,00,000 of that amount.

Holding and Implications

Holding: The appeals are allowed; the Tribunal’s original award of Rs 5,05,053.45 with interest is restored. The respondent-Corporation must deposit the balance, if unpaid, within two months.

Implications: The decision re-affirms that compensation for permanent disability is distinct from, and can coexist with, compensation for loss of earning capacity. It provides guidance to Tribunals and High Courts on segregating these heads and may deter unwarranted deductions in similar motor accident claims. No new legal test was formulated, but the Court clarified application of existing principles.

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    B. Kothandapani v. Tamil Nadu State Transport Corporation Limited .

    P. Sathasivam, J.— Leave granted. These appeals are directed against the judgment and final order dated 13-12-2006 passed by the High Court of Judicature of Madras in CMAs Nos. 103 and 122 of 2001 in and by which the High Court modified the award of the Tribunal i.e from Rs. 5,05,053.45 to Rs. 4,05,053.45 as compensation payable to the appellant claimant.

    Brief facts

    2. The appellant claimant sustained grievous injuries in a motor vehicle accident, which occurred on 21-5-1998 for which he made a claim before the Motor Accidents Claims Tribunal, Chennai (hereinafter referred to as “the Tribunal”) in OP No. 3868 of 1998 for a sum of Rs. 12 lakhs as compensation. The Tribunal, after finding that the accident was caused due to the negligence of the driver of Tamil Nadu State Transport Corporation (Villupuram Division III), Kancheepuram (hereinafter referred to as “the Corporation”), by order dated 20-12-2000, quantified the compensation and passed an award for Rs. 5,05,053.45.

    3. Aggrieved by the award of the Tribunal, the Corporation filed CMA No. 103 of 2001 before the High Court of Madras challenging the quantum of compensation. The appellant claimant also filed CMA No. 122 of 2001 before the High Court for the enhancement of the compensation amount. Inasmuch as both the appeals arose from the same award of the Tribunal, the High Court heard and decided the appeals together and passed a common order on 13-12-2006 reducing the compensation to the extent of Rs. 1,00,000. In other words, by the said order, the High Court allowed the appeal of the Corporation to the extent of Rs. 1,00,000 and dismissed the appeal of the claimant for enhancement of the compensation.

    4. Questioning the judgment and final order of the High Court, the claimant has filed the above appeals by way of special leave petitions before this Court praying for enhancement of compensation to the extent awarded by the Tribunal.

    5. Heard Mr Vipin Nair, learned counsel for the appellant claimant and Mr T. Harish Kumar, learned counsel for the respondent Corporation.

    6. The only point for consideration in these appeals is whether the appellant is entitled to a sum of Rs. 1,00,000 towards “permanent disability” in addition to the amount awarded under the head “loss of earning capacity”.

    7. Inasmuch as the issue is confined only to the quantum of compensation, it is not necessary to traverse the factual details relating to the accident. Even otherwise, as the claimant alone has filed the present appeals and the Corporation has not challenged the findings relating to negligence, it is not necessary to go into the conclusion arrived at on the negligence aspect holding that the driver alone was responsible for the accident. Even, with regard to the quantum of compensation, except reduction of Rs. 1,00,000 which was awarded by the Tribunal for permanent disability, it is not necessary to go into the quantum of compensation under various heads and the ultimate order of the Tribunal and the High Court.

    8. The appellant claimant, in his evidence as PW 1, deposed that he had sustained injury on the centre finger of the right hand, his knee joint on the right leg had been dislocated, injury on the right cheek and eyes, that he cannot see with his left eye, his right foot had been injured and his right ankle joint dislocated. He further explained that after the accident, he was immediately taken to the Government Hospital at Chengalpet and received first aid and later he had been admitted in Government Stanley Hospital and was under treatment for 25 days as an inpatient. The discharge summary issued therein has been marked as Ext. P-1. He further narrated that he had undergone physiotherapy after 25 days which is evident from Ext. P-2. He had also undergone skin surgery at Stanley Hospital and the certificate relating to the same has been marked as Ext. P-3. Even after discharge from Stanley Hospital, he was not fully recovered and he had been admitted in Malar Hospital at Adayar and received treatment for two days. The discharge summary has been marked as Ext. P-4. According to the appellant claimant, the middle finger of his right hand had been amputated at Malar Hospital, Adayar. The prescription issued at Malar Hospital has been marked as Ext. P-5.

    9. From PW 1's evidence, it is seen that during the time of the accident, he was working as a foreman in M/s Armstrong Hydraulics Ltd. and after the accident he is unable to do any work as he cannot bend the fingers of his right hand and is using his left hand for eating and there is pain in his right leg and he cannot travel in a two-wheeler or in a transport bus.

    10. Dr. R. Rajappa was examined as PW 2. In his evidence, he deposed that the appellant claimant was injured in the accident said to have been occurred on 21-5-1998 and he had received treatment as an inpatient at the hospital at Chengalpet, later he had been admitted as an inpatient at Government Stanley Hospital. He had seen a lengthy scar on his right eye and his right eyebrow had been found to be fallen and the retina of the eye was found to be large and that it had lost the shrinking capacity and the nerves of the eye had been affected and there was no circulation of blood and he lost his eyesight by about 3 metres. On examination and perusing the medical documents about his treatment, he concluded that 30% of the disability had been caused due to the injury on the right eye and issued a disability certificate which has been marked as Ext. P-9.

    11. Dr. J.R.R Thiagarajan was also examined as PW 3. In his evidence, he deposed that the right hand of the appellant had been injured due to the said accident and his middle finger of the right hand had been amputated and a plate had been placed on the forefinger towards the dislocation of the bone. He also explained that he had undergone treatment towards the injury on the right forehand and on the right cheek and that the plate is still there on the right forefinger due to which he cannot bend the forefinger and other fingers properly and it is difficult for him to eat and there was swelling on the palm of his right hand and issued a disability certificate which has been marked as Ext. P-10. The certificate issued by the employer Ext. P-8 shows that at the time of the accident, the appellant was working as a Grade III worker in the firm M/s Armstrong Hydraulics Ltd. and he was getting a salary of Rs. 3295.28 after deductions.

    12. The disability certificates, Exts. P-9 and P-10, issued by the two doctors, show that the appellant had disability to the extent of 90%. The Tribunal, after considering the fact that the assessment of disability may vary to the extent of 5%, concluded that the appellant had sustained permanent disability to the extent of 85% and taking note of his age and avocation, awarded compensation of Rs. 1,50,000 for the same.

    13. The High Court, relying on its own Full Bench decision in Cholan Roadways Corpn. Ltd. v. Ahmed Thambi (2006) 4 CTC 433 (Mad), after finding that since the claimant had been awarded a sum of Rs. 3 lakhs towards the loss of earning capacity set aside the award of Rs. 1,50,000 granted under the head “permanent disability” and awarded a further sum of Rs. 50,000 in addition to the amount awarded by the Tribunal.

    14. In Ramesh Chandra v. Randhir Singh (1990) 3 SCC 723 while considering award of compensation for permanent disability (right foot amputated) caused by the accident under Section 110-B of the Motor Vehicles Act, 1939 which is similar to Section 168(1) of the Motor Vehicles Act, 1988, this Court upheld the award of compensation under the separate head of pain, suffering and loss of enjoyment of life, apart from the head of loss of earnings. The discussion and ultimate conclusion are relevant which read as under:

    “7. With regard to Ground 19 covering the question that the sum awarded for pain, suffering and loss of enjoyment of life, etc. termed as general damages should be taken to be covered by damages granted for loss of earnings is concerned that too is misplaced and without any basis. The pain and suffering and loss of enjoyment of life which is a resultant and permanent fact occasioned by the nature of injuries received by the claimant and the ordeal he had to undergo. If money be any solace, the grant of Rs. 20,000 to the claimant represents that solace. Money solace is the answer discovered by the law of torts. No substitute has yet been found to replace the element of money. This, on the face of it appeals to us as a distinct head, quite apart from the inability to earn livelihood on the basis of incapacity or disability which is quite different. The incapacity or disability to earn a livelihood would have to be viewed not only in praesenti but in futuro on reasonable expectancies and taking into account deprival of earnings of a conceivable period. This head being totally different cannot in our view overlap the grant of compensation under the head of pain, suffering and loss of enjoyment of life. One head relates to the impairment of person's capacity to earn, the other relates to the pain and suffering and loss of enjoyment of life by the person himself. For these reasons, we are of the considered view that the contentions raised by the truck owner appellant in that behalf must be negatived and we hereby negative them.”

    15. It is true that the compensation for loss of earning power/capacity has to be determined based on various aspects including permanent injury/disability. At the same time, it cannot be construed that compensation cannot be granted for permanent disability of any nature. For example, take the case of a non-earning member of a family who has been injured in an accident and sustained permanent disability due to amputation of leg or hand, it cannot be construed that no amount needs to be granted for permanent disability. It cannot be disputed that apart from the fact that the permanent disability affects the earning capacity of the person concerned, undoubtedly, one has to forego other personal comforts and even for normal avocation they have to depend on others.

    16. In the case on hand, two doctors had explained the nature of injuries, treatment received and the disability suffered due to partial loss of eyesight and amputation of middle finger of the right hand and we have already adverted to the avocation, namely, at the time of accident, he was working as foreman in M/s Armstrong Hydraulics Ltd. Taking note of his nature of work, partial loss in eyesight and loss of middle finger of the right hand, not only affect his earning capacity but also affect normal avocation and day-to-day work. In such circumstance, we are of the view that the Tribunal was fully justified in granting a sum of Rs. 1,50,000 towards permanent disability.

    17. Considering the evidence of the injured claimant as PW 1 and two doctors as PWs 2 and 3 coupled with the disability certificates and medical documents, we conclude that the High Court was not justified in disallowing a sum of Rs. 1,00,000 from the total compensation of Rs. 5,05,053.45 awarded by the Tribunal. We agree with the contention raised by the learned counsel for the appellant claimant and restore the award of the Tribunal. In other words, the Corporation is liable to pay Rs. 5,05,053.45 with interest as awarded by the Tribunal. If the said amount has not been deposited so far, the Corporation is directed to deposit the same in the Tribunal within two months from the date of the receipt of this order and if any amount had already been deposited/paid to the claimant, the same shall be adjusted. On such a deposit being made, the appellant claimant is permitted to withdraw the same.

    18. The appeals are allowed to the extent mentioned above. There shall be no order as to costs.

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    B. Kothandapani v. Tamil Nadu State Transport Corporation Limited .
    (May 12, 2011)