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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 9006 OF 2017

[@ SPECIAL LEAVE PETITION (C) NO. 25827 OF 2015 ] THE NEW INDIA ASSURANCE CO. LTD.             Appellant(s)

                               VERSUS GAJENDER YADAV AND ORS.                Respondent(s)

WITH  CIVIL APPEAL NO. 9007 OF 2017

[@ SPECIAL LEAVE PETITION (C) NO. 35084 OF 2015 ] J U D G M E N T

KURIAN, J. 1. Leave granted.

2. The learned counsel for the insurance company as well as the claimant are before this Court, aggrieved by the order passed by the High Court of Punjab and Haryana in FAO No. 4219 of 2005.

3. The claimant met with an accident on 28.01.2004. His left leg below the knee was amputated.  He was working as a Security Officer in Bennett & Coleman. He was aged 37 years at the time of the incident. The Tribunal awarded an amount of Rs. 6,87,000/- with interest at the rate of 9% per annum from the date of the  claim  petition.   The  High  Court  modified  the compensation as follows :-

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(A)  Pecuniary Compensation   

(i)  Compensation  assessed  on account of medical expenses and hospitalisation

Rs. 1,14,835/-

ii)   Compensation  assessed  on account  of  services  of attendant,  speial  diet  and conveyance

Rs. 50,000/-

(iii) Compensation assessed on account of expenses incurred on physiotherapy  and  implant  to set off the amputation by way of artificial limb  

Rs. 1,00,000/-

(iv)  Compensation assessed on account of physical disability

Rs. 8,00,000/-

(v)  Compensation  assessed  on account  of  loss  of  earnings during hospitalisation

Rs. 1,50,000/-

(vi)  Compensation  assessed  on account  of  future  loss  of earnings

Rs. 13,00,000/-

(B) Non-Pecuniary Compensation

(i)  Compensation  assessed  on account  of  physical  pain, mental agony and sense of wrong

Rs. 50,000/-

(ii)  Compensation  assessed  on account of loss of pleasures of life, longevity

Rs. 1,00,000/-   

(iii) Compensation assessed on account of loss of beauty

Rs. 50,000/-

Total Rs. 27,14,835/-

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4. Both  the  learned  counsel  appearing  for  the Insurance Company and the claimant have referred to several Judgments extensively and have canvassed for their  respective  position  for  reduction  and enhancement, as the case may be.  However, we propose to  refer  only  to  two  judgments  since  those  two judgments have discussed the first principles on the method of calculation and more so, because the latter Judgment  is  the  latest  one  which  has  taken  into consideration the previous Judgments as well.

5. In Raj Kumar Vs. Ajay Kumar & Anr. (2011) 1 SCC 343, the Court has laid down the principle regarding assessment of future loss of earning due to permanent disability.   The  same issue  was discussed  in more detail in the case of a chartered accountant in the recent judgment in  Sandeep Khanuja Vs. Atul Dande & Anr. (2017) 2 SCALE 314.  In the latter case, this Court  has  awarded  compensation  applying  the multiplier for the permanent disability to the tune of 70% for the Chartered Accountant.  In Raj Kumar's case  (supra),  this  Court  has  discussed  about  the functional disability and has held that compensation would vary from case to case depending on how much the person has been affected as far as his earning capacity is concerned.

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6. In the case before us, it is in evidence that there is 85% permanent disability as far as left leg is concerned.  It is also in evidence that he had been  working  as  a  Security  Officer  in  a  reputed company and from the evidence of Deputy Chief Manager before the Tribunal, it has come out that “prior to accident  Gajender  was  doing  duty  in  our  office

established at Bahadur Shah Zafar Marg and he was in

active job and after his accident when he joined the

duty he had been shifted to our office established at

Dariya  Ganj  where  he  has  to  do  lesser  work  i.e.

sedentary duty in which no physical work is required.

The future of employee Gajender has been sealed and

he will not be able to get any promotion in future.”

7. Having heard the learned counsel on both sides and having regard to the fact that the claimant has, in  fact,  suffered  a  serious  injury  leading  to amputation of the left leg below the knee and which has certainly caused a functional disability since he had  been  in  employment  as  a  Security  Officer  and since  according  to  the  Management,  his  future promotions have been sealed, we are of the view that in  the  facts  of  this  case,  the  computation  of compensation for the disability is also to be worked out  by applying  a multiplier.   The  monthly salary which the claimant was drawing in 2004 was around Rs.

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14,000/-.  If the future prospects in terms of Sarla Verma (Smt.) & Ors. Vs. Delhi Transport Corporation &

Anr. (2009)  6  SCC  121  is  added,  it  will  be Rs.21,000/-  per  month.   Having  regard  to  the disability suffered by the claimant, we are of the view that without any further deduction, if the total disability factor is taken as 40%, the claimant would be entitled to an amount of Rs. 8,400/- per month towards the loss of future earnings.  The age being 37 years, the multiplier 15 has to be applied.  Thus, the  compensation  towards  future  earnings  comes  to Rs.15,12,000/-  (Rupees  Fifteen  Lakhs  and  Twelve Thousand).

8. The  High  Court,  in  the  pecuniary  part,  has awarded Rs.8 Lakhs on account of physical disability and for future loss of earnings Rs. 13 Lakhs.  This is  certainly  a  duplication.   What  is  to  be compensated  is  only  the  loss  on  account  of disability.  The said total amount of Rs. 21 Lakhs will  stand  substituted  by  Rs.15,12,000/-  (Rupees Fifteen Lakhs and Twelve Thousand) and the rest of the High Court order is maintained.   

9. Towards the claim for change of artificial limb at least once in two years, we are of the view that

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it will be just and proper that a further amount of Rs.2,00,000/- (Rupees Two Lakhs) is awarded.  These appeals  are  thus  disposed  of  by  holding  that  the claimant shall be entitled to a total compensation of Rs. 23,26,835/- (Rupees Twenty Three Lakhs Twenty Six Thousand  Eight  Hundred  and  Thirty  Five).   The claimant shall also be entitled to interest at the rate of 8% from the date of the claim petition.

No costs.   .......................J.

             [ KURIAN JOSEPH ]  

.......................J.               [ R. BANUMATHI ]  

New Delhi; July 13, 2017.