IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 31.10.2008 CORAM THE HONOURABLE MR.JUSTICE R.SUDHAKAR C.M.A.No.841 of 2006 and C.M.P.Nos.3303 of 2006 and 1586 of 2008 Manager, National Insurance Co. Ltd., No.88-F, Bye Pass Road, Dharmapuri 636 701. ... Appellant/ 2nd Respondent vs. 1. Ganesan 2. Devabalan Suresh ... Respondents/Petitioner/ 1st respondent Civil Miscellaneous Appeal is filed under Section 173 of the Motor Vehicles Act, 1988 against the award and Decree dated 14.9.2005 passed in MCOP.No.959 of 2004 on the file of the Motor Accident Claims Tribunal ( Chief Judicial Magistrate No.2), Krishnagiri. For appellant : Mr.S.Vadivel For Respondent-1 : Mr.M.D.Thirunavukkarasu JUDGMENT The Insurance company has filed this appeal challenging the award dated 14.9.2005 passed in MCOP.No.959 of 2004 on the file of the Motor Accident Claims Tribunal (Chief Judicial Magistrate No.2), Krishnagiri. 2. It is a case of injury. The accident in this case happened on 23.8.2003. One Ganesan, aged 40 years, said to be an agriculturist and a building and brick works contractor was https://hcservices.ecourts.gov.in/hcservices/ riding a TVS 50 when he was hit by a Maruthi Omni van insured with the appellant and in that accident, he suffered fracture of 4th metacarpal bone of the right hand. He was treated in the Government Hospital, Dharmapuri. He claimed a sum of Rs.4,00,000/- as compensation stating that his income was Rs.10,000/- p.m. 3. In support of the claim petition, One person by name Palani, another claimant in MCOP No. 954 of 2004 was examined as P.W.1. The injured claimant in the present case was examined as P.W.2. Dr. Ashokkumar was examined as P.W.3. Documents Exs. P1 to P9 were marked. The relevant document for the present case is Ex.A8 – disability certificate assessing the disability at 20%. No oral and documentary evidence was let in on behalf of the appellant/ respondent before the Tribunal. 4. The income of the claimant was fixed at Rs.5,500/- p.m. based on oral and documentary evidence. There is no material with regard to the period of hospitalisation. Considering the nature of injury, disability assessed, age, income and occupation of the injured claimant, the Tribunal, by applying the multiplier of 15, for the disability assessed at 20% granted the following amounts as compensation with interest at the rate of 7.5% p.a. Sl.No. Head Amount granted by the Tribunal 1 Loss of earning power due to Disability at 20% Rs.1,98,000/- 2 Damage to vehicle Rs. 2,000/- 3 Transport expenses Rs. 3,000/- 4 Medical expenses Rs. 10,000/- 5 Pain and suffering Rs. 2,000/- 6 Extra nourishment Rs. 1,000/- Total Rs.2,16,000/- 5. Learned counsel for the appellant pleaded that the fracture in the 4th metacarpal bone has healed and there is no permanent disability. The Tribunal has erroneously applied multiplier method and therefore, pleaded for modification of the award. 6. Learned counsel for the claimant on the other hand submitted that in the event of Court interfering with the quantum https://hcservices.ecourts.gov.in/hcservices/ of compensation on the ground that the multiplier method is wrong, reasonable compensation may be granted for the disability assessed at 20%. Further, suitable compensation has to be given for attender charges, and enhanced compensation should be granted for pain and suffering, transport expenses and extra nourishment and loss of income during treatment. 7. A Division Bench of this court in United India Insurance Co. Ltd., - vs. - Veluchamy and another reported in 2005 ACJ 1483, set out the principles as to when multiplier method should be adopted in a case of injury in para 11 which reads as follows:- "11. The following principles emerge from the above discussion: (a) In all cases of injury or permanent disablement 'multiplier method' cannot be mechanically applied to ascertain the future loss of income or earning power. (b) It depends upon various factors such as nature and extent of disablement, avocation of the injured and whether it would affect his employment or earning power, etc. and if so, to what extent? (c) (1) If there is categorical evidence that because of injury and consequential disability, the injured lost his employment or avocation completely and has to be idle for the rest of his life, in that event loss of income or earnings may be ascertained by applying the 'multiplier method' as provided under the Second Schedule to Motor Vehicles Act, 1988. (2) Even so there is no need to adopt the same period as that of fatal cases as provided under the Schedule. If there is no amputation and if there is evidence to show that there is likelihood of reduction or improvement in future years, lesser period may be adopted for ascertainment of loss of income. (d) Mainly it depends upon the avocation or profession or nature of employment being attended by the injured at the time of https://hcservices.ecourts.gov.in/hcservices/ accident." There is no finding by the Tribunal that by the nature of injury suffered by the injured claimant, his earning capacity and employment is totally affected. There is no finding that the disablement in this case assessed by the doctor is such that his earning capacity is lost for the rest of his life. There is no material to show that the injured claimant will be idle for the rest of his life and consequently, there will be a total loss of income. Therefore, the question of applying multiplier method in this case does not arise as the parameters of paragraph 11 of the aforesaid decision of the Division Bench of this Court in United India Insurance Co. Ltd., - Vs. - Velduchamy and another reported in 2005 ACJ 1483 are not attracted to the facts of the present case. The multiplier method adopted by the Tribunal, therefore, clearly is an error. Accordingly, the compensation granted based on multiplier method cannot be justified. 8. The claimant is however entitled to suitable compensation for the disability assessed at 20% . As rightly pointed out by the learned counsel for the claimant, reasonable compensation should be granted for pain and suffering, transport expenses, extra nourishment, attendant charges and loss of income during treatment. The sum of Rs.1,98,000/- granted by the Tribunal towards loss of earning capacity is excessive and the same is set aside. Accordingly, the award of the Tribunal is modified as follows:- Sl. No. Head Amount granted by the Tribunal Amount granted by this Court 1 Loss of earning due to disability at 20% Rs.1,98,000/- --- 2 Disability at 20% --- Rs. 35,000/- 3 Medical expenses Rs. 10,000/- Rs. 10,000/- 4 Damage to vehicle Rs. 2,000/- Rs. 2,000/- 5 Transport expenses Rs. 3,000/- Rs. 5,000/- 6 Pain and suffering Rs. 2,000/- Rs. 20,000/- 7 Extra nourishment Rs. 1,000/- Rs. 7,500/- https://hcservices.ecourts.gov.in/hcservices/ Sl. No. Head Amount granted by the Tribunal Amount granted by this Court 8 Attender charges -- - Rs. 5,000/- 9 Loss of income during treatment -- - Rs. 15,000/- Total Rs.2,16,000/- Rs. 99,500/- rounded of to Rs.1,00,000/- 9. Since the accident happened in the year 2003 and the award was passed in the year 2005, the interest granted by the Tribunal at 7.5% stands confirmed. 10. In the result, the civil miscellaneous appeal is partly allowed as follows:- (i) The award of the Tribunal is reduced to Rs.99,500/- (rounded of to Rs.1,00,000/- ) from Rs.2,16,000/-. (ii) It is stated that pursuant to the interim order of this Court dated 6.3.2006, entire amount has been deposited by the Appellant. The claimant is entitled to withdraw the amount as per the order of this Court. (iii) The appellant is entitled withdraw the excess amount in deposit after settling the claimant. (iv) There shall be no orders as to costs. (v) Consequently, CMP Nos. 3303 of 2006 and 1586 of 2008 are closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar ra https://hcservices.ecourts.gov.in/hcservices/ To The Motor Accident Claims Tribunal, ( Chief Judicial Magistrate No.2), Krishnagiri. Copy to The Section Officer, VR Section, High Court, Madras. +1cc to Mr.S.Vadivel,Advocate Sr 60935 +1cc to Mr.M.D.Thirunavukkarasu, Advocate Sr 60646 CK (CO) km/18.12. CMA No. 841 of 2006 https://hcservices.ecourts.gov.in/hcservices/