S. THANGARAJ versus NATIONAL INSURANCE CO. LTD. REP. BY THE BRANCH MANAGER
[2018] 3 S.C.R. 12, Supreme Court of India, 2018
Outcome: Appeal(s) allowed (Granted)
Segment: Ratio
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
S. THANGARAJ
v.
NATIONAL INSURANCE CO. LTD. REP. BY
THE BRANCH MANAGER
(Civil Appeal No. 3152 of 2017)
MARCH 06, 2018
[DIPAK MISRA, CJI, A.M. KHANWILKAR AND
DR. D.Y. CHANDRACHUD, JJ.]
Motor Vehicles – Disability sustained as a result of motor
accident – Appellant-victim, a loadman engaged by a building
contractor, was 26 years old at the time of the accident – Tribunal
determined the disability at 70%, and granted compensation of
Rs 11,27,359/- with interest @ 12% per annum – High  Court reduced
the interest awarded by the Tribunal to 7.5% per annum while
maintaining the award of compensation – On appeal, held: Injuries
sustained by appellant are serious – As a result of multiple fractures
sustained by him, appellant has lost complete sensation below the
abdomen – Evidently he cannot work anymore as loadman – In the
circumstances, assessment of disability at 70% is incorrect – On a
realistic view of the matter, the nature of the disability must be
regarded as being complete – Compensation granted by Tribunal
accordingly enhanced by Rs 3,00,000/- — Appellant entitled to
interest @ 9 % per annum, on total amount of compensation (instead
and in substitution of 7.5% per annum awarded by the High Court).
The appellant sustained serious injuries in a motor accident.
The Tribunal computed the compensation payable to the appellant
on account of the loss of income occasioned by the disability at
Rs 9,72,000/-.  However, on the
basis of the opinion of the doctor
that the disability was to the extent of 70%, the net amount was
determined at Rs 6,80,400/-. After taking into account the medical
and other expenses, the Tribunal awarded a total compensation
of Rs 11,27,359/- together with interest of 12% per annum.  The
High Court maintained the award of compensation but reduced
the interest component from 12% per annum to 7.5% per annum.
  [2018]  3 S.C.R. 12
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In appeal to this Court, the appellant pleaded that the High Court
has not assessed the compensation in a correct manner.
Allowing the appeal, the Court
HELD : 1. The submission of the insurer that there was a
concession on the part of the appellant before the High Court
which must bind him, cannot be accepted. The statement made
by counsel for the appellant before the High Court was on whether
the Tribunal had granted just and reasonable compensation.
Whether in fact the compensation which has been granted is just
and reasonable cannot hence be construed as a matter of
concession and it would not preclude the appellant from raising a
contest in these proceedings. [Para 7] [15-D-E]
2. On perusing the record it is evident that the injuries
sustained by the appellant are indeed of a serious nature.  As a
result of the multiple fractures sustained by him, the appellant
has lost complete sensation below the abdomen.  Evidently he
cannot work anymore as loadman.  In these circumstances, the
assessment of disability at 70 per cent is incorrect. On a realistic
view of the matter, the nature of the disability must be regarded
as being complete.  In the circumstances, there is no reason or
justification for the deduction of an amount of Rs.2,91,600/-  by
the Tribunal (Rs. 9,72,000/- minus Rs 6,80,400/-).  The amount
so deducted must be restored and is rounded off to Rs. 3,00,000/-.
Moreover, the appellant is entitled to interest at the rate of 9 per
cent per annum
from the date of the claim petition.  [Para 8]
[15-F-H]
CIVIL APPELLATE JURISDICTION:  Civil Appeal No. 3152
of 2017.
From the Judgment and Order dated 05.06.2012 of the High Court
of Madurai Bench of Madras in Cross Objection No. 24 of 2012 in
CMA (MD) No.499 of 2008.
R. Nedumaran, Adv for the Appellant.
Ambhoj Kumar Sinha, Adv for the Respondent.
S. THANGARAJ  v. NATIONAL INSURANCE CO. LTD.
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
The Judgment of the Court was delivered by
DR. D.Y. CHANDRACHUD, J. 1. Delay condoned.
2. The claim arises out of a disability sustained as a result of a
motor accident.  The Tribunal granted compensation to the claimant in
the amount of Rs 11,27,359 together with interest at 12 per cent per
annum.  The High  Court has simply reduced the interest awarded by
the Tribunal to 7.5 per cent per annum while maintaining the award of
compensation. The claimant is in appeal.
3. The accident took place on 1 August 2004.  The appellant was
26 years old at the time of the accident.  The accident took place when
the appellant was a pillion rider on a motor cycle ridden by one Edwin.
As the motor cycle was proceeding from Marthandam, a lorry bearing
Registration No.TN 69 Z 2979 dashed against it.  The lorry thereafter
dashed against an electric pole and collided with a residential property
resulting in the death of an occupant of the house.  The appellant sustained
serious injuries in the accident. The injuries have been described in the
evidence of PW 4, the doctor at the hospital where the appellant was
treated.  The appellant sustained a fracture in his spinal cord, right leg
and right hip bone.  As a result of the accident the appellant has no
sensation or movement in his legs. The Tribunal accepted the evidence
of PW 4 and observed thus:
“Moreover PW 4 the doctor has stated in his evidence that below
the abdomen of the
petitioner, there is no movement and sensation
in two legs…”
The Tribunal determined the disability at 70%, on the basis of
medical opinion. The Tribunal computed the compensation payable to
the appellant on account of the loss of income occasioned by the disability
at Rs 9,72,000.  However, on the basis of the opinion of the doctor that
the disability was to the extent of 70 per cent, the net amount was
determined at Rs 6,80,400.  After taking into account the medical and
other expenses, the Tribunal awarded a total compensation of Rs 11,27,359
together with interest of 12 per cent per annum.
4. Before the High Court, the insurer filed an appeal against the
award of the Tribunal.  The appellant filed cross objections.  The High
Court has reduced the interest component from 12 per cent per annum
to 7.5 per cent per annum.
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5. Learned counsel appearing on behalf of the appellant submits
that the High Court has not assessed the compensation in a correct
manner.  There was – it has been urged – no justification to compute the
disability at 70 per cent.  The appellant was at the relevant time a loadman
engaged by a building contractor. The nature of the disability involves a
complete loss of sensation in both the legs. Hence, it would not be possible
for him to work as a load man. Moreover it was urged that there was no
justification to reduce the award of interest to 7.5 per cent per annum
and the award of the Tribunal on interest should be maintained.
6. On the other hand it has been urged on behalf of the insurer
that the High Court was justified in maintaining the award of compensation
since it was urged on behalf of the appellant-claimant at the hearing
before the High Court that the Tribunal had granted just and reasonable
compensation.  Learned counsel supported the judgment of the High
Court.
7. Having perused the order passed by the High Court, we are
not in agreement with the submission of the insurer that there was a
concession on the part of the appellant before the High Court which
must bind him.  The statement made by counsel for the appellant before
the High Court was on whether the Tribunal had granted just and
reasonable compensation.  Whether in fact the compensation which has
been granted is just and reasonable cannot  hence be construed as a
matter of
concession and it would not preclude the appellant from raising
a contest in these proceedings.
8. On perusing the record it is evident that the injuries sustained
by the appellant are indeed of a serious nature.  As a result of the multiple
fractures sustained by him, the appellant has lost complete sensation
below the abdomen.  Evidently he cannot work anymore as loadman.  In
these circumstances, the assessment of disability at 70 per cent is
incorrect. On a realistic view of the matter, the nature of the disability
must be regarded as being complete.  In the circumstances, we find no
reason or justification for the deduction of an amount of Rs 2,91,600 by
the Tribunal (Rs 9,72,000 minus Rs 6,80,400).  The amount so deducted
must be restored and is rounded off to Rs 3,00,000. Moreover we are of
the view that the appellant is entitled to interest at the rate of 9 per cent
per annum from the date of the claim petition.
S. THANGARAJ  v. NATIONAL INSURANCE CO. LTD.
[DR. D.Y. CHANDRACHUD, J.]
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SUPREME COURT REPORTS
[2018] 3 S.C.R.
9. The appeal is accordingly allowed by enhancing the
compensation granted by the Tribunal by an amount of Rs 3,00,000.
The appellant would be entitled to interest @ 9 per cent per annum, on
the total amount of compensation (instead and in substitution of 7.5%
per annum awarded by the High Court). The differential amount shall
be paid over to the appellant within a period of eight weeks from today.
There shall be no order as to costs.
Bibhuti Bhushan Bose
                                Appeal allowed.