Case: Oriental Insurance Co.Ltd Vs. Ram Prasad Varma

Ram Prasad Varma, respondent No. 1, an Assistant Executive Engineer, was employed with Oil and Natural Gas Corporation (ONGC) at Rajahmundry. On or about 9.9.1998, while he was going to the workshop, he was hit by a lorry bearing registration No. AP-16-W-5839. The lorry ran over his legs. He was admitted in the hospital. Indisputably, both his legs were amputated. The fact that an accident had taken place owing to rash and negligent driving on the part of the driver of the said lorry is not in dispute. It is also not in dispute that, at the relevant time, respondent was aged 55 years and his annual income was Rs.2,27,471.003. Respondent having suffered permanent disability filed a Claim Petition in terms of Section 166 of the Motor Vehicles Act claiming compensation of a sum of Rs.20 lakhs; Rs.50,000/- towards extra nourishment; Rs. 50,000/- towards compensation for mental agony, pain and suffering; Rs. 50,000/- for loss of amenities in life and Rs.2 lakhs for the expenditure of attendant throughout the life and Rs.16.50 lakhs towards loss of future earnings4. The Motor Accidents Claims Tribunal awarded a sum of Rs.19,63,000/- with interest at the rate of 12% per annum from the date of filing of the petition till realization

Court's reasoning:
the peculiar facts and circumstances of this case, it is not necessary to interfere either with the application of multiplier of eight or non-deduction of 1/3rd from his net salary. However, what was the net salary of the respondent for the said purpose should have been determined. An employee when not in employment is not to pay his tax. Income tax payable from the salary, therefore, was required to be deducted.The expression just must also be given its logical meaning. Whereas it cannot be a bonanza or a source of profit but in considering as to what would be just and equitable, all facts and circumstances must be taken into consideration.