New Delhi, June 24 (IANS). The Supreme Court has increased the compensation given to a mason from Tamil Nadu. The mason’s right leg was amputated in a road accident. The Court held that while assessing loss of earning capacity in motor accident claims, courts should consider ‘functional disability’ (loss in ability to work) rather than merely the percentage of physical disability.
A bench of Justices Prashant Kumar Mishra and NV Anjaria increased the compensation awarded to petitioner M. Paramesh to Rs 40.29 lakh from Rs 29.01 lakh fixed by the Madras High Court. The court held that due to amputation of his right leg above the knee, he has become completely incapable of continuing his work as a mason.
Partially allowing the appeal, the Supreme Court said that even though the claimant’s permanent physical disability was assessed at 70 per cent, his functional disability to earn livelihood was 100 per cent.
A bench headed by Justice Mishra said that the amputation of the right leg above the knee has not only caused physical disability to the appellant but has also rendered him unable to effectively perform the physical and labour-intensive tasks which were his only means of livelihood.
The Bench further said that in such circumstances, it would not be appropriate to limit the loss of earning capacity to 70 per cent merely on the basis of physical disability.
The case pertains to an accident that occurred on April 18, 2017, on the Namakkal-Salem National Highway in Tamil Nadu, in which a lorry hit the claimant’s bicycle from behind. In this accident, he suffered serious injuries to his head, jaw, eye and right leg, which eventually led to his right leg being amputated above the knee.
The claimant, then aged around 30, had sought compensation of Rs 25 lakh in the Motor Accident Claims Tribunal (MACT). His argument was that due to permanent disability caused by the accident, he had become unable to continue his work.
In 2019, MACT had fixed the compensation at Rs 10.84 lakh assuming his monthly income of Rs 6,000 and calculating the loss of earning capacity on the basis of 70 per cent disability. Following the appeal, the Madras High Court increased the monthly income to Rs 12,000 and increased the compensation amount to Rs 23.86 lakh, adding an additional 40 per cent for future prospects.
However, the Supreme Court found shortcomings in the High Court’s calculations and said that future prospects were assessed based on the MCAT assessment and not on the basis of increased income as decided by the High Court.
The Supreme Court also noted that certain amounts paid by the MCAT towards nutrition, clothing and jewellery, and medical expenses were erroneously left out in the final calculations of the Madras High Court, while they were not replaced.
Citing an old judgment, the bench headed by Justice Mishra again said that compensation cannot be fixed mechanically by treating physical disability as equivalent to loss of earning capacity.
The judgment held that compensation in cases of permanent disability cannot be assessed by mechanically applying the percentage of physical disability as a percentage of economic loss.
Given that the work of a bricklayer is physically demanding and requires constant use and support of both legs, the Supreme Court held that the Claimant had in fact lost the ability to continue his work.
–IANS
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