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Ramesh vs Karan Singh & Anr.

Civil Appeal · 2022 INSC 974Decided 16 Sept 2022
Civil Appeal No. 6365 of 2022
M.R. Shah · Krishna Murari

Background

The appellant, employed in the Merchant Navy earning USD 1000 a month, suffered a vehicular accident in 1997 in which his right arm was amputated below the elbow after five operations and prolonged hospitalization, leaving him with 70% disability of the right arm. The Motor Accident Claims Tribunal awarded only Rs. 6,68,000 in compensation, and on appeal the Punjab & Haryana High Court enhanced this to Rs. 14,82,000, calculating future economic loss by assuming the claimant would still earn half his income because Merchant Navy jobs supposedly run only six months a year. The claimant appealed to the Supreme Court seeking further enhancement.

Decision Breakdown

The Supreme Court held that the High Court's assumption that Merchant Navy employment lasts only six months a year was baseless and unsupported by any evidence led by the respondents, and that the High Court had also failed to factor in future rise in income. The Court held the future economic loss should be recalculated at a monthly loss of Rs. 30,000 (yielding Rs. 57,60,000 over 16 years), and separately increased the amount for pain, shock and suffering from Rs. 25,000 to Rs. 4,00,000 given the amputation, five operations and prolonged hospitalization. The appeal was partly allowed, raising the total compensation to Rs. 62,35,000 with 7.5% annual interest from the date of filing the claim, to be deposited within eight weeks.

Lesson Learnt

In motor accident compensation cases, courts must base future-loss calculations on actual evidence, not unsupported assumptions about a claimant's earning capacity, and severe, life-altering injuries like amputation after multiple surgeries warrant substantially higher awards for pain and suffering.

Official source (sci.gov.in)View Judgment (PDF)

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