Friday, 24, Apr, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

M.R. Krishna Murthi vs New India Assurance Co. Ltd.
2016 Latest Caselaw 3698 Del

Citation : 2016 Latest Caselaw 3698 Del
Judgement Date : 17 May, 2016

Delhi High Court
M.R. Krishna Murthi vs New India Assurance Co. Ltd. on 17 May, 2016
$~R-73

*      IN THE HIGH COURT OF DELHI AT NEW DELHI
                                        Date of Decision: 17.05.2016
+      MAC.APP.550/2007

       M.R. KRISHNA MURTHI                                 ..... Appellant
                     Through: None

                          versus

       NEW INDIA ASSURANCE CO. LTD.
       & ORS.                                   ..... Respondents
                    Through: Mr. D.K. Sharma, Adv. for R-5

CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
                          JUDGMENT

R.K.GAUBA, J (ORAL):

1. The appellant, then aged about 18 years, still a student, was travelling in a jeep bearing registration no.USM 1731 (jeep) on 26.05.1988 when it met with an accident involving negligent driving of an ambassador car bearing registration no.DPQ 3108 (offending vehicle) in the area of Muzaffar Nagar on Roorkee Highway within the jurisdiction of Police Station Purkaji District Muzaffar Nagar, U.P. As a result of the accident, the appellant (claimant) suffered multiple injuries including fracture of left femur, fracture of both bones of the left leg viz. Tibia and Fibula, bruises and blunt injuries on the left wrist and both feet, paralysis of left perennial nerve and consequent foot drop, and numbness in the right leg. An accident claim case (suit no.42/2006) was instituted, initially before the Motor

Accident Claims Tribunal (tribunal) at Muzaffar Nagar, UP on 25.11.1988 which was transferred to the tribunal at Delhi under the directions of the Supreme Court. In the claim case seeking compensation under Sections 166 and 140 of the M.V. Act, 1988 (M.V. Act), the driver, owner and insurer of the offending vehicle were impleaded as parties, in addition to the driver, owner and insurer of the jeep.

2. The tribunal, after inquiry, by judgment dated 23.05.2007, returned a finding that the accident had occurred due to the negligent driving of the offending vehicle and, thus, held the driver, owner and insurer of the said vehicle to be liable to pay compensation, they now being fourth, fifth and sixth respondents in appeal. It, inter alia, found that the claimant had suffered permanent disability to the extent of 40% and, on that basis, calculated the loss of future income having assumed the future earnings to be in the sum of ₹5,000/- and thus, calculated the same by adopting the multiplier of 17. The total compensation in the sum of ₹8,48,000/- was awarded, it having been calculated thus :

Pain and sufferings                     ₹50,000/-
Medicines                               ₹2,10,000/-
Special Diet                            ₹15,000/-
Conveyance                              ₹15,000/-
Compensation on account of loss of      ₹4,08,000/-
income adopting multiplier of 18
Permanent disability                    ₹75,000/-
Attendant                               ₹25,000/-




 Loss of enjoyment                         ₹50,000/-
Total                                     ₹8,48,000/-



3. The insurer of the offending vehicle was directed to pay the compensation with interest at the rate of 7% p.a. for a period of 10 years, inter alia, taking note of the fact that the claim petition had been dismissed in default twice.

4. The appeal at hand was filed seeking enhancement of the compensation. By order dated 07.05.2008, it was admitted and directed to be shown in the category of regular matters. Though it was taken before the Lok Adalat on certain dates, no amicable settlement could be arrived at. On some of the dates, the appeal was taken up, the appellant was duly represented by counsel. In the proceedings recorded on 30.11.2012, the appellant even appeared in person. But, no one has been appearing on his behalf over the last several consecutive dates when the appeal is taken up for hearing and disposal. Given the old pendency of the appeal, there is no good reason why it should be dismissed in default or deferred yet again.

5. Arguments of the counsel for the insurance company have been heard at length and record perused.

6. One of the contentions in appeal is that the tribunal failed to take into account the disability certificate issued by District Medical Officer, Muzaffar Nagar which indicates that the claimant has suffered permanent disability to the extent of 40%. This submission is not correct in view of the fact that the tribunal calculated the loss of future income on the basis of

inference that the claimant has suffered functional disability to the extent of 40% correspondingly affecting his earning capacity.

7. In appeal, it is further contended that the claimant has proved by irrefutable evidence his income on the basis of certified copies of the income tax returns. While the submission that the claimant had placed on record the extent of his income in the later years, by submitting copies of income tax returns for the periods 2003-2004, 2004-2005 and 2005-2006, it cannot be ignored that the income thus earned was based on capacity and qualifications attained over the years after the accident had occurred in 1988. The assessment of the compensation to be paid has to be made with reference to the date of the accident when the claimant was a boy of 18 years only. The tribunal has clearly taken an appropriate view on this score.

8. In appeal, it is also submitted that the appellant would require services of a driver till he attains the age of 70 years which is the normal expected life span. No evidence was led in support of this claim. But given the nature of disability and physical disfigurement suffered, however, there is a case made out for additional lumpsum damages in the sum of ₹50,000/- to be added on such account.

9. Thus, the compensation in the case is enhanced by ₹50,000/-. It shall carry interest as levied by the tribunal.

10. Given the neglect shown in the diligent prosecution of the claim before the tribunal, as indeed, on the appeal at hand, there is no case made out for any enhanced rate of interest to be levied.

11. The insurer is directed to deposit the enhanced portion of the compensation with proportionate interest with the tribunal within 30 days of this judgment making it available to be released to the claimant.

12. The appeal is disposed of in above terms.

(R.K. GAUBA) JUDGE May 17, 2016 yg

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IDRC

 

LatestLaws Partner Event : IJJ

 
 
Latestlaws Newsletter