Monday, 11, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

G.Rajaram vs G.Pothiyamalai
2024 Latest Caselaw 20340 Mad

Citation : 2024 Latest Caselaw 20340 Mad
Judgement Date : 28 October, 2024

Madras High Court

G.Rajaram vs G.Pothiyamalai on 28 October, 2024

Author: V.Bhavani Subbaroyan

Bench: V.Bhavani Subbaroyan

                                                                      C.M.A(MD)No.671 of 2018

                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                               DATED:28.10.2024

                                         CORAM
                     THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
                                          AND
                       THE HONOURABLE MR.JUSTICE K.K.RAMAKRISHNAN

                                           C.M.A(MD)No.671 of 2018

                     G.Rajaram                                               ... Appellant

                                                    Vs.

                     1.G.Pothiyamalai

                     2.The Claims Manager,
                       IFFCO Tokkio General Insurance,
                       Company Limited,
                       No.82, Piritham Plaza,
                       1st Floor, Chandra Gandhi Nagar,
                       Ponmeni, Bye Pass Road,
                       Madurai.                                              ... Respondents

                     PRAYER:- Civil Miscellaneous Appeal filed under Section 173 of the

                     Motor Vehicles Act, 1988, to set aside the fair and decreetal order dated

                     17.08.2017 and made in M.C.O.P.No.24 of 2016 on the file of Motor

                     Accident Claims Tribunal (Chief Judicial Magistrate), Virudhunagar

                     District, at Srivilliputhur, relating to the quantum of compensation

                     granted under various heads.


                     1/15
https://www.mhc.tn.gov.in/judis
                                                                           C.M.A(MD)No.671 of 2018



                                       For Appellant            : Mr.N.Tamilmani
                                       For 2nd Respondent       : Mr.V.Sakthivel


                                                    JUDGMENT

The Civil Miscellaneous Appeal is directed against the award

passed in M.C.O.P.No.24 of 2016, dated 17.08.2017, by the file of Motor

Accident Claims Tribunal (Chief Judicial Magistrate), Virudhunagar

District, at Srivilliputhur.

2.The case of the claimant is that on 26.09.2015, at about 06.00

p.m., when the appellant was riding his Bajaj Discover two Wheeler

bearing Registration No.67 AS 1795, from south to north keeping

extreme left side of the Road on Alangulam to Srivilliputtur Road, the

first respondent drove Ford Figo Car bearing registration No.TN 84

8368, in a rash and negligent manner and not adhering the traffic rules

and dashed against the two wheeler of the appellant. Due to which, the

appellant has sustained fracture of right shaft of femur with vascular

injury, severely crushed fracture of right distal femoral bone and crushed

https://www.mhc.tn.gov.in/judis

fracture of tibia and fibula totally crushing soft tissues of right leg.

Immediately, the appellant was taken to Srivilliputtur Government

Hospital, and thereafter, he was referred to Madurai Rajaji Hospital, for

further treatment. But, in order to get specialized treatment, the appellant

was taken to Sakthibala Private Hospital, Rajapalayam, on 26.09.2015.

Under spinal Anaesthesia to the petitioner, the right lower leg was

amputated. After that, he was treated as inpatient till 03.10.2015.

Regarding the above said occurrence, the Vanniampatti Police Officers

registered a case against the first respondent in Crime No.157 of 2015 for

the offences under Sections 279 and 338 of IPC and the criminal case is

pending before the Judicial Magistrate No.II Court, Srivilliputtur.

Therefore, the appellant filed the claim petition in M.C.O.P.No.24 of

2016, claiming compensation of Rs.40,00,000/-.

3.During trial, the appellant/claimant has examined himself as

P.W.1 and one Mahadevan and V.Greemsman Daneil Vinothraj as P.W.2

and P.W.3 and exhibited 23 documents as Ex.P.1 to Ex.P.23. On the side

of the first respondent, he neither produced any documents nor examined

any witnesses. The Court side document is marked as Ex.C1.

https://www.mhc.tn.gov.in/judis

4.The learned trial Judge, upon considering the evidence both oral

and documentary and on hearing arguments of both sides, has passed the

impugned award dated 17.08.2017 holding that the accident had occurred

only due to the rash and negligence driving of the first respondent, and

directed the second respondent to pay compensation of Rs.11,31,558/- to

the appellant for which no interest carries for the amount of

Rs.2,05,614/- and for balance amount of Rs.9,25,944/- the appellant is

entitled for interest at the rate of 7.5% from the date of petition till

realization to the appellant and the amount has to be credited within one

month in the appellant's account. Aggrieved by the impugned award, the

appellant/claimant has preferred this present appeal.

5.The learned counsel appearing for the appellant submitted that

the claimant filed this appeal seeking enhancement of compensation. The

appellant sustained injury in the accident that took place on 26.09.2015

at 06.00 p.m., as a result of rash and negligent driving of the first

respondent, insured by the second respondent he suffered injury namely,

in his right shaft of femur with vascular injury, severely crushed fracture

https://www.mhc.tn.gov.in/judis

of right distal femoral bone and crushed fracture of tibia and fibula

totally crushing soft tissues of right leg. Thereafter, the right leg was

amputated above the knee. Before the accident, he was working as the

Operator of the pulverizing machine in Rajapalayam Chemicals, situated

at Sankarankovil Road, Vembakottai. Due to that, he lost his job and also

he is unable to do any job. In the said circumstances, the learned

Tribunal without applying multiplier method granted only Rs,1,00,000/-

to the appellant under the loss of earning capacity. Even though the

competent Medical Board granted 90% disability, the learned Tribunal

has not granted compensation calculating the loss of earning capacity by

adopting multiplier method.

5.1.The learned counsel further submitted that the leg was

amputated and hence, the Future Medical Expenditure amount of

Rs.2,05,614/- is not adequate by considering the Future Medical

Expenditure for changing the artificial leg and meeting artificial leg

maintenance.

https://www.mhc.tn.gov.in/judis

6.The learned counsel for the insurance/second respondent made

submission that as per the law, the learned Tribunal already granted

Rs.2,70,000/- under the head of the Permanent Disability and hence, the

loss of income for applying multiplier is not maintainable. The loss of

earning capacity by adopting the multiplier method is awarded. Then,

there is no authority to grant compensation for the 90% disability.

According to the learned counsel for the insurance, this Court has no

power grant both under head of permanent disability and the loss of

earning capacity. The learned counsel further submitted that the leg was

amputated and hence, as per the Workmen Compensation Act, only 6% to

be calculated. Hence, he seeks for dismissal of the appeal. The learned

counsel relied the following judgment of the Honourable Supreme Court

of the India and the High Court of Kerala:

6.1.(i).In the case of T.J.Parameshwarappa @ Parameshwarappa

@ J.T.Parameshwarappa Vs. The Branch Manager, New Indian

Assurance Co. Limited and others reported in 2022 CJ (SC) 934.

6.1.(ii).In the case of Oriental Insurance Co. Limited Vs.

Hariprasad reported in 2006 (1) CTC 81.

https://www.mhc.tn.gov.in/judis

7.This Court considered the submissions made on either side and

perused the record and also the medical records and Ex.P.15 namely

photograph of the appellant with amputated leg.

8.The following point arise for consideration of this appeal:

8.1.Whether the compensation awarded under various heads in the

impugned award in M.C.O.P.No.24 of 2016 is liable to be interfered?

9.Loss of earning capacity in the case of amputation of leg:

On 26.09.2015, appellant met accident and sustained fracture of

right shaft of femur with vascular injury, severely crushed fracture of

right distal removal bone and crusted fracture of fibia totally crushing

soft tissues of right leg. Therefore, the right leg was amputated above

knee. He also deposed that before accident he was working as the

operator of the pulverizing machine in Rajapalayam chemicals situated at

Vembakottai. As result, he lost his job and also he is unable to do any job.

This has virtually incapacitated him to get alternative employment. It is

not the case of insurance company that he has availed any other job and

https://www.mhc.tn.gov.in/judis

no such evidence is available on record. His job was operating

pulverizing machine. Once his leg is amputated, there is no question of

continuing the said job. There is no evidence of offering of alternative

job in the said company to the appellant. Hence, the case of appellant that

he lost his job and also he is unable to do any job can be accepted. The

permanent disability is also assessed as 90% by competent medical

board. There is no dispute on this also. The above said factual

circumstances warrant the application of multiplier method to determine

“loss of earning capacity” apart from awarding compensation under head

of both “Permanent disability”. It is no longer res integra, as per the law

laid down by Hon’ble Supreme Court in 2011 (6) SCC 620, 2012 (10)

SCc 171, 2013 (12) SCC 603 and 2015 (1) SCC 539, in deserving cases

the court, has power to grant compensation under both heads namely

“Permanent disability” and “loss of earning capacity”. Therefore this

court declines to accept the argument of learned counsel for insurance

company that there is bar to grant compensation under both heads of

“permanent disability” and loss of earning capacity” on the basis of the

Hon’ble Full Bench of this court and Kerala High Court reported in 2006

(1) CTC 81 and 2006 (4) CTC 433 on the premises, the same had been

https://www.mhc.tn.gov.in/judis

disapproved and over ruled by Hon’ble supreme Court in the 2011 (6)

SCC 620, 2012 (10) SCC 171 and 2013 (12) SCC 603.

9.1.This Court has looked into the nature of the job, percentage of

the disability and more specifically in the amputation case, the nature of

job he was doing has been lost. The basic principle of the compensation

rests on the maxim that “restitution integram”. So, the Court ought to

have granted compensation to place the injured in the same position

where the injured was before the accident. In the said circumstances,

considering that the appellant was working as the Operator of the

pulverizing machine, he cannot discharge the said duty without leg.

Therefore, this Court considered the nature of job and determining the

loss of income relating to the amputation happened in the right leg of the

injured person, the percentage of the disability is not a criteria to

determine the loss of earning capacity, but the nature of the job is a

material. In this case, the appellant was working as the Operator of the

pulverizing machine and he lost his earning capacity for the reason that

he cannot discharge his duty without leg. The medical Board assessed

90% disability. Even though the Medical Board assessed 90% disability,

https://www.mhc.tn.gov.in/judis

the disability caused loss of the earning capacity to the extent of 100%.

Hence, this Court inclines to adopt the multiplier method and calculate

the loss of earning capacity as follows:

10.According to the documents, the appellant earned Rs.410 as

daily wage. The Tribunal only had taken 20 days. But, as per the record,

the duty is 26 days. Hence, this Court calculates the monthly income of

the injured as Rs.10,660/- (410 X 26 days=10660). The appellant was

aged about 32 years, on the date of accident. Therefore, the multiplier is

adopted as 15 and calculating the same, the amount comes around

Rs.18,90,000/- (10500X12X15= 18,90,000). But, the learned Tribunal

Judge even though held that the appellant could not sit and walk as

before the accident and resultantly he is unable to operate pulverizing

machine and there is a functional disability, erroneously awarded a sum

of RS.s1,00,000/- under the head of loss of earning capacity, without

applying the multiplier method. Therefore, this Court calculates the

multiplier method and arrived the above amount under the head of loss of

earning capacity.

https://www.mhc.tn.gov.in/judis

11. The term 'permanent disability' refers to the residuary

incapacity or the loss of use of some part of the body found existing at

the end of the period of treatment/recuperation, which would reamin

forever without marked change in future. Therefore, as stated above, as

per principle laid down by the Hon'ble Supreme Court in the precedents

reported in 2011 (6) SCC 620, 2012 (10) SCC 171, 2013 (12) SCC 603

and 2015 (1) SCC 539, the claimant is entitled to get compensation for

both “permanent disability” and “loss of earning capacity”. But, the

Tribunal has failed to grant any amount under the head of permanent

disability. Earlier, this Court granted Rs.1,500/- per percentage of the

disability and subsequently considering the inflation increased it to Rs.

3,000/- and further enhanced to Rs.5,000/- per percentage. This Court

increased the said amount from Rs.3,000/- to Rs.5,000/- per percentage

by considering the cost of living. Therefore, the claimant is entitled to

get a sum of Rs.4,90,000/- under the head of permanent disability. [90 X

5000 = 4,50,000/-]. In view of the above discussion, the contention of the

learned counsel for the insurance that the Court has no power to grant

compensation under both “permanent disability” and “loss of earning

capacity” is not accepted. The Tribunal has power to grant both under the

https://www.mhc.tn.gov.in/judis

head of permanent disability and loss of earning capacity. Hence, this

Court is inclined to grant both under the heads of permanent disability

and also loss of earning capacity.

12.The learned Tribunal awarded only Rs.2,05,614/- under the

head of Future Medical Expenditure. It is the case of the appellant that

his right leg was amputated. Hence, the expenditure for artificial leg is

around Rs.2,00,000/-. This Court takes judicial notice that in the case of

artificial leg, the same is to be replaced periodically and the periodical

treatment is also necessary, in order to avoid further complication. In the

said circumstances, this Court enhances the amount under the heads of

Future Medical Expenses from Rs.2,05,614/- to Rs.4,00,000/-.

13. In view of the above, this Court modifies the award of the

Tribunal, as under:-

                                                       Amount         Amount           Award
                        S.           Description      awarded by    awarded by      confirmed or
                        No                             Tribunal      this Court     enhanced or
                                                         (Rs)           (Rs)          granted
                         1. For permanent             Rs.2,70,000/- Rs.4,50,000/-    enhanced
                            disability



https://www.mhc.tn.gov.in/judis


                         2.       For Pain and           Rs.1,00,000/- Rs.1,00,000/-     Confirmed
                                  suffering
                         3.       For Loss of            Rs.1,00,000/- Rs.1,00,000/-    Confirmed
                                  enjoyment and
                                  expectation of life
                         4. For Loss of                  Rs. 32,800/-     Rs.32,800-    Confirmed
                            income
                         5. For Loss of                  Rs.1,00,000/- Rs.18,90,000/-    Enhanced
                            Earning capacity
                         6. Nutritious Food              Rs. 10,000/-    Rs.10,000/-     Confirmed
                         7. Medical Expenses             Rs.2,88,144/- Rs.2,88,144/-    Confirmed
                         8. Attender Expenses Rs. 25,000/-               Rs.25,000/-     Confirmed
                         9. Future Medical               Rs.2,05,614/- Rs.4,00,000/-     Enhanced
                            Expenses
                                                                                     By enhancing a
                                            Total
                                                        Rs.11,31,558/- Rs.32,95,944/- sum of
                                                                                        Rs.21,64,386/-




14.Accordingly, this Civil Miscellaneous Appeal is partly allowed

by enhancing the compensation awarded by the Tribunal from

Rs.11,31,558 /- to Rs.32,95,944/- along with interest at the rate of 7.5%

per annum from the date of filing of the petition till the date of

realisation. The second respondent Insurance Company is directed to

deposit the enhanced award amount with proportionate accrued interest

and costs, and can deduct the amount if already deposited, within a

https://www.mhc.tn.gov.in/judis

period of four weeks from the date of receipt of a copy of this order. The

claimant/appellant is directed to pay the excess court fee, if any. On such

deposit being made, the appellant is entitled to withdraw the amount as

per the order of the Tribunal. No costs.

                                                                 [V.B.S.J]     [K.K.R.K.J.]

                                                                         28.10.2024


                     NCC : Yes/No
                     Index : Yes/No
                     Internet : Yes/No
                     vsg




                     To
                     1.The Chief Judicial Magistrate,
                       Motor Accident Claims Tribunal,
                       Virudhunagar District,
                       at Srivilliputhur.

                     2.The Record Keeper,
                       Vernacular Section,
                       Madurai Bench of Madras High Court,
                       Madurai.





https://www.mhc.tn.gov.in/judis


                                  V.BHAVANI SUBBAROYAN.J.,
                                                     and
                                      K.K.RAMAKRISHNAN.J.,

                                                            vsg









                                                     28.10.2024





https://www.mhc.tn.gov.in/judis

 
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 : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter