Compensation For Loss Of Future Earnings Depends On Impact Of Disability On Claimant’s Earning Capacity; Supreme Court

The Supreme Court observed that the assessment of compensation under the head of loss of future earnings would depend upon the affected impact of such disability on the earning capacity of the claimant. It held that both the Tribunal and High Court erred in granting compensation and directed the UP Road Transport Corporation to pay a sum of Rs. 9,06,100/- with interest of 9% per annum. 

The appeal was filed against the order of Delhi High Court wherein the compensation awarded was enhanced by the High Court from Rs. 4,24,000 as awarded by the Motor Accident Claims Tribunal to Rs. 30,91,482.

A Bench of Justice J.K Maheshwari and Justice Aravind Kumar observed, “Thus, the assessment of compensation under the head of loss of future earning would depend upon the affected impact of such disability on the earning capacity of the claimant. In the instant case, the tribunal as well as the High Court has arrived at a conclusion that there is permanent functional disability. However, it is not forthcoming from the award of the tribunal or the impugned judgment as to the corresponding functional disability. There may be case of whether the disability is permanent or temporary also. If the disablement percentage is expressed with reference to any specific limb, then effect of such disablement of the limb on the functioning of the entire body i.e. the permanent disability suffered by the person will have to be assessed/reconsidered for the purposes of computation of compensation towards loss of future income.”

Case Brief

The Claimant had sought a compensation of Rs. 50 lacs on account of disability suffered due to injuries caused in the road accident that occurred in 2014. The Tribunal awarded compensation of Rs. 4,24,000 with an interest at 9% p.a. from the date of filing the claim petition.

However, the Uttar Pradesh Road Transport Corporation filed an appeal before the High Court of Delhi challenging the liability of the Corporation and also sought for reduction of the compensation and the Claimant also filed an Appeal seeking enhancement of compensation.

Resultantly, the High Court dismissed the Appeal filed by the corporation as meritless and allowed the Appeal filed by the injured claimant. The compensation was enhanced to Rs. 30,91,482 with 9% p.a. as interest. Thus, the Corporation filed an appeal before the Supreme Court.

Court’s Analysis

The Supreme Court noted that the details regarding the occurrence of the accident, issuance of policy to the vehicle and said policy being in force as on the date of the accident are not in dispute.

The Court opined that no evidence can be led beyond pleadings, in the case at hand the Tribunal erred in allowing the claimant to lead evidence on the point that he was working at an Enterprises, which was not pleaded in the claim petition.

With regard to the issue of future loss of income, the Court held, “Therefore, it can be seen that the claimant was having his own source of income and he would not lose the same because of the injuries suffered by him and therefore we are of the opinion that the claimant is not entitled to future prospects and the High Court erred in granting the same.”

Resultantly, the Supreme Court calculated the compensation and directed the Corporation to pay a sum of Rs. 9,06,100/- with interest of 9% per annum from the date of filing of the claim petition.

Accordingly, the Appeal was allowed.

Cause Title: Uttar Pradesh Road Transport Corporation Vs Vibhor Fialok And Anr (SPECIAL LEAVE PETITION (CIVIL) NO(S). 2738-2739 OF 2019)

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