Sanjay Kumar (Dar) vs Manish (184/19Oia) on 10 March, 2026

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    Delhi District Court

    Sanjay Kumar (Dar) vs Manish (184/19Oia) on 10 March, 2026

              IN THE COURT OF MS. ADITI GARG
      DISTRICT JUDGE AND ADDITIONAL SESSIONS JUDGE
          PO MACT (SE), SAKET COURTS : NEW DELHI
    
    
    
    
                                                      MACT No. 850/2025
                                                         FIR No. 184/2019
                                                                   PS OIA
                                                          U/s 279/338 IPC
                                            CNR No.: DLSE01-010052-2025
                                            Sanjay Kumar Vs. Manish & Ors.
    
    Sanjay Kumar
    S/o Lala Ram
    R/o K-1356, 16A, K Block
    Sangam Vihar, New Delhi.
    
                                         Versus
    
    1. Manish
    S/o Madan Mandal
    R/o Gali No.08, Jagmal Enclave
    Roshan Nagar, Auganpur Village
    Faridabad, Haryana.
    
                                                                  ..R-1/ Driver
    
    2. Mukesh Kumar Mandal
    S/o Madan Mandal
    R/o A-225, Mavi Mohalla Tehkhand
    Okhla Phase-1, Okhla Ind. Area, New Delhi.
    
                                                                  ..R-2/ Owner
    
    3. The New India Insurance Company Ltd.
    Scope Minar, Laxmi Nagar, New Delhi.
    
                                                         ....R-3/ Insurance Co.
    
    
    MACT No. 850/2025   Sanjay Kumar Vs. Manish & Ors.             Page No. 1 of 36
     Date of accident                                                :     15.03.2019
    Date of filing of DAR                                           :     07.12.2021
    Date of Decision                                                :     10.03.2026
    
                                                 AWARD
    1. DAR
    (a) The Detailed Accident Report (hereinafter referred to as
    "DAR"), as filed by the Investigating Officer, is being treated as
    a claim petition under Section 166(1) read with Section 166(4) of
    the Motor Vehicles Act, 1988. The present claim pertains to the
    alleged road traffic accident to victim Sanjay Kumar (hereinafter
    referred to as the injured), who is stated to have suffered injuries
    due to rash and negligent driving of offending vehicle bearing
    Registration No. DL 3SCW 2719. The said vehicle was being
    driven by Sh. Manish (hereinafter referred to as R-1), owned by
    Sh. Mukesh Kumar Mandal (hereinafter referred to as
    Respondent No.2) and was insured with M/s New India
    Insurance Company Ltd (hereinafter referred to as Respondent
    No.3).
    
    2. Brief Facts as per DAR:
    
    (a)        Preliminary information regarding the accident in question
    was received at PS Okhla Industrial Area vide Diary No.
    559/2019 dated 19.06.2019 in the form of a complaint made by
    the injured. In his complaint, the injured stated that on
    15.03.2019 at about 08:30 AM, he was proceeding to his
    workplace           on   his       motorcycle                   bearing   registration            No.
    DL-3SCK-5042 (hereinafter referred to as the accidental
    vehicle). When he was passing through the street near DDA
    Flats, Okhla Phase-II, his motorcycle was hit from the left side
    by respondent no.1 (R-1), who was coming from the wrong side
    while driving the offending vehicle in a rash and negligent
    MACT No. 850/2025              Sanjay Kumar Vs. Manish & Ors.                  Page No. 2 of 36
     manner. Due to the impact, the injured fell on the road and
    sustained serious injuries.
    
    (b)        It was further stated that he made a call to the PCR at
    number 100, pursuant to which the PCR van arrived at the spot
    and took him to AIIMS Trauma Centre where he underwent
    treatment for fracture of both bones of his right leg. He informed
    that his leg remained plastered for about two months. The injured
    further stated that the police officials seized the offending vehicle
    and advised him to continue his treatment, assuring him that legal
    action would be taken against the driver of the offending vehicle.
    He also stated that the police officials had assured him that they
    would come to the hospital to record his statement; however,
    neither any police official came to record his statement nor was
    any FIR registered at that time.
    
    (c)        After recording the statement of the injured, the present
    FIR was eventually registered under the relevant penal provisions
    of law. During investigation, the site plan was prepared and
    statements          of   the      concerned                     witnesses   were     recorded.
    Mechanical inspection of the offending vehicle was conducted.
    Notice under Section 133 of the Motor Vehicles Act was served
    upon the owner of the offending vehicle, who appeared before
    the police and affirmed that the accident in question had occurred
    with the said vehicle. The documents pertaining to the offending
    vehicle were seized and verified from the concerned authorities.
    The result on the MLC of the injured was obtained which opined
    the injuries to be grievous in nature.
    
    (d)        After completion of investigation, charge-sheet was filed
    against respondent no.1 under the relevant provisions of law for
    
    MACT No. 850/2025              Sanjay Kumar Vs. Manish & Ors.                  Page No. 3 of 36
     causing injuries to the victim by driving the offending vehicle in
    a rash and negligent manner. The Detailed Accident Report
    (DAR) was also filed by the Investigating Officer.
    
    3. Reply:
    
    (a)        In response to the Detailed Accident Report, no written
    statement or reply was filed by R-1 & R-2. Their right to file
    reply was also closed on 14.03.2022.
    
    (b)        The insurance company filed its written statement wherein
    it has been alleged that the accident occurred due to the
    negligence of the deceased/victim himself and not on account of
    any rash or negligent driving of the offending vehicle. It is
    further contended that there was an unexplained delay of about
    111 days in the registration of the FIR, which creates doubt
    regarding the manner of the accident and suggests false
    implication of the insured vehicle. However, the insurance
    company has admitted that the offending vehicle was duly
    insured with it on the date of the accident, though its liability, if
    any, is stated to be subject to the terms and conditions of the
    insurance policy.
    
    4. Issues:
    
    (a)        From the pleadings of parties, following issues were
    framed vide order dated 14.03.2022:
    
             i). Whether the injured suffered injuries in a road traffic accident on
             15.03.2019 due to rash and negligent driving of vehicle bearing no.
             DL 3SCW 2719 being driven by R-1, owned by R-2 and insured with
             R-3? OPP.
    
             ii). Whether the injured is entitled to any compensation, if so, to what
             extent and from whom?OPP
    
             iii). Relief.
    
    MACT No. 850/2025            Sanjay Kumar Vs. Manish & Ors.       Page No. 4 of 36
     5. Disability
    
    (a) A disability report noticing 21% permanent physical disability
    in relation to right lower limb also received from Pt. Madan
    Mohan Malviya Hospital in compliance of order of this Tribunal.
    
    6. Evidence:
    (a)        The matter was thereafter listed for petitioner's evidence.
    The injured, Sanjay Kumar, examined himself as PW-1 and
    tendered his evidence by way of affidavit, which was exhibited
    as Ex. PW1/A. He proved on record various documents relating
    to his medical treatment records including medical bills, ID
    proofs, proofs related to his income/ employment, educational
    documents, DAR collectively exhibited as Ex. PW1/1 to Ex.
    PW1/8. PW-1 was duly cross-examined by learned counsel for
    the insurance company.
    
    (b)        No further, evidence was led by petitioner side. Petitioner
    Evidence was then closed. Matter was then listed for Respondent
    Evidence. R-1/ driver & R-2 /owner did not lead any evidence.
    Insurance Company also not led any evidence and as such
    Respondent Evidence was closed and matter was then listed for
    final arguments.
    
    7.         Final Arguments:
    
    (a)         Final arguments were addressed by learned counsel for the
    claimant as well as learned counsel for insurance company.
    
    (b)        Learned counsel for the claimant argued that the accident
    in question occurred solely due to the rash and negligent driving
    of respondent no.1, the driver of the offending vehicle. It is
    
    MACT No. 850/2025         Sanjay Kumar Vs. Manish & Ors.   Page No. 5 of 36
     submitted that due to the said accident, the claimant sustained
    grievous injuries and had to undergo prolonged medical
    treatment. The claimant remained under treatment and plaster
    was applied for a period of about three months. It is further
    submitted that the claimant continued to remain under outdoor
    patient (OPD) treatment from 15.03.2019 to 25.07.2022. Learned
    counsel further argued that as a result of the injuries suffered in
    the accident, the claimant has been assessed with 21% permanent
    disability in relation to the right lower limb, which has adversely
    affected his functional ability, earning capacity and has also
    caused difficulty in performing day-to-day activities. It is also
    submitted that at the time of the accident the claimant was
    employed in a private job with M/s Paper Smith, Okhla, and was
    earning Rs.17,400/- per month. Due to the injuries sustained in
    the accident, the claimant remained unable to work for a period
    of about seven months, thereby suffering loss of income. On
    these grounds, learned counsel for the claimant prayed that the
    claimant be awarded just and reasonable compensation along
    with interest for the injuries, disability, loss of income and other
    consequential losses suffered by him. Computation has also been
    filed.
    
    (g)        Per contra, learned counsel for the insurance company
    argued that the accident did not occur due to any rash or
    negligent driving on the part of respondent no.1 and that the
    same occurred due to the negligence of the injured himself. It is
    further submitted that there was an inordinate delay of about 111
    days in the registration of the FIR, which creates doubt regarding
    the manner of the accident and suggests false implication of the
    offending vehicle. Learned counsel for the insurance company
    
    MACT No. 850/2025       Sanjay Kumar Vs. Manish & Ors.   Page No. 6 of 36
     further submitted that the claim of the petitioner is exaggerated
    and not supported by cogent evidence and, therefore, the
    petitioner is not entitled to the compensation as claimed.
    However, it is fairly admitted that the offending vehicle was
    insured with the insurance company on the date of the accident.
    No statutory defence under Section 149(2) of the Motor Vehicles
    Act has been raised by the insurance company.
    
    8.         Discussion:
    
               On the basis of material on record, evidence adduced and
    arguments addressed, issue wise findings are as under :
    
                                                  Issue No.1
    
             i). Whether the injured suffered injuries in a road traffic accident on
             15.03.2019 due to rash and negligent driving of vehicle bearing no.
             DL 3SCW 2719 being driven by R-1, owned by R-2 and insured with
             R-3? OPP.
    
    
    (a)          The injured stepped into the witness box and affirmed the
    mode and manner of the accident in the same terms as stated in
    his complaint made to the police. He deposed that on the day of
    the accident, while he was proceeding on his motorcycle, the
    offending vehicle driven by respondent no.1 came from the
    wrong side and hit his motorcycle, due to which he fell on the
    road and sustained injuries.
    (b)        During his cross-examination, the injured stated that he
    was conscious at the time of the accident and was able to note the
    registration number of the offending vehicle as DL-3SCW-2719.
    He also reiterated that he had made a PCR call at number 100,
    pursuant to which the PCR van reached the spot and shifted him
    to AIIMS Trauma Centre for medical treatment. Nothing material
    
    MACT No. 850/2025           Sanjay Kumar Vs. Manish & Ors.       Page No. 7 of 36
     could be elicited in his cross-examination so as to discredit his
    testimony regarding the occurrence of the accident.
    (c)        The version of the injured also finds corroboration from
    the contemporaneous medical and police record. The MLC of the
    injured records the history of Road Traffic Accident (RTA) and
    further notes that the injured was brought to the hospital by a
    PCR official, thereby corroborating the statement of the injured
    that he had made a PCR call and was shifted to the hospital by
    the PCR van. Further, the information regarding the accident
    given to the police at number 100 on 15.03.2019 also finds
    mention in GD Entry No. 75A, which indicates that the police
    authorities were aware of the accident on the very date of
    occurrence.
    (d)        The case of the claimant further finds support from the
    police investigation and the documentary material placed on
    record. During investigation, the site plan of the place of accident
    was prepared, the mechanical inspection of the offending vehicle
    was conducted, and other relevant documents were collected.
    After completion of investigation, the police found sufficient
    material and accordingly filed a charge-sheet against respondent
    no.1 for causing the accident by driving the offending vehicle in
    a rash and negligent manner.
    (e)        The injured was also questioned during his cross-
    examination regarding the delay in registration of the FIR. In
    response, he explained that after the accident the driver of the
    offending vehicle had attempted to settle the matter, however the
    settlement could not materialize and therefore the complaint was
    eventually lodged with the police, resulting in the delay. He also
    denied the suggestion that the accident had occurred due to any
    
    MACT No. 850/2025        Sanjay Kumar Vs. Manish & Ors.   Page No. 8 of 36
     hurry or negligence on his part.
    (f)        In the facts of the present case, the delay in registration of
    the FIR does not appear to be fatal to the case of the claimant.
    The material on record clearly indicates that the injured was
    immediately taken to AIIMS Trauma Centre by the PCR officials
    after the accident and that the police authorities had already
    received information regarding the accident on the very date of
    occurrence through the PCR call recorded in GD Entry No. 75A.
    Thus, the occurrence of the accident stood brought to the notice
    of the police contemporaneously. The delay in formal registration
    of the FIR appears to be procedural in nature, attributable to the
    manner in which the complaint was processed by the police, and
    does not cast any serious doubt on the genuineness of the
    accident.
    (g)        It is also noteworthy that respondent no.1 and respondent
    no.2 did not file any reply nor did they lead any evidence to rebut
    the case of the claimant. Respondent no.1, being the driver of the
    offending vehicle, was the best person to explain the manner in
    which the accident occurred, yet he chose not to step into the
    witness box to present his version. In such circumstances, an
    adverse inference is liable to be drawn against respondent no.1.
    (h)        Further, there is nothing on record to show that respondent
    no.1 had ever lodged any complaint or protest alleging false
    implication of his vehicle in the present case. In the absence of
    any rebuttal evidence from the respondents, there appears to be
    no reason to disbelieve the testimony of the injured, which is
    otherwise consistent with the medical record as well as the police
    investigation.
    (i)        It is well settled that filing of a charge-sheet is a strong
    
    MACT No. 850/2025          Sanjay Kumar Vs. Manish & Ors.   Page No. 9 of 36
     corroborative       circumstance               pointing    towards    negligence.
    Accordingly, this Tribunal holds that the accident occurred due to
    rash and negligent driving of the offending motorcycle by
    driver / R-1. (Support drawn from the Judgment in the case of National
    Insurance Company Vs. Pushpa Rana 2009 ACJ 287 Delhi as referred and
    relied by Hon'ble Supreme Court of India in case of Ranjeet & Anr. Vs.
    Abdul Kayam Neb & Anr SLP (C) No. 10351/2019) . It is also settled
    that adverse inference can be drawn against the driver of the
    offending vehicle in case he does not appear as a witness to
    depose and clarify about his stance in respect of the accident.
    (support drawn from the judgment in the case of Cholamandlam
    insurance company Ltd. Vs. Kamlesh 2009 (3) AD Delhi 310.)
    
    (j)        It is a well-established legal principle that negligence in
    motor accident cases should be determined based on the
    preponderance of probabilities, not on proof beyond reasonable
    doubt. The facts and circumstances must be considered in a broad
    and practical manner. It is also settled that proceedings under the
    Motor Vehicles Act are different from regular civil suits and are
    not strictly governed by the technical rules of the Indian
    Evidence Act. (as observed by Their Lordships of the Hon'ble
    Supreme Court of India in the case of Bimla Devi & Ors. v.
    Himachal Road Transport Corporation & Ors., (2009) 13 SCC
    530 further referred and relied by Hon'ble Supreme Court of
    India in recent pronouncement in the case of Mathew Alexander
    vs Mohammed Shafi SLP (Crl) No.8211 of 2022).
    (k)        In view of the above analysis of material on record
    including evidence adduced on record, charge-sheet against R-1,
    it is held that the accident was caused by speedy and reckless
    driving on the part of driving of the offending vehicle. Issue No.1
    
    MACT No. 850/2025         Sanjay Kumar Vs. Manish & Ors.             Page No. 10 of 36
     is thus decided in favour of the petitioner and against the
    respondents.
    
                                         ISSUE NO. 2
                 "Whether the injured is entitled to any
                 compensation, if so, to what extent and from whom?
                 OPP"
    
    
    9            Sec. 168 MV Act enjoins the Claim Tribunals to hold an
    inquiry into the claim to determine the compensation payable and
    pass an award. Relevant portion of Section 168 MV Act is
    reproduced hereunder for ready reference:
    
             "(1) Award of the Claims Tribunal.--On receipt of an
             application for compensation made under section 166, the
             Claims Tribunal shall, after giving notice of the application to
             the insurer and after giving the parties (including the insurer) an
             opportunity of being heard, hold an inquiry into the claim or, as
             the case may be, each of the claims and, subject to the
             provisions of section 162 may make an award determining the
             amount of compensation which appears to it to be just and
             specifying the person or persons to whom compensation shall be
             paid and in making the award the Claims Tribunal shall specify
             the amount which shall be paid by the insurer or owner or driver
             of the vehicle involved in the accident or by all or any of them,
             as the case may be: Provided that where such application makes
             a claim for compensation under section 140 in respect of the
             death or permanent disablement of any person, such claim and
             any other claim (whether made in such application or otherwise)
             for compensation in respect of such death or permanent
             disablement shall be disposed of in accordance with the
             provisions of Chapter X.
             .
    

    .

    10 “….Money cannot renew a physical frame that has been
    battered.” {as observed in the case of H. West and Son Limited
    Vs. Shephard 1958 -65 ACJ 504 (HL, England)}. It recognizes
    that the physical damage caused once cannot be fully undone.
    Something which remains as an indelible permanent sign of an

    SPONSORED

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 11 of 36
    unfortunate incident cannot be balanced merely by paying some
    monetary compensation. The process of damage and the ugly
    scars left on physical body and mental self, navigating through
    the entire process post accident and the unintended but
    compulsory turns that it brings in the course of life is indeed
    painful and traumatic. It is also required to be underlined that the
    damage is not restricted to the tangible injuries visible on the
    body of the injured rather catapults the lives of his family
    members also.

    11. The assessment or grant of compensation is a small
    attempt to render assistance to the injured to navigate through the
    hairpin unanticipated sudden and traumatic turn in order to bring
    some elbow space for him to move towards stability and
    normalcy to the extent possible. The underlying principle
    remains thus to make good the damage so far as possible as
    equivalent in money.

    12. Section 168 MV Act puts an obligation over Tribunal to
    assess ‘just’ compensation with the object of putting the sufferer
    in the same position as nearly as possible as he would have been
    if he had not sustained the wrong. It is worthwhile to reproduce
    certain observations made by Karnataka High Court in the case
    of K. Narasimha Murthy v. Oriental Insurance Co. Ltd ILR 2004
    KAR 2471 as referred and relied in the case of Rekha Jain Vs.
    National Insurance Company Limited Civil Appeal No.
    5370-
    5372 of 2013 which enumerates the milestones to be kept in
    mind by the Tribunal in an endevour to assess just compensation,
    at the same time acknowledging that any amount of money
    cannot compensate fully an injured man or completely renew a

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 12 of 36
    shattered human physical frame with the observations as under:

    “16. The Courts and Tribunals, in bodily injury cases, while
    assessing compensation, should take into account all relevant
    circumstances, evidence, legal principles governing
    quantification of compensation. Further, they have to
    approach the issue of awarding compensation on the larger
    perspectives of justice, equity and good conscience and
    eschew technicalities in the decision-making. There should be
    realisation on the part of the Tribunals and Courts that the
    possession of one’s own body is the first and most valuable of
    all human rights, and that all possessions and ownership are
    extensions of this primary right, while awarding
    compensation for bodily injuries. Bodily injury is to be
    treated as a deprivation which entitles a claimant to damages.
    The amount of damages varies according to gravity of
    injuries.”

    13. It is also settled that the monetary assessment is a
    methodology known to law as social and legal security to a
    victim even though the nature of injuries and the individual
    ramifications might vary in different cases, therefore, it is
    understandable that one remedy cannot heal all. Further, the loss
    is in the nature of deprivation and it is unlike a personal asset
    with a price tag which can be simply awarded and therefore,
    complete accuracy in making such assessment is not humanly
    possible. The endevour is thus to make an assessment as best and
    as fair as possible under the given circumstance. The uncertainty
    of bringing justness to an assessment has been recognized, still
    holding that substantial damages must be awarded. The
    observations made by Lord Halsbury in the case of Mediana In re
    1900 AC 113 (HL) give valuable insights into the aspect and
    reproduced as under:

    “……Of course the whole region of inquiry into damages is
    one of extreme difficulty. You very often cannot even lay
    down any principle upon which you can give damages;
    nevertheless it is remitted to the jury or those who stand in
    place of the jury, to consider what compensation in money
    shall be given for what is a wrongful act. Take the most
    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 13 of 36
    familiar and ordinary case: how is anybody to measure
    pain and suffering in money counted? Nobody can suggest
    that you can by any arithmetical calculation establish what
    is the exact amount of money which would represent such
    a thing as the pain and suffering which a person has
    undergone by reason of an accident……. But nevertheless
    the law recognises that as a topic upon which damages may
    be given”

    14. The uncertainty involved has also been recognized by
    Hon’ble Supreme Court of India in the case of Rekha Jain (supra)
    where observations of Lord Blacburn in the case of Livingstone
    Vs. Rawyards Coal Company were referred as under:

    “…….where any injury is to be compensated by damages,
    in settling the sum of money to be given… you should as
    nearly as possible get at that sum of money which will put
    the party who has been injured.. in the same position as he
    would have been if he had not sustained the wrong….”

    15. It is further observed by their Lordship in the case of
    Rekha Jain (supra) as follows:

    “41…..Besides, the Court is well advised to remember that
    the measures of damages in all these cases ‘should be such
    as to enable even a tortfeasor to say that he had amply
    atoned for his misadventure’. The observation of Lord
    Devlin that the proper approach to the problem or to adopt
    a test as to what contemporary society would deem to be a
    fair sum, such as would allow the wrongdoer to ‘hold up
    his head among his neighbours and say with their approval
    that he has done the fair thing’ is quite opposite to be kept
    in mind by the Court in assessing compensation in personal
    injury cases.”

    16. It is also settled that the compensation is not granted only
    for the physical injury but for the entire loss which results from
    the injury in an endevour to place the victim in a position as close
    as possible as prior to the accident (support drawn from National
    Insurance Company Limited v. Pranay Sethi & Ors
    (2017) 16
    SCC 680 also in Raj Kumar v. Ajay Kumar (2011) 1 SCC 343).
    It
    is also settled as held in catena of judgments that the Motor

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 14 of 36
    Vehicles Act is a beneficial piece of legislation and the object of
    the Tribunal ought to be to assist the injured persons, (support
    drawn from Helen C Rebello (Mrs) & Ors. v. Maharashtra State
    Road Transport Corporation and Anr
    (1999) 1 SCC 90).

    17. It is settled that an injured is required to be compensated
    for his inability to lead full life, his inability to enjoy those
    natural amenities which he would have enjoyed but for the
    injuries, and his inability to earn as much as he used to earn or
    could have earned (support drawn from C. K. Subramonia Iyer
    vs. T. Kunhikuttan Nair
    – AIR 1970 SC 376 as further referred
    and relied in the case of Raj Kumar (supra) and then in a recent
    pronouncement of Sidram Vs Divisonal Manager United India
    Insurance Company & Anr
    SLP (Civil) No.19277 of 2018).

    18. What is required of the Tribunal is to attempt an objective
    assessment of damages as nearly as possible without fanciful or
    whimsical speculation even though, some conjecture specially in
    reference of the nature of disability and it consequence would be
    inevitable. {support drawn from the case of Raj Kumar (supra) as
    referred and relied in case of Sidram (supra)}.

    19. Observing that a measure of damages cannot be arrived with
    precise mathematical calculations and that much depends upon
    peculiar facts and circumstances of any matter, Hon’ble Supreme
    Court of India elaborated upon the expression “which appears to
    it to be just” in the case of Divisional Controller, KSRTC v.
    Mahadeva Shetty and Another
    , (2003) 7 SCC 197.

    20. The observations made by Hon’ble Supreme Court of
    India in the case of K. Suresh Vs. New India Assurance

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 15 of 36
    Company Limited (2012) 12 SCC 274 provide valuable insights
    into the factors to be weighed by the Tribunal for determination
    of quantum of compensation, the relevant extract of which is
    reproduced as under:

    “10. It is noteworthy to state that an adjudicating authority, while
    determining the quantum of compensation, has to keep in view
    the sufferings of the injured person which would include his
    inability to lead a full life, his incapacity to enjoy the normal
    amenities which he would have enjoyed but for the injuries and
    his ability to earn as much as he used to earn or could have
    earned. Hence, while computing compensation the approach of
    the Tribunal or a court has to be broad- based. Needless to say, it
    would involve some guesswork as there cannot be any
    mathematical exactitude or a precise formula to determine the
    quantum of compensation. In determination of compensation the
    fundamental criterion of “just compensation” should be
    inhered.”

    21. The compensation has been broadly delineated as pecuniary
    and non pecuniary in the case of R. D. Hattangadi Vs. Pest
    Control India Pvt Ltd.
    1995 AIR 755. It is worthwhile to
    reproduce certain observations made therein:

    “9….while fixing an amount of compensation payable to a
    victim of an accident, the damages have to be assessed
    separately as pecuniary damages and special damages.
    Pecuniary damages are those which the victim has actually
    incurred and which are capable of being calculated in terms of
    money; whereas non-pecuniary damages are those which are
    incapable of being assessed by arithmetical calculations. In
    order to appreciate two concepts pecuniary damages may
    include expenses incurred by the claimant: (i) medical
    attendance; (ii) loss of earning of profit up to the date of trial;

    (iii) other material loss. So far non- pecuniary damages are
    concerned, they may include (i) damages for mental and
    physical shock, pain and suffering, already suffered or likely
    to be suffered in future; (ii) damages to compensate for the
    loss of amenities of life which may include a variety of
    matters i.e. on account of injury the claimant may not be able
    to walk, run or sit; (iii) damages for the loss of expectation of
    life, i.e., on account of injury the normal longevity of the
    person concerned is shortened; (iv) inconvenience, hardship,
    discomfort, disappointment, frustration and mental stress in
    life.”

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 16 of 36

    22. The issue of determination of compensation in a personal
    injury matter was extensively deliberated by Hon’ble Supreme
    Court of India in the case of Raj Kumar (supra) Relevant extract
    of the aforesaid judgment are reproduced hereunder for further
    discussion:

    6. The heads under which compensation is awarded in
    personal injury cases are the following:

    Pecuniary damages (Special damages)

    (i) Expenses relating to treatment, hospitalisation,
    medicines, transportation, nourishing food, and
    miscellaneous expenditure.

    (ii) Loss of earnings (and other gains) which the injured
    would have made had he not been injured, comprising:

    (a) Loss of earning during the period of treatment;

    (b) Loss of future earnings on account of permanent
    disability.

    (iii) Future medical expenses.

    Non-pecuniary damages (General damages)

    (iv) Damages for pain, suffering and trauma as a
    consequence of the injuries.

    (v) Loss of amenities (and/or loss of prospects of
    marriage).

    (vi) Loss of expectation of life (shortening of normal
    longevity).

    In routine personal injury cases, compensation will be
    awarded only under heads (i), (ii)(a) and (iv). It is only in
    serious cases of injury, where there is specific medical
    evidence corroborating the evidence of the claimant, that
    compensation will be granted under any of the heads (ii)

    (b),

    (iii), (v) and (vi) relating to loss of future earnings on
    account of permanent disability, future medical expenses,
    loss of amenities (and/or loss of prospects of marriage) and
    loss of expectation of life.

    7. Assessment of pecuniary damages under Item (i) and under
    Item (ii)(a) do not pose much difficulty as they involve
    reimbursement of actuals and are easily ascertainable from the
    evidence. Award under the head of future medical expenses–
    Item (iii)–depends upon specific medical evidence regarding
    need for further treatment and cost thereof. Assessment of non-
    pecuniary damages–Items (iv), (v) and (vi)–involves
    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 17 of 36
    determination of lump sum amounts with reference to
    circumstances such as age, nature of injury/deprivation/disability
    suffered by the claimant and the effect thereof on the future life of
    the claimant. Decisions of this Court and the High Courts contain
    necessary guidelines for award under these heads, if necessary.
    What usually poses some difficulty is the assessment of the loss
    of future earnings on account of permanent disability–Item (ii)

    (a). We are concerned with that assessment in this case…”

    23. Loss of earning during the period of treatment:

    (a) PW-1 (the injured) testified that at the time of the accident
    he was working in a private job with M/s Paper Smiths, Okhla
    Phase-I, and earning a salary of Rs.17,400/- per month. In
    support of his employment, he proved on record his original
    appointment letter issued by the said employer. The appointment
    letter reflects that he had been appointed as a Field Executive in
    the Okhla office in the year 2017 on a monthly salary of
    Rs.14,500/-. The bank statement filed as Ex. PW1/7 for the
    period 01.03.2019 to 31.08.2019 reflects two salary entries from
    Paper Smiths in May 2019, namely Rs.10,000/- credited on
    06.05.2019 and Rs.9,290/- credited on 13.05.2019. However,
    apart from these two entries, no other consistent salary credits
    from the said employer are reflected in the statement for the
    relevant period.

    (b) PW-1 further deposed that after the accident he joined
    Albero Paper on 16.09.2019. The appointment letter of the said
    employment has been placed on record, which reflects a salary of
    Rs.20,000/- per month. The bank statement for the period from
    22.09.2019 to 29.02.2020 also shows certain entries of
    Rs.20,000/- credited as monthly salary from Albero. The injured
    has also placed on record his educational documents as Ex.
    PW1/4, including the Certificate of Senior Secondary
    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 18 of 36
    Examination (1998) and the graduation marksheet of 2001. The
    marksheet indicates that he had not cleared certain subjects in BA
    Part-I and Part-III. During cross-examination, PW-1 clarified that
    his work involved sales and marketing activities and distribution
    of newspapers. He further explained that a part of his salary for
    March 2019 was paid in cash on 05.04.2019 and that certain
    incentives had accrued and were credited on 06.05.2019.
    Nevertheless, the salary entries in the bank statement for the
    relevant period do not satisfactorily establish a regular monthly
    income of Rs.17,400/- except for the two isolated entries
    mentioned above. At the same time, it is pertinent to note that
    shortly after the accident the injured secured employment in a
    similar field with Albero Paper at a salary of Rs.20,000/- per
    month, which reflects his earning capacity in that line of work.

    (c) At the relevant time, the minimum wages for a matriculate
    worker were Rs.16,962/- per month, whereas the injured has
    claimed an income of Rs.17,400/- per month. Considering the
    nature of his work, the available documentary evidence, the
    minimum wages applicable at the relevant time, and his
    subsequent employment showing a salary of Rs.20,000/- per
    month, it would be reasonable to presume that his income fell
    within this range. Accordingly, a rounded figure of Rs.17,000/-
    per month is taken as the monthly income of the injured for the
    purpose of computation of compensation.

    (d) The injured had suffered fracture of both bones of the right
    leg in the accident. As per the discharge summary, he was
    discharged from the hospital on the same day. However, the
    medical record shows that he remained under active medical

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 19 of 36
    supervision for several months thereafter, as reflected from the
    various medical documents and OPD visits placed on record. The
    seriousness of the injury is further evident from the fact that the
    injuries ultimately resulted in 21% permanent disability in
    relation to the right lower limb. Thus, although the injured was
    discharged on the same day, the nature of the fracture and the
    subsequent treatment indicate that he must have required
    considerable time for recovery and rehabilitation. It is also
    evident from the record that the injured joined another company,
    Albero Papers, only on 16.09.2019, i.e., after almost six months
    from the date of the accident, which reasonably suggests that he
    resumed employment only after attaining sufficient recovery to
    perform his duties. During cross-examination, the injured also
    deposed that he had been terminated from PaperSmiths, where he
    was earlier employed. The oral testimony of the injured, when
    read along with the medical documents on record and the
    subsequent employment details, broadly corroborates the
    circumstances following the accident. It can therefore be
    reasonably inferred that the injured remained unable to earn for a
    substantial period due to the injuries suffered in the accident.
    Accordingly, loss of income for a period of six months appears to
    be justified and reasonable in the facts and circumstances of the
    present case.

    (e) Accordingly, his loss of income is calculated to be
    Rs.17,000/- x 6 = Rs.1,02,000/-

    24. Loss of future earning

    (a) It is part of record that petitioner has been opined with
    21% permanent physical in relation to his right lower limb.

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 20 of 36

    (b) Before proceeding further, it is important to understand as
    to what disability means and also types thereof. This aspect has
    been delved into by Hon’ble SC in Raj Kumar (supra):

    “8. Disability refers to any restriction or lack of ability to perform
    an activity in the manner considered normal for a human being.
    Permanent disability refers to the residuary incapacity or loss of
    use of some part of the body, found existing at the end of the
    period of treatment and recuperation, after achieving the
    maximum bodily improvement or recovery which is likely to
    remain for the remainder life of the injured. Temporary disability
    refers to the incapacity or loss of use of some part of the body on
    account of the injury, which will cease to exist at the end of the
    period of treatment and recuperation. Permanent disability can be
    either partial or total. Partial permanent disability refers to a
    person’s inability to perform all the duties and bodily functions
    that he could perform before the accident, though he is able to
    perform some of them and is still able to engage in some gainful
    activity. Total permanent disability refers to a person’s inability to
    perform any avocation or employment related activities as a result
    of the accident. The permanent disabilities that may arise from
    motor accident injuries, are of a much wider range when
    compared to the physical disabilities which are enumerated in the
    Persons with Disabilities (Equal Opportunities, Protection of
    Rights and Full Participation) Act, 1995
    (“the Disabilities Act”,
    for short). But if any of the disabilities enumerated in Section 2(i)
    of the Disabilities Act are the result of injuries sustained in a
    motor accident, they can be permanent disabilities for the purpose
    of claiming compensation.”

    (c) The term ‘disability’ means the decrements to the
    functional efficacy of body of injured whereas ‘functioning’
    encompass all the body functions and activities for an
    independent life. Functional disability is to determine the extent
    of loss or extent of restrictive functionality considering the nature
    of activities required to be necessarily performed in efficient
    discharge of duties and the limb effected. This computes the
    extent of adverse effect of physical disability upon the functional
    efficacy of an injured person, in turn adversely impacting his
    earning capacity. The process entails understanding and

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 21 of 36
    enumerating the skill set required for performing specific
    activities. To sum up, functional disability basically measures the
    extent of ability having been compromised to carry out basic
    everyday tasks or even more complex tasks required for and
    independent living. The limitations may occur on account of
    disability in the personal sphere, in the social sphere and in the
    occupational sphere. In the personal sphere it may encompass the
    daily activities of a person, his body function and his
    involvement in basis life situations. At the societal level, it could
    mean difficulty in involvement and participation in social and
    community activities interfering the interpersonal interaction and
    relationship adversely impacting the civic life. When disability
    restricts the vocation or employment avenues to make earning for
    his living, it falls in the category of disability in the occupational
    sphere. The disability might occur on account of age or any
    illness and in the case at hand by way of an accident. A person
    living a normal life in particular set of circumstance and making
    his living by engaging in any work has suffered disability which
    might impead his daily life activities, both on a personal and
    social scale and might also impact his ability to continue earning
    as much as before and his future employment avenues.

    (d). What is thus required to be assessed is the effect and
    impact of disability upon the working efficiency of injured and
    whether it would adversely impact his earning capabilities in
    future. It is settled that the Tribunal should not mechanically
    apply the percentage of permanent disability as the percentage of
    economic loss or loss of earning capacity.

    (e). Hon’ble SC laid down certain guidelines for the Tribunal

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 22 of 36
    to be able to arrive at an objective figure to quantify the loss for
    the purpose of computing the compensation in the judgment of
    Raj Kumar (supra). Relevant extracts of this judgment for the
    purpose of further discussion are reproduced hereunder:

    “Assessment of future loss of earnings due to permanent
    disability

    9. The percentage of permanent disability is expressed by the
    doctors with reference to the whole body, or more often than not,
    with reference to a particular limb. When a disability certificate
    states that the injured has suffered permanent disability to an
    extent of 45% of the left lower limb, it is not the same as 45%
    permanent disability with reference to the whole body. The extent
    of disability of a limb (or part of the body) expressed in terms of
    a percentage of the total functions of that limb, obviously cannot
    be assumed to be the extent of disability of the whole body. If
    there is 60% permanent disability of the right hand and 80%
    permanent disability of left leg, it does not mean that the extent
    of permanent disability with reference to the whole body is 140%
    (that is 80% plus 60%). If different parts of the body have
    suffered different percentages of disabilities, the sum total thereof
    expressed in terms of the permanent disability with reference to
    the whole body cannot obviously exceed 100%.

    10. Where the claimant suffers a permanent disability as a result
    of injuries, the assessment of compensation under the head of
    loss of future earnings would depend upon the effect and impact
    of such permanent disability on his earning capacity. The
    Tribunal should not mechanically apply the percentage of
    permanent disability as the percentage of economic loss or loss of
    earning capacity. In most of the cases, the percentage of
    economic loss, that is, the percentage of loss of earning capacity,
    arising from a permanent disability will be different from the
    percentage of permanent disability. Some Tribunals wrongly
    assume that in all cases, a particular extent (percentage) of
    permanent disability would result in a corresponding loss of
    earning capacity, and consequently, if the evidence produced
    show 45% as the permanent disability, will hold that there is 45%
    loss of future earning capacity. In most of the cases, equating the
    extent (percentage) of loss of earning capacity to the extent
    (percentage) of permanent disability will result in award of either
    too low or too high a compensation.

    11. What requires to be assessed by the Tribunal is the effect of
    the permanent disability on the earning capacity of the injured;
    and after assessing the loss of earning capacity in terms of a
    percentage of the income, it has to be quantified in terms of

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 23 of 36
    money, to arrive at the future loss of earnings (by applying the
    standard multiplier method used to determine loss of
    dependency). We may however note that in some cases, on
    appreciation of evidence and assessment, the Tribunal may find
    that the percentage of loss of earning capacity as a result of the
    permanent disability, is approximately the same as the
    percentage of permanent disability in which case, of course, the
    Tribunal will adopt the said percentage for determination of
    compensation. (See for example, the decisions of this Court in
    Arvind Kumar Mishra v. New India Assurance Co. Ltd. [(2010)
    10 SCC 254 : (2010) 3 SCC (Cri) 1258 : (2010) 10 Scale 298]
    and Yadava Kumar v. National Insurance Co. Ltd. [(2010) 10
    SCC 341 : (2010) 3 SCC (Cri) 1285 : (2010) 8 Scale 567] )

    12. Therefore, the Tribunal has to first decide whether there is
    any permanent disability and, if so, the extent of such permanent
    disability. This means that the Tribunal should consider and
    decide with reference to the evidence:

    (i) whether the disablement is permanent or temporary;

    (ii) if the disablement is permanent, whether it is permanent
    total disablement or permanent partial disablement;

    (iii) if the disablement percentage is expressed with
    reference to any specific limb, then the effect of such
    disablement of the limb on the functioning of the entire
    body, that is, the permanent disability suffered by the
    person.

    If the Tribunal concludes that there is no permanent
    disability then there is no question of proceeding further and
    determining the loss of future earning capacity. But if the
    Tribunal concludes that there is permanent disability then it
    will proceed to ascertain its extent. After the Tribunal
    ascertains the actual extent of permanent disability of the
    claimant based on the medical evidence, it has to determine
    whether such permanent disability has affected or will affect
    his earning capacity.

    13. Ascertainment of the effect of the permanent disability on the
    actual earning capacity involves three steps. The Tribunal has to
    first ascertain what activities the claimant could carry on in spite
    of the permanent disability and what he could not do as a result of
    the permanent disability (this is also relevant for awarding
    compensation under the head of loss of amenities of life). The
    second step is to ascertain his avocation, profession and nature of
    work before the accident, as also his age. The third step is to find
    out whether (i) the claimant is totally disabled from earning any
    kind of livelihood, or (ii) whether in spite of the permanent
    disability, the claimant could still effectively carry on the activities
    and functions, which he was earlier carrying on, or (iii) whether he
    was prevented or restricted from discharging his previous
    activities and functions, but could carry on some other or lesser

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 24 of 36
    scale of activities and functions so that he continues to earn or can
    continue to earn his livelihood.

    .

    .

    .

    .

    .

    19. We may now summarise the principles discussed above:

    (i) All injuries (or permanent disabilities arising from
    injuries), do not result in loss of earning capacity.

    (ii) The percentage of permanent disability with reference to
    the whole body of a person, cannot be assumed to be the
    percentage of loss of earning capacity. To put it differently,
    the percentage of loss of earning capacity is not the same as
    the percentage of permanent disability (except in a few
    cases, where the Tribunal on the basis of evidence,
    concludes that the percentage of loss of earning capacity is
    the same as the percentage of permanent disability).

    (iii) The doctor who treated an injured claimant or who
    examined him subsequently to assess the extent of his
    permanent disability can give evidence only in regard to the
    extent of permanent disability. The loss of earning capacity
    is something that will have to be assessed by the Tribunal
    with reference to the evidence in entirety.

    (iv) The same permanent disability may result in different
    percentages of loss of earning capacity in different persons,
    depending upon the nature of profession, occupation or job,
    age, education and other factors.”

    (f) Further in the case of “Mohan Soni Vs. Ram Avtar Tomar
    & Ors. I
    (2012) ACC 1 (SC), the question at hand was
    deliberated and following observations as relevant in the context
    were made:

    “In the context of loss of future earning, any physical
    disability resulting from an accident has to be judged with
    reference to the nature of work being performed by the
    person suffering the disability. This is the basic premise and
    once that is grasped, it clearly follows that the same injury or
    loss may affect two different persons in different ways. Take
    the case of a marginal farmer who does his cultivation work
    himself and ploughs his land with his own two hands; or the
    puller of a cycle-rickshaw, one of the main means of
    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 25 of 36
    transport in hundreds of small towns all over the country.
    The loss of one of the legs either to the marginal farmer or
    the cycle-rickshaw-puller would be the end of the road
    insofar as their earning capacity is concerned. But in case of
    a person engaged in some kind of desk work in an office, the
    loss of a leg may not have the same effect. The loss of a leg
    (or for that matter the loss of any limb) to anyone is bound
    to have very traumatic effects on one’s personal, family or
    social life but the loss of one of the legs to a person working
    in the office would not interfere with his work/earning
    capacity in the same degree as in the case of a marginal
    farmer or a cycle-rickshaw-puller.

    (g) The question of assessment of impact of disability on the
    earning capacity has been dealt in several cases but it is
    understood that each case has to be evaluated on its contextual
    dynamics established by way of evidence at hand. It brings us to
    a question whether extent of permanent disability as medically
    determined can simply be taken to be the extent of functional
    disability and hence, the loss of earning capacity. It has been held
    in various pronouncements of Hon’ble Supreme Court of India
    and Hon’ble High Court that equating the two as a criteria would
    result in an inobjective and absurd compensation. There however,
    might be certain cases where the two would correspond to each
    other but it cannot be mechanically applied rather requires
    evaluation of applicable factors independently in each case to
    reach at a fair quantification of loss of earning capacity.

    (h) In the case of Raj Kumar (supra), the physical functional
    disability of left leg was assessed to be 75% and total body
    disability at 37.5 %.
    In this case, functional disability was also
    assessed at 75% and it was observed that the extent of physical
    functional disability has to be considered so as to grant just and
    proper compensation towards loss of future earning as the
    earning capacity of injured was totally negated having been

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 26 of 36
    rendered incapable of doing any manual work. It was also held
    that if permanent disability in relation to particular limb renders
    the injured permanently disabled from pursuing his normal
    vocation or any other similar work, there is no reason as to why
    compensation should be granted on the basis of physical
    disability in relation to whole body. In another matter of Syed
    Sadiq Etc vs Divisional Manager,United India
    AIR 2014
    SUPREME COURT 1052, where functional disability was
    considered to be 65% by Hon’ble High Court in case of a
    vegetable vendor whose right leg had to be amputated was set
    aside and it was observed that loss of limb is often equivalent to
    loss of livelihood specially in manual labour cases and
    determined the functional disability at 85%. In another matter of
    Arvind Kumar Mishra, injured suffered grievous injuries and
    remained in coma for about 2 months and was held to be
    permanently disabled to the extent of 70% with his right hand
    amputated whereas his loss of earning capacity was held to be
    90%.
    Similarly in case of K Janardhan v United India Insurance
    Company
    AIR 2008 Supreme Court 2384, Hon’ble Supereme
    Court of India, held that a tanker driver suffered 100% functional
    disability and incapacity to earn as a tanker driver as his right leg
    was amputated from the knee.
    In the case of Pappu Deo Yadav v
    Naresh Kumar
    , AIR 2020 SC 4424, injured suffered loss of an
    arm and therefore, was unable to carry out his functions as a
    typist / data entry operator and thus acknowledging the impact of
    injury upon the income generating capacity of victim, the extent
    of functional disablement and loss of income generating earning
    capacity was equated with the extent of permanent disablement
    as medically assessed at 89%.
    Similarly, in the case of Sidram

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 27 of 36
    (supra), injured suffered paraplegia due to accident and was
    medically assessed with permanent disability to the tune of 45%,
    however, he was held to have suffered 100% loss of earning
    capacity.

    (i) As per the disability certificate placed on record, the injured
    has suffered 21% permanent physical disability in relation to the
    right lower limb. In the present case, the injured has deposed that
    he was working as a Field Executive and was engaged in sales
    and marketing activities including distribution of newspapers.

    Such work primarily involves considerable physical movement,
    travelling, standing and walking. Therefore, the efficiency of the
    lower limbs becomes relevant for performing such duties. At the
    same time, the disability is restricted only to the right lower limb
    and not to the whole body. The injured is still capable of
    performing work involving communication, coordination,
    supervision and other activities associated with sales and
    marketing. Thus, the disability cannot be treated as equivalent to
    the percentage mentioned in the disability certificate for the
    purpose of assessing loss of earning capacity. Considering the
    nature of employment of the injured, the extent of disability in
    the right lower limb, and the fact that his work requires
    substantial mobility, it would be reasonable to assess the
    functional disability affecting his earning capacity at 15%.
    Accordingly, the functional disability of the injured for the
    purpose of computation of loss of future earning capacity is taken
    as 15%.

    24(i) Future Prospect:

    (a) It is also held therein that future prospect (as laid down in

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 28 of 36
    the well considered judgment of National Insurance Company
    Vs. Pranay Sethi
    (2017) 16 SCC 680) shall be payable, not only
    in fatal cases but also in the case of permanent disability. The
    observations made in the said case as relevant to the context are
    reproduced hereunder:

    “6. The principle consistently followed by this court in
    assessing motor vehicle compensation claims, is to place the
    victim in as near a position as she or he was in before the
    accident, with other compensatory directions for loss of
    amenities and other payments. These general principles have
    been stated and reiterated in several decisions.

    7. Two questions arise for consideration: one, whether in cases
    of permanent disablement incurred as a result of a motor
    accident, the claimant can seek, apart from compensation for
    future loss of income, amounts for future Govind Yadav v.
    New India Insurance Co. Ltd. [Govind Yadav
    v. New India
    Insurance Co. Ltd., (2011) 10 SCC 683.
    This court referred to
    the pronouncements in R.D. Hattangadi v. Pest Control (India)
    (P) Ltd.
    , (1995) 1 SCC 551; Nizam’s Institute of Medical
    Sciences v. Prasanth S. Dhananka
    (2009) 6 SCC 1; Reshma
    Kumari v. Madan Mohan
    (2009) 13 SCC 422; Raj Kumar v.

    Ajay Kumar, (2011) 1 SCC 343. Govind Yadav spelt out these
    principles by stating that the courts should, “in determining the
    quantum of compensation payable to the victims of accident,
    who are disabled either permanently or temporarily. If the
    victim of the accident suffers permanent disability, then efforts
    should always be made to award adequate compensation not
    only for the physical injury and treatment, but also for the loss
    of earning and his inability to lead a normal life and enjoy
    amenities, which he would have enjoyed but for the disability
    caused due to the accident.” These decisions were also
    followed in ICICI Lombard General Insurance Co. Ltd. v. Ajay
    Kumar Mohanty
    , (2018) 3 SCC 686. prospects too; and two,
    the extent of disability. On the first question, the High Court
    no doubt, is technically correct in holding that Pranay Sethi
    involved assessment of compensation in a case where the
    victim died. However, it went wrong in saying that later, the
    three-judge bench decision in Jagdish was not binding, but
    rather that the subsequent decision in Anant10 to the extent
    that it did not award compensation for future prospects, was
    binding. This court is of the opinion that there was no
    justification for the High Court to have read the previous
    rulings of this court, to exclude the possibility of compensation
    for future prospects in accident cases involving serious injuries
    resulting in permanent disablement.
    Such a narrow reading of
    Pranay Sethi11 is illogical, because it denies altogether the

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 29 of 36
    possibility of the living victim progressing further in life in
    accident cases – and admits such possibility of future
    prospects, in case of the victim’s death.

    (b) Hon’ble Supreme Court further discussed several cases
    involving permanent disability and observed as under:

    “20. Courts should not adopt a stereotypical or myopic
    approach, but instead, view the matter taking into account the
    realities of life, both in the assessment of the extent of
    disabilities, and compensation under various heads.
    .

    .

    What is to be seen, as emphasized by decision after decision, is
    the impact of the injury upon the income generating capacity
    of the victim. The loss of a limb (a leg or arm) and its severity
    on that account is to be judged in relation to the profession,
    vocation or business of the victim; there cannot be a blind
    arithmetic formula for ready application. On an overview of
    the principles outlined in the previous decisions, it is apparent
    that the income generating capacity of the appellant was
    undoubtedly severely affected”.

    (c) Aadhar Card (Ex.PW1/3 colly) shows his year of birth as
    1982, as such, his age as on the date of accident was about 37
    years. Since the injured was below the age of 40 years (at the
    time of accident) and purportedly earning fixed income thus as
    mandated in case of Pranay Sethi (Supra) and other case laws,
    the percentage towards future prospect is taken to be @ 40 %.

    Further, as tabulated in the case of Sarla Verma (supra),
    multiplier of 15 is applicable.

    (d) In view of the above discussion of law, the calculation
    under future loss of income in the present case is as under:

    (i) Annual income (Rs.17,000/- x12) = Rs.2,04,000/-

    (ii) Future prospect (40% of Rs.2,04,000/-) = Rs. 81,600/-

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 30 of 36
    __________________

    (iii) Total = Rs.2,85,600/-

    (iv) Thus, Multiplicand = Rs.2,85,600/-

    (v) Hence, the ‘Total Loss of Future Income’ shall be :-

    (vi) Percentage of Functional Disability (Multiplicand X Multiplier).

    15% (Rs.2,85,600/- x 15) = Rs.6,42,600/-

    25. The compensation awarded against pecuniary and non-

    pecuniary damages under various heads is being sequentially put
    in a tabulated form hereunder for ease of reference to all
    concerned:

                        Pecuniary loss : -                                                      Quantum
     Sl. no.
     1.                 (i) Expenditure on treatment : The claimant has                               Rs.15,000/-
    

    placed on record medical bills along with the
    treatment summary for a total sum of
    Rs.14,308/-. All the medical bills appear to be
    original in nature and have not been disputed by
    the respondents. There is nothing on record to
    doubt their genuineness. Considering the nature
    of injuries and the treatment undergone by the
    claimant, it is also reasonable to presume that
    certain incidental and miscellaneous expenses
    would have been incurred during the course of
    treatment which may not necessarily be
    supported by documentary proof. Accordingly,
    a lump sum amount of Rs.15,000/- is awarded
    to the claimant towards medical expenses.

    (ii) Expenditure on Conveyance : No Rs. 20,000/-
    documentary proof has been filed by the
    claimant regarding expenditure on conveyance.
    However, considering the medical condition of
    the injured, the fractures sustained by him and
    the repeated visits to the hospital for treatment
    and follow-up, which would necessarily have
    required assistance of support persons including
    family members, it can be reasonably inferred
    that the claimant must have incurred substantial
    expenditure on conveyance. Accordingly, a sum
    of Rs. 20,000/- is awarded to the claimant under

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 31 of 36
    the head of conveyance charges.

    (iii) Expenditure on special diet : There is no Rs.20,000/-
    prescription for special diet. The nature of
    injuries sustained by the injured suggest that he
    must have been advised and would have
    required to consume healthy wholesome protein
    rich diet for efficient and prompt recovery.
    By guess work, compensation can be awarded
    for special diet.

    (iv) Cost of nursing / attendant : Claimant Rs.15,000/-
    himself deposed that he had spent Rs.15,000/-
    on attendant; considering the nature of injuries
    and need of support person during recovery
    period, this amount looks reasonable. An
    amount of Rs.15,000/- is thus awarded to
    claimant towards nursing / attendant.

    (v) Loss of income : As discussed above: Rs.1,02,000/-

    2. Non-Pecuniary Loss :

    (I) Compensation of mental and physical shock Rs.1,00,000/-

    as well as pain and suffering : Considering the
    injuries sustained by injured and discussed (Rs.50,000/- +
    earlier it is considered that he must have Rs.50,000/-)
    suffered immense physical, mental and
    emotional trauma for what he was compelled to
    undergo on account of injuries sustained in the
    accident. There is no measure with the court to
    quantify the pain and suffering of the injured,
    however, an attempt is being made to
    compensate in terms of money for the agony
    she must have suffered. Therefore, an amount
    of 1,00,000/- (Rs.50,000/-+ Rs.50,000/-) is
    awarded to the injured against (i) pain, suffering
    as well as (ii) mental trauma sustained in the
    accident.

    (iii) Loss of amenities of life : It compensates Rs.20,000/-
    the victim on account of his inability to enjoy
    the basic amenities of life as any other normal
    person can, taking into account the age and the
    deprivation he would have to undergo and
    suffer due to injuries. Considering the nature of
    injuries suffered by claimant, an amount of Rs.
    20,000/- is awarded towards loss of amenities.

    (iv) Loss of future Income: As discussed Rs.6,42,600/-
    above:

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 32 of 36

    3 Total Compensation Rs.9,34,600/-

    4 Deduction, if any, Nil
    5 Total Compensation after deduction Rs.9,34,600/-
    6 Interest As directed below

    26. Interest :

    (a). It is settled that any fixed rate of interest cannot be
    prescribed for all cases at all times and would largely depend
    upon the prevailing rate of interest as per the applicable
    guidelines. As such, interest at the rate of 7.5% per annum is
    deemed fit and accordingly granted in the present case. (Reliance
    placed upon National Insurance Company Ltd Vs. Yad Ram MAC APP
    526/2018 also referred and relied in case of The Oriental Insurance
    Company Ltd Vs. Sohan Lal & Ors. MAC APP
    70/2024 of the Hon’ble

    Delhi High Court).

    27. LIABILITY

    (a) The issue of rash and negligent driving has already been
    discussed and decided hereinabove, wherein it has been held that
    the accident occurred due to the rash and negligent driving of the
    offending vehicle by respondent no.1. The Insurance Company
    has admitted the validity and genuineness of the insurance policy
    in respect of the offending vehicle on the date of accident and
    also proposed legal offer. No statutory defence under the Motor
    Vehicles Act
    has been pleaded or proved by the Insurance
    Company. In view of the above facts, and in the absence of any
    statutory defence, the Insurance Company is under a legal
    obligation to indemnify the insured/owner for the vicarious
    liability arising out of the tortious act of respondent no.1.
    Accordingly, the principal award amount/compensation shall be

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 33 of 36
    payable by the Insurance Company of the offending vehicle,
    along with simple interest @ 7.5% per annum from the date of
    filing of the DAR till its actual realization. (If there is any order
    regarding excluding of interest for specific period same be
    complied at the time of calculation of award amount. Further, in
    case the matter adjourned sine die, interest for the period i.e. the
    date of concerned order till revival of the case, shall not be
    awarded. Further, if any auction proceeds is received, same be
    adjusted in the final award amount).

    28. The award amount shall be deposited by the Insurance
    Company. Counsel for the Insurance Company is also directed to
    furnish the complete case details, including the MACT case
    number, CNR number, FIR number, name of Police Station,
    name of the deceased/claimant(s), date of accident, and any other
    relevant particulars, to the State Bank of India, Saket Court
    Branch, New Delhi at the time of getting the amount deposited.
    The amount shall be deposited through RTGS/NEFT/IMPS in the
    account titled “MACT FUND PARKING”, Account No.
    00000042706870765, IFSC Code SBIN0014244, MICR Code
    110002342, under intimation to the Nazir of this Tribunal.

    29. Release of Award Amount/ Disbursement

    (a) Out of total award amount Rs.5,00,000/- is kept in form of
    monthly FDR of Rs.10,000/- each. Remaining amount shall be
    released in bank account of injured.

    30. In terms of the Practice Directions issued by Hon’ble
    High Court, vide reference no. 134/Rules/DHC, dated
    14.05.2025, the claimant (s) are directed to produce their bank
    account details along with either a certificate of the banker giving

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 34 of 36
    all details of the bank account of the person or persons entitled to
    receive the compensation including IFS Code, or a copy of
    cancelled cheque of the bank account to this Tribunal with seven
    days of the date of Award, if not already placed on record. They
    are also directed to file their Aadhar Card and PAN Card if not
    already filed.

    31. Directions to the Branch Manager, SBI, Saket Court Complex

    (a). The Manager, SBI, Saket Court Complex, is further
    directed to verify the documents and details submitted by the
    claimant pertaining to their bank account, and upon proper
    verification, under certification of the Branch Manager (of the
    bank whose details have been provided by the claimant for
    release of the compensation amount) disburse the amount,
    directed to be released to the claimant, directly into the verified
    bank account of the claimant under notice to the Tribunal.

    32. SUMMARY OF COMPUTATION OF AWARD AMOUNT
    IN INJURY CASES TO BE INCORPORATED IN THE
    AWARD.

    1 Date of accident 15.03.2019
    2 Name of injured Sanjay Kumar

    3 Age of the injured 37 years
    4 Occupation of the injured Sales and Marketing
    5 Income of the injured Rs.17,000/-

    6 Nature injury Grievous injury + disability
    7 Medical treatment taken As per record.

    by the injured:

    8 Period of Hospitalization As per record.

    9 Whether any permanent Grievous injury+ disability
    disability?

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 35 of 36

    33. Copy of this award be given to the parties free of cost. The
    copy of award be also sent to the Ld. Secretary DLSA and
    concerned criminal court. Digitally
    signed by
    ADITI
    (Pronounced in the ADITI GARG
    open court on 10.03.2026) GARG Date:

    2026.03.10
    (Aditi Garg)16:28:31
    +0530
    PO-MACT-01 (South-East)
    Saket Court/ New Delhi
    10.03.2026

    MACT No. 850/2025 Sanjay Kumar Vs. Manish & Ors. Page No. 36 of 36

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