Uttarakhand High Court Enhances Motor Accident Compensation Without Cross-Appeal, Invokes Order 41 Rule 33 CPC

The Uttarakhand High Court has held that motor accident compensation can be enhanced by invoking Order 41 Rule 33 of the CPC in order to achieve the ends of justice. The Court observed that the appellate court can exercise such power where it is necessary to make the award just and complete.

Justice Ravindra Maithani was hearing an appeal filed by ICICI Lombard General Insurance Company challenging the award dated 16.12.2022 passed by the Motor Accident Claims Tribunal, whereby compensation of Rs. 28,26,645/- was awarded to the claimant. The claim arose out of an accident dated 19.10.2015 in which the claimant sustained injuries leading to mental disability. The Tribunal had held that though the claimant suffered 50% disability, his loss of earning capacity was 100%, and awarded compensation accordingly. The insurer challenged the findings on disability, income, and amounts awarded under various heads. The claimant, on the other hand, sought enhancement of compensation on the ground that future prospects had not been considered.

The Court examined the evidence on record and upheld the findings of the Tribunal on negligence, disability, and loss of earning capacity. It noted that the claimant had become mentally unwell and was unable to carry out any work, and therefore, the finding of 100% loss of earning capacity did not warrant interference. It also upheld the amounts awarded towards attendant charges, future treatment, and other heads, holding that such assessment involved estimation and could not be said to be excessive.

The Court then considered whether compensation could be enhanced in the absence of a cross-appeal by the claimant. It referred to judgments of the Supreme Court and observed that the power under Order 41 Rule 33 CPC may be exercised to achieve the ends of justice. It noted that future prospects had not been considered by the Tribunal, though the claimant was 32 years of age and earning Rs. 11,000/- per month.

“… the Hon'ble Supreme Court has held that the provisions of Order 41 Rule 33 of the Code may be pressed into play so as to achieve the ends of justice,” the Court observed.

The Court held that 40% addition towards future prospects was required to be made. Taking into account all heads of compensation, the Court recalculated the total compensation at Rs. 36,71,445/- as reflected in the tabulation in the judgment.

Accordingly, while dismissing the appeal filed by the insurer, the High Court enhanced the compensation from Rs. 28,26,645/- to Rs. 36,71,445/- and directed the appellant to pay the enhanced amount along with interest at 9% per annum from the date of filing of the claim petition till actual payment.

Case Title: ICICI Lombard General Insurance Co. vs. Nahid & Ors. [Appeal From Order No. 174 of 2023]

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