Mason Awarded Rs 40.29 Lakh After Supreme Court Finds 100% Functional Disability

The Supreme Court in M. Paramesh v. VRL Logistics Ltd. & Anr. has ruled that the amputation of a mason’s right leg above the knee must be assessed as 100% functional disability while calculating compensation under motor accident law.

A Bench of Justice Prashant Kumar Mishra and Justice N.V. Anjaria increased the compensation awarded to the injured mason from ₹29.01 lakh to ₹40.29 lakh. The Court found that the earlier assessment failed to consider the actual impact of the injury on his earning ability.

The claimant was seriously injured in April 2017 after a lorry struck his bicycle from behind on the Namakkal-Salem highway. His injuries resulted in the amputation of his right leg above the knee, leaving him unable to return to his work as a mason.

Medical authorities had certified his permanent physical disability at 70%. Relying on this figure, the Motor Accident Claims Tribunal and the Madras High Court also assessed his loss of earning capacity at 70% while determining the amount payable to him.

The Supreme Court held that physical disability and functional disability cannot always be treated as identical. It relied on the principles laid down in Raj Kumar v. Ajay Kumar, which require courts to examine how an injury affects the claimant’s profession and future income.

“The functional disability suffered by the appellant is required to be assessed at 100% and not at 70% as assessed by the Tribunal and affirmed by the High Court,” the Court held.

The Bench observed that masonry involves demanding manual work and requires the continuous use of both legs. Since the claimant’s occupation was his only source of livelihood, the amputation had effectively destroyed his capacity to continue earning through that work.

“The amputation of the right leg above the knee has not merely caused physical disability to the appellant but has rendered him incapable of effectively carrying on the manual and physical work which constituted his only source of livelihood,” the Court said.

The compensation was recalculated by treating the claimant’s functional disability as 100%. The Court accepted a monthly income of ₹12,000, added 40% for future prospects and applied a multiplier of 17 while determining the future loss of earnings.

The amount awarded for future medical expenses was also increased from ₹1 lakh to ₹2 lakh. The Court noted that the claimant would require an artificial limb and would incur recurring expenses for its replacement, repair and maintenance throughout his life.

The final compensation was fixed at ₹40,29,730, along with interest at 7.5% per annum. The insurer was directed to deposit the enhanced amount within six weeks.