Supreme Court: Child’s 90% Physical Disability Can Amount to 100% Functional Disability; ₹83.38 Lakh Compensation Awarded for Lifelong Consequences
Case Name: Gayatree Pattnaik for Shreejita Pattnaik v. Arundhati Sahoo and Another
Date of Judgment: 03 August 2026
Citation: 2026 INSC 785
Bench: Justice Ujjal Bhuyan and Justice N.V. Anjaria.
Held: The Supreme Court held that motor accident compensation for a child suffering catastrophic permanent disability must be assessed through a realistic and humane approach, keeping in view not merely the medically certified percentage of disability but its actual functional impact upon the child’s entire future. A child cannot be treated merely as a non-earning person because she had not entered employment at the time of the accident. Where a minor suffers permanent disability, loss of future income should ordinarily be assessed with reference to the minimum wages of a skilled worker in the concerned State. The Court further held that although the claimant’s physical disability was medically assessed at 90%, her inability to independently perform basic functions or undertake any gainful avocation meant that her functional disability was 100%. Compensation must account for both pecuniary and non-pecuniary consequences of such catastrophic injury and should neither be a windfall nor a pittance.
Summary: The case arose from a motor accident on 16 June 2015 in which Shreejita Pattnaik, then only about six months old, suffered severe spinal cord and neurological injuries after a tanker being driven rashly and negligently collided with the car in which she was travelling with her parents. She was ultimately diagnosed with post-traumatic myelopathy with paraplegia and certified as having 90% permanent locomotor disability, requiring lifelong medication, assistance and support.
The MACT awarded ₹30,12,960 with 6% interest, which the Orissa High Court enhanced to ₹45,40,800. However, while doing so, the High Court reduced the multiplier for future earnings from 18 to 15. The Supreme Court found that the compensation still failed to adequately reflect the devastating and lifelong impact of the injuries. It emphasised that cases involving children with permanent or near-total disability form a distinct category because the injury affects not merely their present physical capacity but the entire course of their future life.
The Court restored the multiplier of 18, treated the claimant’s functional disability as 100%, and assessed her future earning capacity on the basis of wages payable to a skilled worker rather than an unskilled worker. It also substantially enhanced attendant charges because the child would remain dependent upon others throughout her life, holding that the multiplier method should be applied while calculating lifelong attendant expenses. The Court awarded ₹25.92 lakh under this head alone and ₹25 lakh towards pain, suffering, loss of amenities and loss of marriage prospects.
Decision: The Supreme Court allowed the appeal and modified the High Court judgment by enhancing the total compensation from ₹45,40,800 to ₹83,38,360, comprising ₹17,46,360 for loss of future earnings, ₹25,92,000 for attendant charges, ₹25,00,000 for pain, suffering, loss of amenities and marriage prospects, ₹3,00,000 towards medical expenses, ₹10,00,000 towards future medical treatment and ₹2,00,000 towards conveyance and special diet. The claimant was also awarded 9% interest per annum from the date of filing of the claim petition until realisation. New India Assurance Company Limited was directed to deposit the entire amount with accrued interest within six weeks before the MACT, Cuttack.