High Court of KeralaDivision BenchPartially allowed; enhanced compensation with s...

A. Ansar v. The Managing Director, Kerala State Road Transport Corporation and Janardhanan Nair

Case / Petition Number:MACA No. 468 of 2008-C

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • M. C. Hari Rani
Judgment Date
2011-08-29
Court Decision / Holding
MACA is allowed in part. The appellant is entitled to a further Rs.54,070 in addition to the Tribunal’s award. Interest on the entire amount of compensation is payable from the date of the claim to payment at the rate directed by the Tribunal, with the rider that no interest shall be payable on the enhanced amount for 1845 days of delay. All other directions of the Tribunal are upheld.
Final Disposition
Partially allowed; enhanced compensation with specified bystander expenses, increased income, and revised reduction in earning capacity; interest on total amount with rider on enhanced portion; other directions upheld.

Parties to the Case

Appellants / Petitioners

  • A. Ansar, aged 37 years, Vayalil Puthen Veedu, Perayam, Umayanalloor, Kollam

Respondents

  • Managing Director, Kerala State Road Transport Corporation, Thiruvananthapuram
  • Janardhanan Nair, Kurungattu Veedu, Valiyakulangara, Oachira, Kollam

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Pratheesh.P

Counsels for Respondents

  • • Sri Johnson P. John
  • • Sri Babu Joseph Kuruvathazha, SC, KSRTC

Case Synopsis & Summary

This is a Motor Accident Claims Appeal (MACA No. 468 of 2008) arising from injuries sustained by the appellant, A. Ansar, in a road accident on 18 June 1998. The claimant, a furniture businessman, suffered grievous injuries including fractures of both bones of the right leg, and remained inpatient for 90 days with a certified 20% permanent disability (Ext. A6). The Motor Accidents Claims Tribunal (MACT) awarded Rs. 61,180 (rounded to Rs. 61,200) under heads such as loss of earnings, transport to hospital, nourishment, and medical expenses, plus Rs.11,000 for medicine and Rs.15,000 for pain and suffering, with Rs.22,680 for permanent disability (calculated as 1500 x 12 x 18 x 7/100). The appellant challenged the quantum as inadequate. The Kerala High Court, per two-judge Bench, revisited several elements: (i) income estimation – increased to Rs. 2,500 per month from Rs. 1,500; (ii) bystander expenses – proposed at Rs. 75 per day for 90 days; (iii) reduction in earning capacity – argued to be 10% (disability 20%); (iv) multiplier – applied 17 (not 18) in line with Sarla Verma; (v) loss of amenities and enjoyment – held that compensation should be awarded for this head as well. The court computed an enhanced total of Rs. 54,070 in addition to the Tribunal’s award and directed interest on the entire amount from the date of claim with a rider that no interest shall be payable on the enhanced portion for 1845 days of delay. The appeal is allowed in part and disposed with directions on interest and further amounts.

Provisions of Law Cited

Clause 6 of the Second Schedule to the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Presumption of prudence under Clause 6 of the Second Schedule to the Motor Vehicles Act (income assumption for non earning individuals)
  • Disability is not synonymous with loss of earning capacity; reduction in earning capacity may differ from medical disability
  • Loss of amenities and enjoyment as a compensable head alongside earning loss
  • Multiplier rule for assessing compensation (as per Sarla Verma v. Delhi Transport Corporation)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the quantum awarded by the MACT is inadequate. He asserts that the monthly income used by the Tribunal (Rs. 1,500) is grossly understated for a furniture businessman; the court should adopt Rs. 2,500 per month, considering the 1998 accident date and the standard in the Second Schedule. Bystander expenses for the inpatient period (90 days) should be allowed at Rs. 75 per day. The 20% disability certified by the medical officer should translate into a higher earning-capacity reduction, with the appellant urging a 10% deduction. The court should apply the multiplier consistent with Sarla Verma (17 rather than 18) and recognize loss of amenities and enjoyment as a compensable head in addition to the loss of earning capacity. The tribunal’s calculation for disability benefits (Rs. 22,680) should be revisited accordingly, and overall compensation should reflect both economic loss and diminished quality of life.

Contentions of Respondents

The respondents contend that the MACT's quantum was largely appropriate, with the 7% reduction in earning capacity derived from the medical certification; they emphasize the applicability of the Sarla Verma multiplier (17) and argue against altering the base income or adding bystander expenses beyond what is supported by evidence. They maintain that loss of amenities was not sufficiently proven as a separate head and that the Tribunal’s structured award should stand, with sustainable adjustments limited to the common elements, and that the enhanced amount should be governed by the statutory limit and procedural allowances.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveThe court applies the multiplier principle from Sarla Verma, holding that the appropriate multiplier in this case is 17 rather than 18.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MRS. JUSTICE M.C.HARI RANI MONDAY, THE 29TH AUGUST 2011 / 7TH BHADRA 1933 MACA.No. 468 of 2008(C) ---------------------OPMV.1657/1998 of MOTOR ACCIDENT CLAIMS TRIBUNAL, KOLLAM .................... APPELLANT/PETITIONER ---------------------------------- A.ANSAR, AGED 37 YEARS, VAYALIL PUTHEN VEEDU, PERAYAM, UMAYANALLOOR, KOLLAM. BY ADV. SRI.PRATHEESH.P RESPONDENTS : RESPONDENTS -------------------------- 1. MANAGING DIRECTOR, KERALA STATE ROAD TRANSPORT CORPORATION, THIRUVANANTHAPURAM. 2. JANARDHANAN NAIR, KURUNGATTU VEEDU, VALIYAKULANGARA, OACHIRA, KOLLAM. ADV.JOHNSON P.JOHN FOR R1 ADV. SRI.BABU JOSEPH KURUVATHAZHA,SC,KSRTC FOR R1 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 29/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **R.BASANT & M.C.HARI RANI, JJ. ************************* ## **M.A.C.A No.468 of 2008-C ******************************* Dated this the 29[th] day of August, 2011 ## **JUDGMENT** ## BASANT, J. The claimant is the appellant. He claimed compensation for loss suffered by him on account of personal injuries sustained by him in a motor accident which took place on 18.06.1998. He had suffered grievous injuries including fracture of both bones of the right leg. He was an inpatient for a period of 90 days. He had suffered permanent disability as a result of the accident which was certified by the Medical Practitioner to be 20% in Ext.A6 disability certificate. He was a furniture business man by profession. He claimed a total amount of Rs.1,50,000/- as compensation. 2. The Tribunal by the impugned award directed payment of a total amount of Rs.61,180/- (rounded to Rs.61,200/-) as per the details given below: |**_Sl._**<br>**_No._**|**_Head of awards_**|**_Amount awarded_**| |---|---|---| |1|Loss of earnings|Rs. 6,000.00 (4 X 1500)| |2|Transport to hospital|Rs. 2,500.00| |3|Extra nourishment|Rs. 4,000.00| 2 **M.A.C.A No.468 of 2008-C** |**_Sl._**<br>**_No._**|**_Head of awards_**|**_Amount awarded_**| |---|---|---| |4|Medicine|Rs.11,000.00| |5|Compensation for pain and sufferings|Rs.15,000.00| |6|Compensation for continuing or permanent<br>disability|Rs.22,680.00<br>(1500X 12 X 18 X 7/100)| ||**Total**|**Rs.61,180/-**<br>**rounded to Rs.61,200/-**| 3. We have heard the learned counsel for the appellant/claimant and respondents/owner/driver. The learned counsel for the appellant assails the impugned award on the sole ground that the quantum of compensation awarded is inadequate. 4. Called upon to explain and be specific, the counsel raises various grounds. First of all it is contended that the monthly income taken into consideration by the Tribunal is grossly inadequate. The appellant is a furniture business man. In any view of the matter, the amount of Rs.1,500/- reckoned as the monthly income by the Tribunal is grossly inadequate, contends counsel. The accident had taken place on 18.06.1998. Even in the absence of any better evidence, we are satisfied, in the circumstances of the case that Rs.2,500/- can safely be reckoned as the monthly income. In coming to this conclusion, 3 **M.A.C.A No.468 of 2008-C** we take note of the presumption of prudence under clause 6 of the Second Schedule to the Motor Vehicles Act, where under even a non earning person is assumed to draw an income of Rs.1,250/- per mensem from 1994. 5. The learned counsel submits that no expenses have been awarded under the head of bystander's expenses. The appellant/claimant was an inpatient for a period of 90 days. We agree that bystander's expenses ought to have been awarded. We accept that bystander's expenses for the period of 90 days could have been granted @ Rs.75/- per day. 6. The learned counsel for the appellant submits that only 7% has been reckoned as the reduction in earning capacity. The medical officer had certified 20% to be the reduction in earning capacity under Ext.A6. The appellant had appeared before the Tribunal and had tendered evidence as PW1. The nature of the disabilities certified in Ext.A6 are given in detail in para.8 of the impugned award. 8 specific items of disabilities perceived by the Medical Officer are given in detail in Ext.A6 and extracted in the impugned award. 7. The Tribunal reckoned only 7% as the reduction in earning capacity. The learned counsel submits that this is totally 4 **M.A.C.A No.468 of 2008-C** inadequate. 8. The concepts of physical disability and reduction in earning capacity are not synonymous. The Tribunal, against a certified disability of 20%, reckoned 7 as the percentage of reduction in earning capacity. Considering the nature of the alleged disability, which is narrated in detail in Ext.A6, we are of the opinion that in any view of the matter, 10% can safely be assumed to be the reduction in earning capacity. Accordingly the appellant will be entitled to a higher amount of compensation under the head of reduction in earning capacity. 9. The learned counsel for the respondent/owner points out that going by the dictum in **Sarla Verma v. Delhi Transport Corporation** [(2009) 6 SCC 121], only 17 ( and not 18) should have been reckoned as the multiplier. We agree with the learned counsel for the respondents. 10. Finally the learned counsel for the appellant submits that for the proved disability suffered by the appellant/claimant, a young man aged about 28 years at the time of the accident, no compensation has been awarded under the head of loss of amenities. The disability suffered by a person leaves behind two fold reflections on his life. It reduces earning capacity. It also 5 **M.A.C.A No.468 of 2008-C** impairs and reduces the quality of enjoyment of life. It also reduces the life expectancy of the individual. For all these loss suffered, we are satisfied that an appropriate amount of compensation ought to have been awarded under the head of loss of amenities and enjoyment in addition to the reduction in earning capacity. The Tribunal did not award any amount. That course adopted by the Tribunal cannot be justified. 11. The above discussions lead us to the conclusion that the appellant is entitled for a further amount of Rs.54,070/- as shown below in addition to the amounts already awarded by the Tribunal under the impugned award. i) Loss of earnings : Rs. 4,000.00 [(2,500 X 4=10,000) minus Rs.6,000/-] ii) Bystander's expenses (No amount awarded by the Tribunal) : Rs. 6,750.00 (90 X 75=Rs.6,750 - iii) Reduction in earning capacity : Rs.28,320.00 [(2500X12 X 17 X 10/100 = 51,000) minus 22,680] - iv) Loss of amenities (no amount awarded by the Tribunal) Total : Rs.15,000.00 ------------------: Rs.54,070.00 ======== 6 ## **M.A.C.A No.468 of 2008-C** 12. We are not persuaded to agree that the amount awarded under any other head warrants or demands modification. The learned counsel for the respondents submits that there was a petition for execution of the impugned award and the said petition has been settled before the Tribunal after paying the entire amount payable under the impugned award. There is nothing to show that anything other than the execution petition was compromised and in these circumstances we are satisfied that the option of the appellant to claim further amount in addition to the amount already awarded is not in any way affected by such settlement in the course of the execution petition. ## 13. In the result: a) This M.A.C.A is allowed in part; b) The appellant is found entitled to a further amount of Rs.54,070/- (Rupees Fifty four thousand and seventy only) in addition to the amount already awarded by the Tribunal under the impugned award; c) We direct that the appellant shall be entitled for interest on the entire amount of compensation from the date of the claim to the date of payment/realisation at the rate directed 7 ## **M.A.C.A No.468 of 2008-C** by the Tribunal subject to the rider that no interest shall be payable on the amount of enhanced compensation for the period of 1845 days – the period of delay in filing this appeal; d) All the other directions of the Tribunal are upheld. **(R.BASANT, JUDGE)** **(M.C.HARI RANI, JUDGE)** rtr/