High Court of KeralaSingle JudgeAppeal allowed in part; enhanced compensation t...

Abraham P.J. v. Baiju (Deleted), Santosh (Deleted) and The United India Insurance Co. Ltd.

Case / Petition Number:M.A.C.A.No.235 of 2010
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Harilal
Judgment Date
2018-01-24
Court Decision / Holding
This Motor Accident Claims Appeal is allowed in part to the above extent. The court enhanced the claimant’s compensation as outlined, resulting in a total of Rs. 1,76,597. Interest for the 522-day delay was disallowed. All other findings in the impugned award stand.
Final Disposition
Appeal allowed in part; enhanced compensation to Rs. 1,76,597; no interest for 522 days; other findings in the impugned award remain intact.

Parties to the Case

Appellants / Petitioners

  • Abraham P.J.

Respondents

  • Baiju (Deleted)
  • Santosh (Deleted)
  • The United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • SMT. K.V. Resmi

Counsels for Respondents

  • • Sri. K. Kesavankutty

Case Synopsis & Summary

The appellant, Abraham P.J., filed MACA No. 235 of 2010 challenging an award under Section 166 of MV Act, 1988 issued by the Motor Accidents Claims Tribunal, Kozhikode, in a road-traffic injury case arising from an accident on 18.11.2000 where a bicycle was hit by a jeep. He sustained grievous injuries, including partial loss of sight, and claimed Rs. 3,00,000 in damages while the Insurance Company admitted coverage but contested the heads of claim. The Tribunal awarded Rs. 1,24,197, prompting the appeal for enhancement. The High Court held that, in the absence of documentary earnings, a notional income could be adopted, but Rs. 2,000 per month was inadequate. Relying on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. (2011) 13 SCC 236, the Court enhanced the monthly income to Rs. 3,500 and recalculated compensation across categories: permanent disability Rs. 1,15,200 with an additional Rs. 38,400; loss of earnings increased to Rs. 10,500 per month (3,500x3) with an extra Rs. 4,500; loss of amenities raised to Rs. 15,000 (increment of Rs. 2,500); bystander expenses Rs. 3,000; transportation and related heads increased to Rs. 7,000 (increment of Rs. 4,000). In aggregate, Rs. 52,400 additional compensation was awarded, bringing the total to Rs. 1,76,597. Interest for 522 days was denied. The appeal was allowed in part. The two earlier respondents were noted as deleted from the party array.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236 — principle of notional income for computation of compensation in the absence of credible earnings evidence.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal erred in quantifying compensation under heads such as loss of earnings, loss of amenities, transportation, and permanent disability. In the absence of documentary proof of income, the court must apply a notional income assessment; citing Ramachandrappa, Rs. 2,000 per month was too low and should be raised to Rs. 3,500. The recalculation yields higher figures: permanent disability Rs. 1,15,200 with Rs. 38,400 more; loss of earnings Rs. 10,500 per month (Rs. 3,500 x 3) with Rs. 4,500 extra; loss of amenities Rs. 15,000 (Rs. 2,500 more); transport, clothing, nourishment, etc., Rs. 7,000 (Rs. 4,000 more); bystander expenses Rs. 3,000. Overall an additional Rs. 52,400 is claimed, making total Rs. 1,76,597. Interest for 522 days should be adjudicated per the Tribunal’s framework, as per the evidence on record.

Contentions of Respondents

The respondent Insurance Co. argues that the Tribunal’s quantum is just and proper given the lack of documentary earnings and that the notional income adopted by the Tribunal was reasonable. While Ramachandrappa provides a guiding principle on notional income, it does not require a blanket upward revision. Bystander expenses and other heads require substantiation; without concrete proof, the Tribunal’s figures were correct, and any enhancement would be unwarranted absent material on record.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveCited to justify enhancement of notional income for calculation of compensation; followed in arriving at Rs. 3,500 monthly income.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **WEDNESDAY, THE 24TH DAY OF JANUARY 2018 / 4TH MAGHA, 1939** **AGAINST THE AWARD DATED 01.03.2008 IN OP(MV) NO. 987/2001 of M.A.C.T.,KOZHIKODE** **APPELLANT/CLAIMANT:** **-------------------** **ABRAHAM.P.J., PANDAKASALAYIL HOUSE, KATTIKALLU, PO.PALENKARA, MALAPPURAM.** **BY ADV.SMT.K.V.RESHMI** **RESPONDENTS/RESPONDENTS:** **------------------------** ***1. BAIJU (DELETED), S/O. KUMARAN, ALINGAL PUTHENPURAYIL HOUSE, PO.,EDAKKARA, CHEMBAMTHITTA, MALAPPURAM.** ## ***2. SANTHOSH(DELETED),** **S/O.RAMAKRISHNAN,AGED 35, MUTHOLAKKAL HOUSE, PO,CHERUVANNUR, KOZHIKODE.** **3. THE UNITED INDIA INSURANCE CO.LTD, A.N.BUILDING, HOSPITAL ROAD, NILAMBUR.** **RESPONDENTS 1 AND 2* ARE DELETED FROM THE PARTY ARRAY AT THE RISK OF THE APPELLANT AS PER ORDER DATED 25.10.2017 IN I.A. NO. 3832 OF 2017.** **R3 BY ADV. SRI.K.KESAVANKUTTY** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 24-01-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **DST** ## **K. HARILAL, J.** **= = = = = = = = = = = = = = = = =** **M.A.C.A.No.235 of 2010** **- - - - - - - - - - - - - - - - - - - - - -** _Dated this the 24[th] day of January, 2018_ ## **J U D G M E N T** The appellant is the petitioner in O.P.(MV) No.987 of 2001, on the files of the Motor Accidents Claims Tribunal, _(hereinafter referred to as 'the Tribunal')_ , Kozhikode. The said petition was filed under Section 166 of the Motor Vehicles Act, 1988 _(hereinafter referred to as 'the M.V. Act')_ , claiming compensation for the damages suffered by him in a road accident. The parties are referred to as in the Original Petition. 2. According to the petitioner, on 18.11.2000, at about 12 noon, the petitioner was riding a bicycle through Edakkara - Palenkara road keeping the side and when it reached in front of a Muslim Palli, it was hit by an offending jeep bearing **M.A.C.A.No. 235 of 2010** **-: 2 :-** Registration No.KL-10/F 6481, which came from the opposite side and due to the impact of the hit, he was thrown away, fell down and sustained grievous injuries. He was treated as an inpatient for 18 days in Medical College Hospital, Kozhicode. He has partially lost his eye sight and not able to do any work as was doing before the accident. He claimed Rs.3,00,000/-, as compensation for the damages caused to him by the accident. The 3[rd] respondent Insurance Company admitted coverage of the vehicle under the policy issued to the 2[nd] respondent; but disputed the damage claimed under various heads of claim. 3. After considering the rival contentions opposing the claim for compensation, the Tribunal passed the impugned award granting Rs.1,24,197/- as ## **M.A.C.A.No. 235 of 2010** ## **-: 3 :-** compensation for the damages suffered by him. This appeal is filed assailing the inadequacy and disproportionationality of the quantum of compensation determined under various heads of claim. 4. The learned counsel for the petitioner contends that the quantum of compensation determined under the heads 'loss of earnings', 'loss of amenities', 'expenses for transportation' and 'permanent disability' is inadequate and disproportionate with the actual damage suffered by him and the expenses met in connection with the accident. It is also contended that the monthly income determined by the Tribunal is very low, in view of the legal position settled by the Hon'ble Apex Court. So also, the Tribunal omitted to grant **M.A.C.A.No. 235 of 2010** ## **-: 4 :-** compensation to meet the 'bystander expenses'. 5. Per contra, the learned Standing Counsel for the respondent Insurance Company advanced arguments to justify the quantum of compensation determined under the aforesaid heads. According to him, the amount determined under various heads are just and proper, in view of the evidence available on record. 6. In view of the submissions at the Bar, the short point that arises of consideration in this appeal is, is the Tribunal justified in determining the quantum of compensation under various heads of claim referred above? Going by the impugned award, it is seen that the petitioner was aged 37 years at the time of accident and according to him, he was a rubber tapper getting Rs.6,000/- per month as ## **M.A.C.A.No. 235 of 2010** ## **-: 5 :-** income. But, no document has been produced by him to substantiate his claim. In the absence of any evidence, the Tribunal is justified in taking notional income. But, this Court is of the view that Rs.2,000/- is inadequate, in view of the decision of the Hon'ble Apex Court in _**Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited**_ [(2011) 13 SCC 236]. In the above view, the monthly income will stand enhanced and modified to Rs.3,500/- from Rs.2,000/-. Thus, the petitioner is entitled to get Rs.1,15,200/- under the head 'permanent disability' and he is entitled to get an additional compensation of Rs.38,400/- under the above head. Rs.6,000/- was given for 'loss of earnings' and the same will stand enhanced to Rs.10,500/-(3,500 x 3) and in this account, he is ## **M.A.C.A.No. 235 of 2010** ## **-: 6 :-** entitled to get an additional compensation of Rs.4,500/-. Rs.12,500/- was granted for 'loss of amenities'. The said amount is inadequate and the same will stand enhanced to Rs.15,000/- and he is entitled to get an additional compensation of Rs.2,500/-. 7. As rightly pointed out by the learned counsel for the petitioner, no amount was granted as 'bystander expenses'. It has come out in evidence that he was treated in the hospital as an inpatient for 20 days. In the above account, he is entitled to get Rs.3,000/- and the same is granted. Similarly, Rs.3,000/was granted under the head 'transportation, 'damage to clothing', 'extra nourishment' etc. This Court is of the view that the said amount is inadequate, in view of the fact that ## **M.A.C.A.No. 235 of 2010** ## **-: 7 :-** he continued his treatment after discharging from the hospital. Therefore, the said amount will stand enhanced to Rs.7,000/- and the petitioner is entitled to get an additional compensation of Rs.4,000/- under the said head. Thus, the additional amount payable to the petitioner is Rs.52,400/(38,400 + 4,500 + 2,500 + 3,000 + 4,000). Thus, the total compensation payable to the petitioner is Rs.1,76,597/-. It is needless to say that a total compensation payable to the petitioner would carry interest as stipulated by the Tribunal. All other findings in the impugned award will stand undisturbed and operative. The appeal was filed with a delay of 522 days. It is made clear that the petitioner is not entitled to get interest for 522 days. **M.A.C.A.No. 235 of 2010** **-: 8 :-** This Motor Accident Claims Appeal is allowed in part to the above extent. Sd/- **K. HARILAL** **JUDGE** //True copy// P.A. To Judge DST