High Court of KeralaSingle JudgeAppeal partly allowed; enhanced compensation an...

A.L. JOSEPH @ OUSEPH v. Sumesh, Thomasso John & The New India Assurance Company Ltd

Case / Petition Number:MACA No. 965 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2021-06-29
Court Decision / Holding
The appeal is allowed in part. The High Court enhances the compensation based on corrected notional income (Rs. 4,500/month), eight months of incapacity, and appropriate disability assessment, applying a multiplier of 13. The revised computation increases several heads, notably loss of earnings (Rs. 36,000) and loss due to disability (Rs. 35,100), and includes Rs. 20,000 for loss of amenities. The total enhanced compensation is Rs. 1,20,915, with interest at 8% per annum on the enhanced amount from the date of petition until deposit, excluding 116 days of delay as ordered. The 3rd respondent-insurance company is directed to deposit the enhanced amount before the Tribunal within two months, and the Tribunal is to release the enhanced sum in accordance with law.
Final Disposition
Appeal partly allowed; enhanced compensation and directions for deposit and release of the enhanced amount by the Tribunal.

Parties to the Case

Appellants / Petitioners

  • A.L. Joseph @ Ouseph S/o Lukose

Respondents

  • Sumesh, s/o Thomas
  • Thomasso John
  • The New India Assurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Sheji P. Abraham
  • • Sri. O.K. Muraleedharan

Counsels for Respondents

  • • Smt. M. Hemalatha

Case Synopsis & Summary

This Kerala High Court MACA concerns enhancement of compensation awarded by the Motor Accidents Claims Tribunal, Thrissur, in favor of A.L. Joseph @ Ouseph, who sustained serious injuries in a February 2004 motorcycle collision with a vehicle insured by The New India Assurance Company Ltd. The Tribunal initially awarded Rs. 53,500 with 8% interest from the petition date and costs, but the appellant challenged the quantum as inadequate. The respondents denied liability and argued the claim amounts were excessive. The High Court, invoking the Supreme Court’s framework of ‘just compensation’ under Section 168 of the Motor Vehicles Act, 1988, and guiding precedents, re-evaluated the heads of compensation. It revisited the appellant’s notional income, now fixed at Rs. 4,500 per month (instead of Rs. 2,500), after noting eight months of incapacity and relevant medical evidence. It applied a multiplier of 13, reflecting age and circumstances, and adjusted losses for loss of earnings, disability, and loss of amenities. The decision culminates in a total enhancement of Rs. 67,600 over the Tribunal’s award, resulting in a final enhanced compensation of Rs. 1,20,915, with interest at 8% and costs to follow as directed. The Tribunal is instructed to deposit and release the enhanced amount within specified timelines.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Section 168

Legal Doctrines & Maxims

  • Just compensation under the Motor Vehicles Act, 1988 must be fair, reasonable and equitable (National Insurance Co. Ltd. v. Pranay Sethi).
  • Notional income for an earner may be fixed as per precedents (Ramachandrappa).
  • Disability assessment should follow the medical evidence and, where appropriate, be supported by a Medical Board (Rajkumar v. Ajayakumar).

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s quantum is inadequate and notional income and heads of compensation require proper application of settled legal principles. Relying on Pranay Sethi and Ramachandrappa, he argues for a higher notional income (Rs. 4,500 per month) and a proper multiplier, considering eight months of incapacity, disability, and loss of amenities. He seeks enhancement across heads including loss of earnings, loss due to disability, and ancillary expenses, with proper medical proof where required.

Contentions of Respondents

The insurer-respondent defends the Tribunal’s quantum, arguing the amounts claimed are excessive and that liability rests with the insured. It notes the accident occurred due to negligence, but contends the final compensation should reflect evidence and not be inflated beyond reasonableness; the impairment and earnings claims are disputed and require strict substantiation.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveUsed to frame the ‘just compensation’ standard as fair, reasonable, and equitable.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveAdopted notional income figures (Rs. 4,500/month for 2004) for calculation of compensation.
Rajkumar v. Ajayakumar(2011) 1 KLT 620 (SC)PositiveUsed to justify disability fixation at 5% and notional medical-board requirements in disability assessment.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against A.L. JOSEPH @ OUSEPH v. Sumesh, Thomasso John & The New India Assurance Company Ltd and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **TUESDAY, THE 29[TH] DAY OF JUNE 2021 / 8TH ASHADHA, 1943 MACA NO. 965 OF 2011** **AGAINST THE AWARD IN OP(MV)NO. 553/2004 OF THE MOTOR** **ACCIDENT CLAIMS TRIBUNAL , THRISSUR** ## **APPELLANT/PETITIONER:** **A.L. JOSEPH @ OUSEPH S/O.LUKKOSE, ADATTUKUDIYIL HOUSE, MROTTICHAL P.O.,, THRISSUR.** **BY ADVS. SRI.SHEJI P.ABRAHAM SRI.O.K.MURALEEDHARAN** ## **RESPONDENTS/RESPONDENTS:** - **1 SUMESH, S/O.THOMAS, PUCHAKKATTUKARAN HOUSE, ANCHERICHIRA P.O., THRISSUR-680 006.** - **2 THOMASSO.JOHN PUCHAKKATTUKARAN HOUSE, ANCHERICHIRA P.O.,, THRISSUR-680 006.** - **3 THE NEW INDA ASSURANCE COMPANY LTD BRANCH OFFICE, THRISSUR, PIN-680 601.** **BY ADV SMT.M.HEMALATHA** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR** **ADMISSION ON 29.06.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _MACA No. 965 of 2011_ _2_ ## **C.S.DIAS,J** - - - - - - - - - - - - - - - - - - - - - - - - MACA No. 965 of 2011 - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 29[th] day of June, 2021 ## **JUDGMENT** The appellant was the petitioner in OP (MV) No.553 of 2004 on the file of the Motor Accidents Claims, Thrissur. The The respondents in the appeal were the respondents in the claim petition. 2. The concise facts in the claim petition, relevant for the determination of the appeal are: on 03.02.2004, while the appellant was riding his motorcycle bearing registration KL8/S 2946 through Ammus Junction, Thrissur, another motorcycle bearing registration No.KL8/Z 4892 (offending vehicle) ridden by the 1[st] respondent in a rash and negligent manner hit the motorcycle of the appellant. The offending vehicle was owned by the 2[nd] _MACA No. 965 of 2011_ _3_ respondent and insured with the 3[rd] respondent. The appellant sustained serious injuries and was treated at the Metropolitan Hospital, Thrissur as an in-patient for the period from 03.02.2004 to 10.02.2004. The appellant sustained fractures including an implant. He was re-admitted in the hospital on 06.09.2006 for the purpose of removal of the implant and was discharged on 09.09.2006. The appellant was an Agriculturist by profession and earning a monthly income of Rs. 10,000/-. The appellant contended that the respondents 1 to 3 were jointly and severally liable to pay compensation to him, which he quantified at Rs.3,07,500/-, but limited to Rs.3,00,000/- 3. The respondents 1 and 2 did not contest the proceedings and were set ex-parte. 4. The 3[rd] respondent filed a written denying the assertions in the claim petition. However, it was admitted that the offending vehicle had a valid _MACA No. 965 of 2011_ _4_ insurance policy. It was also contended that the accident occurred solely due to the negligence on the part of the appellant and that the amounts claimed under different heads were excessive. 5. The appellant produced and marked Exts.A1 to A9 in evidence. 6. The Tribunal, after analysing the pleadings and materials on record, by the impugned award allowed the claim petition, in part, by permitting the appellant to realise an amount of Rs.53,500/- with interest at the rate of 8% per annum from the date of petition till the date of realization along with proportionate costs from the 3[rd] respondent. 7. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner/appellant is in appeal. 8. Heard the learned counsel for the appellant/petitioner and the learned counsel _MACA No. 965 of 2011_ _5_ appearing for the 3[rd] respondent-insurance company. 9. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just? 10. A Constitution Bench of the Hon'ble Supreme Court in **National Insurance Company Ltd. v. Pranay Sethi** [(2017) 16 SCC 680], has held that Section 168 of the Motor Vehicles Act, 1988, deals with the concept of 'just compensation' and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptable legal standards. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 11. Ext.A2 final report filed by the police after investigation substantiates that the accident occurred _MACA No. 965 of 2011_ _6_ solely on account of the negligence on the part of the 1[st] respondent. It is also proved that the offending vehicle was owned by the 2[nd] respondent and insured with the 3[rd] respondent. Therefore, it is the 3[rd] respondent who is liable to indemnify the 2[nd] respondent for the liability that has arisen on account of the accident. 12. The claimed that he was an appellant Agriculturist by profession and that he was earning an amount of Rs.10,000/- per month. However, the appellant did not produce any document to substantiate his assertion in the claim petition. The Tribunal, for the want of materials, fixed the notional income of the appellant at Rs.2,500/- per month. 13. The Hon'ble Supreme Court in _**Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited**_ [ _(2011) 13 SCC 236_ ] has fixed the notional income of a Coolie _MACA No. 965 of 2011_ _7_ ## worker in the year 2004, at Rs.4,500/- per month. ## **Notional income** 14. Following the parameters laid down by the Hon'ble Supreme Court in the afore-cited decisions and considering the fact that the appellant was aged 50 years and claimed that he was an Agriculturist by profession, for the want of materials, I am of the opinion that the appellant is entitled to get his notional income fixed at Rs.4,500/- per month instead of Rs.2,500/- fixed by the Tribunal. Hence, I re-fix the appellant's notional income at Rs.4,500/per month. ## **- Bye stander expenses** 15. It is proved by Ext.A6 discharge summary and Ext.A7 disability certificate that the appellant had been admitted to hospital during the period from 03.02.2004 to 10.02.2004 for a period of 7 days. Thereafter, he was re-admitted for the purpose of _MACA No. 965 of 2011_ _8_ removing of his implant from 06.09.2006 to 09.09.2006. Therefore, it can be gathered that the appellant was incapacitated for a period of eight months. ## **Loss of earnings** 16. In view of the re-fixation of the notional income of the appellant at Rs.4,500/- and the finding that he was incapacitated for a period of eight months, I hold that the appellant is entitled for 'loss of earnings' at Rs.36,000/- instead of Rs.10,000/- fixed by the Tribunal. ## **Loss due to disability** 17. Eventhough, the appellant had claimed that he had disability of 11% as per Ext.A7 disability certificate, the appellant had not examined the Doctor who authored Ext.A7 disability certificate as laid down by the Hon'ble Supreme Court in **Rajkumar v. Ajayakumar** [2011(1) KLT 620(SC)]. The appellant _MACA No. 965 of 2011_ _9_ also did not avail the benefit of getting himself examined by a duly constituted Medical Board. However, the Tribunal fixed the disability of the appellant at 5%. In view of the law laid down in **Rajkumar** (supra) and the fixation of the disability of the appellant at 5% by the Tribunal, I confirm the finding of the Tribunal regarding disability of the appellant. In view of the re-fixation of the notional income of the appellant at Rs.4,500/- and his disability at 5%, the relevant multiplier is '13', I hold that the appellant is entitled to get compensation under the head 'loss due to disability' at Rs.35,100/- instead of Rs.15,000/- fixed by the Tribunal. ## **Loss of amenities** 18. It is seen that the appellant had suffered injuries as seen from Ext.A5 wound certificate and Ext.A6 discharge summary and that he has proved that he had to undergo prolonged treatment for a _MACA No. 965 of 2011_ _10_ period of eight months till his implants were removed. Eventhough, the appellant had claimed an amount of Rs.40,000/- under the head 'loss of amenities', the Tribunal did not award any amount. Thus, I am of the opinion that a reasonable amount has to be awarded by the Tribunal under the said head, which I fix at Rs.20,000/- ## **Other heads of claim** 19. With respect to the other heads of compensation, it is seen that the Tribunal has awarded reasonable and just compensation. 20. On an overall re-appreciation of the pleadings, materials on record and the law laid down in the afore-cited decision, I am of the firm opinion that the appellant/petitioner is entitled for enhancement of compensation as modified and recalculated above and given in the table below for easy reference. _MACA No. 965 of 2011_ _11_ |Sl.<br>No|Heads of claim|Amount awarded by<br>the Tribunal (in<br>rupees)|Amounts<br>modified and<br>recalculated<br>by this Court| |---|---|---|---| |1|Loss of earning|10,000/-|36,000/-| |2|Transport|1,000/-|1,000/-| |3|Damages to clothing|500/-|500/-| |4|Bye-stander expenses|2,000/-|2,000/-| |5|Expenses for extra nourishment|1,500/-|1,500/-| |6|Medical expenses|6,815/-|6,815/-| |7|Compensation for pain and<br>sufferings|18,000/-|18,000/-| |8|Compensation for loss of<br>amenities|nil|20,000/-| |9|Loss due to disability|15,000/-|35,100/-| |||53,315/-|1,20,915/-| In the result, the appeal is allowed, in part, by enhancing the compensation by a further amount of Rs.67,600/- (Rupees sixty seven thousand and six hundred only) with interest at the rate of 8% per annum on the enhanced compensation, from the date of petition till the date of deposit, after excluding the period of 116 days i.e., the delay in preferring the appeal as ordered by this Court on 23.03.2021 in C.M.Appl.No.1500 of 2011, and proportionate costs. The 3[rd] respondent shall deposit the enhanced _MACA No. 965 of 2011_ _12_ compensation in the appeal before the Tribunal with interest and proportionate costs within a period of two months from the date of receipt of a certified copy of the judgment. The Tribunal shall release the enhanced compensation amount to the appellant, in accordance with law. ## **Sd/-** **C.S.DIAS,JUDGE** **dlk 29.06.2021**