High Court of KeralaSingle JudgeAppellant’s appeal partly allowed; enhanced com...

Appu T. v. Libeesh S/o Rajan and A.C. Premarajan and The New India Assurance Co. Ltd.

Case / Petition Number:MACA.No.2324 OF 2010 (C)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
Judgment Date
2019-11-06
Court Decision / Holding
The appeal is disposed of by enhancing the compensation. The appellant is awarded an additional Rs.15,150 with interest at 8% per annum from the date of petition till realization. The 3rd respondent/insurer is directed to satisfy the enhanced amount within two months from receipt of a certified copy, after adjusting any liability of the claimant under Court Fee and Legal Benefit Fund. No order as to costs.
Final Disposition
Appellant’s appeal partly allowed; enhanced compensation by Rs. 15,150 with 8% interest; insurer to pay within two months; no costs.

Parties to the Case

Appellants / Petitioners

  • Appu T., S/o. Unniyarappan

Respondents

  • Libeesh S/o Rajan
  • A.C.Premarajan S/o Ragavan Nair
  • The New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Latha Prabhakaran
  • • K.M. Jamaludeen

Counsels for Respondents

  • • P. Jacob Mathew
  • • P. Jayasankar

Case Synopsis & Summary

Appu T., the claimant in OP(MV) 355/2007 before the Motor Accidents Claims Tribunal, Kozhikode, sustained serious injuries on 22 September 2006 when his motorcycle was struck by another rider. The Tribunal found the 2nd respondent negligent and held the 3rd respondent insurer liable to indemnify the insured, awarding Rs.24,272 under heads such as transportation to hospital, clothing, loss of earnings, treatment, pain and suffering, and loss of amenities, with 7% interest and costs. Dissatisfied with the quantum, the appellant approached the Kerala High Court in MACA 2324 of 2010 contending that the compensation was not just and reasonable. The learned judge examined the statutory duty under Section 168 of the Motor Vehicles Act, 1988 to determine ‘just compensation’ in the light of fairness, reasonableness, and equity, as clarified in Pranay Sethi (Constitution Bench) and earlier authorities, and in the context of 2006 economic conditions. Notably, the tribunal fixed the claimant’s monthly income at Rs.3,000 in the absence of documentary proof; relying on Ramachandrappa and Syed Sadiq, the court re-fix the income at Rs.4,000, and extended loss of earning for three months, with proportional adjustments to other heads: transportation, bystander expenses, damage to clothing, loss of amenities, and a small amount for nourishment. The court concluded that the Tribunal’s award required enhancement and granted an additional Rs.15,150 with interest at 8% per annum, directing payment by the insurer within two months, and no costs.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation doctrine
  • Fairness, reasonableness and equitability in compensation
  • Notion that compensation should not be windfall, bonanza, or pittance

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s award under various heads was not just and reasonable. He asserts notional income is incorrectly fixed at Rs.3,000 in absence of documentary proof and urges adoption of higher notional earnings in line with precedents (Ramachandrappa, Syed Sadiq). He argues for longer loss of earning period and higher amounts for transportation, bystander expenses, clothing, amenities, and medical expenses, reflecting a more realistic compensation considering the injuries and hospitalization. The court should apply the principles of fairness and equity, correcting miscalculations and ensuring the award is not a windfall.

Contentions of Respondents

The respondents contend the Tribunal properly assessed compensation; the income figure and heads awarded reflect reasonable compensation given the evidence. They contend the claim would amount to a windfall if enhanced unduly and rely on precedents that support notional assessment within the facts of the case. They argue that the insurer’s liability is limited to coverage and that the Tribunal’s quantum was just and in line with statutory requirements.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
State of Haryana v. Jasbir Kaur[(2003) 7 SCC 484]PositiveCited to underscore the principle that compensation must be just, reasonable, and not windfall; courts must determine damages with fairness.
National Insurance Company Ltd. v. Pranay Sethi[(2017) 16 SCC 680]PositiveConstitution Bench decision defining ‘just compensation’ as fair, reasonable, and equitable, not arithmetically exact.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.[(2011) 13 SCC 236]PositiveNotionally fixed income for a coolie allowed; supports assessing income without strict documentary proof in certain cases.
Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd.[(2014) 2 SCC 735]PositiveSupports accepting notional income for unorganized sector workers like vegetable vendors when evidence is lacking.

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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 ANIL K.NARENDRAN** **WEDNESDAY, THE 06TH DAY OF NOVEMBER 2019 / 15TH KARTHIKA, 1941** ## **MACA.No.2324 OF 2010 (C)** **AGAINST THE AWARD IN OPMV 355/2007 DATED 08-10-2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, KOZHIKODE** ## **APPELLANT/PETITIONER IN OP(MV):** **APPU T., S/O. UNNIYARAPPAN, AGED 51 YEARS, THADATHIL HOUSE, KIZHAKKUM MURI POST, KAKKODI, KOZHIKODE.** **BY ADVS. SMT.LATHA PRABHAKARAN SRI.K.M.JAMALUDHEEN** ## **RESPONDENTS/RESPONDENTS IN OP(MV):** **1 LIBEESH S/O. RAJAN, MANARATH MEETHAL HOUSE, KIZHAKKUMURI POST, KAKKODI, KOZHIKODE-673611 2 A.C.PREMARAJAN S/O. RAGHAVAN NAIR, THEKKEKANTH HOUSE, PADINHATTUM MURI AMSOM, KIZHAKKUMURI DESOM, CHLILTHAZHAM, KAKKODI, KOZHIKODE-673 611. 3 THE NEW INDIA ASSURANCE CO.LTD., DIVISIONAL OFFICE, SILVER PLAZA BUILDING, I.G.ROAD, MAVOOR ROAD, KOZHIKODE POST, KOZHIKODE 673 001. BY ADVS. R1 & 3 BY ADV. SRI.P.JACOB MATHEW, STANDING COUNSEL R1 BY ADV. SRI.P.JAYASANKAR** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 06.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **MACA.No.2324 OF 2010 (C)** **2** ## **JUDGMENT** The appellant is the claimant in O.P(MV)No.355 of 2007 on the file of the Principal Motor Accidents Claims Tribunal, Kozhikode, which is a claim petition filed under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the injuries sustained by him in a motor accident, which occurred on 22.09.2006, while he was riding in a motorcycle. At the place of accident, the said motorcycle was knocked down by another motorcycle bearing registration No.KL-11/Y-1789 owned by the 1[st] respondent, ridden by the 2[nd] respondent and insured with the 3[rd] respondent. As a result of the accident, the appellant/claimant sustained injuries. Alleging that the accident occurred due to the rash and negligent riding of the offending motorcycle by the 2[nd] respondent rider, claim petition was filed before the Tribunal claiming a total compensation of Rs.5,67,000/-, under various heads. 2. The 3[rd] respondent/insurer filed written statement admitting the insurance coverage of the offending motorcycle involved in the accident; however, denying the negligence alleged against the 1[st] respondent owner-cum-rider. The age, occupation, monthly income, etc. stated in the claim petition were denied and **MACA.No.2324 OF 2010 (C)** **3** it was contended that the compensation claimed is highly excessive. 3. Before the Tribunal, Exts.A1 to A8 were marked on the side of the appellant/claimant. Both sides have not chosen to adduce any oral evidence. 4. After considering the pleadings and materials on record, the Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent riding of the offending motorcycle by the 2[nd] respondent rider. Since insurance coverage of the offending vehicle is not in dispute, the 3[rd] respondent insurer was held liable to indemnify the insured. Under various heads, the Tribunal awarded a total compensation of Rs.24,272/-, and the insurer was directed to satisfy the award, with interest at the rate of 7% per annum from the date of petition till date of deposit, together with cost of Rs.750/-. 5. Dissatisfied with the quantum of compensation awarded by the Tribunal, the appellant/claimant is before this Court in this appeal. 6. Heard the learned counsel for the appellant/claimant and also the learned Standing Counsel for the 3[rd] respondent/ insurer. 7. The issue that arises for consideration in this appeal is **MACA.No.2324 OF 2010 (C)** **4** as to whether the appellant is entitled for enhancement of the compensation awarded by the Tribunal under various heads. 8. In **State of Haryana v. Jasbir Kaur [(2003) 7 SCC 484]** the Apex Court held that the Tribunal under Section 168 of the Motor Vehicles Act, 1988 is required to make an award determining the amount of compensation which is to be in the real sense 'damages' which in turn appears to it to be 'just and reasonable'. It has to be borne in mind that compensation for loss of limbs or life can hardly be weighed in golden scales. But at the same time it has be to be borne in mind that the compensation is not expected to be a windfall for the victim. Statutory provisions clearly indicate that the compensation must be 'just' and it cannot be a bonanza; not a source of profit; but the same should not be a pittance. 9. In **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** a Constitution Bench of the Apex Court 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 standard because such determination can never be in arithmetical exactitude. It can never be perfect. The aim is to achieve an acceptable degree of **MACA.No.2324 OF 2010 (C)** **5** proximity to arithmetical precision on the basis of materials brought on record in an individual case. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 10. In the instant case, the compensation awarded by the Tribunal under various heads reads thus; ||The compensation claimed under<br>various heads|Amount<br>allowed| |---|---|---| |1|Transportation to hospital|500/-| |2|Damage to clothing|250/-| |3|Loss of earnings|3,000/-| |4|Bystanders expenses|600/-| |5|Treatment Expenses|1,922/-| |6|Pain and suffering|17,000/-| |7|Loss of amenities|1,000/-| ||Total claim|24,272/-| 11. The accident occurred on 22.09.2006. At the time of accident, the appellant was aged 48 years. The appellant claimed a monthly income of Rs.4,000/- as a Coolie (Manual labourer). No materials were produced before the Tribunal to prove the monthly income of the appellant. The appellant has also not chosen to mount the box. In the absence of any reliable materials, the Tribunal fixed the monthly income notionally as Rs.3,000/-, for the purpose of assessing compensation under various heads. ## 12. In **Ramachandrappa v. Manager, Royal Sundaram** **MACA.No.2324 OF 2010 (C)** **6** ## **Alliance Insurance Company Limited [(2011) 13 SCC 236]** the Apex Court reckoned the monthly income of a coolie (manual labourer), who met with a road accident in the year 2004, at the age of 35 years, notionally as Rs.4,500/-. The Apex Court held that, the claimant who was working as a coolie cannot be expected to produce any documentary evidence to substantiate his claim. In the absence of any other evidence contrary to the claim made by the claimant, in the facts of the said case, the Tribunal should have accepted the claim of the claimant. The Apex Court made it clear that, in all cases and in all circumstances, the Tribunal need not accept the claim of the claimant, in the absence of supporting material. It depends on the facts of each case. In a given case, if the claim made is so exorbitant or if the claim made is contrary to ground realities, the Tribunal may not accept the claim and may proceed to determine the possible income by resorting to some guess work, which may include the ground realities prevailing at the relevant point of time. 13. In **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** , taking note of the earlier decision in **Ramachandrappa's case (supra)** , the Apex Court reckoned the monthly income of a vegetable vendor, who met with a road accident in the year 2008, at the age of 24 years, **MACA.No.2324 OF 2010 (C)** **7** notionally as Rs.6,500/-. In the said decision, the Apex Court held that, a labourer in an unorganised sector doing his own business cannot be expected to produce documents to prove his monthly income. Therefore, there was no reason for the Tribunal and the High Court to ask for evidence to prove his monthly income. Going by the state of economy prevailing at that time and the rising prices in agricultural products, the Apex Court accepted his case that a vegetable vendor is reasonably capable of earning 6,500/- per month. 14. In the absence of any reliable evidence, considering the economic conditions prevailing at the time of accident, i.e., during the year 2006, and taking note of the fixation of notional monthly income by the Apex Court in the decisions referred to supra, this Court deem it appropriate to re-fix the monthly income of the appellant notionally as Rs.4,000/-, as claimed in the claim petition, for the purpose of assessing compensation under various heads. 15. The document marked as Ext.A2 is the wound certificate. Ext.A4 is the treatment book; Ext.A5 is the CT Scan report and Exts.A6 and A7 are case records. As per medical records, the appellant had sustained fracture on right zygomatic arch, fracture lateral wall of right orbit, fracture anterior and **MACA.No.2324 OF 2010 (C)** **8** posterior wall of right maxillary sinus and Haemosinus, fracture mandible body right side and left side and lacerated wound 2 x 1cm. below left knee. As per Ext.A4 treatment book the appellant was admitted at Medical College Hospital, Kozhikode on 23.09.2006 and discharged on 29.09.2006. In Ext.A2 wound certificate the aforesaid injuries are noticed. Ext.A8 medical bills are for a sum of Rs.1,922/-. 16. Towards loss of earning, the Tribunal awarded a sum of Rs.3,000/-, for a period of one month. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the period of one month fixed by the Tribunal for granting loss of earning is re-fixed as three months. Since the monthly income of the appellant is fixed notionally as Rs.4,000/-, the compensation under the head loss of earning is re-fixed as Rs.12,000/- (4,000 x 3), resulting an additional compensation of **Rs.9,000/-** (12,000 - 3,000) . 17. On account of the injuries sustained in the accident, the appellant had undergone inpatient treatment for seven days. Towards transportation to hospital, the Tribunal awarded a sum of Rs.500/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under this head is re-fixed as **MACA.No.2324 OF 2010 (C)** **9** Rs.1,000/-, resulting an additional compensation of **Rs.500/-** (1,000 - 500) under this head. 18. Towards bystander expenses the Tribunal awarded a sum of Rs.600/-. The accident is of the year 2006 and the appellant had undergone inpatient treatment for seven days. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under the head bystander expenses is re-fixed as Rs.1050 (150 x 7), resulting an additional compensation of **Rs.450/-** (1,050 - 600) under this head. 19. Towards extra nourishment no amount was awarded by the Tribunal. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, this Court deem it appropriate to grant a sum of _**-**_ **Rs.700/** (100 x 7) as compensation under this head. 20. Towards damage to clothing, the Tribunal awarded a sum of Rs.250/-. Considering the fact that the accident is of the year 2006, the compensation under this head is re-fixed as Rs.750/-, resulting an additional compensation of **Rs.500/-** (750 - 250). 21. Towards treatment expenses, the Tribunal awarded a sum of Rs.1,922/-, covered by Ext.A8 series of medical bills. In **MACA.No.2324 OF 2010 (C)** **10** the absence of any further materials, the compensation awarded by the Tribunal under this head represents just and reasonable compensation, which requires no enhancement in this appeal. 22. As compensation towards pain and suffering, the Tribunal awarded a sum of Rs.17,000/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation awarded by the Tribunal under this head cannot also be said to be on the lower side. Therefore, the appellant is not entitled for any enhancement under this head. 23. Towards loss of amenities the Tribunal awarded a sum of Rs.1,000/-. Considering the nature of injuries sustained, the compensation awarded by the Tribunal under this head re-fixed as Rs.5,000/-, resulting an additional compensation of **Rs.4,000** /- (5,000 - 1,000) under this head. 24. In the result, the appellant will be entitled for payment of an additional compensation of **Rs. 15,150/-** (Rupees fifteen thousand one hundred and fifty only) [9,000 + 500 + 450 + 700 + 500 + 4000] in this appeal, which will carry interest at the rate of **8%** per annum from the date of petition till realisation. The 3[rd] respondent/insurer shall satisfy the additional compensation granted in this appeal, together with interest, within a period of **MACA.No.2324 OF 2010 (C)** **11** two months from the date of receipt of a certified copy of this judgment, after deducting the liability, if any, of the appellant/claimant towards Balance Court Fee and Legal Benefit Fund. Payment of additional compensation granted in this appeal shall be made to the appellant/claimant as per the directives issued by this Court in Circular No.3 of 2019 dated 06.09.2019. This appeal is disposed of as above. No order as to costs. **Sd/-** **ANIL K.NARENDRAN JUDGE** Skk//071119