High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation with cond...

Arun Shanmughadas S/O Shanmughadas v. Lucy Sebastian, Jasim and Oriental Insurance Company Limited

Case / Petition Number:MACA No.2333 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2022-01-05
Court Decision / Holding
Appeal allowed; enhanced compensation by Rs. 3,17,800, to a total of Rs. 5,90,000; interest at 7% per annum on the enhanced amount from the date of the petition till realization; costs Rs. 10,000; insurer to deposit the enhanced amount with interest and costs before the Tribunal within 60 days from receipt of a certified copy of the judgment; Tribunal to disburse the amount to the appellant in due course.
Final Disposition
Appeal allowed; enhanced compensation with conditions as stated above.

Parties to the Case

Appellants / Petitioners

  • Arun Shanmughadas S/O Shanmughadas

Respondents

  • Lucy Sebastian
  • Jasim
  • The Oriental Insurance Company Limited

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.T.C.Sure s Menon
  • • Sri.P.S.Appu
  • • Sri.K.A.Anas
  • • Sri.A.R.Nimod

Counsels for Respondents

  • • Sri.VPK.Panicker

Case Synopsis & Summary

Arun Shanmughadas, the appellant, challenged a common award issued by the Motor Accidents Claims Tribunal, Thrissur, in OP(MV) Nos. 2003/2004/2006 and 2008/2006, arising from a road accident on 4 April 2006, where his jeep was struck by a bus driven rashly. The tribunal held the respondents liable (owner and insurer of the bus) and awarded Rs. 2,72,200 to the appellant, with the other co-petitions for classmates disposed of similarly, while the appellant’s classmates also pursued OP(MV) petitions. The insurer had contested liability, while arguing the appellant’s negligence and disputing particulars such as age, income and occupation. The High Court, while allowing the appeal, re-evaluated the quantum of compensation by applying a notional income of Rs.9,000 per month (engineering student standard), a multiplier of 18 (per Sarla Verma) and a functional disability of 20% (supported by Ext A36). The assessment improved the damages for loss of earnings, loss due to disability, and other heads, culminating in a total enhanced award of Rs.5,90,000 with 7% interest and Rs.10,000 costs. The insurer is directed to deposit the enhanced sum within 60 days, after which the tribunal shall disburse the amount.”

Provisions of Law Cited

Section 166, Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income doctrine for engineering students (per National Insurance Co Ltd v. Fathimath Zuhara, 2016 (3) KLT 459)
  • Multiplier rule as per Sarla Verma v. Delhi Transport Corporation, 2009 (6) SCC 121
  • Functional disability principle and Medical Board reference per Raj Kumar v. Ajay Kumar, 2011 (1) KLT 620(SC)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the quantum of compensation awarded by the Tribunal is inadequate in light of the injuries sustained, the notional income of Rs.9,000 per month for a student in engineering studies, and a disability assessment of 20%. Citing established precedents, he urges that the loss of earnings, disability, medical expenses, and other heads be recalibrated to reflect true compensation, and that the insurer’s liability remains intact given the clear evidence of negligence by the bus driver.

Contentions of Respondents

The respondents argue that the accident occurred due to the appellant’s own negligence; they contest the petitioners’ age, income and occupation; the insurer contends that liability should be scrutinized and the amount of compensation appropriately limited, challenging the reliance on Ext A36 and other elements of the appraisal.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
National Insurance Co Ltd v. Fathimath Zuhara2016 (3) KLT 459PositiveCited to justify fixing notional income for an engineering student (Rs. 9,000/month) in 2005/2006 period.
Sarla Verma v. Delhi Transport Corporation2009 (6) SCC 121PositiveApproved multiplier of 18 based on age, guiding calculation of loss of earnings and other heads.
Raj Kumar v. Ajay Kumar2011 (1) KLT 620(SC)PositiveUsed to support the obligation to refer the injured to a Medical Board when disability certificate requires corroboration; informs functional disability assessment.

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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 C.S.DIAS** **WEDNESDAY, THE 5[TH] DAY OF JANUARY 2022 / 15TH POUSHA, 1943** **MACA NO. 2333 OF 2012** **AGAINST THE ORDER/JUDGMENT IN OPMV 2008/2006 ON THE FILE OF** **THE MOTOR ACCIDENT CLAIMS TRIBUNAL ,THRISSUR** ## **APPELLANT/S:** ARUN SHANMUGHADAS S/O.SHANMUGHADAS,RESIDING AT PUZHANKANDANATHIL HOUSE P.O.MUNDUPARAMBU,MALAPPURAM DIST BY ADVS. SRI.T.C.SURESH MENON SRI.P.S.APPU SRI.K.A.ANAS SRI.A.R.NIMOD ## **RESPONDENT/S:** 1 SMT.LUCY SEBASTIAN RESIDING AT PORATHUR HOUSE, THAYYUR, THRISSUR-680584 2 JASHIM, S/O.MOIDUNNY,RESIDING AT INJIKKALAYIL HOUSE, CHIRAKKAL P.O.,KOTTAKAMPAL, THRISSUR-680544 3 THE ORIENTAL INSURANCE COMPANY LIMITED NO 7 UTHAMAR GANDHI SALI, 2ND FLOOR, ROSY TOWERS, NUNGAMBAKKAM, CHENNAI BY ADV SRI.VPK.PANICKER R3 ## **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME** **UP FOR ADMISSION ON 05.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA No.2333 of 2012 ## **C.S.DIAS, J.** ## **====================== MACA No.2333 of 2012 ====================== Dated this the 5[th] day of January, 2022.** ## **JUDGMENT** The appellant was the petitioner in OP (MV) No.2008/2006 on the file of the Motor Accident Claims Tribunal, Thrissur. The respondents in the appeal were the respondents before the Tribunal. 2. The appellant had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the injuries that he sustained in an accident on 4.4.2006. It was his case that, on the above said date, while he was driving a jeep bearing registration No.KLK-3653 along with his classmates through Thrissur-Kunnamkulam public road, a bus bearing registration No.KL-08-E-4040 (bus), driven by the second respondent in a rash and negligent manner, 3 MACA No.2333 of 2012 hit the jeep. In the accident, the appellant sustained serious injuries including central fracture dislocation on the left side of pelvis, depressed fracture of left orbital roof, fracture lateral wall of orbit roof, small extra dural haematoma left frontal area, swelling of left hip, left proximal tibia, lacerated wound on the left knee and multiple facial wound. He was treated at the West Fort High Tech Hospital, Thrissur from 4.4.2006 to 27.4.2006. The appellant was a sixth semester B.Tech student in Vidya Academy of Science and Technology, Thalakkottukara , Thrissur. The first respondent was the owner and the third respondent was the insurer of the bus. Hence, the appellant claimed a compensation of Rs.10,68,500/- from the respondents, which claim was limited to Rs.9,50,000/-. 3. The co-passengers in the jeep – the classmates of the appellant also filed OP(MV) Nos 2003, 2004 and 4 MACA No.2333 of 2012 2006 of 2006 before the same Tribunal. 4. The respondents 1 and 2 did not contest the proceedings in all the four claim petitions. 5. The third respondent/insurer had filed separate written statements in all the claim petitions. The third respondent admitted that the bus had a valid insurance coverage. Nevertheless, the third respondent contended that the accident occurred due to the negligence of the appellant. The third respondent also disputed the age, income and occupation of each of the petitioners. 6. The Tribunal consolidated and jointly tried the four claim petitions. 7. One of the petitioners in OP(MV) 2004/2006 and a witness were examined as PWs 1 and 2 and Exts A1 to A37 were marked in evidence. The respondents did not let in any evidence. 8. The Tribunal, after analysing the pleadings and 5 MACA No.2333 of 2012 materials on record, by its common award, allowed the captioned claim petition, by permitting the appellant to realise from the third respondent an amount of Rs.2,72,200/- with interest and cost. 9. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 10. Heard; Sri.T.C Suresh Menon, the learned counsel appearing for the appellant/petitioner and Sri.V.P.K Panicker, the learned Senior Counsel appearing for the third respondent/insurer. 11. The sole question that arises for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Negligence and liability** 12. Ext A4 final report filed by the Police proves that the accident occurred due to the negligence of the second respondent. Indisputably, the first respondent 6 ## MACA No.2333 of 2012 was the owner and the third respondent was the insurer of the bus. The respondents have not let in any evidence to discredit Ext A4 final report. The third respondent has also not proved that the first respondent had violated the insurance policy conditions. Therefore, the third respondent is to indemnify the liability of the first respondent arising out of the accident. ## **Notional Income** 13. The appellant had claimed that he was a Sixth Semester Engineering student. He had not fixed his notional income. 14. A Division Bench of this Court in **National** ## **Insurance Co Ltd v. Fathimath Zuhara [2016 (3) KLT** **459]** has fixed the notional income of an engineering student in the year 2005 at Rs.9,000/-. 15. Following the yardstick in the aforecited decision and considering the fact that the accident in the 7 MACA No.2333 of 2012 instant case also happened in the year 2006, I am of the firm opinion that the notional monthly income of the appellant can also be fixed at Rs.9,000/-. ## **Multiplier** 16. Admittedly, the appellant was aged 20 years at the time of the accident. In view of the law laid down in **Sarla Verma v. Delhi Transport Corporation [(2009)** **6 SCC 121]** , the relevant multiplier to be adopted is '18'. ## **Disability** 17. The appellant had produced Ext A36 disability certificate wherein it was certified that the appellant has a disability of 24%. However, the Tribunal for the reason that the Doctor who issued Ext A36 was not examined, scaled down and fixed the disability of the appellant at 10%. 18. In **Raj Kumar v. Ajay Kumar [2011 (1) KLT** 8 MACA No.2333 of 2012 **620(SC)]** , the Hon'ble Supreme Court has held that in case the Tribunal is not satisfied with the disability certificate produced before it, it is the bounden duty of the Tribunal to refer the injured-claimant to a duly constituted Medical Board. It is also observed, that what needs to be looked into in an injury claim is the functional disability of the injured-claimant. 19. On consideration of Ext A36, it is seen that the appellant has a mal united fracture with disability of 4%, foot drop of left foot with disability of 12% and mal united fracture of frontal bone with pain with disability of 4%. Therefore, I fix the functional disability of the appellant at 20%. ## **Loss due to disability** 20. Taking into account the above mentioned factors, namely, the notional monthly income of the appellant at Rs.9,000/-, the multiplier at 18 and his 9 MACA No.2333 of 2012 functional disability at 20%, I award the appellant an amount of **Rs.3,88,800-** towards loss due to disability. ## **Loss of earnings** 21. The Tribunal has found that the appellant was indisposed for a period of three months, which I confirm. However, in view of the refixation of the notional monthly income of the appellant at Rs.9,000/-, I hold that the appellant is entitled to an amount of **Rs.27,000/-** towards loss of earnings, instead of Rs.9,000/- awarded by the Tribunal. ## **Other heads of compensation** 22. With respect to the other heads of claim, I find that the Tribunal has awarded reasonable and just compensation. 23. On an overall re-appreciation of the pleadings, materials on record and the law referred to in the aforecited precedents, I hold that the appellant/petitioner is 10 MACA No.2333 of 2012 entitled for enhancement of compensation as modified and re-calculated above, and given in the table below for ## easy reference. |SI.<br>No|Head of claim|Amount<br>awarded by<br>the Tribunal<br>(in rupees)|Amounts<br>modified and<br>recalculated<br>bythis Court| |---|---|---|---| |1|Loss of earnings|12,000/-|27,000/-| |2|Transportation<br>expenses|3,000/-|3,000/-| |3|Bystander expenses|3,450/-|3,450/-| |4|Medical expenses|1,32,304/-|1,32,304/-| |5|Pain and sufferings|20,000/-|20,000/-| |6|Loss of amenities etc|15,000/-|15,000/-| |7|Loss due to disability|86,400/-|3,88,800/-| ||Total|2,72,154/-<br>rounded off to<br>Rs.2,72,200/-|5,89,554/-<br>rounded off<br>to<br>5,90,000/-| In the result, the appeal is allowed, by enhancing the compensation by a further amount of **Rs.3,17,800/-** (Rupees Three Lakh Seventeen Thousand Eight Hundred only) with interest at the rate of 7% per annum on the enhanced compensation from the date of 11 MACA No.2333 of 2012 claim petition till the date of realization and a cost of Rs.10,000/-. The third respondent/insurer is ordered to deposit the enhanced compensation with interest and costs before the Tribunal within a period of sixty days from the date of receipt of a certified copy of the judgment. Immediately on the compensation amount being deposited, the Tribunal shall disburse the same to the appellant, in accordance with law. SD/- sks/5.1.2022 **C.S.DIAS, JUDGE**