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

A.S. SASI v. T.K. RAMESH, SHAJI and UNITED INDIA INSURANCE CO. LTD.

Case / Petition Number:MACA No. 3063 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-07-13
Court Decision / Holding
The appeal is allowed in part. The court re-fixes notional income at Rs.3,500 per month, recalculates losses and damages (loss of earnings, loss due to disability, pain and suffering, and loss of amenities), resulting in a total enhanced compensation of Rs. 1,73,880. The increase from the Tribunal’s award is Rs. 71,440. The 3rd respondent (insurer) is directed to deposit the enhanced compensation before the Tribunal with interest at 7% per annum from the date of petition till payment, along with proportionate costs, within two months from receipt of a certified copy of the judgment. The Tribunal shall disburse the enhanced amount in accordance with law.
Final Disposition
Appeal partly allowed; enhanced compensation by Rs. 71,440; interest at 7% on the enhanced amount; deposit to be made by insurer within two months; Tribunal to disburse in accordance with law.

Parties to the Case

Appellants / Petitioners

  • A.S. SASI, S/O.Sukumaran, Exhukanal House Konakkalkadav, Koranchira P.O., Vadakkumcherry

Respondents

  • T.K. Ramesh, Kathampully P.O., Thiruvilwamala
  • Shaji, S/O. Ouseph, Chittilappilly House, Vaniyampara, Thrissur District
  • United India Insurance Co. Ltd., Park House, Round North, Thrissur

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V. Binoy Ram

Counsels for Respondents

  • • Sri. S. Arun Raj

Case Synopsis & Summary

This is a motor accident claims appeal arising from a common award by the Motor Accidents Claims Tribunal, Thrissur, concerning a collision on 26-06-2002 where a cyclist (the appellant) was struck by a jeep. The Tribunal awarded compensation on various heads but the appellant challenged the quantum. The court notes that the respondents 1 and 2 were ex parte and the insurer (3rd respondent) contested not only the amount but also the notional income and several heads of damages. Citing the Supreme Court’s doctrine on just compensation, notably Pranay Sethi, the judge holds that compensation must be determined with fairness, reasonableness, and equitability under Section 168 of the Motor Vehicles Act, 1988. The appellate court re-assesses several components: it fixes a new notional income (Rs.3,500/month) guided by Ramachandrappa and adjusts the loss of earnings, loss due to disability, pain and sufferings, and loss of amenities accordingly, while finding other heads reasonable. It ultimately enhances the total compensation by Rs.71,440, directing deposit of the enhanced amount with interest at 7% per annum. The appeal is thus allowed in part, with revised quantum and directions for payment and disbursement by the Tribunal.

Provisions of Law Cited

Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation under the Motor Vehicles Act, 1988 must be determined on the foundation of fairness, reasonableness and equitability (as laid down in National Insurance Co. Ltd. v. Pranay Sethi).
  • Conception of 'just compensation' should be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability.
  • Notional income should be guided by judicial precedents (e.g., Ramachandrappa v. Manager) when determining compensation.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s quantum was inadequate and seeks enhancement based on a higher notional income and actual disability impact. Relying on precedents (notably Pranay Sethi and Ramachandrappa), the appellant argues for reassessment of heads such as loss of earnings, loss due to disability, pain and suffering, and loss of amenities, reflecting the true extent of injury, incapacitation and the appellant’s occupation as a hotel employee, with disability of 17% and five months of incapacity.

Contentions of Respondents

The respondents contest the quantum as excessive on various heads and contend the notional income used by the Tribunal should be reconsidered. They rely on the insurer’s liability and dispute the appellant’s earnings, age, and occupation, arguing that the compensation claimed under different heads is inflated.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveCited as the leading doctrine that 'just compensation' under the MV Act must be determined on fairness, reasonableness and equitability; foundational to the court’s approach to reassessing quantum.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveCited to support notional income benchmarks and the method of recalculating compensation in light of disability and incapacity; used to fix notional income (Rs. 3,500/month) for the appellant.

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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** **TUESDAY, THE 13[TH] DAY OF JULY 2021 / 22ND ASHADHA, 1943** ## **MACA NO. 3063 OF 2009** **AGAINST THE COMMON AWARD IN OP(MV)NO.3149/2002 OF THE MOTOR** ## **ACCIDENT CLAIMS TRIBUNAL, THRISSUR** ## **APPELLANT/PETITIONER:** **A.S.SASI, S/O.SUKUMARAN, EXHUKANAL HOUSE KONNAKALKADAVU, KORANCHIRA P.O., VADAKKUMCHERRY.** **BY ADV SRI.V.BINOY RAM** ## **RESPONDENTS:** |**1**|**T.K.RAMESH, T.K.R.HOUSE,**| |---|---| ||**KATHAMPULLY P.O., THIRUVILAWAMALA.**| |**2**|**SHAJI, S/O.OUSEPH**| ||**CHITTILAPPILLY HOUSE,**| ||**VANIYAMPARA,, THRISSUR DISTRICT.**| |**3**|**UNITED INDIA INSURANCE CO. LTD.**| ||**PARK HOUSE, ROUND NORTH,**| ||**THRISSUR.**| ||**BY ADV SRI.S.ARUN RAJ**| **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 13.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA.No.3063 of 2009 _2_ ## **C.S.DIAS,J** - - - - - - - - - - - - - - - - - - - - - - - - MACA No. 3063 of 2009 - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 13[th] day of July, 2021 ## **JUDGMENT** The appellant was the petitioner in OP (MV) No.3149 of 2002 on the file of the Motor Accidents Claims Tribunal, Thrissur. The respondents in the appeal were the respondents before the Tribunal. 2. The concise facts in the claim petition, relevant for the determination of the appeal, are: on 26.06.2002, while the appellant was riding a bicycle through Palakkad – Thrissur National Highway, when he reached in front of Dayana Hotel, a Jeep bearing registration No.KL 07/H 738 (offending vehicle) driven by the 2[nd] respondent in a rash and negligent manner at excessive speed came from the same direction and hit the bicycle. The appellant fell on the MACA.No.3063 of 2009 _3_ road and sustained serious injuries on his back bone including a fracture on his L1 vertebra. He was treated at Elite Mission Hospital, Koorkanchery for a period of five days from the date of accident. The appellant was a Hotel employee and was earning a monthly income of Rs.4,500/-. The Jeep was owned by the 1[st] respondent and insured with the 3[rd] respondent. Hence, the respondents were liable to pay compensation to the appellant, which he quantified at Rs.2,28,000/-. 3. The respondents 1 and 2 did not contest the proceedings and were set ex-parte. 4. The 3[rd] respondent filed a written statement admitting that the Jeep had a valid insurance policy. However, the age, occupation and income of the appellant was disputed. It was contended that the amount of compensation claimed under different MACA.No.3063 of 2009 _4_ heads was excessive. 5. The person who was travelling on the bicycle along with the appellant and who sustained injuries in the same accident, filed OP(MV)No.3148 of 2002 before the same Tribunal. 6. The Tribunal consolidated and jointly tried both the original petitions. 7. The Doctor who treated the appellant and issued Ext.A8 disability certificate was examined as PW1. Exts.A1 to A9 were produced and marked in evidence. The 3[rd] respondent produced Ext.B1 insurance policy in evidence 8. The Tribunal by its common award allowed the claim petition filed by the appellant, in part, by permitting the appellant to realise an amount of Rs.1,02,440/- from the 3[rd] respondent with interest at the rate of 7% per annum from the date of petition till MACA.No.3063 of 2009 _5_ the date of payment along with proportionate costs. 9. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner/appellant is in appeal. 10. Heard the learned counsel for the appellant/petitioner and the learned counsel appearing for the 3[rd] respondent-insurance company. 11. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just? 12. 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, MACA.No.3063 of 2009 _6_ 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. 13. Ext.A5 charge-sheet filed by the Wadakkanchery police in Crime No.220 of 2002 proves that the accident occurred solely on account of the negligence on the part of the 1[st] respondent, who drove the Jeep in a rash and negligent manner. Undisputedly, the 2[nd] respondent was the owner of the Jeep and the 3[rd] respondent was the insurer. Therefore, it is the 3[rd] respondent who is legally liable to indemnify the 2[nd] respondent of his liability on account of the accident. 14. The appellant had claimed that he was a Hotel employee earning a monthly income of MACA.No.3063 of 2009 _7_ Rs.4,000/- . The Tribunal fixed the notional income of the appellant at Rs.2,000/- per month. 15. 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 worker in the year 2004, at Rs.4,500/- per month. ## **Notional income** 16. Following the ratio in the afore-cited decisions and considering the fact that the accident occurred in the year 2002, I re-fix the notional income of the appellant at Rs.3,500/- per month. ## **Loss of earnings** 17. Ext.A3 wound certificate, Ext.A6 discharge summary and Ext.A8 disability certificate proves that the appellant had sustained a fracture on the L1 vertebra. He was treated as an in-patient for a period MACA.No.3063 of 2009 _8_ of five days and was continuing review till 30.11.2002 i.e., for the period of five months. Therefore, it is on record that the appellant was incapacitated for a period of five months. In view of the re-fixation of the notional income of the appellant at Rs.3,500/- per month and that he was incapacitated for a period of five months, I re-fix compensation under the head 'loss of earnings' at Rs.17,500/, instead of Rs.6,000/fixed by the Tribunal. ## **Loss due to disability** 18. Ext.A8 disability certificate corroborated with the evidence of PW1 proves that the appellant has a permanent disability of 17%. In view of refixation of the notional income of the appellant at Rs.3,500/- and the multiplier being '17', I hold that the appellant is entitled for compensation under the head 'loss due to disability' at Rs.1,21,380/-, instead of MACA.No.3063 of 2009 _9_ Rs.73,440/- awarded by the Tribunal. ## **Pain and sufferings** 19. The appellant had claimed an amount of Rs.24,000/- towards compensation for 'pain and sufferings'. It is established through Ext.A3 wound certificate, Ext.A6 discharge summary and Ext.A8 disability certificate that the appellant had sustained a fracture on his L1 vertebra. He was treated as an inpatient for a period of five days and had to undergo review for a period of five months. Therefore, I hold that the appellant is entitled for compensation under the head 'pain and sufferings' at Rs.15,000/- i.e., an enhancement of Rs.5.000/- ## **Loss of amenities** 20. the had claimed an Similarly, appellant amount of Rs.30,000/- as compensation for 'loss of amenities'. The Tribunal only awarded an amount of MACA.No.3063 of 2009 _10_ Rs.8,000/-. It is proved by PW1 and Ext.A8 disability certificate that the has a appellant permanent disability of 17%. In view of the said aspect, I hold that the appellant is entitled for compensation under the head 'loss of amenities' at Rs.15,000/- i.e., an enhancement of Rs.7,000/- ## **Other heads of claim** 21. With respect to the other heads of compensation, I find that the Tribunal has awarded reasonable and just compensation. 22. 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 definite 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.3063 of 2009 ## _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|6,000/-|17,500/-| |2|Transport|1,000/-|1,000/-| |3|Damages to clothing|500/-|500/-| |4|Bye-stander expenses|450/-|450/-| |5|Expenses for extra nourishment|1,000/-|1,000/-| |6|Medical expenses|2,050/-|2,050/-| |7|Compensation for pain and<br>sufferings|10,000/-|15,000/-| |8|Compensation for loss of<br>amenities|8,000/-|15,000/-| |9|Loss due to disability|73,440/-|1,21,380/-| |||1,02,440/-|1,73,880/-| In the result, the appeal is allowed, in part, by enhancing the compensation by a further amount of Rs.71,440/- (Rupees seventy seven thousand four hundred and forty only) with interest at the rate of 7% per annum on the enhanced compensation, from the date of petition till the date of deposit and proportionate costs. The 3[rd] respondent shall deposit the enhanced compensation awarded in this appeal before the Tribunal with interest and proportionate MACA.No.3063 of 2009 _12_ costs within a period of two months from the date of receipt of a certified copy of the judgment. The Tribunal shall disburse the enhanced compensation amount to the appellant, in accordance with law. **Sd/- C.S.DIAS,JUDGE** **dlk 13.07.2021**