High Court of KeralaDivision BenchAppeal disposed of; enhanced compensation with ...

Babu v. Moideen, Jamsheed, and Royal Sundaram Alliance Insurance Co. Ltd.

Case / Petition Number:MACA.No.2794 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • Anil K. Narendran
Judgment Date
2017-07-17
Court Decision / Holding
Appeal disposed of; enhanced compensation of Rs. 1,08,050 with interest at 8% per annum from the date of petition till realisation; insurer directed to deposit the enhanced amount before the Tribunal within two months; no order as to costs.
Final Disposition
Appeal disposed of; enhanced compensation with directions for deposit by insurer; no costs.

Parties to the Case

Appellants / Petitioners

  • Babu

Respondents

  • Moideen
  • Jamsheed
  • Royal Sundaram Alliance Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Vidyasagar

Counsels for Respondents

  • • Sri. Mathews Jacob (Sr.)
  • • Sri. P. Jacob Mathew

Case Synopsis & Summary

This is a Motor Accident Claims Appeal arising from an award of the Motor Accidents Claims Tribunal, Tirur, in a petition under Section 166 of the Motor Vehicles Act, 1988. The appellant (claimant) sustained injuries as a pillion rider when a car collided with his motorcycle on 28 May 2010. The Tribunal awarded Rs. 93,784 as compensation against the insurer, with the insured vehicle under a valid policy. The appellant challenged the quantum, arguing the compensation was inadequately calculated in several heads and that the notional income and the multiplier for loss of earning capacity were not correctly applied. The Kerala High Court, sitting in Division Bench, re-evaluated the quantum by considering the appellant as a 28-year-old able-bodied person and applying precedent from Ramachandrappa for notional income (Rs. 7,500 per month) and the Sarla Verma framework for the multiplier. Several heads were revised: loss of earning, bystander expenses, transport, pain and suffering, loss of earning capacity, and loss of amenities. The court concluded with an overall additional compensation of Rs. 1,08,050, interest at 8% per annum from the petition date, and directed the insurer to deposit the enhanced amount within two months. The appeal was disposed of with no order as to costs.

Provisions of Law Cited

Section 166, Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Sarla Verma principle on multiplier and dependency for assessing compensation
  • Notional income concept for determining earnings in absence of reliable proof

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal erred in the quantum of compensation by fixing a low notional income and not applying the correct multiplier and other heads of compensation. He submits that, with reliable medical evidence and disability certificate, higher compensation is warranted, using a notional income of Rs. 7,500 per month (based on age 28) and a multiplier of 17, in line with Ramachandrappa and the Sarla Verma framework. He seeks enhanced amounts for loss of earnings, loss of earning capacity, pain and suffering, loss of amenities, bystanders’ expenses, and other heads, with interest from the petition date.

Contentions of Respondents

The insurer/ respondents contend that the Tribunal’s award was reasonable and supported by the evidence; there is insufficient reliable material to fix higher income; the insurance liability was correctly determined, and the Tribunal’s calculations should be affirmed, with no enhancement, and costs, if any, under consideration.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveCited by the High Court to justify re-fixation of the claimant’s notional monthly income (Rs. 7,500) based on the precedent in Ramachandrappa.
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802PositiveCited to support the use of the multiplier framework in calculating loss of earning capacity; the court notes the Tribunal rightly adopted the multiplier per Sarla Verma.

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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.T.RAVIKUMAR & THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN MONDAY, THE 17TH DAY OF JULY 2017/26TH ASHADHA, 1939 ## MACA.No. 2794 of 2012 () ------------------------AGAINST THE AWARD IN OPMV 678/2010 of M.A.C.T. TIRUR DATED 25-08-2012 APPELLANT(S)/PETITIONER IN THE O.P.: --------------------------------------------- BABU, S/O.SAMI KODAKKALLIMMEL HOUSE, MAVOOR PANCHAYATH, KOZHIKODE DISTRICT. BY ADV. SRI.K.VIDYASAGAR RESPONDENT(S)/RESPONDENTS IN THE O.P.(MV): -------------------------------------------------- ## 1. MOIDEEN S/O. KUNHIMUHAMMED, 24/10, CHAKKERI HOUSE, KOORIYAD, VENGARA P.O., MALAPPURAM, PIN-676304. 2. JAMSHEED S/O. AHAMED KUTTY, 9/399, PARAMMEL HOUSE, PARUTHIPARA, FEROKE COLLEGE P.O., KOZHIKODE, PIN-673632. 3. ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD. - 46, WHITE ROAD, CHENNAI P.O., PIN-600014. R3 BY ADV. SRI.MATHEWS JACOB (SR.) R3 BY ADV. SRI.P.JACOB MATHEW THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 17-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C.T. RAVIKUMAR & ANIL K. NARENDRAN, JJ.** ## **========================== M.A.C.A. No.2794 OF 2012 ==========================** Dated this the 17[th] day of July, 2017 ## **JUDGMENT** _Anil K. Narendran, J._ This appeal arises out the award passed by the Motor Accidents Claims Tribunal, Tirur dated 25.08.2012 in O.P.(MV).No.678 of 2010, a claim petition filed under Section 166 of the Motor Vehicles Act, 1988 claiming compensation on account of the injuries sustained by the appellant/claimant in a motor accident which occurred on 28.5.2010. While the appellant/claimant was travelling on a motor cycle as a pillion rider, it was hit by a car bearing Reg.No.KL/11AG5068 driven and owned by respondents 1 and 2 and insured with the third respondent. As a result of the accident, the appellant/claimant sustained injuries. Alleging that the accident occurred due to the rash and negligent driving of the car by the first respondent driver, claim **M.A.C.A.2794/2012** 2 petition was filed before the Tribunal claiming a total compensation of Rs.2,05,000/- under different heads. 2. Before the Tribunal, Exts.A1 to A7 were marked on the side of the appellant/claimant. The disability certificate issued by the District Medical Board, Manjeri was marked as Ext.C1. The respondents have not chosen to adduce any oral or documentary evidence. 3. After considering the materials on record, the Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent driving of the car by the first respondent driver. Since the said vehicle was covered by a valid insurance policy, the third respondent insurer was held liable to indemnify the second respondent owner. Under different heads, the Tribunal awarded a total compensation of Rs.93,784/- and directed the third respondent insurer to deposit the said amount before the Tribunal together with interest at the rate of 9% per annum from the date of the petition till realisation with proportionate cost. 4. Dissatisfied with the quantum of compensation awarded by **M.A.C.A.2794/2012** 3 the Tribunal under different heads, the appellant/claimant is before this Court in this appeal. 5. We heard the learned counsel for the appellant/claimant and also the learned counsel for the third respondent insurer. 6. The sole issue that arises for consideration in this appeal is as to whether the appellant/claimant is entitled for enhancement of the compensation awarded under different heads. 7. The accident is of the year 2010 and at the time of the accident, the appellant/claimant was aged 28 years. He claimed a monthly income of Rs.8,000/-, as a building worker. However, no reliable materials were produced before the Tribunal to prove his monthly income at the time of the accident. The appellant/claimant has also not chosen to mount the box. It was in such circumstances that the Tribunal fixed the monthly income of the appellant/claimant notionally at Rs.3,500/-. 8. In **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.** [ **(2011) 13 SCC 236]** , the Apex **M.A.C.A.2794/2012** 4 Court notionally fixed the monthly income of a coolie, who met with a motor accident in the year 2004 as Rs.4,500/-. In the instant case, the accident is of the year 2010 and at the time of the accident, the appellant/claimant was an able bodied person aged 28 years. In such circumstances, we deem it appropriate to re-fix his monthly income notionally at Rs.7,500/- for the purpose of assessing compensation under different heads. 9. The injuries sustained by the appellant/claimant in the accident, as borne out from Ext.A2 discharge certificate, read thus:- “Fracture of trochanter right” Ext.A2 discharge certificate would show that due to the injuries sustained, the appellant/claimant had undergone inpatient treatment for a period of 6 days. Ext.A5 series of medical bills would show that he had spent a sum of Rs.2784.01 towards medical expenses. Ext.C1 is the disability certificate issued by the District Medical Board, Manjeri in which the permanent disability sustained by the appellant/claimant has been certified as 10%. 10. The compensation awarded by the Tribunal under different **M.A.C.A.2794/2012** 5 ## heads reads thus:- |**_Head of claim_**|**_Amount claimed_**<br>**_(in Rupees)_**|**_Amount awarded_**<br>**_(in Rupees)_**| |---|---|---| |Loss of earning (total)|96000/-|10500/-| |Loss of earning (partial)|Nil|Nil| |Medical & miscellaneous<br>expenses|Nil|2784/-| |Future treatment|Nil|Nil| |Bystander expenses|2000/-|600/-| |Transportation expenses|5000/-|750/-| |Extra nourishment|15000/-|Nil| |Damage to clothingetc.|2000/-|250/-| |Pain and suffering|15000/-|7500/-| |Loss/reduction in earning<br>capacity|50000/-|71400/-| |Loss of amenities and<br>conveniences etc.|Nil|Nil| |Any other heads: Loss of<br>earning power|20000/-|Nil| |Total|2,05,000/-|93784/-| 11. Towards loss of earning, the Tribunal awarded a sum of Rs.10,500/- at the rate of Rs.3,500/-, for a period of three months. Since we have already re-fixed the monthly income of the appellant/claimant at Rs.7,500/-, the compensation payable under this head comes to Rs.22,500/- (7500x3), resulting an additional compensation of **Rs.12,000/-** . **M.A.C.A.2794/2012** 6 12. Towards bystanders expenses, the Tribunal awarded a sum of Rs.600/-. No amount was awarded under the head extra nourishment. Considering the fact that the accident is of the year 2010 and the appellant/claimant had undergone inpatient treatment for a period of 6 days, we deem it appropriate to re-fix the compensation under the head bystander's expenses at Rs.1,200/- (200x6), resulting an additional compensation of **Rs.600/-** . The appellant/claimant will also be entitled for a sum of **Rs.600/-** (100x6) under the head extra nourishment. 13. Towards damage to clothing, the Tribunal awarded a sum of Rs.250/-. Considering the fact that the accident is of the year 2010, we deem it appropriate to re-fix the compensation under this head as Rs.1,000/-, resulting an additional compensation of **Rs.750/-** . 14. Towards pain and suffering, the Tribunal awarded a sum of Rs.7,500/-. Considering the nature of the injuries sustained and the treatment the appellant had undergone, as borne out from the medical records, we deem it appropriate to re-fix the compensation under this **M.A.C.A.2794/2012** 7 head as Rs.10,000/-, resulting an additional compensation of **Rs.2,500/-.** 15. Towards loss of earning capacity, the Tribunal awarded a sum of Rs.71,400/- taking the multiplicand as 3,500, applying the multiplier of '17' and percentage of disability as 10%. Going by the decision in **Sarla Verma v. Delhi Transport Corporation [2010 (2) KLT 802],** the Tribunal has rightly adopted the multiplier. Since we have already re-fixed the monthly income of the appellant/claimant at Rs.7,500/-, the compensation payable under this head is re-worked as Rs.1,53,000/- (7500x12x17x10/100), resulting an additional compensation of **Rs.81,600/-.** 16. Towards loss of amenities, no amount was awarded by the Tribunal. Considering the nature of injuries sustained and the disability that had arisen therefrom, as certified in Ext.C1 disability certificate issued by the District Medical Board, we deem it appropriate to grant a sum of **Rs.10,000/-** under this head. 17. In the result, the appellant will be entitled for an additional **M.A.C.A.2794/2012** 8 compensation of **Rs.1,08,050/-** (12,000+600+600+ 750+2,500+81,600+10,000) in this appeal, which will carry interest at the rate of 8% per annum from the date of the petition till realisation. 18. Since the insurance coverage of the offending vehicle is not in dispute, the third respondent insurer shall deposit the said amount before the Tribunal within two months from the date of receipt of a certified copy of this judgment. Appeal is disposed of as above. No order as to costs. **Sd/C.T. RAVIKUMAR (JUDGE)** **Sd/-** **ANIL K. NARENDRAN** **(JUDGE)** **spc/** **M.A.C.A.2794/2012** 9 **C.T. RAVIKUMAR, J.** **M.A.C.A.2794/2012** 10 **JUDGMENT September, 2010**