High Court of KeralaSingle JudgePartly allowed; enhanced compensation with spec...

Balakrishnan Pillai & Vilasini Amma v. Rejimon M.D. & Sabu V.D. & Oriental Insurance Co. Ltd.

Case / Petition Number:MACA NO. 2005 OF 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2021-10-11
Court Decision / Holding
The appeal is allowed in part. The High Court enhanced the compensation by Rs. 46,038 (comprising Rs. 16,038 for loss due to disability, Rs. 5,000 for bystander expenses, and Rs. 25,000 for future treatment). The Oriental Insurance Co. Ltd. insurer is directed to deposit the enhanced amount of Rs. 46,038 with 8% interest per annum from the petition date to realisation and costs of Rs. 4,000. Since the original appellant died, the enhanced amount is to be disbursed to the Additional 2nd appellant in accordance with law. Bench: Single Judge; Judgment by Justice C.S. Dias.
Final Disposition
Partly allowed; enhanced compensation with specific heads adjusted; insurer directed to deposit enhanced sum with interest and costs; disbursement to Additional 2nd appellant.

Parties to the Case

Appellants / Petitioners

  • BALAKRISHNA PILLAI
  • VILASINI AMMA

Respondents

  • MR. REJIMON M.D.
  • SABU V.D.
  • THE ORIENTAL INSURANCE CO.LTD BRANCH OFFICE, TR 10 CHAMBERS, KANJIKUZHY, KOTTAYAM-686004

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Koshy George
  • • C.B. Sreekumar

Counsels for Respondents

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

Case Synopsis & Summary

This Motor Accident Claims Appeal arises from a motor-vehicle accident that occurred on 01.04.1996, where the appellant Balakrishnan Pillai, a forest guard then aged about 49, sustained grave injuries after a mini lorry (KL 7A-3931) allegedly driven negligently by the second respondent struck him while he was alighting from a bus at Muvattupuzha. He was hospitalized for a prolonged period, suffered memory loss, and remained bedridden for about eight months, receiving treatment at Government Hospital, Muvattupuzha and Medical Mission Hospital, Kolenchery. He claimed compensation under Section 166 of the Motor Vehicles Act, 1988, seeking Rs. 6,68,000, though the Motor Accidents Claims Tribunal awarded only Rs. 1,49,294. During the appeal, the original appellant died and his wife was impleaded as Additional 2nd appellant. The respondents—the lorry owner and insurer—did not contest liability; the insurer admitted coverage. The High Court examined the quantum, income, multiplier, and disability. It fixed the notional monthly income at Rs. 3,200 (instead of Rs. 3,000), adopted a multiplier of 11 (instead of 8) on the reasoning that there were cogent reasons to apply the split multiplier due to the pensionable tenure remaining, and assessed disability at 12% (per Ext.X1) with reference to Raj Kumar v. Ajay Kumar. The court enhanced compensation for loss due to disability, future treatment, and bystander expenses, and directed the insurer to deposit Rs.46,038 with 8% interest and costs of Rs.4,000, to be paid to the Additional 2nd appellant in accordance with law. The decision, delivered by Justice C.S. Dias, partially allowed the appeal. A final order for disbursement followed.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Split multiplier method for calculating compensation
  • Notional income concept in motor-accident claims
  • Cogent reasons requirement for adoption of split multiplier (Puttamma v. K.L. Narayana Reddy)
  • Multiplier of 11 for age 55 and above (Sarla Varma v. Delhi Transport Corporation)
  • Disability assessment framework (Raj Kumar v. Ajay Kumar)
  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd (notional income yardstick)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Tribunal’s quantum was inadequate and not just, seeking enhancement of compensation, including higher bystander expenses and future medical treatment. They relied on extant jurisprudence to justify using the split multiplier where cogent reasons exist and for validating the notional income and disability calculations.

Contentions of Respondents

The respondents urged that the Tribunal’s award was fair and that liability was properly covered by insurance; they argued against unnecessary enhancement and emphasized adherence to evidence and policy conditions in determining compensation.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Puttamma v. K.L. Narayana Reddy and another2014 (1) KLT 739 (SC)PositiveCited to emphasize that split multiplier should not be adopted unless cogent reasons exist; in this case, cogent reasons were found to apply split multiplier.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insruance Company Ltd[(2011) 13 SCC 236]PositiveUsed as yardstick for notional monthly income, guiding the court to Rs. 3,200 for the year 2002 based on earlier precedents.
Sarla Varma v. Delhi Transport Corporation[2010 (2) KLT 802]PositiveSC rule that for persons aged 55 and above, multiplier should be 11; Tribunal’s 8 was corrected accordingly.
Raj Kumar v. Ajay Kumar[2011 (1) KLT 620]PositiveUsed to support fixation of disability at 12% based on functional 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 Balakrishnan Pillai & Vilasini Amma v. Rejimon M.D. & Sabu V.D. & Oriental Insurance Co. Ltd. and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

MACA NO. 2005 OF 2012 1 **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **MONDAY, THE 11[TH] DAY OF OCTOBER 2021 / 19TH ASWINA, 1943 MACA NO. 2005 OF 2012** **AGAINST THE ORDER/JUDGMENT IN OPMV 561/2007 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,ERNAKULAM, ERNAKULAM** ## **APPELLANT/S:** 1 BALAKRISHNA PILLAI, AGED 63 YEARS S/O.LATE SANKARA PILLAI, PADINJATTAYIL HOUSE, KADAYANIKADU P.O., KANGAZHA, KOTTAYAM, NOW RESIDING AT GO-5, AISWARYA APARTMENTS, POONITHURA P.O., KOCHI. 2 ADDL P2. VILASINI AMMA M.R., AGED 62 YEARS AGED 62 YEARS, W/O.LATE BALAKRISHNA PILLAI, PADINJATTAYIL HOUSE, KADAYINIKADU P.O., KANGAZHA, KOTTAYAM DISTRICT, PIN- 686 541. IS IMPLEADED AS THE ADDITIONAL 2ND APPELLANT IN THE APPEAL AS PER ORDER DATED 06/09/2021 IN IA 1/2021 IN MACA 2005/2012. BY ADVS. SRI.KOSHY GEORGE C.B.SREEKUMAR ## **RESPONDENT/S:** 1 MR.REJIMON M.D., AGED 44 YEARS, S/O.DAMODARAN, VALAMANAL HOUSE, KURIANAD, P.O., MONIPPILLY, KOTTAYAM-686636. 2 SABU V.D.AGED 42 YEARS, S/O.SAROJINI DAMODARAN, VALAMANAL HOUSE, KURIANAD, P.O., MONIPPILLY, KOTTAYAM-686636. 3 THE ORIENTAL INSURANCE CO.LT BRANCH OFFICE, TR 10 CHAMBERS, KANJIKUZHY, 2 MACA NO. 2005 OF 2012 KOTTAYAM-686004. BY ADVS. SRI.P.JACOB MATHEW SRI.MATHEWS JACOB SR. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 11.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA NO. 2005 OF 2012 3 ## **JUDGMENT** The original appellant was the petitioner in OP(MV) No.561/2007 on the file of the Motor Accidents Claims Tribunal, Ernakulam. During the pendency of the appeal, the original appellant died and his wife was impleaded, as per the order dated 06.09.2021 in I.A.No.1/2021 by this Court, as the Additional 2[nd] appellant. The respondents in the appeal were the respondents before the Tribunal. 2. The original 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 01.04.1996. The original appellant had contended that on the above said date, while he was getting down from the bus at the Muvattupuzha bus stand and crossing the road, a mini lorry bearing registration No. KL.7A-3931 (lorry) driven by the 2[nd] respondent in a negligent manner, hit the original appellant. The original appellant sustained serious injuries and fell unconscious. He was treated at the Government Hospital, Muvattupuzha and at the Medical Mission Hospital, Kolenchery as an inpatient 4 MACA NO. 2005 OF 2012 for a period of 50 days from 01.04.1996 to 20.05.1996. The original appellant had sustained memory loss and he was bedridden for about 8 months. He underwent Ayurvedic treatment. The original appellant was a Forest Guard in the Kerala State Forest Department and was earning a net income of Rs.3,200/- per month. The lorry was owned by the 1[st] respondent and insured with the 3[rd] respondent. Hence, the original appellant claimed a compensation of Rs.6,68,000/- from the respondents, which was limited to Rs.6,00,000/-. 3. The respondents did not contest the proceedings. 4. The original appellant produced and marked Exts.A1 to A13 and Ext.X1 standing disability certificate in evidence. 5. The Tribunal after analysing the pleadings and the materials on record, allowed the claim petition in part, by permitting the original appellant to realise an amount of Rs.1,49,294/- from the 3[rd] respondent. 6. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 5 MACA NO. 2005 OF 2012 7. Heard; Sri.C.B. Sreekumar, the learned counsel appearing for the appellants and Sri. P. Jacob Mathew, the learned counsel appearing for the 3[rd] respondent/insurer. 8. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just? ## **Negligence and Liability** 9. Ext.A5 charge sheet filed by the Muvattupuzha Police in crime no.205/1996 proves that the accident occurred due to the negligence of the 2[nd] respondent. Admittedly, the 1[st] respondent was the owner and the 3[rd] respondent was the insurer of the lorry. The 3[rd] respondent admitted that the lorry had a valid insurance coverage and had not proved that the 1[st] respondent had violated the insurance policy conditions. Therefore, the 3[rd] respondent is to indemnify the liability of the 1[st] respondent arising out of the accident. ## **Income of the appellant** 10. Undisputedly, the original appellant was working as a Forest Guard in the Forest Range Office, Erumeli and earning a monthly net salary of Rs.6,179/-. As the original MACA NO. 2005 OF 2012 6 appellant had a permanent employment and he was aged 49 years at the time of the accident, and that he would have superannuated at the age of 55 years, the Tribunal adopted the split multiplier method and fixed the notional monthly income of the appellant at Rs.3,000/-. 11. In **Puttamma vs. K.L. Narayana Reddy and another** [2014 (1) KLT 739 (SC)], the Honourable Supreme Court has held that unless cogent reasons are established, the Tribunals and courts should not adopt the split multiplier method. 12. In the instant case, since the original appellant had only 5 more years of service left, I hold that there are cogent reasons to adopt the split multiplier method, as done by the Tribunal. Hence, I confirm the finding of the Tribunal to adopt the split multiplier method. 13. The original appellant had claimed a notional monthly income of Rs.3,200/- after his retirement and the Tribunal fixed his notional monthly income at Rs.3,000/-. 14. In **Ramachandrappa vs. Manager, Royal Sundaram Alliance Insruance Company Ltd** . [(2011) 13 MACA NO. 2005 OF 2012 7 SCC 236] the Honourable Supreme Court has fixed the notional income of a coolie worker in the year 2004 at Rs.4,500/ per month. 15. Following the yardstick in the above cited decision and keeping in mind the fact that the accident happened in the year 2002, I fix the monthly notional income of the original appellant at Rs.3,200/-, as claimed in the claim petition. ## **Multiplier** 16. Admittedly, the original appellant would have superannuated from service on attaining the age of 55 years. In **Sarla Varma vs. Delhi Transport Corporation [** 2010 (2) KLT 802] the Honourable Supreme Court has held that in the case of the persons, who completed the age of 55 years, the relevant multiplier to be adopted is ‘11’. However, the Tribunal adopted the multiplier at ‘8’, which is erroneous. ## **Disability** 17. The permanent disability of the original appellant was assessed by the Standing Disability Assessment Board as per Ext.X1, wherein it is certified that as the original 8 MACA NO. 2005 OF 2012 appellant had sustained recurrent seizures, his neurological disability has to be fixed at 12%. I confirm the above assessment as the functional disability of the original appellant, as per the law laid down in **Raj Kumar vs. Ajay** ## **Kumar [2011 (1) KLT 620].** 18. Taking into account the above mentioned factors, namely, the monthly income of the original appellant at Rs.3,200/-, the multiplier at ‘11’ and the functional disability of the original appellant at 12%, I refix the compensation for loss due to disability at Rs.50,688/- instead of Rs.34,560/awarded by the Tribunal. ## **Future Treatment** 19. In Exts.A7 to A9 certificates, the Doctors who treated the petitioner have clearly stated that as he was suffering from post traumatic seizure disorders and he requires life long medical treatment. 20. Considering the above opinion, I hold that the original appellant is entitled for a reasonable amount of Rs.25,000/- as compensation for future treatment. ## **Bystander expense** MACA NO. 2005 OF 2012 9 21. The original appellant was undisputedly treated as an inpatient for a period of 50 days from 01.04.1996 to 20.05.1996. The Tribunal awarded an amount of Rs.10,000/towards bystander expenses, which according to me is on the lower side. Thus, I enhance the compensation under the said head by a further amount of Rs.5,000/- i.e. Rs.300/- per day for 50 days. 22. With respect to the other heads of compensation, I find that the Tribunal has awarded a reasonable and just compensation. In the result, the appeal is allowed in part by enhancing the compensation by a further amount of Rs.46,038/- (i.e. Rs.16,038/- as enhancement of compensation under the head loss due to disability, Rs.5,000/- towards bystander expenses and Rs.25,000/- towards future treatment). The 3[rd] respondent-insurer is directed to deposit the enhanced compensation of Rs.46,038/- with interest at the rate of 8% per annum on the amount of Rs.21,308 **/** - from the date of petition till the date of realisation and cost of Rs.4,000/-. As the original appellant expired, the Tribunal shall disburse the MACA NO. 2005 OF 2012 10 enhanced the compensation to the additional 2[nd] appellant in accordance with law. Sd/- **C.S.DIAS JUDGE** rkc