High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation; insurer ...

Jithin v. Renjith s/o Damodharan, Suresh s/o Narayanakurup, and United India Insurance Co. Ltd.

Case / Petition Number:MACA 244/2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias, J.
Judgment Date
2020-09-18
Court Decision / Holding
Appeal allowed. The Tribunal’s 50% contributory negligence finding is vacated. The appellant’s compensation is enhanced: loss of earnings recalculated to Rs.21,000 and pain and suffering increased to Rs.25,000, among other adjustments, leading to a total modified award of Rs.66,237. The third respondent (insurer) is directed to deposit Rs.66,237 before the Tribunal within two months, with interest at 9% per annum from the date of petition to realization, and the entire deposited amount shall be released to the appellant in accordance with law, along with proportionate costs.
Final Disposition
Appeal allowed; enhanced compensation; insurer to deposit Rs.66,237 within two months; 9% interest; release of deposited amount to appellant; costs.

Parties to the Case

Appellants / Petitioners

  • Jithin

Respondents

  • Renjith S/o Damodharan
  • Suresh S/o Narayanakurup
  • United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • AVM Salahuddin
  • • Emil Stanley

Counsels for Respondents

  • • P. Jayasankar
  • • Raji T. Bhaskar

Case Synopsis & Summary

MACA 244/2014, High Court of Kerala at Ernakulam, under the single-judge bench of Justice C.S. Dias, concerns the appeal by Jithin, the claimant in OP (MV) No.1081 of 2009, arising from a motor vehicle accident on 22 June 2009. The Tribunal, in its impugned order, granted compensation in part but found the claimant 50% contributorily negligent based on Ext A2, a discharge certificate noting smell of alcohol, and directed 50% of Rs.44,237 to be deposited with interest. The appellant argued that mere odour of alcohol cannot establish contributory negligence and relied on Jose v. United India Insurance Co., Ltd (2015) to repudiate the Tribunal’s inference. He also asserted that his income as a driver ought to be Rs.7,500 per month, supported by Ramachandrappa and Syed Sadiq, instead of the Tribunal’s Rs.3,500 notional income, and urged enhancement of several heads of compensation. The respondents contended the accident resulted from the appellant’s rash driving and supported the Tribunal’s proportional deduction. The court relies on Pranay Sethi to underscore just compensation, and, citing Jose, vacates the Tribunal’s contributory negligence finding. Notional income is raised to Rs.7,500; losses and suffering are recalculated, increasing total compensation to Rs.66,237. Uphaar’s i.e., 9% interest is adopted. The appeal is allowed; the insurer must deposit Rs.66,237 within two months, and the full amount is then to be released to the claimant on realization, with proportionate costs.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Section 166Motor Vehicles Act, 1988 - Section 168

Legal Doctrines & Maxims

  • Just compensation principle under Section 168 (Pranay Sethi) emphasizing fairness, reasonableness and equitability
  • Fairness, reasonableness and non-violation of the principle of equitability in determining just compensation
  • Notional income approach for compensation calculation (Ramachandrappa; Syed Sadiq)
  • Contributory negligence cannot be inferred merely from smell of alcohol (Jose v. United India Insurance Co. Ltd)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s finding of 50% contributory negligence rests on Ext A2’s remark about the smell of alcohol, which the law does not treat as proof of intoxication. Drawing on Jose v. United India Insurance Co. Ltd (2015) he argues that such incidental observations cannot sustain a deduction of negligence. The appellant maintains that his income as a driver should be ₹7,500 per month (not ₹3,500) in line with Ramachandrappa and Syed Sadiq, and seeks enhancement across several heads—loss of earnings, pain and sufferings, and other heads—while emphasising hospitalization for 23 days. He urges applying the Pranay Sethi framework to compute just compensation, including fair notional income and full compensation rather than the Tribunal’s partial award, and seeks interest on enhanced amounts. Finally, he seeks the entire amount to be released on realization after deposit of the enhanced sum.

Contentions of Respondents

The respondents contend that the accident was caused by the claimant’s rash and negligent driving, and rely on Ext A2 to show possible intoxication, thus supporting contributory negligence. They argue the Motor Accidents Claims Tribunal rightly held 50% deduction and that the insurer’s liability is subject to the claimant’s fault. They rely on established jurisprudence that contributory negligence must be proven by credible evidence of negligence on the part of the claimant, not merely by smell of alcohol, and contend the insurer’s liability should remain subject to the extent of the claimant’s fault.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi2017(16) SCC 680PositiveSupports the framework of ‘just compensation’ under Section 168 MVA 1988 emphasizing fairness, reasonableness and equitability.
Jose v. United India Insurance Co., Ltd2015(4) KLT 706PositiveHeld that mere smell of alcohol cannot establish contributory negligence; used to vacate Tribunal’s finding.
Ramachandrappa v. Manager, Royal Sundaram Alliance2011(13) SCC 236PositiveA foundational authority for notional income assessment in compensation calculations.
Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd.2014(2) SCC 735PositiveReiterates notional income principles in determining compensation.
MCD v Uphaar Tragedy Victims Association2011(14) SCC 481PositiveAuthority for awarding interest on compensation at 9% p.a.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1 MACA 244/2014 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **FRIDAY, THE 18TH DAY OF SEPTEMBER 2020 / 27TH BHADRA, 1942** ## **MACA.No.244 OF 2014** **AGAINST THE AWARD IN OPMV 1081/2009 DATED 27-03-2013 OF MOTOR ACCIDENT CLAIMS TRIBUNAL VADAKARA** ## **APPELLANT/S:** **JITHIN AGED 25 YEARS S/O.KRISHNAN, RESIDING AT MANAMKUNNUMMAL HOUSE, M.M.PARAMBU (P.O.), UNNIKULAM, KOZHIKODE.** **BY ADVS. SRI.AVM.SALAHUDIN SMT.EMIL STANLEY** ## **RESPONDENT/S:** **1 RENJITH S/O.DAMODHARAN, RESIDING AT 8/50 F, ELUCHIKKUMPURAYIL HOUSE, KANNADIPOYIL (PO), BALUSSERY, KOZHIKODE.673 612 2 SURESH AGED 26 YEARS S/O.NARAYANAKURUP, RESIDING AT EDATHIL HOUSE, KANNADIPOYIL (PO), BALUSSERY (VIA), KOZHIKODE.673 612 3 UNITED INDIA INSURANCE COMPANY LTD. GROUND FLOOR, KDC BANK BUILDING, KALLAI ROAD, KOZHIKODE.673 001 R1, R3 BY ADV. SRI.P.JAYASANKAR R1 BY ADV. SMT.RAJI T.BHASKAR** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 18-09-2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA 244/2014 ## **C.S.DIAS, J. ====================== MACA No.244 of 2014 ====================== Dated this the 18[th] day of September, 2020.** ## **JUDGMENT** The appellant is the claimant in OP (MV) No.1081 of 2009 on the file of the Motor Accidents Claims Tribunal, Vadakara. The appellant had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of a motor accident that took place on 22.6.2009. The parties are, for the sake of convenience, referred to as per their litigate status in the appeal. 2. It is the case of the appellant that while he was riding motor cycle bearing registration No.KL 56A-5272 from Ekarool to Balussery, his motor cycle was hit by the jeep bearing Registration No.KL-11 J/1157, which was driven by the second respondent in a rash and negligent manner. The jeep was owned by the first 3 MACA 244/2014 respondent and was insured with the third respondent. The appellant sustained serious injuries and was treated as an inpatient in the Government Hospital, Balussery and Medical College Hospital, Kozhikode for a period of 23 days. The appellant sustained the following injuries: - (i) Hemorrhagic contusion (R) ganglio capsular region and (Lt) frontal region. - (ii) Avulusion of scalp 6 x 1 cm - (iii) Degloving injury anterior aspect of (Rt) lag 3. Accordingly, the appellant filed the claim petition before the Tribunal claiming a total compensation of Rs.3,00,000/-. 4. The respondents 1 and 2 filed a written statement denying the allegations in the claim petition. They contended that it was the appellant who drove the vehicle in a rash and negligent manner. However, they contended that the offending vehicle was insured with the third respondent. 4 MACA 244/2014 5. The third respondent filed a written statement, inter alia, contending that there was negligence on the part of the appellant. In the wound certificate it was certified that the appellant was in an inebriated state. Hence, the third respondent is not liable to pay compensation. 6. Neither party adduced any oral evidence. The appellant produced and marked Exts.A1 to A7 and the respondents produced and marked Ext B1 in evidence. 7. After considering the pleadings and materials on record, the Tribunal by the impugned award allowed the claim petition, in part, by directing the third respondent to deposit 50% of Rs.44,237/- with interest at the rate of 7.5% per annum from the date of petition till the date of realization, holding that the appellant was guilty for contributory negligence. 8. The comparative table of compensation that was claimed by the appellant and that was 5 MACA 244/2014 ## awarded by the Tribunal is as follows:- |SI.<br>No|Head of claim|Amount<br>claimed<br>(in rupees)|Amount awarded (in<br>rupees)| |---|---|---|---| |1|Loss of earning|40,000/-|12,000/-| |2|Medical treatment and<br>bystander expenses|75,000/-|4837/-| |3|Transport to hospital|5000/-|1,000/-| |4|Bystander expenses|Nil|4600/-| |5|Damage to clothing|2000/-|500/-| |6|Extra nourishment|5,000/-|2,300/-| |7|Future treatment|8,000|Nil| |8|Pain and sufferings|30,000/-|12,000/-| |9|Compensation<br>for<br>disability|1,00,000/-|Nil| |10|Compensation for loss of<br>earning power|25,000/-|Nil| |11|Loss of amenities and<br>enjoyment in life|10,000/-|7,000/-| |12|Total|3,00,000/-|44,237/-| 9. Aggrieved by the finding that the appellant was guilty for contributory negligence to the extent of 50% and dissatisfied with the quantum of compensation awarded by the Tribunal, the appeal is preferred. 10. Heard the learned counsel appearing for the appellant and the learned counsel appearing for the third respondent. There is no appearance 6 MACA 244/2014 for respondents 1 and 2. 11. The questions that emerge for consideration in this appeal are; (i) whether the appellant is guilty for contributory negligence, and (ii) whether the appellant is entitled for enhancement of compensation. 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, 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. The Tribunal arrived at the conclusion that the appellant is guilty for contributory 7 MACA 244/2014 negligence for the reason that in Ext A2 discharge certificate, issued by the Medical College Hospital, Kozhikode, it was recorded by the Doctor that the appellant was smelling of alcohol during physical examination. It was on the basis of Ext A2, that the third respondent contended in paragraph 10 of the written statement that the appellant was also negligent in causing the accident. Accordingly, the Tribunal held the appellant was guilty for 50% contributory negligence. 14. The question whether the mere smell of alcohol in the breath of a claimant can be treated for attributing contributory negligence is no longer res integra in view of the categoric declaration of law by a Division Bench of this Court in **Jose vs. United India Insurance Co., Ltd [2015(4) KLT** **706].** The Division Bench in paragraph 6 held as follows: “6. The entry made by the doctor in the wound certificate that smell of alcohol was present in the breath of the appellant cannot be a reason for finding that he was under the influence of alcohol rendering him unable to keep 8 MACA 244/2014 himself proper and stable and contributing to the cause of accident. Drinking of alcoholic beverages is not a prohibited thing in this democratic country. But, the crucial question is as to whether after drinking alcohol, the appellant had actually contributed to the cause of accident by his deeds while using the road. Here, there is absolutely no evidence to show that he was under the influence of alcohol or he had contributed to the cause of accident. For these reasons, the finding entered by the learned Tribunal that there was contributory negligence on the part of the appellant cannot be accepted. We vacate that finding. Therefore, the deduction of 50% effected by the Tribunal from the total amount of compensation arrived at is unsustainable. The appellant is entitled to the total amount of compensation arrived at by the Tribunal as well as by this Court”. 15. In view of the emphatic declaration of law in **Jose** (supra) and the absence of any incriminating material on record, other than the blunt observation made by the Doctor in Ext A2, the findings of the Tribunal attributing contributory negligence on the appellant is erroneous and improper. Hence, I vacate and set aside the finding and the direction to deduct 50% from the total amount of compensation awarded. 16. The next question that arises for 9 MACA 244/2014 consideration is whether the appellant is entitled for enhancement of compensation. 17. It was the specific case of the appellant that he is a driver by profession. He claimed that he was getting an income of Rs.8,500/- per month. However, the Tribunal has arrived at a conclusion that the appellant has only a notional income of Rs.3,500/-. 18. The Hon'ble Supreme Court in **Ramachandrappa Vs. Manager, Royal Sundaram Alliance [(2011) 13 SCC 236]** has fixed the notional income of a coolie worker at Rs.4,500/-, in the year, 2011. Subsequently, the Hon'ble Supreme Court in **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** has reiterated the ratio in Ramachandrappa. ## **Income** 19. Taking into consideration the principles laid down in the aforecited decision, I am of the 10 MACA 244/2014 considered opinion that the appellant's income can be refixed at Rs 7,500/- per month, instead of Rs.3,500/- fixed by the Tribunal. ## **Loss of earnings** 20. The Tribunal has awarded the appellant an amount of Rs.12,000/- towards loss of earnings instead of Rs.40,000/- that was claimed by him. Considering the fact that the appellant was treated as inpatient for a period of 23 days and that the appellant had an income of Rs.7,000/-, I deem it appropriate to grant the appellant a further amount of Rs.9,000/- towards loss of earnings, in addition to Rs.12,000/- granted by the Tribunal i.e., Rs.7,000 x 3 months = Rs.21,000/-. ## **Pain and sufferings** 21. Under the head of claim – pain and sufferings, the Tribunal has awarded only an amount of Rs.12,000/- as against Rs.30,000/claimed by the appellant. Taking into consideration the fact that the appellant had sustained a fracture 11 MACA 244/2014 and underwent a surgery, I deem it appropriate to award the appellant a further amount of Rs.13,000/- under the said claim i.e., a total amount of Rs.25,000/- under the said head. 22. With respect to the other heads of claim, I find that the Tribunal has awarded reasonable and just compensation. Therefore, I do not find any reason to enhance the amount under any other heads of claim. 23. Therefore, on an overall re-appreciation of the pleadings, materials on record and the law laid down by the Hon'ble Supreme Court in the afore-cited decisions, I am of the considered opinion that the appellant is entitled for enhancement of the amounts as modified and recalculated above, and given in the table below for easy reference. |SI.<br>No|Head of claim|Amount<br>claimed<br>(in rupees)|Amount<br>awarded (in<br>rupees)|Amounts<br>modified and<br>recalculated<br>by this Court| |---|---|---|---|---| |1|Loss of earnings|40,000/-|12,000/-|21,000/-| |2|Medical treatment and<br>bystander expenses|75,000/-|4837/-|4837/-| 12 MACA 244/2014 |3|Transport to hospital|5000/-|1,000/-|1,000/-| |---|---|---|---|---| |4|Bystander expenses|Nil|4600/-|4600/-| |5|Damage to clothing|2000/-|500/-|500/-| |6|Extra nourishment|5,000/-|2,300/-|2,300/-| |7|Future treatment|8,000|Nil|Nil| |8|Pain and sufferings|30,000/-|12,000/-|25,000/-| |9|Compensation<br>for<br>disability|1,00,000/-|Nil|Nil| |10|Compensation for loss of<br>earning power|25,000/-|Nil|Nil| |11|Loss of amenities and<br>enjoyment in life|10,000/-|7,000/-|7,000/-| |12|Total|3,00,000/-|44,237/-|66,237/-| 24. The Tribunal in the impugned award has granted interest on the compensation awarded only at the rate of 7.5% per annum. In light of the decision of the Hon'ble Supreme Court in **MCD v.** **Uphaar Tragedy Victims Association [(2011)** **14 SCC 481],** I fix interest at the rate of 9% per annum. 25. In the result, I allow this appeal by directing the third respondent to deposit before the Tribunal a total amount of Rs.66,237/- (Rupees Sixtysix Thousand Two Hundred and Thirty Seven only) i.e., an additional amount of Rs.22,000/- with interest at the rate of 9% per annum from the date 13 MACA 244/2014 of petition till the date of realisation with proportionate costs, within a period of two months from the date of receipt of a certified copy of the judgment. On making such deposit, the entire amount that would be deposited shall be released to the appellant, in accordance with law. **Sd/-** SKS/18.9.2020 **C.S.DIAS JUDGE**