High Court of KeralaSingle JudgeAppeal allowed, in part; enhanced compensation ...

Josemon @ Joseph s/o Padammattummal Thomas v. Sajayan s/o Kuttan and The Manager, New India Assurance Co., Ltd.

Case / Petition Number:MACA No.2703 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, by enhancing the compensation by Rs.1,04,800 with interest at 7% per annum on the enhanced amount from the date of the claim petition till payment and costs Rs.4,000. The delay attributed to tribunal corrections is excused to allow interest for the full period from petition date to realization, after noting the Tribunal’s mistakes. The insurer must deposit the enhanced compensation with interest and costs before the Tribunal within sixty days from receipt of a certified copy of the judgment, and the Tribunal shall disburse the enhanced amount to the appellant in accordance with law.
Final Disposition
Appeal allowed, in part; enhanced compensation of Rs.1,04,800 with 7% interest from petition date to realization and Rs.4,000 costs. Enhanced amount to be deposited within 60 days; Tribunal to disburse accordingly. Interest for the period caused by Tribunal’s mistake is allowed; overall compensation increases from Rs.1,27,725 to Rs.2,32,525.

Parties to the Case

Appellants / Petitioners

  • Josemon @ Joseph s/o Padammattummal Thomas

Respondents

  • Sajayan s/o Kuttan
  • The Manager, New India Assurance Co., Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. T. N. Manoj

Counsels for Respondents

  • • Smt. P. R. Reena
  • • Sri Renil Anto Kandamkuly
  • • Sri Renjith Thampan
  • • Sri Thomas Mathew Nellimoottil

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No.2703 of 2012) before the Kerala High Court, challenging a common award made by the Motor Accidents Claims Tribunal, Irinjalakkuda, under Section 166 of the Motor Vehicles Act, 1988. On 30.10.2005, the appellant, a motorcycle passenger (pillion rider) sustained serious injuries in a collision involving the first respondent’s bike, resulting in prolonged hospitalization and incapacity. The Tribunal, after consolidated proceedings for two claim petitions (one by the appellant and one by the rider of the opposing motorcycle), awarded Rs.1,27,725 to the appellant, with interest and costs, while holding the insurer liable for indemnification. The appellant contends the quantum is inadequate and seeks enhancement. The insurer admits the policy but contends the amount claimed is excessive; the first respondent contested nothing (ex parte). The High Court, invoking Supreme Court precedents, revisits the notional income, disability assessment, and multiplier. It fixes the appellant’s notional income at Rs.4,500 per month (per Ramachandrappa), recalculates loss of earnings to Rs.27,000, and increases functional disability to 10% (from 5%), applying a multiplier of 18 (per Sarla Verma). It also adjusts bystander expenses and loss of amenities, resulting in a total enhanced compensation of Rs.2,32,525. The appeal is allowed in part; enhanced compensation of Rs.1,04,800 is awarded with 7% interest from the petition date to realization, plus Rs.4,000 costs. The insurer is to deposit the enhanced amount within 60 days, with the Tribunal disbursing it in due course. The court also clarifies interest eligibility for the delay arising from a tribunal mistake.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Multiplier principle (Sarla Verma v. Delhi Transport Corporation)
  • Functional disability principle (Raj Kumar v. Ajay Kumar)
  • Notional income approach (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argues that the Tribunal’s quantum is inadequate. He contends that his monthly notional income should be Rs.4,500 (as per Ramachandrappa) given his occupation as a mechanic and the year of the accident (2005). He claims six months of incapacity and asserts the functional disability should be treated as 10% (documented as per Ext A8). Relying on Sarla Verma, the appropriate multiplier is 18, and notional income, earnings loss, disability, and bystander/amenities losses must be recalculated to reflect a fair compensation. The applicant originally sought Rs.3,30,000 and seeks restoration of higher compensation based on updated evidence, including medical records and disability certificate.

Contentions of Respondents

The insurer contends that the claim amount is excessive and unsustainable. The insured motorcycle’s policy is admitted, but the compensation prayed for by the appellant is contested as inflated. The first respondent’s status is largely uncontroverted due to ex parte proceedings. The insurer argues that the Tribunal’s award was within reasonable limits and that the appeal should not disturb the quantum except perhaps on narrow grounds of calculation errors, if any. The court is urged to maintain the Tribunal’s approach unless justified by established precedents.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveThe Supreme Court fixed notional income for a laborer (Rs.4,500/month) and laid down the basis for notional income in personal injury awards, which the Kerala High Court applied to fix the appellant’s income at Rs.4,500/month.
Raj Kumar v. Ajay Kumar[2011] 1 KLT 620(SC)PositiveSC held that compensation quantification should consider functional disability; the court uses this principle to fix disability at 10% for the claimant.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveJudicial guidelines on multiplier for calculating compensation; multiplier of 18 applied by the High Court in this case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1 MACA No.2703 of 2012 ## **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. 2703 OF 2012** **AGAINST THE ORDER/JUDGMENT IN OPMV 645/2006 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , IRINJALAKUDA, THRISSUR** ## **APPELLANT/S:** JOSEMON @ JOSEPH S/O.PADAMMATTUMMAL THOMAS, THURUTHIPURAM, PUTHENVELIKKARA, PARAVUR TALUK, ERNAKULAM DISTRICT REPRESENTED BY THE POWER OF ATTORNEY HOLDER THOMAS S/O.OUSU PADAMMATTUMMAL HOUSE, THURUTHIPURAM, PUTHENVELIKKARA, PARAVUR TALUK, ERNAKULAM DISTRICT. BY ADV SRI.T.N.MANOJ ## **RESPONDENT/S:** 1 SAJAYAN S/O.KUTTAN, 7/128, GURUVILASOM, IRINJALAKUDA VILLAGE, IRINJALAKUDA P.O.686502 2 THE MANAGER NEW INDIA ASSURANCE CO., LTD, MAIN ROAD IRINJALAKUDA.686502 BY ADVS. SMT.P.R.REENA SRI.RENIL ANTO KANDAMKULATHY SRI.RENJITH THAMPAN SR. SRI.THOMAS MATHEW NELLIMOOTTIL **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 11.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA No.2703 of 2012 ## **C.S.DIAS, J. ====================== MACA No.2703 of 2012** ## **====================== Dated this the 11[th] day of October, 2021.** ## **JUDGMENT** The appellant was the petitioner in OP (MV) No.645/2006 on the file of the Motor Accidents Claims Tribunal, Irinjalakkuda. 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 30.10.2005. It was his case that, on the said day, while he was travelling as pillion on a motor cycle bearing registration No.KL-8/N 1883 along the Chandakunnu-Edathirinji public road, when the vehicle reached near Durga Devi temple, another motor cycle bearing registration No.KL-8/AF 1794 (offending motor cycle) ridden by the first respondent in a negligent manner 3 MACA No.2703 of 2012 and in a high speed, hit the motor cycle on which the appellant had travelled. The appellant sustained serious injuries and was treated at Irinjalakkuda Co-operative Hospital, Nadavaramba in three spells spanning 43 days. The offending motor cycle was owned by the first respondent and insured with the second respondent. The appellant was a Mechanic of Air Conditioners by profession and earning a monthly income of Rs.4,500/-. The appellant claimed a compensation of Rs.3,30,000/- from the respondents, which was limited to Rs.2,50,000/-. 3. The rider of the motor cycle also filed OP (MV) 646/2006 before the same Tribunal seeking compensation on account of the injuries sustained by him. 4. The first respondent did not contest the proceedings and was set exparte. 5. The second respondent filed separate written statements in both the claim petitions admitting that the offending motor cycle had a valid insurance policy. 4 MACA No.2703 of 2012 However, it was contended that the amount of compensation claimed was excessive. 6. The Tribunal consolidated and jointly tried the two claim petitions. 7. The petitioners in two claim petitions produced and marked Exts A1 to A14 in evidence. The second respondent marked Exts B1 and B2 insurance policies in evidence. 8.. The Tribunal, after considering the pleadings and materials on record, by its common award, allowed the captioned claim petition, by permitting the appellant to realise from the second respondent an amount of Rs.1,27,725/- with interest and cost. 9. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 10. Heard; Sri.T.N Manoj, the learned counsel appearing for the appellant/petitioner, Smt.P.R Reena, the learned counsel appearing for the first respondent and 5 MACA No.2703 of 2012 Sri.Thomas Mathew Nellimoottil, the learned counsel appearing for the second respondent. 11. The point that arises for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal reasonable and just. ## **Negligence and liability** 12. Ext A2 charge-sheet filed by the Irinjalakkuda Police in Crime No.853/2003 substantiates that the accident occurred due to the negligence of the first respondent. Undisputedly, the second respondent was the insurer of the offending motor cycle. The second respondent admitted that the motor cycle had a valid insurance policy and had not proved that the first respondent had violated the policy conditions. Therefore, the second respondent is to indemnify the liability of the first respondent. ## **Notional Income** 13. The appellant had claimed that he was a 6 MACA No.2703 of 2012 Mechanic of Air Conditioners and earning a monthly income of Rs.4,500/-. However, the Tribunal fixed the monthly notional income of the appellant at Rs.2,000/-. 14. 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. 15. Following the yardstick in the aforecited decision and keeping in mind that the accident occurred in the year 2005, I fix the monthly notional income of the appellant at Rs.4,500/-, as claimed in the claim petition. ## **Loss of earnings** 16 It is on record that the appellant sustained serious injuries as evidenced by Exts A4, A5, A11 and A12 discharge summaries. He was treated as inpatient in three spells spanning a period of 43 days from 30.10.2005 to 21.11.2005, 30.11.2005 to 10.12.2005 and 18.4.2006 to 7 MACA No.2703 of 2012 29.4.2006. Thus, I hold that the appellant was indisposed for a period of six months. 17. In view of the refixation of the notional monthly income of the appellant at Rs.4,500/-, I refix his loss of earnings at Rs.27,000/-, instead of Rs.8,000/- awarded by the Tribunal. ## **Loss due to disability** 18 **.** The appellant had produced Ext A8 disability certificate wherein it is certified that the appellant has a restriction of his right knee movements beyond 100 degrees flexion, moderate pain around anterior aspect knee joint due to secondary PF arthritis and waisting of right thigh muscles by 2 cm. The Doctor who treated the appellant assessed his permanent disability at 10%. 19. In **Raj Kumar v. Ajay Kumar [2011 (1) KLT 620(SC)]** , the Hon'ble Supreme Court has held that what needs to be looked into in a case of compensation for injury is the functional disability of the injured-claimant. 8 MACA No.2703 of 2012 20 **.** In the instant case, the appellant is a Mechanic of Air Conditioners. The restriction of his right knee movements beyond 100 degrees flexion and waisting of right thigh muscles by 2 cm will certainly impair his occupation. In Ext A8, the Doctor has assessed the appellant's functional disability at 10%, but the Tribunal fixed the same at 5%, which according to me is on the lower side. Therefore, I refix the functional disability of the appellant at 10%. 21. Admittedly, the appellant was aged 22 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 is '18'. 22. Taking into account the above mentioned factors, namely, the monthly income of the appellant at Rs.4,500/-, his functional disability at 10% and the multiplier at '18', I refix the compensation for loss due to disability at Rs.97,200/- instead of Rs.20,400/- awarded by the Tribunal. 9 MACA No.2703 of 2012 ## **Bystander expenses** 23. The appellant had claimed an amount of Rs.9,000/- as bystander expenses. However, the Tribunal awarded only an amount of Rs.5,000/-. It is proved that the appellant was treated as inpatient for a period of 50 days in three spells in the same hospital. It is also found that he was indisposed for a period of six months. In such circumstances, I award an amount of Rs.9,000/- as bystander expenses as claimed in the claim petition. ## **Loss of amenities** 24. The appellant had claimed an amount of Rs.20,000/- as compensation towards loss of amenities. It is proved and held that the appellant has 10% functional disability. He was treated as inpatient for a period of 50 days and was indisposed for a period of six months. Therefore, I award him a further amount of Rs.5,000/towards loss of amenities. 10 MACA No.2703 of 2012 ## **Other heads of compensation** 25. With respect to the other heads of claim, I find that the Tribunal has awarded reasonable and just compensation. 26. On an over all re-appreciation of the pleadings, materials on record and the law referred to in the aforecited precedents, I hold that the appellant/petitioner is 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 the<br>Tribunal (in<br>rupees)|Amounts<br>modified<br>and<br>recalculated<br>by<br>this<br>Court| |---|---|---|---| |1|Loss of earnings|8,000/-|27,000/-| |2|Medical and miscellaneous<br>expenses|73,825/-|73,825/-| |3|Bystander expenses|5,000/-|9,000/-| |4|Transportation expenses|500/-|500/-| |5|Pain and sufferings|15,000/-|15,000/-| |6|Loss of disability|20,400/-|97,200/-| |7|Loss of amenities|5,000/-|10,000/-| ||Total|1,27,725/-|2,32,525/-| 11 MACA No.2703 of 2012 In the result, the appeal is allowed, in part, by enhancing the compensation by an amount of **Rs.1,04,800/-** (Rupees One Lakh Four Thousand Eight Hundred only) with interest at the rate of 7% per annum on the enhanced compensation from the date of claim petition till the date of deposit and a cost of Rs.4,000/-. Even though this Court had by order dated 19.3.2021 in C.M Appln 3178/2012 had ordered that the petitioner would be disentitled for interest for a period of 588 days, i.e., a period of delay in filing the appeal, it is brought to the notice of this Court that the above delay had occurred due to the mistake committed by the Tribunal. There were corrections in the certified copy of the award issued to the appellant and the corrections had to be carried out by the Tribunal on two occasions. Finally, the appellant received the certified copy of the award only after 17.2.2012. Therefore, after deducting the said period, the 12 MACA No.2703 of 2012 appeal was preferred well within the statutory time period. Hence, the appellant cannot be deprived of interest due to the mistake committed by the Tribunal. Therefore, I recall the order dated 19.3.2021 in C.M Appln 3178/2012 and hold that the appellant is entitled for interest all throughout the period, from the date of petition till the date of realisation. The second respondent 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. The Tribunal shall disburse the enhanced compensation to the appellant in accordance with law. sd/- sks/11.10.2021 **C.S.DIAS, JUDGE**