High Court of KeralaSingle JudgeThe appeals are disposed of in part: (i) MACA 1...

KANARAN v. M.V. SHAFEEQ AND ORIENTAL INSURANCE CO. LTD.

Case / Petition Number:MACA No. 2921 of 2009; MACA No. 1779 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. V. Kunhikrishnan
Judgment Date
2021-03-04
Court Decision / Holding
MACA 1779/2009 is allowed in part; the Rs.50,000 compensation for loss of predominant happy life is set aside. MACA 2921/2009 is allowed in part; the claimant is entitled an enhanced amount of Rs.1,80,480/- with interest at 8% p.a from the date of application till payment. The Oriental Insurance Co. Ltd is directed to pay the enhanced amount.
Final Disposition
The appeals are disposed of in part: (i) MACA 1779/2009 – Rs.50,000 for loss of predominant happy life set aside; (ii) MACA 2921/2009 – enhanced compensation of Rs.1,80,480 with 8% interest from the filing date; Oriental Insurance Co. Ltd to pay the enhanced amount.

Parties to the Case

Appellants / Petitioners

  • KANARAN
  • ORIENTAL INSURANCE CO. LTD.

Respondents

  • KANARAN
  • M.V. SHAFEEQ
  • ORIENTAL INSURANCE CO. LTD.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. U.P. Balakrishnan
  • • Sri. George Cherian (Sr.)
  • • Sri. K.S. Santhi
  • • Sri. Latha Susan Cherian

Counsels for Respondents

  • • Sri. George Cherian Thiruvalla
  • • Sri. K.R. Avinash (Kunnath)
  • • Sri. V. Rajendran (Perumbavoor)
  • • Sri. George Varghese Kizhakkambalam

Case Synopsis & Summary

Two MACA appeals arise from the Motor Accidents Claims Tribunal, Vadakara, challenging the same award in OPMV 484/2006. On 14 March 2006, Kanaran, a coolie, was struck by a pickup van owned by M.V. Shafeeq and insured by Oriental Insurance Co. Ltd. He sustained grievous injuries, including the amputation of his left leg, rendering him permanently disabled. He claimed Rs. 10 lakh as compensation. The Tribunal awarded Rs. 6,87,100 with interest at 7.5% p.a. The insurer (MACA 1779/2009) attacked the quantum, notably objecting to Rs. 50,000 for “loss of predominant happy life,” while the claimant (MACA 2921/2009) sought enhancement based on jurisprudence including Ramachandrappa v. Royal Sundaram (2011) to re-fix income and recalibrate heads of compensation. The High Court, applying Ramachandrappa, fixed the petitioner’s monthly income at Rs. 6,000 and recalculated disability compensation to Rs. 5,05,440, allowing for an enhanced amount of Rs. 1,80,480 (with interest). The Rs. 50,000 awarded for loss of predominant happy life was set aside as unsustainable. Resultantly, MACA 2921/2009 was allowed in part (enhanced compensation) and MACA 1779/2009 was allowed in part (removal of the contentious head). The Oriental Insurance Co. Ltd was directed to pay the enhanced amount. The decision relies on Ramachandrappa’s doctrine to determine income for MACT purposes.

Legal Doctrines & Maxims

  • Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Limited, 2011 (13) SCC 236 – principle governing reassessment of income for MACT awards.

Submissions & Arguments

Contentions of Appellants / Petitioners

The claimant contends for enhancement of compensation in light of Ramachandrappa (2011), asserting that the Tribunal erred in fixing monthly income and in the calculation of disability and loss of earnings; he challenges the Rs.50,000 under ‘loss of predominant happy life’ as unsustainable.

Contentions of Respondents

The insurer contends the Tribunal’s total compensation is excessive and objects to the Rs.50,000 head for loss of predominant happy life, arguing for reduction and defense of the overall award.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Limited2011(13) SCC 236PositiveUsed to justify increasing the monthly income for MACT calculations and recalculating compensation; not distinguished or overruled.

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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 P.V.KUNHIKRISHNAN** # **THURSDAY, THE 04TH DAY OF MARCH 2021 / 13TH PHALGUNA, 1942** ## **MACA.No.2921 OF 2009** **AGAINST THE AWARD IN OPMV 484/2006 DATED 24-03-2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL VADAKARA** ## **APPELLANT:** **KANARAN, AGED 50,S/O.KANNAN, PALORA CHALIL HOUSE, CHEKKILAD AMSOM,, P.O.PULIYAVU, VATAKARA TALUK, PIN-673 509.** ## **BY ADV. SRI.U.P.BALAKRISHNAN** ## **RESPONDENTS:** **1 M.V.SHAFEEQ, AGE NOT KNOWN, PROPRIETOR, CHERRY FOOD PRODUCTS,, POST PARAKKADAVU, VATAKARA TALUK,, (OWNER OF THE PICKUP VAN BEARING, REGN.NO.KL-18/B 833).** - **2 ORIENTAL INSURANCE CO.LTD.** **BRANCH OFFICE, SHOBA TSV COMPLEX,, RAILWAY STATION ROAD, POST PALAKKAD,, POLICY NO.2005/15594(INSURER OF THE VAN).** **R1 BY ADV. SRI.GEORGE CHERIAN THIRUVALLA** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 04.03.2021, ALONG WITH MACA.1779/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA.2921/2009, MACA.1779/2009 2 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN** **THURSDAY, THE 04TH DAY OF MARCH 2021 / 13TH PHALGUNA, 1942** ## **MACA.No.1779 OF 2009** **AGAINST THE AWARD IN OPMV 484/2006 DATED 24-03-2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL VADAKARA** ## **APPELLANT:** **THE ORIENTAL INSURANCE CO.LTD. REPRESENTED BY ITS ASSISTANT MANAGER,REGIONAL, OFFICE,ERNAKULAM NORTH,KOCHI-18.** **BY ADVS.** **SRI.GEORGE CHERIAN (SR.) SMT.K.S.SANTHI SMT.LATHA SUSAN CHERIAN** ## **RESPONDENTS:** **1 KANARAN, S/O.KANNAN, PALORA CHALIL HOUSE, CHEKKILAD AMSOM DESOM, POST.PULIYAVU,VATAKARA, TALUK,PIN-673509. 2 M.V.SHAFEEQ, PROPRIETOR,CHERRY FOOD PRODUCTS,POST.PARAKKADAVU,VATAKARA TALUK.** **R1 BY ADV. SRI.U.P.BALAKRISHNAN R1 BY ADV. SRI.K.R.AVINASH (KUNNATH) R2 BY ADV. SRI.V.RAJENDRAN (PERUMBAVOOR) R2 BY ADV. SRI.GEORGE VARGHESE KIZHAKKAMBALAM** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 04.03.2021, ALONG WITH MACA.2921/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA.2921/2009, MACA.1779/2009 3 ## **P.V.KUNHIKRISHNAN, J** -------------------------------------------------------------- [ MACA.2921/2009 & MACA.1779/2009 ] ## **JUDGMENT** Dated this the 4th day of March 2021 These two appeals are filed challenging the same award in O.P (MV) No.484/2006 on the file of the Motor Accidents Claims Tribunal, Vadakara. The appellant in MACA No.1779 of 2009 is the 2[nd] respondent insurance company. The appellant in MACA No.2921 of 2009 is the claimant in the above case. (Hereinafter the parties are mentioned in accordance to their rank before the tribunal). 2. The short facts are like this:- On 14.3.2006 when the petitioner was standing on the road side, a pickup van bearing registration No.KL-18 B 833 driven by the driver in a rash an negligent manner hit him and he sustained injury. Immediately he was taken to VIMS hospital, Kallachi and later to Medical College hospital, Kozhikode. Thereafter, he was again shifted to Baby Memorial Hospital, Kozhikode. The MACA.2921/2009, MACA.1779/2009 4 appellant sustained grievous injuries to his left leg and the left leg of the appellant was amputed above knee and has become permanently disabled due to the accident. According to the appellant, the accident occurred due to the negligence of the driver of the pickup van bearing registration No.KL/18 B 833. First respondent is the owner and the 2[nd] respondent is the insurer of the offending vehicle. The appellant is a coolie worker and was getting monthly income of Rs.7,500/-. The appellant claimed an amount of Rs.10 lakh as compensation. 3. To substantiate the case, the appellant himself was examined as PW1. Exts.A1 to 10 were marked on the side of the appellant. The respondent produced Ext.B1 to B4 before the tribunal. 4. After going through the pleadings and documents, the Tribunal found that, the appellant is entitled a total compensation of Rs.6,87,100/- with interest @7.5% p.a from the date of petition till the date of payment. Aggrieved by the quantum of compensation the claimant filed MACA.No.2921/2009. The insurance MACA.2921/2009, MACA.1779/2009 5 company also filed MACA No.1779/2009 alleging that the compensation amount awarded by the tribunal is high. 5. Heard the counsel for the appellant in both these appeals and the counsel for the respondents. 6. The main contention of the appellant insurance company in MACA No.1779/2009 is that, the amount awarded by the tribunal is highly excessive. I perused the impugned award, and the amount awarded under different heads. I see no reason to interfere with the compensation amount awarded by the tribunal on different heads. But, the tribunal awarded an amount of Rs.50,000/- as compensation for loss of predominant happy life. The counsel for the appellant/2nd respondent submitted that the amount awarded towards that head is not known to law. The counsel submitted that huge amount is awarded in other heads and the tribunal erred in passing an amount of Rs.50,000/- as compensation for loss of predominant happy life. I see some force in the argument of the appellant. Therefore, I think the amount MACA.2921/2009, MACA.1779/2009 6 awarded towards predominant happy life can be set aside. 7. Now turn to the appeal filed by the claimant which is MACA No.2921/2009. According to the appellant, he was a coolie and he was getting monthly income of Rs.7,500/-. The tribunal after considering the entire aspects fixed the monthly income of the appellant as Rs.4,000/-. Admittedly, the accident happened in 2006. In the light of the decision of the apex court in **Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Limited [2011(13) SCC 236],** the counsel submitted that the monthly income may be increased. 8. There is some force in this argument. I think an amount of Rs.6,000/- can be safely fixed as monthly income in the light of the decision of the apex court in **Ramachandrappa's** case (supra). 9. Consequently the amount of compensation awarded towards disabilities is to be recalculated in the following manner:- MACA.2921/2009, MACA.1779/2009 7 Rs.6,000X12X13X54/100=Rs.5,05,440/-. 10. An amount of Rs.3,36,960/- is already granted as compensation for disabilities. That is to be reduced. Then the enhanced compensation entitled by the appellant is Rs.1,68,480/-. As far the loss of income is concerned, the tribunal assessed for six months. By taking the revised monthly income, the appellant is entitled more amount in the following manner:- Rs.6,000x6=Rs.36,000-24,000=Rs.12,000/-. Therefore, the enhanced compensation amount can be summarized like this:- |Compensation for disability|Rs.1,68,480/-| |---|---| |Loss of earning|Rs. 12,000/-| |Total|Rs. 1,80,480/-| 11. Therefore, the appellant is entitled for an amount of Rs.1,80,480/- as additional compensation. The appellant is entitled interest at the rate of 8% from the date of petition. In the result, these appeals are disposed in the following manner:- MACA.2921/2009, MACA.1779/2009 8 1. MACA No.1779/2009 is allowed in part. The amount of Rs.50,000/- awarded by the tribunal as compensation for loss of predominant happy life is set aside. 2. MACA No.2921/2009 is allowed in part. The appellant is entitled an enhanced amount of Rs.1,80,480/- as enhanced compensation with interest @ 8% p.a from the date of application till the date of payment. The Oriental Insurance Company, who is the 2[nd] respondent before the tribunal is directed to pay the enhanced compensation with interest to the appellant. **Sd/-** ## **P.V.KUNHIKRISHNAN** **JUDGE** ska