High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation with dire...

MACA No. 1530/2012 – Mani v. Ashokan N., Bharathi, Oriental Insurance Company Limited and The New India Assurance Company Limited

Case / Petition Number:MACA No. 1530 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2022-01-03
Court Decision / Holding
The High Court allowed the appeal, enhanced the compensation from Rs. 90,750 to Rs. 1,52,690, and awarded an additional enhancement of Rs. 61,940, with interest at 7.5% per annum from the date of petition till realization, after deducting a 311-day delay in filing the appeal. Costs of Rs. 5,000 were awarded. The insurer (additional fourth respondent) was directed to deposit the enhanced amount with interest and costs before the Tribunal within 60 days of receipt of a certified copy of the judgment; upon deposit, the Tribunal was to disburse the enhanced compensation accordingly.
Final Disposition
Appeal allowed; enhanced compensation with directions for deposit and disbursement by the Tribunal; insurer liable for enhanced amount

Parties to the Case

Appellants / Petitioners

  • Mani, s/o Janardhanan

Respondents

  • Ashokan N., Bharathi
  • Biju Kun­nathu Veedu, Pattathanam East, Pattathanam P.O., Kollam
  • The Oriental Insurance Company Limited
  • The New India Assurance Company Limited

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B. Mohanlal
  • • Sri. T. Prasad

Counsels for Respondents

  • • Sri Lal K. Joseph
  • • Sri VPK. Panicker

Case Synopsis & Summary

This High Court of Kerala, Ernakulam, heard MACA No. 1530 of 2012 on 3 January 2022, arising from an award under the Motor Vehicles Act, 1988. The appellant Mani, a tailor, sustained serious injuries in a road traffic accident on 28 May 2002 when his car was struck by a jeep driven by the second respondent. He claimed compensation under Section 166 of the Act, asserting permanent disability (8%) and substantial loss of income, with documented inpatient treatment for 85 days. The Tribunal-I, Kollam, partly allowed the petition by directing the third respondent (insurer of the jeep) to pay Rs. 90,750 with interest and costs. The appellant challenged the quantum in appeal, contending that the Tribunal erred in assessing income and various heads of compensation. The court relied on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. to fix a notional monthly income, revising it from Rs. 2,500 to Rs. 3,500 for the year 2002, given the applicant’s occupation as a tailor and the period of accident. It re-evaluated heads such as loss of earnings, bystander expenses, extra nourishment, pain and sufferings, and loss of amenities, and ultimately enhanced total compensation to Rs. 1,52,690, with a further increase of Rs. 61,940, plus interest at 7.5% p.a. from the petition date until realization, after accounting for a 311-day delay. The insurer (additional fourth respondent) was directed to deposit the enhanced amount before the Tribunal within 60 days. The appeal was allowed and a cost of Rs. 5,000 was awarded.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988Sections 279, 337 and 338 of the Indian Penal Code

Legal Doctrines & Maxims

  • Notional income approach for compensation calculation (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the notional income should be fixed at Rs. 3,500 per month for the year 2002 (per Ramachandrappa) given his occupation as a tailor and the extent of injuries and disability. He argues for higher compensation across heads including loss of earnings, bystander expenses, extra nourishment, pain and suffering, and loss of amenities, and seeks interest on the enhanced amount from the date of petition with costs, relying on the cited Supreme Court authority to correct the tribunal’s understating of his loss and disability.

Contentions of Respondents

The respondents contend the Tribunal correctly assessed the liability (insurers), admitting coverage but contesting the quantum. The 4th respondent insurer argues for exoneration of liability, while the 3rd respondent (insurer) maintains coverage and disputes the assessment of income heads. They submit that the Tribunal’s findings on negligence and liability align with the evidence; the quantum is to be maintained unless clearly erroneous.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveUsed by the court to fix the notional monthly income at Rs. 3,500 for the year 2002, departing from the Tribunal’s Rs. 2,500, applying the Supreme Court’s notional income framework for injured workers.

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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.S.DIAS ``` ``` MONDAY, THE 3[RD] DAY OF JANUARY 2022 / 13TH POUSHA, 1943 ``` ``` MACA NO. 1530 OF 2012 ``` ``` AGAINST THE AWARD DATED 30.12.2010 IN OP(MV)NO.1451/2003 OF THE I ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL ,KOLLAM ``` ## `APPELLANT/PETITIONER IN THE O.P.:` ``` MANI, S/O.JANARDHANAN MANI BHAVANAM, ADINAD, KOLLAM DISTRICT. ``` ``` BY ADVS.SRI.B.MOHANLAL SRI.T.PRASAD ``` ## `RESPONDENTS/RESPONDENTS: IN THE O.P.` ``` 1ASHOKAN N. BHARATHI, H.NO.201, WARD NO.IX, THATTAMALA P.O. KOLLAM. PIN.691020. ``` ``` 2BIJU KUNNATHU VEEDU, PATTATHANAM EAST, PATTATHANAM P.O., KOLLAM. PIN.691 016. ``` ``` 3THE ORIENTAL INSURANCE COMPANY LIMITED, KOLLAM. 691001. ``` ``` 4THE NEW INDIA ASSURANCE COMPANY LIMITED KOLLAM BRANCH, KOLLAM- 691 001. ``` ``` BY ADVS.SRI.LAL K.JOSEPH SRI. VPK.PANICKER ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 03.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` M.A.C.A.No.1530/2012 -:2:- Dated this the 3[rd] day of January,2022 ## **J U D G M E N T** The appellant was the petitioner in O.P (MV) No.1451/2003 on the file of the Additional Motor Accidents Claims Tribunal-I, Kollam. 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 28.05.2002. It was his case that, on the above date, while he was driving his car along the Kollam-Alappuzha National Highway road, a jeep bearing registration No.KL-2-J-399 (jeep), driven by the second respondent in a rash and negligent manner, hit the car of the appellant. The appellant sustained serious injuries. He was treated as an inpatient for a period of 85 days at the A.M. Hospital, Karunagappally and the Upasana Hospital, M.A.C.A.No.1530/2012 -:3:- Kollam. He sustained a fracture to the right tibia and the fourth rib. The appellant has suffered permanent disability. The first respondent was the owner and the third respondent was the insurer of the jeep. The appellant was a tailor by profession and earning a monthly income of Rs.3,500/-. Hence, he claimed a compensation of Rs.2,50,000/- from the respondents. 3. The respondent Nos.1 and 2 did not contest the proceedings and were set ex parte. The third respondent entered appearance and filed a written statement contending that the jeep was not insured by them. Thereafter, the appellant impleaded the additional fourth respondent, on the assertion that the additional fourth respondent was the insurer of the jeep. 4. The additional fourth respondent had filed a written statement admitting that the jeep had a valid insurance coverage. However, it was contended that the accident occurred due to the negligence of the M.A.C.A.No.1530/2012 -:4:- appellant and the police had initially filed the chargesheet against the appellant. Subsequently, on the basis of a private complaint filed by the appellant, the matter was investigated and then it was found that it was the second respondent who was negligent in causing the accident. Therefore, the additional fourth respondent prayed for exoneration of its liability. 5. The appellant produced and marked Exts.A1 to A5 in evidence. The respondent did not let in any evidence. 6. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition in part, by permitting the appellant to recover from the additional fourth respondent an amount of Rs.90,750/with interest and cost. 7. Dissatisfied with the quantum of compensation, the petitioner is in appeal. 8. Heard; Sri.B.Mohanlal, the learned counsel appearing for the appellant/petitioner, Sri. M.A.C.A.No.1530/2012 -:5:- VPK.Panicker, the learned counsel appearing for the third respondent/insurer and Sri. Lal K. Joseph, the learned counsel appearing for the additional fourth respondent-insurer. 9. 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:** 10. Ext.A2 judgment passed by the Judicial First Class Magistrate-I, Karunagappally, substantiates that the second respondent had pleaded guilty to the charges levelled against him in C.C.No.2041/2006 for the offences punishable under Sections 279, 337 and 338 of the Indian Penal Code. The second respondent was convicted and sentenced to a fine of pay Rs.2,000/-. The respondents have not let in any evidence to the contrary to the findings in Ext.A2 judgment. Admittedly, the additional fourth respondent M.A.C.A.No.1530/2012 -:6:- was the insurer of the jeep, which was owned by the first respondent. The additional fourth respondent has also not proved that the first respondent had violated the insurance policy conditions. Therefore, the additional fourth respondent is to indemnify the liability of the first respondent arising out of the accident. **Income:** 11. The appellant had claimed that he was a tailor by profession and earning a monthly income of Rs.3,500/-. However, the Tribunal, for the want of materials, fixed the notional monthly income of the appellant at Rs.2,500/-. 12. In **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited** [(2011) 13 SCC 236], the Hon'ble Supreme Court has fixed the notional income of a coolie worker in the year 2004, at Rs.4,500/- per month. 13. Following the yardstick in the afore-cited decision and keeping in mind the fact that the accident M.A.C.A.No.1530/2012 -:7:- occurred in the year 2002, I re-fix the notional monthly income of the appellant at Rs.3,500/-. ## **Loss of earnings:** 14. The Tribunal has found that the appellant was indisposed for a period of five months. Taking into account the serious injuries sustained by the appellant, I confirm the said finding. 15. Nevertheless, in view of the re-fixation of the notional monthly income of the appellant at Rs.3,500/-, I award the appellant a further amount of Rs.5,000/towards ‘loss of earnings’. ## **: Loss due to disability** 16. The Tribunal found that the appellant has a permanent disability of 8% and awarded the appellant an amount of Rs.33,600/-. 17. In view of the re-fixation of the notional income of the appellant at Rs.3,500/- per month, I enhance the compensation under the head ‘loss due to disability’ by a further amount of Rs.13,440/-. M.A.C.A.No.1530/2012 -:8:- ## **Bystander expenses and extra nourishment:** 18. The appellant was treated as an inpatient for a period of 85 days. The Tribunal has awarded only an amount of Rs.2,000/- towards ‘bystander expenses’ and Rs.2,000/- towards ‘extra nourishment’, which according to me, is too meager. Taking into account the fact that the appellant was treated as an inpatient for a period of 85 days in the year 2002, I award him an amount of Rs.200/- per day for a period of 85 days towards ‘bystander expenses’ which works out to Rs.17,000/- i.e., an enhancement by Rs.15,000/-, and Rs.100/- per day for a period of 85 days towards ‘extra nourishment’, which amounts to Rs.8,500/- i.e., an enhancement of Rs.6,500/-. ## **Pain and sufferings:** 19. The Tribunal awarded the appellant an amount of Rs.10,000/- towards ‘pain and sufferings’ and Rs.3,000/- towards ‘loss of amenities’. On a M.A.C.A.No.1530/2012 -:9:- consideration of the serious injuries sustained by the appellant, that he was was indisposed for a period of five months, that he was treated as an inpatient for a period of 85 days, and that he has suffered a permanent disability of 8%, I award him a further amount of Rs.5,000/- under the head ‘pain and sufferings’ and Rs.17,000/- under the head ‘loss of amenities. 20. With respect to the other heads of compensation namely; 'transportation expenses’, 'damage to clothing’ and 'medical expenses', I find that the Tribunal has awarded reasonable and just compensation. 21. On a overall re-appreciation of the pleadings, materials on record and the law referred to in the afore-cited decision, I hold that the appellant/petitioner is entitled for enhancement of compensation as modified and re-calculated above and M.A.C.A.No.1530/2012 -:10:- ## given in the table below for easy reference. |Sl.No|Head of claim|Amount<br>awarded by the<br>Tribunal (in<br>rupees)|Amounts<br>modified<br>and<br>recalculated<br>by this<br>Court| |---|---|---|---| |1|Loss of earnings|12,500|17,500| |2|Transportation|750|750| |3|Damage<br>to<br>Clothing|500|500| |4|Bystander<br>expenses|2,000|17,000| |5|Extra nourishment|2,000|8,500| |6|Medical expenses|26,400|26,400| |7|Pain and sufferings|10,000|15,000| |8|Loss of amenities|3,000|20,000| |9|Loss<br>due<br>to<br>disability|33,600|47,040| ||**Total**|**90,750**|**1,52,690**| In the result, the appeal is allowed by enhancing the compensation by a further amount of **Rs.61,940/-** with interest on the enhanced compensation at the rate of 7.5% per annum from the date of petition till the date of realisation, after deducting interest for a M.A.C.A.No.1530/2012 -:11:- period of 311 days i.e., the period of delay in preferring this appeal and as directed by this Court on 02.08.2012 in C.M.Appln.No.1837/2012, and a cost of Rs.5,000/-. The additional fourth respondent/insurer is ordered to deposit the enhanced compensation with interest and cost before the Tribunal within a period of sixty days from the date of receipt of a certified copy of this judgment. Immediately on the compensation amount being deposited, the Tribunal shall disburse the enhanced compensation to the appellant in accordance with law. ``` Sd/- ``` ## **C.S.DIAS,JUDGE** DST/03.01.22 //True copy/ P.A.To Judge