High Court of KeralaSingle JudgeThe appeal is allowed in part.

MACA No. 1973-2006

Case / Petition Number:MACA No. 1973-2006

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-11-25
Court Decision / Holding
In the result, the appeal is allowed in part. The High Court enhanced the compensation by Rs. 43,550 (total Rs. 1,01,170) and directed the 3rd respondent to deposit the enhanced amount with interest at 6% per annum from the date of petition till realization, along with costs of Rs. 5,000, in the Tribunal within 60 days from receipt of a certified copy of the judgment. On deposit, the Tribunal shall disburse the enhanced amount to the appellant as per law. The corrections noted in IA No. 1/2022 adjust figures to Rs. 43,550 as the enhanced portion and Rs. 1,01,170 as the total.
Final Disposition
The appeal is allowed in part.

Parties to the Case

Appellants / Petitioners

  • VELAYUDHAN, S/O ARUMUGHAM

Respondents

  • M.R.RAJAGURUBAL, MAVILA VEEDU, KANJIRAMKULAM P.O.
  • MADHUKUMAR S/O NESAMONY NEDIYAKADA VEEDU, KANJIRAMKULAM P.O.
  • THE MANAGER NEW INDIA INSURANCE CO. LTD., SREE HARI BUILDING, IIND FLOOR, BUS STAND, NEYYATTINKARA
  • CHANDRASENAN S/O SOMAN PARVANENDU VEEDU, KAVINPURAM, PANAYARAKUNNU, KOTTUKAL, KATTACHALKUZHI P.O. SMT.T.C.SOWMIAVATHY

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri B. Jayasurya
  • • (Adv)

Counsels for Respondents

  • • Smt. T.C. Sowmiavathy

Case Synopsis & Summary

VELAYUDHAN, the appellant, filed OP(MV) 24/2002 in the Motor Accidents Claims Tribunal, Neyyattinkara, seeking compensation for injuries suffered on 11 November 2001 when a motor car, driven rashly by the 2nd respondent, struck a scooter and toppled the claimant. The car was owned by the 1st respondent and insured with the 3rd respondent; the scooter was owned by the 4th respondent and insured with the same insurer. The Tribunal allowed only Rs. 57,620 with interest, prompting this appeal. The appellant argued that the accident occurred due to the careless driving of the car driver and that the insurer should indemnify, with the damages reflecting loss of earnings, disability, medical expenses, and bystander costs. The respondents denied negligence by the car driver and contended the 4th respondent was at fault; the insurer argued the claim was excessive. The High Court, after reappreciating evidence, recalculated damages: fixed notional income at Rs. 3,000 per month (instead of the Tribunal’s Rs. 2,000), held the appellant suffered 12% permanent disability, adopted a multiplier of 11 under Sarla Verma, and awarded enhanced sums for loss of earnings, loss due to disability, and bystander expenses. The court increased the total to Rs. 1,01,170 and, ultimately, ordered deposit of the enhanced compensation with interest at 6% per annum and costs. The judgment underscores application of notional income standards, disability assessment, and the multiplier approach in light of cited precedents.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income/earning capacity approach under Section 166 MVA
  • Multiplier rule under Sarla Verma v. Delhi Transport Corporation
  • Functional disability assessment standard as per Raj Kumar v. Ajay Kumar
  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. on notional income for a coolie

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the accident occurred due to rash and negligent driving by the 2nd respondent, with the 3rd respondent insurer liable to indemnify. He asserts that the Tribunal under- assessed income, disability, and bystander costs, and failed to adequately compensate for loss of earnings and permanent disability. He relies on established standards for notional income, disability evaluation, and the multiplier principle. The appellant seeks higher compensation reflecting actual injuries, medical expenses, and loss of wages.

Contentions of Respondents

The respondents deny negligence by the 2nd respondent, attributing fault to the 4th respondent; the 3rd respondent-insurer contends the claim is excessive and that policy conditions were not violated. They emphasize insurance coverage and maintain that liability should be apportioned accordingly, with a cautious recalibration of damages.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveUsed as authority for notional income for the injured, influencing the fixation of Rs. 3,000 per month (notional income) for the appellant.
Sarla Verma and Others v. Delhi Transport Corporation and another(2009) 6 SCC 121PositiveCited for multiplier selection; multiplier 11 applied in light of age and governing law.
Raj Kumar v. Ajay Kumar2011 (1) KLT 620 SCPositiveCited for functional disability approach in evaluating disability and loss.

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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`** ``` THURSDAY, THE 25[TH] DAY OF NOVEMBER 2021 / 4TH AGRAHAYANA, 1943 ``` ## **`MACA NO. 1973 OF 2006`** ## **`AGAINST THE AWARD DATED 27.09.2005 IN OPMV 24/2002 OF MOTOR`** ## **`ACCIDENT CLAIMS TRIBUNAL ,NEYYATTINKARA`** ## **`APPELLANT/PETITIONER:`** ``` VELAYUDHAN, S/O ARUMUGHAM ALUVILA PUTHEN VEEDU, KALLAMBALAM, BALARAMAPURAM P.O. ``` ``` BY ADV SRI.B.JAYASURYA ``` ## **`RESPONDENTS/RESPONDENTS:`** - `1 M.R.RAJAGURUBAL, MAVILA VEEDU, KANJIRAMKULAM P.O.` - `2 MADHUKUMAR S/O.NESAMONY NEDIYAKADA VEEDU,, KANJIRAMKULAM P.O.` - `3 THE MANAGER NEW INDIA ASSURANCE CO. LTD.,, SREE HARI BUILDING, IIND FLOOR,, BUS STAND, NEYYATTINKARA.` - `4 CHANDRASENAN S/O.SOMAN PARVANENDU VEEDU, KAVINPURAM,, PANAYARAKUNNU, KOTTUKAL,, KATTACHALKUZHI P.O. SMT.T.C.SOWMIAVATHY.` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 25.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 2 MACA No1973-2006 ## **Dated this the 25[th] day of November, 2021.** ## **JUDGMENT** The appellant was the petitioner in OP(MV) No.24/2002 on the file of the Motor Accidents Claims Tribunal, Neyyattinkara. 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 11.11.2001. It was his case that, on the aforesaid date, while he was walking along the Thiruvananthapuram - Balaramapuram National Highway road, a Maruti car bearing registration No.KL 01/M/8769 (car), driven by the 2[nd] respondent in a rash 3 MACA No1973-2006 and negligent manner, hit on the back of a scooter bearing registration No. KL 01 G 4348 (scooter), which in turn hit the appellant. The appellant sustained serious injuries, including a fracture of his scapula right, fracture of the lateral malleolus left and head a injury. The appellant was treated as an inpatient at the Medical College, Hospital, Thiruvananthapuram from 11.11.2001 to 21.11.2001 and from 3.12.2001 to 20.12.2001. The car was owned by the 1[st] respondent and insured with the 3[rd] respondent. The scooter was owned and driven by the 4[th] respondent and insured with the same insurance company – the 3[rd] respondent. The appellant claimed that he was a hotel worker by profession and earning a monthly income of Rs.3000/-. Hence the appellant claimed from the respondents a compensation of Rs.3,45,000/-, which claim was limited to Rs.2,50,000/- 3. The respondents 1 and 2 had filed a joint written statement refuting the allegations in the claim petition. 4 MACA No1973-2006 They contended that there was no negligence on the part of the 2[nd] respondent. They asserted that the accident occurred due to the negligence of the 4[th] respondent, who hit the appellant from behind. 4. The third respondent had filed a written statement admitting that both the car and scooter had valid insurance coverages. However, it was contended that the compensation claimed by the appellant was excessive. 5. The fourth respondent had filed a written statement contending that the accident occurred due to the negligence of the 2[nd] respondent. It was also stated that the 4[th] respondent had filed O.P.(M.V) No.489/2002, seeking compensation from the respondents 1 to 3. Hence, the 4[th] respondent prayed for exoneration of any liability. 6. The appellant had examined himself as PW1 and marked Exhibits A1 to A16 in evidence. The respondents did not let in any evidence. 5 MACA No1973-2006 7. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition in part, by permitting the appellant to realise from the 3[rd] respondent an amount of Rs.57,620/- with interest. 8. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 9. Heard Sri. B.Jayasurya, the learned counsel appearing for the appellant/petitioner and Smt.T.C.Sowmiavathy, the learned counsel appearing for the 3[rd] respondent/insurer. 10. The question that arises for consideration in this appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Negligence and liability** 11. Exhibit A6 charge sheet filed by the Balaramapuram police in Crime No.380/2001, 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 car. 6 MACA No1973-2006 The respondents have not let in any evidence to discredit Exhibit A6 the charge sheet. Similarly, the third respondent has also 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** 12. The appellant had claimed that he was a hotel worker by profession and earning monthly income of Rs.3000/-. For the want of material, the Tribunal fixed the notional monthly income of the appellant at Rs.2000/-. 13. In **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited** [(2011) 13 SCC 236], the Honourable Supreme Court has fixed the notional income of a coolie worker in the year 2004 at Rs. 4500/- per month. 14. Following the yardstick in the afore-cited 7 MACA No1973-2006 decision and considering the fact that the accident occurred in the year 2001, I fix the notional monthly income of the appellant at Rs.3000/-. ## **Disability** 15. It is on record, as per Exhibit A2 wound certificate, that the appellant had sustained a fracture of his right scapula, fracture of the left lateral malleolus and a head injury. The Tribunal, on the basis of Exhibit A2 wound certificate and Exhibit A3 treatment certificate, fixed the permanent disability of the appellant at 8%. 16. The appellant has produced before this Court Exhibit A17 disability certificate, issued by the Assistant Professor of Orthopedics, Medical College Hospital, Thiruvananthapuram, certifying that the appellant has a malunion of the fracture in 10[0 ] and 12[0] angulation of his left ankle and right shoulder respectively. It is also stated that the appellant gets recurrent headache and loss of memory. The appellant also has partial ankylios 8 MACA No1973-2006 of his left ankle and right shoulder. The Doctor has assessed and certified that the appellant has a permanent disability of 12%. 17. In **Raj Kumar v. Ajay Kumar** [2011 (1) KLT 620 SC], the Honourable supreme Court has held that what needs to be looked into in a case of injury, is the functional disability of the injured-claimant. 18. Going by the assessment made by the Doctor in Exhibit A17, and considering the fact that the appellant was a hotel worker by profession, I fix the functional disability of the appellant at 12%. ## **Multiplier** 19. The appellant was aged 55 years at the time of the accident. Going by the law laid down in **Sarla Verma and Others v. Delhi Transport Corporation and another[(2009) 6 SCC 121],** the relevant multiplier to be adopted is ‘11’. 9 MACA No1973-2006 ## **Loss due to disability** 20. Taking into account the above mentioned factors, namely, the notional monthly income of the appellant at Rs.3000/-, his functional disability at 12% and the multiplier at 11, I award the appellant an amount of Rs.47,520/- towards ‘loss due to disability’, instead of 21,120/- awarded by the Tribunal. ## **Loss of earnings** 21. It is proved by Exhibit A2 wound certificate, Exhibit A3 treatment certificate and Exhibit A17 disability certificate that the appellant had sustained serious injuries. He was advised ten weeks bed rest as evidenced by Exhibit A3. The appellant being a hotel worker, certainly could not have done his work. Thus, I hold that the appellant was indisposed for a period of six months. 22. In view of the re-fixation of the notional monthly income of the appellant at Rs.3000/-, I award 10 MACA No1973-2006 him an amount of Rs.18,000/- towards ‘loss of earnings’. ## **- By stander expenses** 23. The appellant was treated as an inpatient for the period from 11.11.2001 to 21.11.2001 and from 3.12.2001 to 20.12.2001 i.e.for a period of 27 days. The Tribunal has awarded an amount of Rs.250/- towards bystander expenses, which is too meagre. 24. Considering the fact that the accident occurred in the year 2001, and that the appellant was hospitalised for a period of 27 days, I award him an amount of Rs.200/- per day for a period of 27 days, which works out to Rs.7250/-. 25. With respect to other heads of claim, I find that the Tribunal has awarded reasonable and just compensation. 26. On a comprehensive re-appreciation of the pleadings and materials on record and the law referred to in the afore-cited decisions, I hold that the appellant/petitioner is entitled for enhancement of 11 MACA No1973-2006 ## 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 (in<br>rupees)|Amounts<br>modifed and<br>recalculated<br>by this Court| |---|---|---|---| |1|Loss of earnings|6000|18000| |2|Transportation|500|500| |3|Clothing|250|250| |4|By stander expenses|250|7250| |5|Medical expenses|10000|10000| |6|Pain and suferings|12000|12000| |7|Loss of earnings|7500|7500| |8|Loss due to disability|21120|47520| ||||| ||Total|57620|103020| In the result, the appeal is allowed in part, by enhancing the compensation by a further amount of Rs.45,400/- with interest on the said amount at the rate of 6% per annum from the date of petition till the date of realisation, after deducting interest for a period of 116 days i.e the period of delay and as ordered by this Court on 15.9.2021 in C.M.Application No. 2075/2006, and a cost of Rs.5000/-. The 3[rd] respondent is ordered to deposit the enhanced compensation with 12 MACA No1973-2006 interest and cost before the Tribunal within sixty days from the date of receipt of a certified copy of the judgment. Immediately on the compensation amount being deposited, the Tribunal shall disburse the compensation amount to the appellant/petitioner in accordance with law. Sd/- **C.S.DIAS, JUDGE** ## rmm25/11/2021 The figure shown as Rs.7,250/- in paragraph No.24 as well as against Sl.No.3 in the table in paragraph No.26 of the judgment dated 25.11.2021 in MACA No.1973/2006 stands corrected as ‘Rs.5,400/- and the total amount shown as Rs.1,03,020/- under the head amounts modified and recalculated by this Court in the above said table is corrected as Rs.1,01,170/and the enhanced compensation shown in the last paragraph is corrected as Rs.43,550/- instead of Rs.45,400/- as per the order dated 04/03/2022 in IA No.1/2022 in MACA No.1973/2006. Sd/Deputy Registrar 13 MACA No1973-2006 ## APPELLANT’S EXHIBITS ANNEXURE A1 – DISABILITY CERTIFICATE DATED 25.07.2003 ISSUED BY DR. J.R. JAGAJEEV, MEDICAL COLLEGE, THIRUVANANTHAPURAM. RESPONDENTS EXHIBITS NIL