High Court of KeralaSingle JudgeAppeal partly allowed; enhanced compensation wi...

MACA NO. 2707 OF 2009

Case / Petition Number:MACA NO. 2707 OF 2009
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2022-03-15
Court Decision / Holding
The appeal is allowed in part. Notional monthly income fixed at Rs.3,000; disability at 14% accepted; loss of earnings increased to Rs.18,000; loss of earning capacity calculated with multiplier 16; bystander expenses and nourishment enhanced; pain and sufferings and loss of amenities adjusted; total enhanced compensation recalculated to Rs.2,28,740, rounded to Rs.2,30,000. The 3rd respondent (insurer) is to deposit the enhanced amount with interest at 6% per annum and costs before the Tribunal within 60 days from receipt of a certified copy of this judgment, after which disbursement is to Mohanan as per law. Costs of Rs.10,000 awarded. The enhanced amount should be deposited before the Tribunal, with the usual statutory deductions.
Final Disposition
Appeal partly allowed; enhanced compensation with interest and costs; liability confirmed against insurer; deposit ordered within 60 days.

Parties to the Case

Appellants / Petitioners

  • K.C. Mohanan

Respondents

  • Thulaseedharan Pillai
  • Rajendran S Vasudevan Nair Remani Sadanam
  • The Oriental Insurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Premchand R. Nair

Counsels for Respondents

  • • Smt. K.S. Santhi

Case Synopsis & Summary

MACA NO. 2707 OF 2009 arises from an MACT award under Section 166 of the Motor Vehicles Act, 1988, to Mohanan for injuries in a jeep accident on 23.12.2001 near Erathu Kulakkada-Thazhathu Kulakkada. The Tribunal, consolidated three petitions (two other injured passengers), awarded Rs. 1,45,300 against the insurer (third respondent) with costs. Mohanan contends the quantum is inadequate given the 93 days of inpatient treatment, multiple surgeries, and resulting disability. The insurer admitted policy coverage but disputed negligence and quantum; the owner (first respondent) and another co-respondent stood ex-parte. The High Court held Ext. A4 (police final report) proves negligence by the second respondent and that the insurer is liable to indemnify the owner. Relying on Ramachandrappa, notional income is fixed at Rs. 3,000 per month (instead of Rs. 2,500) for a 2001 accident. The court accepts a 14% functional disability (per Ext. A10) and adopts a 16-year multiplier (per Sarla Varma) to compute loss of earning capacity. It increases bystander expenses, nourishment, and pain-and-suffering awards and recalculates total compensation to Rs. 2,28,740 (rounded to Rs. 2,30,000). The appeal is allowed in part, with enhanced compensation of Rs. 84,700, 6% interest from date of petition to deposit (deducting 79 days), and Rs. 10,000 costs; deposit within 60 days.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income rule (Ramachandrappa)
  • Multiplier principle (Sarla Varma)
  • Medical Board reference when disability certificate is disputed (Raj Kumar v. Ajay Kumar)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s quantum is inadequate and not commensurate with the injuries and the 93 days of inpatient treatment. He argues negligence by the 2nd respondent is proved (Ext. A4) and that the notional income should reflect actual potential earnings. The Tribunal erred in accepting a lower disability and failed to fully compensate loss of earning capacity, pain and suffering, and bystander/nourishment expenditures. Relying on Ramachandrappa and Sarla Varma, the appellant seeks enhancement to reflect a higher notional income (Rs.3,000), full 14% disability, and full heads of damage.

Contentions of Respondents

The respondents contend the evidence should not be read to enlarge liability beyond the Tribunal’s findings. They maintain policy coverage and dispute the liability only to the extent of negligence; they argue the Tribunal’s award was proper and the insurer’s liability is contingent on established negligence and policy terms. They emphasize that the insurer made no challenge to the liability finding in the appeal; the focus is on quantum, which the respondents contend was reasonably computed.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.(2011) 13 SCC 236PositiveSupreme Court case fixing notional income for a coolie worker; used to fix notional income at Rs.3,000 in this case.
Sarla Varma v. Delhi Transport Corporation[2010 (2) KLT 802]PositiveMultiplier principle for computing compensation; applied to adopt multiplier 16.
Raj Kumar v Ajay Kumar[2011 (1) KLT 620]PositiveDisability certificate accepted; principle that disputed certificates may require reference to a Medical Board.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against MACA NO. 2707 OF 2009 and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

MACA NO. 2707 OF 2009 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **TUESDAY, THE 15[TH] DAY OF MARCH 2022 / 24TH PHALGUNA, 1943** **MACA NO. 2707 OF 2009** **AGAINST THE ORDER/JUDGMENT IN OPMV 961/2002 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,PUNALUR** ## **APPELLANT/S:** K.C.MOHANAN, S/O.CHALLAMONI, CHARUVILA VEEDU, ERATHUKULAKKADA, KOTTARAKARA, KOLLAM DISTRICT. BY ADV SRI.PREMCHAND R.NAIR ## **RESPONDENT/S:** 1 THULASEEDHARAN PILLAI S/O.GOPALA PILLAI,PALAVILA HOUSE, KULAKKADA EAST PO, KOTTARAKARA. 2 RAJENDRAN SO.VASUDEVAN NAIR REMANI SADANAM, ERATHUKULAKKADA PO, KALAYAPURAM VILLAGE, KOTTARAKARA TALUK. 3 THE ORIENTAL INSURANCE COMPANY LTD BRANCH OFFICE, PULAMON, KOTTARAKARA. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 15.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA NO. 2707 OF 2009 2 ## **JUDGMENT** The appellant was the petitioner in OP(MV) No.961/2002 on the file of the Motor Accidents Claims Tribunal, Punalur. 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 sustained to him in an accident on 23.12.2001. It was his case that, on the above said date, while he was traveling in a jeep bearing registration No.KL.2E 2205 along with three other persons through Erathu Kulakkada -Thazhathu Kulakkada, due to the negligence of the 2[nd] respondent, the jeep capsized. The appellant's left leg got crushed under the jeep. He sustained serious injuries and was treated at the KNS Hospital, Kottarakkara and the Specialist Hospital, Ernakulam, for a period of 93 days. He had to undergo several operations and plastic surgery on his left leg. He incurred substantial expenditure for his medical treatment. 3 MACA NO. 2707 OF 2009 The jeep was owned by the 1[st] respondent and insured with the 3[rd] respondent. The appellant was a labourer by profession and he was earning a monthly income of Rs.2,900/-. Hence the appellant claimed a compensation of Rs.5,95,000/- from the respondents, which claim was limited to Rs.5,00,000/-. 3. Two other passengers, who were travelling in the jeep, who also sustained injuries in the same accident, filed OP(MV) Nos.870/2002 and 763/2002 before the same Tribunal, against the respondents, seeking compensation. 4. The respondents 1 and 2 did not contest the proceedings and were set ex-parte. 5. The 3[rd] respondent had filed separate written statements in all the claim petitions denying the allegations in the claim petitions. The 3[rd] respondent disputed the age, income and occupation of the petitioners. The 3[rd] respondent also contended that there was no negligence on the part of the 2[nd] respondent. However, the 3[rd] respondent admitted that the jeep had a valid insurance coverage. MACA NO. 2707 OF 2009 4 6. The Tribunal consolidated and jointly tried the three claim petitions. 7. The petitioners in the two claim petitions and witnesses were examined as PWs 1 to 3 and Exts.A1 to A17 were marked in evidence. The respondents did not let in any evidence. 8. The Tribunal, after analysing the pleadings and materials on record, by its common award, allowed the captioned claim petition, by permitting the appellant to recover from the 3[rd] respondent an amount of Rs.1,45,300/with interest and cost of Rs.750/-. 9. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 10. Heard; Sri.Premchand R. Nair, the learned counsel appearing for the appellant/petitioner and Smt. K.S. Santhi, the learned counsel appearing for the 3[rd] respondent/insurer. 11. The point that arises for consideration in the appeal is whether the quantum of compensation awarded MACA NO. 2707 OF 2009 5 by the Tribunal is reasonable and just ? ## **Negligence and Liability** 12. Ext.A4 final report filed by the Police proves that the accident occurred due to the negligence of the 2[nd] respondent. Indisputably, the 1[st] respondent was the owner and the 3[rd] respondent was the insurer of the jeep. The respondents have not let in any evidence to discredit Ext.A4 final report. Likewise, the 3[rd] 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** 13. The appellant had claimed that he was a manual labourer by profession and was earning a monthly income of Rs.2,900/-. For want of materials, the Tribunal fixed the notional monthly income of the appellant at Rs.2,500/-. 14. In **Ramachandrappa vs. Manager, Royal** MACA NO. 2707 OF 2009 6 ## **Sundaram Alliance Insurance Company Ltd.** : (2011) 13 SCC 236, the Honourable Supreme Court 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 afore-cited decision, and considering the fact that the appellant had claimed that he was earning a notional monthly income of Rs.2,900/- and the accident occurred in the year 2001, I refix the notional monthly income of the appellant at Rs.3,000/-. ## **Loss of earnings** 16. It is proved and established that the appellant had suffered multiple injuries to his left leg. He was treated as an inpatient for a period of 93 days in two hospitals. He had to undergo surgeries as well as plastic surgery. He has suffered shortening of his left leg, ankle joint ankylosis and impairment of sensation over the left foot. In the above circumstances, I hold that he was indisposed for a period of six months. MACA NO. 2707 OF 2009 7 17. In view of the refixation of the notional monthly income of the appellant at Rs.3,000/-, I award him an amount of Rs.18,000/- under the head ‘loss of earnings’. ## **Disability** 18. The appellant had produced Ext.A10 disability certificate issued by the Assistant Professor of Orthopaedics attached to the Department of Orthopaedics, Medical College Hospital, Thiruvananthapuram. The Doctor has found that the appellant had suffered Type III compound fracture of both bones of his left leg, compound tarsometatareal dislocation of left foot and he had to undergo debridament and application of external fixation. The Doctor also found that the appellant had shortening of his left leg due to mal-union of the fracture of the lower 3[rd] left leg and he is unable to squat, run or climb steps. Accordingly, the Doctor fixed his permanent disability at 14%. However, the Tribunal scaled down the disability and fixed it at 10%. 19. In **Raj Kumar vs. Ajay Kumar** [2011 (1) KLT MACA NO. 2707 OF 2009 8 620], the Honourable Supreme Court has categorically held that in case the Tribunal is dissatisfied with the disability certificate produced before it, it is the bounden duty of the Tribunal to refer the injured/claimant to a duly constituted Medical Board. Further, it is also held that if the disability certificate is marked in evidence with the consent of the parties, the same can be accepted in evidence. Also, what needs to be looked into is the functional disability of the injured/claimant. 20. On going through Ext.A10 disability certificate and finding that the appellant was a manual labourer, I am of the firm view that the disability assessed by the Doctor in Ext.A10 has to be accepted. Hence, I fix the 'functional disability' of the appellant at '14%' as certified in Ext.A10. ## **Multiplier** 21. The appellant was aged 35 years at the time of the accident. In view of the law laid down in **Sarla Varma vs.** **Delhi Transport Corporation** : [2010 (2) KLT 802], the relevant multiplier to be adopted is “16”. MACA NO. 2707 OF 2009 9 ## **Loss of earning capacity** 22. Taking into account the above mentioned factors namely, the notional monthly income of the appellant at Rs.3,000/-, his functional disability at 14% and the multiplier at '16', I award him an amount of Rs.80,640/towards ‘loss of earning capacity’ instead of Rs.51,000/awarded by the Tribunal. ## **Bystander expenses andextra nourishment** 23. It is proved and established that the appellant was treated as an inpatient for a period of 93 days. The Tribunal has awarded only an amount of Rs.4,650/- towards bystander expenses and Rs.1,000/- towards extra nourishment, which are on the lower side. 24. On a consideration of the fact that the accident had happened in the year 2001, I award the appellant an amount of Rs.100/- per day for a period of 93 days towards 'bystander expenses' which works out to Rs.9,300/- and an amount of Rs.50/- per day for a period of 93 days towards MACA NO. 2707 OF 2009 10 'extra nourishment', which works to Rs.4650/-. ## **Pain and sufferings and loss of amenities** 25. The Tribunal has awarded only an amount of Rs.10,000/- under the head pain and sufferings. I find the amount to be on a lower side. 26. Taking into account the fact that the appellant had sustained severe injuries to his left leg, that he was treated as an inpatient for a period of 93 days, that he was indisposed for a period of six months and that he suffered a functional disability of 14%, I award him a further amount of Rs.20,000/- under the head ‘pain and sufferings’ and an amount of Rs.15,000/- under the head ‘loss of amenities’. 27. With respect to the other heads of compensation, I find that the Tribunal has awarded reasonable and just compensation. 28. On an overall re-appreciation of the pleadings and 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 MACA NO. 2707 OF 2009 11 ## recalculated above and given in the table below for easy ## reference: **==> picture [457 x 463] intentionally omitted <==** **----- Start of picture text -----**<br> Sl. Head of claim Amount Amount<br>No. awarded by awarded by<br>the Tribunal this Court<br>(in Rs.) (in Rs.)<br>1. Loss of earnings 7,500 18,000<br> 2. Transportation 750 750<br>expenses<br>3. Clothing 400 400<br>4. Bystander expenses 4,650 9,300<br>5. Extra nourishment 1,000 4,650<br>5. Medical expenses 70,000 70,000<br>6. Pain and sufferings 10,000 30,000<br>7. Loss of amenities 0 15,000<br>8 Loss of earning 51,000 80,640<br>capacity<br>Total 145300 2,28,740<br>rounded off<br>to<br>Rs.2,30,000<br>**----- End of picture text -----**<br> In the result, the appeal is allowed in part, by enhancing the compensation by a further amount of **Rs.84,700/-** with interest @ 6% per annum from the date MACA NO. 2707 OF 2009 12 of petition till the date of deposit, after deducting interest for a period 79 days (i.e., the period of delay in filing the appeal and as ordered by this Court on 25.10.2021 in C.M.Appln. No.2/2009) and a cost of Rs.10,000/-. The 3[rd] respondent is ordered to deposit the enhanced compensation with interest and cost before the Tribunal, within a period of 60 days from the date of receipt of a certified of this on the copy judgment. Immediately compensation amount being deposited, the same shall be disbursed to the appellant in accordance with law. Sd/- **C.S.DIAS, JUDGE** rkc/15.03.22