High CourtSingle JudgeDisposed in part.

MACA Nos. 2026 & 1600 of 2013, High Court of Kerala at Ernakulam

Case / Petition Number:MACA No. 1600 of 2013; MACA No. 2026 of 2013

Case Details & Bench

Court
High Court
Hon'ble Judges
  • P.V.KUNHIKRISHNAN
Judgment Date
2021-03-31
Court Decision / Holding
1. MACA No. 1600/2013 is allowed in part. The compensation awarded for loss of earning (Rs.60,000) is set aside. 2. MACA No. 2026/2013 is allowed in part. The impugned award is modified to the effect that the appellant is entitled an enhanced compensation of Rs.6,48,000/- with interest @ 9% p.a from the date of application till realisation. The respondent No.2 is directed to pay the enhanced amount with interest to the petitioner.
Final Disposition
Disposed in part.

Parties to the Case

Appellants / Petitioners

  • NEW INDIA ASSURANCE CO. LTD. KOTTAYAM REP. BY THE DY. MANAGER, REGIONAL OFFICE KOCHI
  • RAMESH S/O.KANNAN, W.P.DIVISION LAYAM, HOUSE,KARADIKUZHY,PEERUMEDU NOW RESIDING AT GREENS BUILDING,T.B.ROAD,KOTTAYAM

Respondents

  • RAMESH W.P.DIVISION LAYAM (H), KARADIKUZHY, PEERUMEDU, NOW RESIDING AT GREENS BUILDING, T.B.ROAD, KOTTAYAM PIN.688520
  • STEPHAN PARAKKAL, KARADIKUZHY.P.O, PEERUMEDU, PIN-685531
  • THE NEW INDIA ASSURANCE CO.LTD DIVISIONAL OFFICE, KOTTAYAM, PIN-686001

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Rajan P. Kaliyath
  • • Sri K.A. Hashim
  • • Sri M.I. Ismail

Counsels for Respondents

  • • Sri K.A. Hashim
  • • Sri Mathews Jacob Sr.
  • • Sri P. Jacob Mathew

Case Synopsis & Summary

Two motor accident claim appeals were heard together by a single-judge bench of the High Court of Kerala (Ernakulam), namely MACA Nos. 2026 of 2013 (Ramesh as appellant) and 1600 of 2013 (New India Assurance Co. Ltd. as appellant), challenging the Motor Accidents Claims Tribunal, Kottayam award in OPMV 566/2011 dated 08-05-2013. The underlying incident occurred on 11.08.2010 when an auto-rickshaw KL 37/4912 driven rashly overturned near Pattumalpalli on the Kumaly-Kottayam KK Road, injuring Ramesh. The Tribunal held both the insured owner-driver and insurer liable and awarded the claimant Rs. 17,23,760 with 9% interest, covering disability and other heads. The insurer contended that the award was excessive, arguing there was 100% permanent disability and the Tribunal wrongly awarded Rs. 60,000 for loss of earning post-disability, and that other heads were inflated. The claimant contended for higher compensation; relying on the Supreme Court’s Ramachandrappa decision, the claimant urged Rs. 7,500 monthly income as basis for calculation and further enhancement. The High Court agreed that the loss of earning was impermissible in a case of 100% disability and set aside Rs.60,000. It also recalibrated the notional monthly income, citing Ramachandrappa to justify raising it to Rs.7,500, and finally partly allowed the appeals: MACA 1600/2013 was allowed in part (loss of earning set aside) and MACA 2026/2013 was allowed in part (enhanced compensation of Rs.6,48,000 with 9% interest).

Legal Doctrines & Maxims

  • Ramachandrappa v. The Manager, Royal Sundaram [2011(13) SCC 236]

Submissions & Arguments

Contentions of Appellants / Petitioners

MACA 1600/2013 (New India Assurance Co.) submits that the Tribunal erred in awarding Rs.60,000 for loss of earning despite 100% permanent disability, and that the overall compensation heads were inflated; contends erroneous computation of notional income and reliance on incorrect premises. In MACA 2026/2013 (Ramesh), the petitioner contends that the—based on Ramachandrappa—monthly income should be Rs.7,500 and seeks enhancement of compensation, arguing the Tribunal under-compensated for permanent disability.

Contentions of Respondents

Respondents contend that the Tribunal’s award is just and that the Rs.60,000 for loss of earning is permissible even with 100% disability; they argue the notional income and other heads were properly assessed and that no further enhancement is warranted.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. The Manager, Royal Sundaram2011(13) SCC 236PositiveCited and applied to justify raising the notional monthly income (from Rs.4,500 to Rs.7,500) in determining compensation.

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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 WEDNESDAY, THE 31ST DAY OF MARCH 2021 / 10TH CHAITHRA, 1943** ## **MACA.No.1600 OF 2013** **AGAINST THE AWARD IN OPMV 566/2011 DATED 08-05-2013 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, KOTTAYAM** ## **APPELLANT:** **NEW INDIA ASSURANCE CO. LTD. KOTTAYAM REP. BY THE DY. MANAGER, REGIONAL OFFICE KOCHI. BY ADV. SRI.RAJAN P.KALIYATH** ## **RESPONDENTS:** **1 RAMESH W.P.DIVISION LAYAM (H), KARADIKUZHY, PEERUMEDU, NOW RESIDING AT GREENS BUILDING, T.B.ROAD, KOTTAYAM PIN.688520. 2 STEPHAN PARAKKAL, KARADIKUZHY POST, PEERUMEDU, PIN.688520** **R1 BY ADV. SRI.K.A.HASHIM** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 31.03.2021, ALONG WITH MACA.2026/2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ``` M.A.C.A. Nos. 2026 & 1600 of 2013 ``` ``` 2 ``` ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN** **WEDNESDAY, THE 31ST DAY OF MARCH 2021 / 10TH CHAITHRA, 1943** **MACA.No.2026 OF 2013** **AGAINST THE AWARD IN OPMV 566/2011 DATED 08-05-2013 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,KOTTAYAM** ## **APPELLANT:** **RAMESH** **S/O.KANNAN,W.P.DIVISION LAYAM** **HOUSE,KARADIKUZHY,PEERUMEDU NOW RESIDING AT GREENS BUILDING,T.B.ROAD,KOTTAYAM,REPRESENTED BY HIS FATHER AND NEXT FRIEND KANNAN,S/O.NARAYANAN,AGED 53 YEARS,W.P.DIVISION LAYAM** **HOUSE,KARADIKUZHY,PEERUMEDU NOW RESIDING AT GREENS BUILDING,T.B.ROAD,KOTTAYAM.** **BY ADVS. SRI.K.A.HASHIM SRI.M.I.ISMAIL** ## **RESPONDENTS:** **1 STEPHAN PARAKAL,KARADIKUZHY.P.O, PEERUMEDU,PIN-685531.** **2 THE NEW INDIA ASSURANCE CO.LTD DIVISIONAL OFFICE, KOTTAYAM,PIN-686001.** **R1-2 BY ADV. SRI.P.JACOB MATHEW R1 BY ADV. SRI.MATHEWS JACOB SR.** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 31.03.2021, ALONG WITH MACA.1600/2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ``` M.A.C.A. Nos. 2026 & 1600 of 2013 ``` ``` 3 ``` ## **`P.V.KUNHIKRISHNAN, J. ======================= M.A.C.A. Nos. 2026 & 1600 of 2013 ======================= Dated this the 31[st] day of March 2021`** ## **`J U D G M E N T`** ``` These two appeals are connected and therefore, I am disposing these two appeals by a common judgment. M.A.C.A No. 1600/2013 is filed by the 2[nd] respondent- insurance company in O.P.(M.V) No. 566/2011 on the file of the Motor Accidents Claims Tribunal, Kottayam. M.A.C.A No. 2026/2013 is filed by the petitioner in the above claim petitions (Hereinafter the parties are mentioned in accordance to their rank before the Tribunal) ``` ``` 2. The short facts are like this: - ``` ``` On 11.08.2010 at about 4.30 p.m., the injured Ramesh was travelling in an autorickshaw bearing Registration No. KL 37/4912 driven by the 1[st] respondent ``` ``` 4 ``` ## `M.A.C.A. Nos. 2026 & 1600 of 2013` ``` along the Kumaly-Kottayam, KK Road from Pattumala to Pambanar bhagam. The 1[st] respondent was driving the autorickshaw in a rash and negligent manner at excessive speed and when the autorickshaw reached at the south of Pattumalpalli, the autorickshaw overturned towards the left side of the road and the petitioner got thrown out of the autorickshaw and sustained grievous injuries. The injured was taken immediately to the Taluk Headquarters Hospital, Peerumedu and from there referred to the Medical College Hospital, Kottayam. According to the petitioner, the accident occurred due to the rash and negligent driving of the auto rickshaw by the 1[st] respondent. The 1[st] respondent is the registered owner cum driver of the autorickshaw. The autorickshaw was insured with the New India Assurance Company Limited. The 2[nd] respondent is the insurer. According to the petitioner, respondents are jointly and severally liable to pay compensation to the petitioner. ``` ``` 3. To substantiate the case, Exhibits A1 to A16 ``` ``` 5 ``` ## `M.A.C.A. Nos. 2026 & 1600 of 2013` ``` were marked on the side of the petitioner. Exhibits X1 is the disability certificate. Ext. B1 is the policy certificate. One witness was also examined as PW1 on the side of the petitioner. After going through the evidence and documents, the tribunal found that, the petitioner is entitled an amount of Rs. 17,23,760/- with interest at the rate of 9% from the date of application till realization. The claim of the petitioner was Rs.24,60,000/- Aggrieved by the quantum of the compensation, the petitioner filed MACA No. 2026/2013. The New India Assurance Company Ltd filed MACA No. 1600/2013 contenting that the compensation awarded is excessive. ``` ``` 4. Heard the learned counsel for the appellant and the respondents in both the appeals. ``` ``` 5.The learned counsel for the insurance company submitted that, the tribunal granted an amount of Rs. 60,000/- towards the loss of earning after giving compensation for permanent disability. According to the learned counsel, the tribunal concluded that, there is ``` ``` 6 ``` ## `M.A.C.A. Nos. 2026 & 1600 of 2013` ``` 100% disability. In such situation the tribunal erred in allowing an amount of Rs.60,000/- towards the loss of earning again. The learned counsel submitted that, granting such an amount by the tribunal is illegal. The learned counsel also submitted that, the amount awarded by the tribunal on the other heads are also excessive. ``` ``` 6.The tribunal found that, there is 100% permanent disability to the petitioner and thereafter, assessed the compensation for permanent disability. In such circumstances, according to me, the compensation awarded for loss of earning is illegal. I think, the amount of Rs. 60,000/- awarded towards the loss of earning in this case is to be interfered. ``` ``` 7.The learned counsel for the petitioner contended that, the petitioner was an autorickshaw driver and he was getting Rs.7,500/- as monthly income. The tribunal without considering the realities fixed the notional income as Rs. 4,500/-. The learned counsel submitted that, the monthly income claimed by the ``` ``` M.A.C.A. Nos. 2026 & 1600 of 2013 ``` ``` 7 ``` ``` petitioner may be accepted. I think, there is some force in the argument of the petitioner. In Ramachandrappa v. The Manager, Royal Sundaram [2011(13) SCC 236], the Apex Court fixed an amount of Rs.4,500/- as monthly income to a coolie in the year 2004. The accident in this case happened in 2010. If that is taken as a basis, this Court is justified in fixing the monthly income of the petitioner as Rs.7,500/- which is claimed by the petitioner. Then the compensation allowed by the tribunal for the permanent disability is to be reassessed in the following manner:- ``` ``` Rs.7500 X 12 X 18 = Rs.16,20,000/- ``` ``` 8.An amount of Rs. 9,72,000/- is already given by the tribunal and that is to be deducted from the above amount. The balance amount will be Rs.6,48,000/-. ( Rs.16,20,000-Rs.9,72,000 = Rs.6,48,000/-). ``` ``` 9.Therefore, the enhanced compensation entitled by the petitioner towards the permanent disability is Rs.6,48,000/-. ``` ``` 8 ``` ## `M.A.C.A. Nos. 2026 & 1600 of 2013` ``` 10. The learned counsel for the petitioner submitted that, even though the claim of the petitioner is only Rs.24,60,000/-, this Court may kindly enhance the compensation further, taking into consideration the pathetic situation of the petitioner. The learned counsel submitted that, the petitioner is fully bed ridden and he is not in a position to do any work. Of course, the submission made by the learned counsel for the petitioner about the condition of the petitioner may be correct. But, I perused the compensation awarded by the tribunal on different heads. I think, in almost all heads the tribunal awarded sufficient amount and that also in some heads more than the claim. While fixing the compensation, this Court has to decide a just compensation. If the enhanced compensation is also added to the amount already awarded by the tribunal, it will be almost around the total claim of the petitioner. In such circumstances, according to me, no further enhancement is necessary in the facts and circumstances ``` ``` 9 ``` ## `M.A.C.A. Nos. 2026 & 1600 of 2013` ``` of the case. ``` ``` Therefore, these two appeals are disposed in the following manner; ``` ``` 1.MACA No. 1600/2013 is allowed in part. The compensation awarded for loss of earning (Rs.60,000/-) is set aside. ``` ``` 2.MACA No. 2026/2013 is allowed in part. The impugned award is modified to the effect that the appellant is entitled an enhanced compensation of Rs.6,48,000/- with interest @ 9% p.a from the date of application till realisation. The respondent No.2 is directed to pay the enhanced amount with interest to the petitioner. ``` ## `(Sd/-)` ## **`P.V.KUNHIKRISHNAN JUDGE`** ``` LU ```