High Court of KeralaSingle JudgeAppeal allowed; compensation enhanced; insurer ...

M.A.C.A.No.2268-2010

Case / Petition Number:MACA 2268 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2022-02-02
Court Decision / Holding
The appeal is allowed in part. Enhanced compensation of Rs. 80,250 over the Tribunal’s award is granted, with interest at 7.5% per annum from the petition date, reduced by 44 days per court order, and costs of Rs. 10,000. The Oriental Insurance Company Limited is ordered to deposit the enhanced amount with interest and costs before the Tribunal within 60 days from receipt of a certified copy of the judgment. On deposit, the enhanced amount is to be disbursed to the addl appellants 1 to 3 in the ratio 50:25:25 and in accordance with law.
Final Disposition
Appeal allowed; compensation enhanced; insurer to deposit enhanced amount; distribution among addl appellants; costs and interest as specified.

Parties to the Case

Appellants / Petitioners

  • James, S/o Sebastian (deceased)
  • Addl. Jain
  • Addl. Chris on James
  • Addl. Christina James

Respondents

  • Subrahmanyan S/o Ayyappan
  • Renjithkumar R. Shenoy S/o Not Known (Deleted from party array)
  • The Oriental Insurance Company Limited

Legal Representation & Advocates

Counsels for Petitioners

  • • P. M. Joshi (advocate)

Counsels for Respondents

  • • V. P. K. Panicker (advocate)

Case Synopsis & Summary

This MACA challenges the Motor Accidents Claims Tribunal, Ernakulam award in a 166 MV Act claim filed by the original appellant James for injuries sustained in a 29.03.2003 accident near Thoppumpady Harbour Bridge. The motorcycle rider was hit by an autorickshaw driven rashly. The Tribunal allowed the claim in part but awarded Rs. 1,09,341 and held the insurer liable for the owner’s liability. During pendency, the appellant died, and his wife and children were impleaded as supplemental appellants. Respondents included the autorickshaw owner, and the Oriental Insurance Company. The insurer (respondent 3) contested the amount and income/ disability calculations. The High Court, examining evidence including salary slips (noted at Rs. 6,131 nominal), leave certificate, and a 12% disability certificate, re-evaluated income and disability. It adopted a higher multiplier (9) considering retirement age of 60, and re-fixed monthly income at Rs. 10,000, leading to disability loss of Rs. 1,29,600. With enhanced bystander, nourishment, and pain-and-suffering awards, the total compensation rose to Rs. 1,89,591, from Rs. 1,09,341. The Court relied on Supreme Court precedents regarding multipliers (Puttamma v. K.L. Narayana Reddy; N. Jayasree v. Cholamandalam MS; Ramachandrappa) to justify the approach, and directed the insurer to deposit the enhanced amount within 60 days for distribution among the appellants. The appeal was allowed in part, with costs and interest, and a disbursement plan to the addl appellants.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Split multiplier method shall not be adopted without cogent reasons.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argue that the Tribunal erred in the computation of compensation, particularly in income estimation, disability assessment, and the applied multiplier. They contend that with a pre-retirement income and a 12% permanent disability, the loss of earning capacity and future prospects require a higher multiplier and re-evaluation of notional income. The evidence (salary slips, driving license) supports a higher notional income; the 60-year retirement age calls for a higher multiplier; the award should compensate loss of earnings, medical expenses, and pain and suffering more generously, and bystander expenses should reflect inpatient treatment. They also urge consistent application of Supreme Court multipliers in light of Ramachandrappa and related decisions.

Contentions of Respondents

The respondents contest liability and challenge the quantum. They assert the Tribunal’s findings on negligence (Exhibit A2) and income calculations require scrutiny, arguing the evidence does not justify the higher notional income or the disability calculation. They request adherence to statutory limitations, scrutinize the disability assessment, and seek to preserve the Tribunal’s award subject to cogent reasoning and policy terms (insurance policy conditions). They object to enhanced compensation and seek to limit liability and exposure in line with insurance norms.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Puttamma and others v. K.L. Narayana Reddy and another2014 (1) KLT 738PositiveCourt follows this Supreme Court-guided approach and cites it to justify not adopting the split multiplier without cogent reasons, while applying an appropriate multiplier (9) in the facts.
N. Jayasree and Others v. Cholamandalam M.S. General Insurance Co Ltd.2021 SCC Online SC 967PositiveSupreme Court decision cited as supporting the multiplier guidance and re-emphasizing cogent reasons for multiplier choice.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company LtdUnknownPositiveCourt states Ramachandrappa is to be followed; uses its logic to re-fix income and multiplier in the present case.

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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** **WEDNESDAY, THE 2[ND] DAY OF FEBRUARY 2022 / 13TH MAGHA, 1943** **MACA NO. 2268 OF 2010** **AGAINST THE AWARD DATED 30.04.2010 IN OPMV 1688/2003 OF THE** ## **MOTOR ACCIDENT CLAIMS TRIBUNAL ,ERNAKULAM** ## **APPELLANT/PETITIONER:** - 1 JAMES, S/O SEBASTIAN, AGED 49 YEARS THAIKKOTTATHIL HOUSE, CHOOLEZHATHU PARAMBU,, KARUVELIPPADY DESOM, THOPPUMPADY VILLAGE,, ERNAKULAM DISTRICT. ( EXPIRED) ** ADDL. APPELLANTS 1 TO 3 IMPLEADED. - 2 ADDL. JAIN, AGED 51 YEARS W/O. JAMES, THAIKKOTTATHIL HOUSE, CHOOLEZHATHUPARAMBU, KARUVELIPPADY DESOM, THOPPUMPADY VILLAGE, ERNAKULAM DISTRICT. - 3 ADDL. CHRISON JAMES AGED 30 YEARS S/O. JAMES, THAIKKOTTATHIL HOUSE, CHOOLEZHATHUPARAMBU, KARUVELIPPADY DESOM, THOPPUMPADY VILLAGE, ERNAKULAM DISTRICT. - 4 ADDL. CHRISTINA JAMES, AGED 28 YEARS D/O. JAMES, THAIKKOTTATHIL HOUSE, CHOOLEZHATHUPARAMBU, KARUVELIPPADY DESOM, THOPPUMPADY VILLAGE, ERNAKULAM DISTRICT, ** ADDITIONAL APPELLANTS 1 TO 3 IMPLEADED DUE TO THE DEATH OF THE ORIGINAL APPELLANT AS PER ORDER DATED 17/12/2021 IN I.A 1/21 IN MACA 2268/2010. BY ADV P.M.JOSHI ## **RESPONDENTS/RESPONDENTS:** - 1 SUBRAHAMANYAN S/O AYYAPPAN, NIKARTHIL HOUSE, RAMESWARAM VILLAGE,, THOPPUMPADY P.O., ERNAKULAM DISTRICT. - 2 RENJITHKUMAR R.SHENOY S/O.NOT KNOWN AGED NOT KNOWN, RADHA NIVAS, 18/2034,, PALLURUTHY P.O., KOCHI-6, ERNAKULAM DISTRICT - PIN- 682 006. * (DELETED) - 3 THE ORIENTAL INSURANCE COMPANY LIMITED BRANCH OFFICE, PUTHENPURACKAL CHAMBERS,, M.A.C.A.No.2268-2010 -:2:- PALLURUTHY P.O., KOCHI, PIN-682006. * RESPONDENT NO.2 IS DELETED FROM PARTY ARRAY AT THE RISK OF APPELLANT AS PER ORDER DATED 13.11.2017 IN I.A.NO. 4237/17 IN MACA 2268/2010. BY ADV SRI.VPK.PANICKER THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 02.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: M.A.C.A.No.2268-2010 ## -:3:- ## **J U D G M E N T** The original appellant was the petitioner in O.P (MV) No.1688/2003 on the file of the Motor Accidents Claims Tribunal,Ernakulam. Pending the appeal, the original appellant died and his legal representatives - his wife and children - have been impleaded as supplemental appellants 1 to 3. The respondents in the appeal were the respondents before the Tribunal. At the instance of the original appellant, the second respondent has been deleted from the party array. Therefore, the parties are, for the sake of convenience, referred to as per their status before the Tribunal. 2. The petitioner 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 29.03.2003. It was M.A.C.A.No.2268-2010 -:4:- his case that, on the above said date, while he was riding his motorcycle bearing registration No. KL 7 AG 2977 an through Thoppumpady-Harbour bridge, autorickshaw bearing registration No. KL-7-G 2509 driven by the first respondent in a rash and negligent manner, hit the motorcycle of the petitioner. The petitioner fell down and sustained multiple injuries, including a communited fracture and dislocation of his right shoulder, fracture and dislocation of index finger and fracture and dislocation of left index finger. He was treated as an inpatient for a period of 11 days at the General Hospital, Ernakulam and at the Medical College Hospital, Kottayam. The autorickshaw was owned by the second respondent and insured with the third respondent. The petitioner was a driver employed with the Dakshina Bharat Hindi Prachar Sabha and drawing a monthly salary of Rs. 5000/-. Hence, the petitioner claimed a compensation of Rs.4,07,000/- from the respondents, which claim was M.A.C.A.No.2268-2010 -:5:- limited to Rs.4,00,000/-. 3. The respondents 1 and 2 did not contest the proceeding and were set exparte. 4. The third respondent had filed a written statement refuting the allegations in the claim petition. It was contended that the accident occurred due to the negligence of the petitioner. The third respondent also disputed the age, income and occupation of the petitioner. 5. The petitioner had produced and marked Exhibits A1 to A10 in evidence. The respondents 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 petitioner to recover from the third respondent an amount of Rs.1,09,341/- with interest and proportionate cost. 7. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner has preferred M.A.C.A.No.2268-2010 ## -:6:- the appeal. 8. Heard; Sri.P.M. Joshi the learned counsel appearing for the appellant/petitioner and Sri.VPK Panicker, the learned counsel appearing for the original third respondent/insurer. 9. The point that arises for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just? ## **Negligence and liability** 10. Exhibit A2 charge sheet filed by the City Traffic Police in Crime No.1437/2003 proves that the accident occurred due to the negligence of the first respondent. Indisputably, the second respondent was the owner and the third respondent was the insurer of the autorickshaw. The respondents have not let in any evidence to discredit Exhibit A2 charge sheet. The third respondent has not proved that the second respondent had violated the insurance policy conditions. Therefore, the third respondent is to M.A.C.A.No.2268-2010 -:7:- indemnify the liability of the second respondent arising out of the accident. ## **Income and loss of earnings** 11. The petitioner had pleaded in the claim petition that he was a driver by profession at the Dakshina Bharat Hindi Prachar Sabha and drawing a salary of Rs.5000/-. To substantiate his pleadings, he produced Exhibits A9 salary slip and A10 driving license. The Tribunal accepted the said documents and fixed the notional monthly income of the petitioner at Rs.6131/-. 12. The petitioner had also produced Exhibit A8 leave certificate to prove that he had suffered a loss of Rs.12,000/- towards ‘loss of earnings’. The Tribunal accepted Exhibit A8 and awarded the said amount to the appellant. ## **Disability** 13. On going through paragraph 7 of the impugned award, it is seen that the Tribunal has relied M.A.C.A.No.2268-2010 ## -:8:- on Exhibit A11 disability certificate issued by the District Medical Officer of Health, Ernakulam, certifying that the petitioner had permanent disability of 12%. Nonetheless, the said document is not marked in the appendix portion of the impugned award. The certificate is also not available in the lower courts records. Nevertheless, since there is no cross-objection from the side of the respondents, I accept the assessment of the disability made by the Tribunal based on Exhibit A11. 14. The Tribunal for the reason that the petitioner was permanently employed and did not suffer any loss of income due to the disability, adopted the multiplier at ‘7’ i.e. by taking the age of the appellant’s post retirement and awarded an amount of Rs.61,800/towards ‘loss due to disability’. 15. In **Puttamma and others v. K.L, Narayana Reddy and another** [2014 (1) KLT 738] followed by **N.Jayasree and Others vs. Cholamandalam M.S,** M.A.C.A.No.2268-2010 -:9:- **General Insurance Co Ltd. [2021 SCC Online SC 967]** the Honourable Supreme Court has held that the split multiplier method shall not be adopted without cogent reasons. 16. In the instant case, as the petitioner was permanently employed in the Dakshina Bharat Hindi Prachar Sabha and his income was not affected during his period of service due to the disability, I find the course adopted by the Tribunal to be cogent and justifiable. Nevertheless, as the petitioner has attained the age of superannuation at 60 years, the relevant multiplier to be applied is ‘9’ and not ‘7’ as adopted by the Tribunal. 17. It is also to be remembered that, on the petitioner attaining the age of 60 years, he would have got re-employed as a driver and earned an amount of Rs.10,000/-, if the yardsticks in **Ramachandrappa vs. Manager, Royal Sundaram Alliance Insruance Company Ltd** is M.A.C.A.No.2268-2010 -:10:- followed. 18. In the above legal and factual background, although I apply the multiplier of 9, I re-fix the notional monthly income of the petitioner at Rs.10,000/- ## **Loss due to disability** 19. Taking into account the above mentioned factors, namely, the notional monthly income of the petitioner at Rs.10,000/-, his functional disability at 12% and adopting the multiplier at ‘9’, I award the petitioner an amount of Rs.1,29,600/-, instead of Rs.61,800/- awarded by the Tribunal. ## **- By stander expenses and extra nourishment** 20. The Tribunal has awarded an amount of Rs.2500/- as by-stander expenses. 21.On a consideration of the fact that the petitioner was treated as an inpatient for a period of 11 days and the accident occurred in the year 2003, I award him an amount of Rs.300/- per day for a period of 11 days towards ‘by-stander M.A.C.A.No.2268-2010 ## -:11:- expenses’, which works out to Rs.3300/- and an amount of Rs.150/- per day for a period of 11 days towards ‘extra nourishment’ which works out Rs. 1650/-. ## **Pain and sufferings** 22. The Tribunal has awarded the petitioner an amount of Rs.15,000/- under the head ‘pain and sufferings.’ 23. Taking into account the multiple injuries sustained by the petitioner, that he was indisposed for a period of two months and that he has suffered a functional disability of 12%, I award him a further amount of Rs.10,000/- under the head ‘pain and sufferings’. 24. With respect to the other heads of compensation awarded by the Tribunal, I find the same to be reasonable and just compensation. 25. On a re-appreciation of the pleadings and materials on record and the law referred to in the M.A.C.A.No.2268-2010 -:12:- afore-cited decisions, I hold that the appellant/petitioner is entitled to enhancement of compensation as modified and re-calculated above and 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|12000|12000| |2|Transport|1500|1500| ||Clothing|400|400| |4|Bystander expense|2500|3300| |5|Extra nourishment|0|1650| |6|Medical expenses|6141|6141| |7|Pain and sufferings|15000|25000| |8|Loss of amenities|10000|10000| |9|Loss<br>due<br>to<br>disability|61800|129600| ||**Total**|**109341**|**189591**| In the result, the appeal is allowed, by enhancing the compensation by a further amount of Rs.80,250/- with interest at the rate of 7.5% per annum from the date of petition, after deducting interest for a period of M.A.C.A.No.2268-2010 -:13:- 44 days i.e. the period of delay and as ordered by this Court on 22.02.2018 in C.M. Application 2945/2010 and a cost of Rs.10000/-. The third 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 the judgment. Immediately on the compensation amount being deposited, the same shall be disbursed to the additional appellants 1 to 3 in the ratio of 50:25:25 and in accordance with law. SD/- ## **C.S.DIAS,JUDGE** rmm/03.02.2022