High Court of KeralaDivision BenchAppeal partly allowed; tribunal's award enhance...

MADHU S/O. VELU vs THE DIVISIONAL MANAGER NEW INDIA INSURANCE CO. LTD.

Case / Petition Number:MACA.No.1999 of 2011
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • K. P. Jyothindranath
Judgment Date
2016-07-08
Court Decision / Holding
The appeal is allowed in part. The court accepts 42% disability and, using the notional income of Rs 4,500/month (Ramachandrappa), recalculates loss of income and finds an additional compensation of Rs 1,94,700 on top of the tribunal’s Rs 2,84,900. The insurer is directed to pay the additional amount with interest at 8% per annum from the date of the petition till realization, within two months of receiving a copy of this judgment. There are no costs. The Tribunal is also instructed to realize any additional court fee due from the amount deposited by the insurer. The decision reiterates that tribunals must award just compensation based on settled principles rather than the exact claims in the application.
Final Disposition
Appeal partly allowed; tribunal's award enhanced by recalculating with 42% disability and Rs 4,500/month notional income; insurer to pay enhanced amount with 8% interest within two months; no costs.

Parties to the Case

Appellants / Petitioners

  • MADHU S/O. VELU, THUNDAZHIKATHU VEEDU, ERAVIPURAM P.O., KOLLAM.

Respondents

  • THE DIVISIONAL MANAGER NEW INDIA INSURANCE CO. LTD., KOLLAM-691 001

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.PRATHEESH.P

Counsels for Respondents

  • • SRI.ZIYAD REHMAN
  • • SRI.PMM.NAJEEB KHAN
  • • SRI.A.A.ZIYAD RAHMAN

Case Synopsis & Summary

Madhu, the appellant, challenges a 2006 motor accident claim tribunal award in O.P.(MV) No.1139 of 2006. He sustained severe head injuries with a recorded 42% disability by a medical board, while the tribunal had assessed 35% without explanation. The appellant argues the disability percentage and the income basis for calculating future loss were undervalued: he was a salesman and the monthly income used by the tribunal (Rs 2,500) is unrealistically low. Relying on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., the Court notes a notional monthly income of Rs 4,500 for a notional worker and recalculates damages accordingly. The insurer contends that two disability certificates exist (one showing 40%) but the doctor who assessed 42% was not examined by the tribunal, and that the tribunal’s award already reflects just compensation. After reviewing the record, including CT findings and the doctor’s assessment, the High Court accepts the 42% disability and, applying the Ramachandrappa principle, uses Rs 4,500/month as income. The court determines the appellant’s additional compensation to be Rs 1,94,700 on top of the tribunal’s Rs 2,84,900, plus 8% interest, directing payment within two months, with no costs. The decision underscores the Tribunal’s duty to award just, equitable compensation based on settled principles, irrespective of petition claims.

Legal Doctrines & Maxims

  • Tribunal's duty to award just, equitable, fair and reasonable compensation with reference to settled principles on assessment of damages
  • Notional income concept for computing damages (Ramachandrappa)
  • Tribunal’s freedom to determine compensation irrespective of petition claims (settled principles)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the tribunal erred in downscaling the disability from 42% to 35% without any reason, thereby underestimating the injury’s impact. He argues that the income used to calculate future disability losses is too low (Rs 2,500/month) and should reflect the notional income of Rs 4,500/month for a notional worker, as per Ramachandrappa. With higher disability and income, future damages increase, warranting enhanced compensation. He relies on the principle that tribunals must award just, equitable, fair, and reasonable compensation based on settled damages principles, regardless of the petition’s claimed heads.

Contentions of Respondents

The insurer submits that the tribunal’s 35% disability finding is supported by the record, including a 40% certificate not examined by the tribunal; the 42% assessment by the medical board was not challenged. The tribunal already awarded just compensation, and the court should not disturb the factual findings absent error. It argues the petitioner cannot claim higher damages based on the surgeon’s unreviewed notes and insists on adherence to the tribunal’s award, maintaining that the existing award reflects proper compensation.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveCourt relied on the Ramachandrappa decision to fix notional monthly income at Rs 4,500 for computation of compensation.
Rajesh and others v. Rajbir Singh and others(2013) 9 SCC 54PositiveCourt cites para 19 to emphasize Tribunal’s duty to award just, equitable, fair and reasonable compensation irrespective of the claims in the application.

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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.T.RAVIKUMAR & THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH FRIDAY, THE 8TH DAY OF JULY 2016/17TH ASHADHA, 1938 MACA.No. 1999 of 2011 ( ) -------------------------AGAINST THE AWARD IN OPMV 1139/2006 of M.A.C.T., KOLLAM DATED 27-04-2011 APPELLANT(S)/PETITIONER: ------------------------------- MADHU S/O. VELU, THUNDAZHIKATHU VEEDU, ERAVIPURAM P.O., KOLLAM. BY ADV. SRI.PRATHEESH.P RESPONDENT(S)/3RD RESPONDENT: ----------------------------- THE DIVISIONAL MANAGER NEW INDIA INSURANCE CO. LTD., KOLLAM-691 001. BY ADV. SRI. ZIYAD REHMAN BY ADV. SRI.PMM.NAJEEB KHAN BY ADV. SRI.A.A.ZIYAD RAHMAN THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 08-07-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C.T. RAVIKUMAR** ## **&** ## **K. P. JYOTHINDRANATH, JJ. ========================== M.A.C.A. No.1999 OF 2011 ==========================** Dated this the 8[th] day of July, 2016 ## **JUDGMENT** ## _Jyothindranath, J._ This appeal is preferred challenging the award dated 27.4.20011 made in O.P.(MV).No.1139 of 2006 by the Motor Accidents Claims Tribunal, Kollam. 2.When the appeal came up for hearing, the learned counsel for the appellant submitted before us that here is a case where the appellant sustained very severe head injuries as well as other injuries. The medical board assessed 42% disability. The grievance of the appellant is that even though the disability was assessed as 42%, the Tribunal considered only 35% disability, without showing any reason. **M.A.C.A.1999/2011** 2 It is the submission that even though the appellant-petitioner was working as a salesman by profession and the accident occurred in the year 2005, only a sum of `2,500/- is taken as the monthly income, for calculation of loss due to disability in future. It is the further submission that the overall compensation awarded is on a lower side. Hence, an interference by this Court is warranted. 3.The learned counsel for the insurance company submitted before us that here is a case where the appellant moved a claim petition for `3,00,000/- and the Tribunal awarded a total compensation of `2,84,900/-. It is the further submission that in this case, there are two disability certificates. One disability certificate which is seen produced by the appellant/petitioner shows 40% disability. Surely, the medical board assessed his disability as 42%. It is pertinent to note that the doctor who examined him to assess disability was not examined before the Tribunal. The Tribunal got opportunity to see the appellant-petitioner. Under such circumstances, the assessment of the Tribunal that the appellant sustained only 35% **M.A.C.A.1999/2011** 3 disability need not be disturbed. It is also the submission that the Tribunal awarded a just compensation and an interference by this Court is not warranted. 4.We perused the records. In this case, at the earliest point of time, when the petitioner was seen by the doctor, it was noted as 'comatose, responds to painful stimula' and CT scanning of Brain Plain Study dated 26.12.2005 shows thus:- “Parenchymal contusions involving left upper medulla, left middle cerebellar peduncle and upper pons with minimal midline shift. Tiny hyperdense area in the head of right caudate nucleus. Subarachnoid haemorrhage involving posterior peri mesencephatic and superior cerebellar cisterns probably secondary to dissection from the parenchymal contusion.” It is seen noted fracture involving postero-lateral wall of right maxillary antrum with hemosinus. Ext.A19 disability certificate issued from Medical College Hospital, Thiruvananthapuram shows that there is a disability of 40%. The medical board assessed the disability as 42%. After going through the medical records, it can be **M.A.C.A.1999/2011** 4 seen that emergency tracheostomy was done and artificial breathing was given with ventilator and the appellant was transferred to Neurosurgery ICU. It is also noted therein that he was shifted to ward on 14.1.2006 and discharged on 3.2.2006 with Rhyles tube feeding and bladder catheter with advise for regular following in Neurosurgery O.P. He was reviewed by Professor of Neurosurgery Dr.Anil Kumar P. on 15.6.2006, 8.7.2006 7.8.2006 and 25.8.2007 and he gradually developed Quadriparesis, diminished hearing and slurring of speech and is still on treatment. Thus, the medical board assessed the disability due Ataxia moderate constant as 20%, traumatic neurosis 10%, continence of stool 10%, loss of smell 5% and diminished hearing at ear as 5%. 5.Using the formula available to add these disability factors to bring the disability to the whole body, the medical board arrived at a disability of 42%. After going through the disability certificate, we feel that there is nothing to disbelieve/discard the disability assessed by the medical board. According to us, considering the nature of the injuries, the **M.A.C.A.1999/2011** 5 disability assessed by the medical board is to be accepted. Accordingly, accepting the disability assessed by the medical board, it is assessed as 42%. 6.In this case, the accident occurred in the year 2005. The case of the appellant- petitioner is that he was aged 37 years at the time of the accident. His case is that he was a salesman by profession. Surely, no positive evidence adduced to substantiate his claim except the oral evidence of PW1. Considering the fact that the notional income of a coolie in respect of an accident occurred in the year 2004 was fixed by the Apex Court as `4,500/- in **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.** [ **(2011) 13 SCC 236],** it will only be just and proper to consider `4500/- as the income for the appellant herein also, for calculation purpose. In this case, compensation towards loss of income due to disability was assessed as `1,57,500/-. We re-assess the same by taking `4,500/- as the income and 42%, as disability. Thus, the amount available on this head will be `3,40,200/(4500x12x15x42/100). An amount of `1,57,500/- is already granted **M.A.C.A.1999/2011** 6 by the Tribunal. Thus, the appellant will be entitled for an additional sum of `1,82,700/- on this head. Apart from the same, it can be seen that on the head of loss of earning for six months, a sum of `18,000/- is granted by the Tribunal. When an income of `4,500/- is considered, he will be entitled for an additional sum of `12,000/-. Thus, the appellant will be entitled for an additional compensation of `1,94,700/-. 7.The learned counsel for the insurance company raised a contention that the compensation will come about double the amount claimed by the appellant in the Tribunal. The argument got no legal foundation. At this juncture, we may quote paragraph 19 of the decision of the Apex Court in **Rajesh and others v. Rajbir Singh** ## **and others [(2013) 9 SCC 54]** :- “In a report on accident, there is no question of any reference to any claim for damages, different heads of damages or such other details. It is the duty of the Tribunal to build on that report and award just, equitable, fair and reasonable compensation with reference to the **M.A.C.A.1999/2011** 7 settled principles on assessment of damages. Thus, on that ground also we hold that the Tribunal/Court has a duty, irrespective of the claims made in the Application, if any, to properly award a just, equitable, fair and reasonable compensation, if necessary, ignoring the claim made in the application for compensation.” The additional compensation will bear interest @ 8% from the date of the petition till realisation. The insurance company shall pay the additional compensation within two months of the date of receipt of copy of this judgment. There will be no order as to costs. The Tribunal shall realise the additional court fee, if any, due for the claimant from the amount deposited by the insurance company. **Sd/C.T. RAVIKUMAR (JUDGE)** **Sd/-** **K. P. JYOTHINDRANATH (JUDGE)** **spc/** **M.A.C.A.1999/2011** 8 ## **C.T. RAVIKUMAR, J.** **M.A.C.A.1999/2011** 9 **JUDGMENT September, 2010**