High Court of KeralaSingle JudgePartly allowed; enhanced compensation by Rs. 25...

Mohammed Yousaf Manhakadan v. Kappoor Abdu & Others and The New India Assurance Co. Ltd.

Case / Petition Number:MACA NO. 1370 OF 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-07-02
Court Decision / Holding
The appeal is partly allowed. The compensation is enhanced by Rs. 25,450 with interest at 7% per annum from the date of the petition till the date of deposit (after deducting 142 days for delay). The 3rd respondent is to deposit the enhanced amount before the Tribunal with interest and proportionate costs within two months from receipt of a certified copy of the judgment. The Tribunal shall disburse the deposited amount to the appellant as per law.
Final Disposition
Partly allowed; enhanced compensation by Rs. 25,450 with 7% interest and costs; deposit and disbursement ordered through Tribunal.

Parties to the Case

Appellants / Petitioners

  • Mohammed Yousaf Manhakadan

Respondents

  • Kappoor Abdu & Others
  • Saidalavi Koya Thangal
  • The New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Babu S. Nair
  • • Sri. K. Rakesh

Counsels for Respondents

  • • Sri. Lal George

Case Synopsis & Summary

On 5 March 2005, Mohammed Yousaf Manhakadan, the appellant, was travelling in autorickshaw KL-10 E 9086 from Malappuram toward Cherukunnu when the driver lost control, resulting in the vehicle overturning into a ditch. He sustained serious injuries and was treated at Al Mas Hospital, Kottakkal, and subsequently admitted as an in‑patient at MIMS Hospital, Kozhikode from 5 February 2005 to 7 February 2005, including ventilation, a surgery, and physiotherapy. A retired Assistant Executive Engineer in the CPWD and an agriculturist, he claimed a monthly income of Rs. 20,000 and sought compensation of Rs. 5,00,000 from the vehicle owner (2nd respondent) and insurer (3rd respondent), who admitted coverage. The fellow passenger pursued a separate claim. The Motor Accidents Claims Tribunal, Manjeri, allowed the petition and awarded Rs. 3,69,754 with interest at 7% per annum from the date of petition till realization, directing the 3rd respondent to pay. Dissatisfied, the appellant appealed to the High Court. The core issue was whether the quantum of compensation was fair, reasonable, and equitable under the just‑compensation standard. Citing the Pranay Sethi doctrine on fairness and reasonableness, the High Court re‑evaluated heads such as bystander expenses, hospital reviews, disfigurement/loss of amenities, and income proof, partially allowing the appeal by enhancing the total by Rs. 25,450, with 7% interest from the petition date, after accounting for delay, and directing deposit before the Tribunal within two months.

Provisions of Law Cited

Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation under Section 168 of the Motor Vehicles Act, 1988 must be determined on the principles of fairness, reasonableness and equitability.
  • Fairness, reasonableness and non-violation of the principle of equitability in compensation (as interpreted in National Insurance Co. Ltd. v. Pranay Sethi)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that the Tribunal’s quantum was inadequate and failed to reflect the actual medical expenses (Exts A1–A12), bystander costs, hospital reviews, and loss of amenities/disfigurement. He argued that his income and disability were not sufficiently proven, and that the standard of just compensation under Section 168 of the MV Act, as clarified by Pranay Sethi, requires a fairer, more equitable assessment that accounts for all verifiable losses.

Contentions of Respondents

The respondents argued that the Tribunal’s award was reasonable in light of the evidence on record and that there was no material misapplication of the law. They opposed excessive enhancement, noting that disability and income evidence were limited and that the insurer’s liability should be respected in line with the tribunal’s findings.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi[(2017) 16 SCC 680]PositiveUsed as the controlling principle that just compensation under Section 168 MV Act must be determined on fairness, reasonableness and equitability.

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Extracted Judgment Text

Exact text extracted from official judgment records.

MACA NO. 1370 OF 2010 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS FRIDAY, THE 2ND DAY OF JULY 2021 / 11TH ASHADHA, 1943 MACA NO. 1370 OF 2010 AGAINST THE ORDER/JUDGMENT IN OPMV 939/2005 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , MANJERI, MALAPPURAM APPELLANT/S: MOHAMMED YOUSAF MANHAKADAN, RASMI HOUSE, CHERUKUNU,, OTHUKKUNGAL.P.0., MALAPPURAM DISTRICT. BY ADVS. SRI.BABU S. NAIR SRI.K.RAKESH ## RESPONDENT/S: 1 KAPPOOR ABDU & OTHERS MELMURI AMSOM, DESOM, THADAPARAMB,, MALAPPURAM, MALAPPURAM DISTRICT, PIN-676505. 2 SAIDALAVI KOYA THANGAL SO.MOHAMMED KOYA THANGAL, VALIYAKATHODI HOUSE,, CHAPPANANGADI.P.O., MALAPPURAM DISTRICT. 3 THE NEW INDIA ASSURANCE CO.LTD MANJERI, MALAPPURAM DISTRICT,PIN-676121. BY ADV SRI.LAL GEORGE THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 02.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA NO. 1370 OF 2010 2 ## **JUDGMENT** The appellant was the petitioner in OP(MV) No.939/2005 on the file of the Motor Accidents Claims Tribunal, Manjeri. The respondents in the appeal were the respondents before the Tribunal. 2. The concise facts of the claim petition, relevant for the determination in that appeal are, on 05.03.2005 while the appellant was traveling in an autorikshaw bearing registration No.KL-10 E 9086 from Malappuram to Cherukunnu, the autorikshaw driver, the 1[st] respondent, lost control of the vehicle and it overturned and fell into a ditch. The appellant and a fellow passenger sustained serious injuries. The appellant was treated at Al Mas Hospital, Kottakkal and was thereafter, referred to the MIMS Hospital, Kozhikkode. He was treated as in patient from 05.02.2005 to 7.02.2005. He was put on ventilator support. He also had a surgery and was advised MACA NO. 1370 OF 2010 3 physiotherapy. The appellant was indisposed for a period of one He was a retired Assistant Executive year. Engineer in the CPWD and was an Agriculturist. He was earning a monthly income of Rs.20,000/-. The accident occurred solely on account of the negligence of the 1[st] respondent. The vehicle was owned by the 2[nd] respondent and insured with the 3[rd] respondent. Hence the appellant claimed a compensation of Rs.5,00,000/- from the respondents. 3. The fellow passenger in the vehicle filed OP(MV) No.940/2005 claiming compensation. The appearance of the 1[st] respondent was dispensed by the Tribunal. The 2[nd] respondent did not contest the proceedings and was set ex-parte. The 3[rd] respondent filed written statement admitting that the vehicle had a valid insurance coverage. 4. The appellant marked Exts.A1 to A12 series in evidence. 5. The Tribunal, after analysing the pleadings and MACA NO. 1370 OF 2010 4 materials on record, by a common award allowed the claim petition filed by the appellant by permitting him to realise the amount Rs.3,69,754/- with interest @7% per anum from the date of petition till the date of relaisation. The 3[rd] respondent was directed to pay the amount. 6. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 7. Heard the learned counsel appearing for the appellant and the learned counsel appearing for the 3[rd] respondent. 8. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. 9. A Constitution Bench of the Hon'ble Supreme Court in _**National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680],**_ has held that Section 168 of the Motor Vehicles Act, 1988, deals with the concept of 'just compensation', and the same has to be determined on the MACA NO. 1370 OF 2010 5 foundation of fairness, reasonableness and equitability on acceptable legal standards. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 10. Ext.A1 FIR and Ext.A2 and A3 wound certificates substantiate that the appellant sustained injuries on account of the accident. Undisputedly the 2[nd] respondent was the owner of the vehicle and the 3[rd] respondent was the insurer. Therefore, the 3[rd] respondent is liable to indemnify the 2[nd] respondent of his liability to pay compensation. 11. It is seen that the appellant was treated as inpatient at the Al Mas Hospital, Kottakal and, thereafter, in Mims Hospital, Kozhikkode. However, the appellant did not get his disability assessed by a Doctor or by a Medical Board. Similarly, the appellant did not produce any document to substantiate his income. Although he MACA NO. 1370 OF 2010 6 claimed to be a pensioner as well as Agriculturist earning an amount of Rs.20,000/- per month, the Tribunal fixed his income for one year at Rs.2,000/- per month, for the purpose of fixing loss of earning, which I fully endorse and concur. 12. The appellant was admitted in the two hospital for a period of 61 days. The Tribunal awarded bystander expense at Rs.100/- for 61 days that is an amount of Rs.6,100/-, which according to me is in the lower side. Therefore, I refix the bystander expense at Rs.250/- per day for a period of 61 days, i.e an amount of Rs.15,250/-, that is an enhancement of Rs.9,150/-. 13. It is also proved by Exts.A6 to A8 documents that the appellant had gone for 63 reviews to different hospitals. The Tribunal only awarded a paltry sum of Rs.100/- per day for the 63 reviews, which again is too meagre. Hence, I refix the expenses for the review at Rs.200/- per visit i.e.Rs.200 X 63, which amounts to Rs.12,600/-, that is an enhancement of Rs.6,300/-. MACA NO. 1370 OF 2010 7 14. The appellant had claimed an amount of Rs.15,000/- towards compensation for disfigurement and loss of amenities. The Tribunal did not award any amount under the said heads. 15. Taking into account the serious injuries sustained by the appellant, particularly that an amount of Rs.2,96,604/- had to be expended towards his treatment as per Ext.A12 series bills, I hold reasonable amount has to be awarded to the appellant as compensation under the aforesaid head. Hence I fix an amount of Rs.10,000/towards compensation for loss of amenities/disfigurement. 16. With respect to the other heads of compensation, especially for the lack of materials on record regarding disability as well as income of the appellant, I find that the Tribunal has awarded reasonable and just compensation. 17. On an overall re-appreciation of the materials on record, I am of the definite opinion that the appellant is MACA NO. 1370 OF 2010 8 entitled for enhancement of compensation to the tune of Rs.25,450/-, as modified and recalculated above. In the result, the appeal is allowed in part by enhancing the compensation by a further amount of Rs.25,450/- with interest @ 7% per annum from the date of petition till the date of deposit after deducting the period of 142 days, i.e., the period of delay in filing the appeal and as ordered by this Court on 16.08.2017 in C.M.Appln. No.1727/2010, and proportionate costs. The 3[rd] respondent shall deposit the enhanced compensation awarded in this appeal before the Tribunal with interest and proportionate costs within a period of two months from the date of receipt of a certified copy of the judgment. The Tribunal shall disburse the deposited amount to the appellant, in accordance with law. Sd/- **C.S.DIAS** **JUDGE** rkc