High Court of KeralaDivision BenchPartly Allowed

Moosa v. A.K. Ummer and others

Case / Petition Number:MFA.No.1322/2000

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • J.B.Koshy
  • K.P.Balachandran
Judgment Date
2007-06-07
Court Decision / Holding
The appeal is partly allowed. The court enhanced the compensation by Rs.23,750 over and above the Tribunal’s decree, directing the third respondent (insurer) to deposit this amount, with 8% interest from the date of the accident until deposit. On deposit, the appellant Moosa is entitled to withdraw the enhanced amount. The Tribunal’s allocations on disfigurement, loss of earning capacity, and medical expenses were adjusted accordingly, with no further enhancements under other heads.
Final Disposition
Partly Allowed

Parties to the Case

Appellants / Petitioners

  • Moosa, S/o. Alavikutty

Respondents

  • A.K. Ummer
  • P.P. Kassim
  • New India Assurance Co. Ltd.
  • K. Muhammed
  • Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.K.M.Sathyanatha Menon

Counsels for Respondents

  • • Sri.M.M.Husain
  • • Sri.Babu S. Nair
  • • Sri.Anchal C.Vijayan

Case Synopsis & Summary

Moosa, the appellant, sustained serious injuries as a pillion rider in a road accident involving a lorry and a motorcycle on 29 December 1991. The Motor Accidents Claims Tribunal at Manjeri awarded a modest sum and directed the insurer to deposit the amount, but only Rs. 24,950 was paid. On appeal, the Kerala High Court (Division Bench) re-evaluated the quantum of compensation, not the liability. It took the view that Moosa was an earning person aged about 30 at the time and that the second schedule of the Motor Vehicles Act serves as a guideline rather than a rigid formula; monetary income was reasonably fixed at Rs.1,250 per month and the multiplier appropriate for the era was 17. Based on Ext.A5 (disability certificate showing 15% disability) and Ext.A8 (psychiatric illness), the court held that the disability should be treated as 10% for calculation purposes, leading to a revised compensation for disability and loss of earning power of Rs.25,500. It also enhanced amounts for disfigurement, medical expenses, and future medical care, totaling Rs.23,750 as an additional award. The court declined to grant enhancements under other heads, but ordered the insurer to deposit the enhanced sum with 8% interest from the date of the accident, allowing Moosa to withdraw on deposit. The appeal was partly allowed.

Provisions of Law Cited

Motor Vehicles Act, 1988 (as amended)Section 166 of Motor Vehicles ActSection 163A of Motor Vehicles ActSecond Schedule to the Motor Vehicles Act (guideline for computation of compensation)

Legal Doctrines & Maxims

  • Multiplier principle based on the Second Schedule for determining compensation under Section 166; deviation from the structured formula only in exceptional cases.
  • Normal application of the multiplier as indicated in the Second Schedule (as reaffirmed by apex court decisions).
  • Guideline value of the Second Schedule; however, exceptions may be allowed in exceptional circumstances.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that, though the accident occurred in 1991, the second schedule of the Motor Vehicles Act provides a structured framework for calculating compensation, and that an earning individual aged 30 should be assigned a monthly income of Rs.1,250 with a multiplier of 17. Citing the decisions in Smt. Supe Dei and others v. M/s. National Insurance Company Ltd. and another, United India Insurance Co. Ltd. v. Patricia Jean Mahajan and others, and Abati Bezbaruah v. Dy. Director General, Geological Survey of India and another, the appellant asserts that the Tribunal erred in applying a lower sum for disability (Rs.7,500) and in not accounting adequately for medical and future treatment expenses. He seeks enhancement of the disability percentage (from 10% as adopted by the Tribunal to reflect Ext.A5) and full compensation under all heads, including medical expenses and loss of earning for the period of bed rest.

Contentions of Respondents

The respondents contend that the Tribunal acted within the law and that the second schedule should be treated as a guideline rather than a rigid formula; the standard multiplier should be applied with the toxic element of the case considered. They point out that medical bills were not fully produced and emphasize that the appellant’s condition required continued treatment, but argue that the Tribunal’s deductions were reasonable. They dispute the quantum of discretionary enhancements and contend the appeal should be dismissed or, at most, limited to a modest increase consistent with established jurisprudence.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Smt. Supe Dei and others v. M/s. National Insurance Company Ltd. and anotherJT 2002 (Suppl.1) SC 451PositiveUsed to support the multiplier approach and reliance on second schedule as a guideline; authoritatively endorses applying multiplier 17 in appropriate circumstances.
United India Insurance Co Ltd. v. Patricia Jean Mahajan and othersJT 2002 (5) SC 74PositiveAffirms that multiplier, normally as per second schedule, should be applied; deviations are exceptional.
Abati Bezbaruah v. Dy.Director General, Geological Survey of India and another(2003) 3 SCC 148PositiveAffirms that the structured formula provides guidelines and deviations should be rare; multiplier system should be followed ordinarily.

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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 J.B.KOSHY** **& THE HONOURABLE MR. JUSTICE K.P.BALACHANDRAN** **THURSDAY, THE 7TH JUNE 2007 / 17TH JYAISHTA 1929** **MFA.No. 1322 of 2000** **-------------------------------** ## **O.P(MV).NO.1655/1992 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, MANJERI.** **....................** ## **APPELLANT/PETITIONER:** **-------------------------------------** **MOOSA, S/O. ALAVIKUTTY, MALAPPURAM AMSOM, MELMURI DESOM, MALAPPURAM DISTRICT.** **BY ADV. SRI.K.M.SATHYANATHA MENON.** ## **RESPONDENTS/RESPONDENTS:** **-----------------------------------------------** **1. A.K. UMMER, S/O. A.K. MUHAMMED, ANDIKATTIL HOUSE, MELMURI (P.O), MALAPPURAM DISTRICT. (DRIVER OF LORRY NO. KLM 5458)** **2. P.P. KASSIM, S/O. IBRAHIM HAJI, MADASSERI HOUSE, MELMURI POST, MALAPPURAM DISTRICT. (OWNER OF LORRY NO. KLM 5458).** **3. NEW INDIA ASSURANCE CO. LTD., BRANCH OFFICE, CATHOLIC CENTRE, O.P. HILL, MALAPPURAM, (INSURER OF LORRY NO. KLM 5458).** **4. MR. K. MUHAMMED, S/O. KUNHALI HAJI, KADAKKARA HOUSE, PAPPINIPPARA POST, MANJERI, MALAPPURAM DISTRICT. (OWNER CUM DRIVER OF MOTOR CYCLE NO. KED 7155).** ## **M.F.A. NO. 1322/2000:** ## **5. ORIENTAL INSURANCE CO. LTD., BRANCH OFFICE, MANJERI (INSURER).** **BY ADV. SRI.M.M.HUSAIN, SRI.BABU S. NAIR, SRI.ANCHAL C.VIJAYAN.** **THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 07/06/2007,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **J.B.KOSHY & K.P.BALACHANDRAN, JJ.** ------------------------------------M.F.A.No.1322 OF 2000 ------------------------------------Dated 7th June, 2007 ## **JUDGMENT** ## **Koshy,J** . Appellant/petitioner met with a motor accident by which he sustained serious injuries while he was travelling as a pillion rider in a motor cycle driven by the fourth respondent. The lorry driven by the first respondent owned by the second respondent and insured by the third respondent hit the vehicle and the accident occurred. He claimed a compensation of Rs.1,50,000/=. The Tribunal found that the accident occurred due to the negligence of the first respondent. Insurance company (R3) was directed to deposit the amount. However, only Rs.24,950/= was awarded as compensation. Only quantum of compensation is disputed in this appeal. Hence, we are considering that aspect alone in this appeal. ## 2. Appellant was aged 30 at the time of the accident. According to him, he was a coolie. The accident occurred on 29.12.1991. The Tribunal fixed only Rs.1,000/= as monthly wages. He was an able bodied man maintaining a family. When second schedule was framed in 1994, the notional income of a non-earning person was fixed as Rs.1,250/= MFA.1322/2000 2 (Rs.15,000/= per year). It is true that the accident occurred on 29.12.1991. Appellant is not a non-earning person, but, is an earning person. In the above circumstances, we are of the opinion that at least Rs.1,250/= should be fixed as monthly income. He was aged 30 at the time of the accident. It was repeatedly held by the Apex Court that multiplier has to be fixed taking guidance from the second schedule. A three member bench of the Supreme Court in _**Smt.Supe Dei and others**_ v. _**M/s.National Insurance Company Ltd. and another**_ (JT 2002 (Suppl.1) SC 451) held that the second schedule of the Motor Vehicles Act is framed for the purpose of awarding compensation under Section 163A, but, it serves as a guideline for determination of compensation under Section 166 of the Motor Vehicles Act. Since the victim of the accident in that case was aged 32, considering the second schedule, Hon'ble Supreme Court accepted 17 as the multiplier. In _**United India Insurance Co Ltd.**_ v. _**Patricia**_ _**Jean Mahajan and others**_ (JT 2002 (5) SC 74), the Apex Court held that, except in very rare cases, multiplier system should not be deviated from. The other methods, which were in vogue prior to the introduction of the multiplier system, were held to be no more good system. It was MFA.1322/2000 3 further held that normally the multiplier, as indicated in the second schedule, should be applied. Though the second schedule is found to be a safe guide for the purpose of calculation of the amount of compensation, in special circumstances, it can be varied. In that case, it was also held that if the multiplicand is very high, a lesser ## multiplier can be taken. In _**Abati Bezbaruah**_ v. _**Dy.Director**_ ## _**General, Geological Survey of India and another**_ ((2003) 3 SCC 148), it was held that structured formula mentioned in the second schedule gives guidelines for determination of the amount of compensation in terms of Section 166 of the Motor Vehicles Act. Deviation from the structured formula can be resorted to only in exceptional cases and ordinarily the above multiplier system should be followed. If that be so, 17 is the apt multiplier. 3. Now, we will come to the disabilities occurred to the appellant due to the accident. He was treated as an inpatient for 13 days in the Medical College Hospital, Calicut. Subsequently also he has undergone treatment. Disability certificate was issued by Dr.C.C.Suresh M.S., Department of Surgery, Medical College Hospital, Calicut which was marked as Ext.A5. The above certificate reads as MFA.1322/2000 4 follows: “Certified that I have today examined Sri.Moosa 30 years who was under my treatment from 29.12.91 as IP 59313 following an alleged traffic accident which occurred on 29.12.91 following which he was admitted at MCH Calicut after reference from KPM Hospital, Malappuram and he was having Head Injury with CT proved communited depressed fracture of Right frontal base and was discharged on 6.1.92 with an advice of long term Anticonvulsant drugs. As he is now having recurrent Headache and occasional epileptic fits which can be due to the post traumatic sequelae. So, I consider that the above patient is having a permanent disability of about fifteen percent.” According to the doctor, appellant has 15% disability. Appellant also has a case that due to the accident he developed depressive mood and he was treated by Dr.D.Sreekumar, Associate Professor of Psychiatry, Government Health Centre, Calicut. Ext.A8 shows that he has developed organic mood disorder. On the basis of the certificates produced (Exts.A5 and A8), compensation was not calculated on a scientific basis, but, only Rs.7,500/= was granted as compensation for disability and loss of earning power. Ext.A5 certificate shows that he is having epilepsy due to the accident. There was head injury. The MFA.1322/2000 5 doctor certified 15% disability. Considering Ext.A5 certificate and the nature of his job, we take 10% disability. If that be so, compensation payable will be Rs.15,000 x 17 x 10 = 25,500/=. The Tribunal has awarded 100 only Rs.7,500/= for disability and loss of earning capacity. Hence, the claimant is entitled to an additional amount of Rs.18,000/= on this count. For disfigurement and loss of teeth, the Tribunal has awarded Rs.2,000/=. We are not interfering with the same. We have taken Rs.1,250/= as monthly income. For loss of earnings for the period he was actually bed ridden, the Tribunal has given Rs.3,000/=. Since we have taken Rs.1,250/= as the monthly income, he is entitled to an additional amount of Rs.750/= under that head. It is the case of the appellant that the entire medical bills were not produced. The medical certificates show that he needs continuous treatment. He has also produced various medical bills to show that even now he is continuing treatment. Medical bills for only Rs.656/= was produced before the Tribunal. But, the Tribunal found that during the period of treatment all the medical bills cannot be produced and the amount awarded for medical expenses was Rs.1,500/=. Considering the future treatment and nature of head injury, we are granting an additional MFA.1322/2000 6 amount of Rs.5,000/= for medical expenses and future medical expenses. Even though it is contended that compensation awarded under other heads are also very meagre, we are not giving any enhancement under other heads. Therefore, the appellant is entitled to an additional amount of Rs.23,750/=. The above amount of Rs.23,750/= should be deposited by the third respondent insurance company, over and above the decreed amount by the Tribunal, with 8% interest from the date of accident till its deposit. Since the accident occurred in 1991 and considering the age of the appellant etc., on deposit of the amount, the appellant is allowed to withdraw the same. The appeal is partly allowed. **J.B.KOSHY JUDGE** **K.P.BALACHANDRAN JUDGE** tks