High Court of KeralaSingle JudgeDisposed of with enhanced compensation and dire...

Muhammed Shihabuddin s/o Hyderali v. P.K. Ravikumar and Others; United India Insurance Company Ltd.

Case / Petition Number:MACA No. 787 of 2007

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
Judgment Date
2019-12-17
Court Decision / Holding
The appeal is disposed of with enhancement of compensation by Rs. 20,400, interest at 8% per annum from the date of petition to realisation, to be paid within two months by the 3rd respondent, after accounting for any balance court fee and Legal Benefit Fund liability. No costs order is made. The insurer is directed to satisfy the enhanced amount within the stipulated period following the circular directives cited in the judgment.
Final Disposition
Disposed of with enhanced compensation and directions for payment; no costs.

Parties to the Case

Appellants / Petitioners

  • Muhammed Shihabuddin s/o Hyderali

Respondents

  • P.K. Ravikumar and Others
  • Shahul Hameed So.Kareem Haji
  • United India Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri U.K. Devidas

Counsels for Respondents

  • • Smt. K.C. Beena

Case Synopsis & Summary

Muhammed Shihabuddin, the claimant, filed MACA No. 787 of 2007 challenging an award under Section 166 of the Motor Vehicles Act, 1988, arising from injuries sustained in a road accident on 11.04.2002 while driving a tempo van. The Tribunal held that the lorry driven by the 2nd respondent, owned by the 1st respondent, was negligent and that the insurer (3rd respondent) was liable to indemnify. The Tribunal awarded Rs. 92,230 with 6% interest and costs, despite ex parte conduct by respondents 1 and 2. The High Court was asked to reexamine the quantum of compensation. On appeal, the court relied on jurisprudence emphasizing that ‘just compensation’ must be fair, reasonable, and non-windfall, not a mere arithmetic calculation, citing Jasbir Kaur and Pranay Sethi. To address the lack of documentary proof of income, the court applied notional incomes (Rs. 3,500 per month) guided by Ramachandrappa and Syed Sadiq, re-fixing several heads of damages and recomputing loss of earnings, transport, bystander expenses, clothing, review, and disfigurement. The court found enhancements in several heads, awarding an additional Rs. 20,400 with 8% interest and directing timely payment by the insurer, while noting certain heads did not require improvement. The appeal was disposed of with no costs.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation must be fair, reasonable and equitable; not a windfall, bonanza, or pittiance
  • Notion of ‘just compensation’ cannot be reduced to arithmetical exactitude; the Court must aim for a reasonable proximity to fairness based on record materials
  • Notional income may be adopted for unsupported claimants in appropriate cases, guided by precedents (Ramachandrappa, Syed Sadiq)
  • The compensation principle includes fairness, reasonableness and equitability rather than mechanical computation

Submissions & Arguments

Contentions of Appellants / Petitioners

The claimant sought enhancement of the Tribunal’s award under multiple heads, contending the notional income and heads of damages (loss of earning, transport to hospital, bystander expenses, extra nourishment, loss due to disfigurement, pain and suffering) should be reconsidered in light of decisions on just compensation, including Ramachandrappa, Syed Sadiq, and Pranay Sethi; urged that the fixation of a higher notional income and broader compensation would reflect the true extent of loss, given the injuries and treatment.

Contentions of Respondents

The insurer contesting the enhancement argued the Tribunal’s award was just and that the lack of documentary income evidence should not trigger large increases; highlighted that the insured vehicle was comprehensively insured and liability was admitted; urged that notional incomes should not be inflated and that several heads should not be enhanced beyond reason.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
State of Haryana v. Jasbir Kaur(2003) 7 SCC 484PositiveCited to emphasize that damages under MV Act must be just and reasonable, not windfall or pittance; supports the notion of fair compensation.
National Insurance Company Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveConstitution Bench on just compensation, fairness, reasonableness, and non-arithmetic precision.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveGuided notional income for unproved earnings; supports using notional figures in absence of documentary evidence.
Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd.(2014) 2 SCC 735PositiveAffirms use of notional income for unorganised sector workers; supports income re-fixation in their context.

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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 ANIL K.NARENDRAN** **TUESDAY, THE 17TH DAY OF DECEMBER 2019 / 26TH AGRAHAYANA, 1941** ## **MACA.No.787 OF 2007** **AGAINST THE AWARD IN OPMV 1439/2002 DATED 27-12-2006 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , MANJERI** ## **APPELLANT/S:** **MUHAMMED SHIHABUDDIN S/O.HYDERALI, ODAKKUZHIYAN HOUSE,, WANDOOR. BY ADV. SRI.U.K.DEVIDAS** ## **RESPONDENT/S:** |**1**|**P.K.RAVIKUMAR AND OTHERS**| |---|---| ||**YAKKARA VILLAGE, PALAKKAD.**| |**2**|**SHAHUL HAMEED SO.KAREEM HAJI**| ||**N.P.ITTARI, 7TH STREET, POTHENNUR,,**| ||**COIMBATORE.**| |**3**|**UNITED INDIA INSURANCE COMPANY LTD.**| ||**GB ROAD, PALAKKAD.**| ||**R1, R3 BY ADV. SMT.K.C.BEENA**| **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 17.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** -2- MACA. No. 787 of 2007 ## **JUDGMENT** The appellant is the claimant in O.P(MV)No.1439 of 2002 on the file of the Motor Accidents Claims Tribunal, Manjeri, a claim petition filed under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the injuries sustained by him in a motor accident, which occurred on 11.04.2002, while he was driving a goods carriage (tempo van) bearing Reg.No.KL-10/F-457. When the vehicle reached Kumaramputhoor near Mannarkkad, the appellant stopped the vehicle to have a cup of tea. While he was standing in front of the vehicle, a lorry bearing Reg.No.KEK-5009, owned by the 1[st] respondent and driven by the 2[nd] respondent hit on the tempo van, as a result of which the tempo van moved forward and the appellant was knocked down. Alleging that the accident occurred due to the rash and negligent driving of lorry by the 2[nd] respondent, claim petition was filed before the Tribunal claiming a total compensation of Rs.3,89,000/-, under various heads. 2. Before the Tribunal, the respondents 1 and 2 remained absent and they were set ex parte. The 3[rd] -3- MACA. No. 787 of 2007 respondent insurer filed written statement admitting insurance coverage of the lorry; however, denying the negligence alleged against the 2[nd] respondent driver. The age, occupation, monthly income, etc. stated in the claim petition were denied and it was contended that the compensation claimed is highly excessive. 3. Before the Tribunal, Exts.A1 to A7 were marked on the side of the appellant/claimant. Both sides have not chosen to adduce any oral evidence. 4. After considering the pleadings and materials on record, the Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent driving of the lorry by the 2[nd] respondent driver. Since insurance coverage of the said vehicle was not in dispute, the insurer was held liable to indemnify the insured. Under various heads, the Tribunal awarded a total compensation of Rs.92,230/-, together with interest at the rate of 6% per annum from the date of petition till realisation, with a cost of Rs.500/- and the insurer was directed to satisfy the award. 5. Dissatisfied with the quantum of compensation -4- MACA. No. 787 of 2007 awarded by the Tribunal, the appellant/claimant is before this Court in this appeal. 6. Heard the learned counsel for the appellant/ claimant and also the learned Standing Counsel for the 3[rd] respondent/insurer. 7. The issue that arises for consideration in this appeal is as to whether the appellant is entitled for enhancement of the compensation awarded by the Tribunal under various heads. 8. In **State of Haryana v. Jasbir Kaur [(2003) 7** **SCC 484]** the Apex Court held that the Tribunal under Section 168 of the Motor Vehicles Act, 1988 is required to make an award determining the amount of compensation which is to be in the real sense 'damages' which in turn appears to it to be 'just and reasonable'. It has to be borne in mind that compensation for loss of limbs or life can hardly be weighed in golden scales. But at the same time it has be to be borne in mind that the compensation is not expected to be a windfall for the victim. Statutory provisions clearly indicate that the compensation must be 'just' and it cannot be a bonanza; not a -5- MACA. No. 787 of 2007 source of profit; but the same should not be a pittance. 9. In **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** a Constitution Bench of the Apex Court 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 foundation of fairness, reasonableness and equitability on acceptable legal standard because such determination can never be in arithmetical exactitude. It can never be perfect. The aim is to achieve an acceptable degree of proximity to arithmetical precision on the basis of materials brought on record in an individual case. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 10. In the instant case, the compensation awarded by the Tribunal under various heads reads thus; |Transport to hospital|500| |---|---| |Extra nourishment and|| |bystander's expenses|1,800| |Damage to clothing|250| |For review (8 months)|800| -6- MACA. No. 787 of 2007 |Loss of income for 6 months|Loss of income for 6 months| |---|---| |@ Rs.1,500/-|9,000| |Future treatment|5,000| |For disfigurement|4,000| |Permissible Medical bills|58,880| |Pain and suffering|12,000| ||----------------| |**Total**|**92,230/-**| ----------------- ========== 11. The accident occurred on 11.04.2002. At the time of accident, the appellant was aged 25 years. The appellant claimed a monthly income of Rs.4,500/- as a driver. No materials were produced before the Tribunal to prove the monthly income of the appellant. The appellant has also not chosen to mount the box. In the absence of any reliable materials, the Tribunal fixed the monthly income notionally as Rs.1,500/-, for the purpose of assessing compensation under various heads. 12. In **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011)** **13 SCC 236]** the Apex Court reckoned the monthly income of a coolie (manual labourer), who met with a road accident in the year 2004, at the age of 35 years, notionally as -7- MACA. No. 787 of 2007 Rs.4,500/-. The Apex Court held that, the claimant who was working as a coolie cannot be expected to produce any documentary evidence to substantiate his claim. In the absence of any other evidence contrary to the claim made by the claimant, in the facts of the said case, the Tribunal should have accepted the claim of the claimant. The Apex Court made it clear that, in all cases and in all circumstances, the Tribunal need not accept the claim of the claimant, in the absence of supporting material. It depends on the facts of each case. In a given case, if the claim made is so exorbitant or if the claim made is contrary to ground realities, the Tribunal may not accept the claim and may proceed to determine the possible income by resorting to some guess work, which may include the ground realities prevailing at the relevant point of time. 13. In **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** , taking note of the earlier decision in **Ramachandrappa's case (supra)** , the Apex Court reckoned the monthly income of a vegetable vendor, who met with a road accident in the year 2008, at the -8- MACA. No. 787 of 2007 age of 24 years, notionally as Rs.6,500/-. In the said decision, the Apex Court held that, a labourer in an unorganised sector doing his own business cannot be expected to produce documents to prove his monthly income. Therefore, there was no reason for the Tribunal and the High Court to ask for evidence to prove his monthly income. Going by the state of economy prevailing at that time and the rising prices in agricultural products, the Apex Court accepted his case that a vegetable vendor is reasonably capable of earning 6,500/- per month. 14. In the absence of any reliable evidence, considering the economic conditions prevailing at the time of accident, i.e., during the year 2002, and taking note of the fixation of notional monthly income by the Apex Court in the decisions referred to supra, this Court deem it appropriate to re-fix the monthly income of the appellant notionally as Rs.3,500/-, for the purpose of assessing compensation under various heads. 15. The document marked as Ext.A2 is the wound certificate and Ext.A3 is the discharge summary. As per -9- MACA. No. 787 of 2007 medical records, the appellant sustained closed fracture tibia (R), closed fracture (L) femur and open knee. He had undergone inpatient treatment for a period of 18 days. Ext.A7 series of medical bills are for a sum of Rs.58,880/-. 16. Towards loss of earning, the Tribunal awarded a sum of Rs.9,000/-, at the rate of Rs.1,500/- for a period of 6 months. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the period of 6 months fixed by the Tribunal for granting loss of earning is just and reasonable. Since the monthly income of the appellant is re-fixed notionally as Rs.3,500/-, the compensation under the head loss of earning is re-fixed as Rs.21,000/- (3,500 x 6), resulting an additional compensation of **Rs.12,000/-** (21,000 – 9,000). 17. On account of the injuries sustained in the accident, the appellant had undergone inpatient treatment for 18 days. Towards transportation to hospital, the Tribunal awarded a sum of Rs.500/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under this -10- MACA. No. 787 of 2007 head is re-fixed as Rs.1,500/-, resulting an additional compensation of **Rs.1,000/-** (1,500 - 500). 18. Towards bystander expenses and extra nourishment, the Tribunal awarded a total sum of Rs.1,800/-. The accident is of the year 2002 and the appellant had undergone inpatient treatment for 18 days. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under the head bystander expenses is re-fixed as Rs.2,700/- (150 x 18), and the compensation under the head extra nourishment is re-fixed as Rs.1,800/- (100 x 18), resulting an additional compensation of **Rs. 2,700/-** [(2,700 + 1,800) – 1,800]. 19. Towards damage to clothing and articles, the Tribunal awarded a sum of Rs.250/-. Considering the fact that the accident is of the year 2002, the compensation under this head is re-fixed as Rs.750/-, resulting an additional compensation of **Rs.500/-** (750 – 250). 20. The Tribunal awarded a sum of Rs.800/- for review. Considering the fact that the accident is of the year 2002, the -11- MACA. No. 787 of 2007 compensation under this head is re-fixed as Rs.1,000/-, resulting an additional compensation of **Rs.200/-** (1,000 - 800). 21. Towards medical expenses, the Tribunal awarded a sum of Rs.58,880/-, covered by Ext.A7 series of medical bills. In the absence of any further materials, the compensation awarded by the Tribunal under this head represents just and reasonable compensation, which requires no enhancement in this appeal. 22. As compensation towards future treatment, the Tribunal awarded a sum of Rs.5,000/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation awarded by the Tribunal under this head cannot be said to be on the lower side. Therefore, the appellant is not entitled for any enhancement under this head. 23. As compensation towards disfigurement, the Tribunal awarded a sum of Rs.4,000/-. Considering the nature of injuries sustained, the compensation awarded by the Tribunal under the head disfigurement is re-fixed as -12- MACA. No. 787 of 2007 Rs.5,000/-, resulting an additional compensation of **Rs.1,000/-** (5,000 – 4,000). 24. As compensation towards pain and suffering, the Tribunal awarded a sum of Rs.12,000/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation awarded by the Tribunal under the head pain and suffering is re-fixed as Rs.15,000/-, resulting an additional compensation of **Rs.3,000/-** (15,000 – 12,000). 25. In the result, the appellant will be entitled for payment of an additional compensation of **Rs.20,400/-** (Rupees twenty thousand four hundred only) [12,000 + 1,000 + 2,700 + 500 + 200 + 1,000 + 3,000] in this appeal, which will carry interest at the rate of **8%** per annum from the date of petition till realisation. The 3[rd] respondent/insurer shall satisfy the additional compensation granted in this appeal, together with interest, within a period of two months from the date of receipt of a certified copy of this judgment, after deducting the liability, if any, of the appellant/claimant towards Balance Court Fee and Legal Benefit Fund. The -13- MACA. No. 787 of 2007 disbursement of the amount to the appellant/claimant shall be in terms of the directives issued by this Court in Circular No.3 of 2019 dated 06.09.2019 and clarified further in Official Memorandum No.D1-62475/2016 dated 07.11.2019. This appeal is disposed of as above. No order as to costs. **Sd/ANIL K.NARENDRAN JUDGE** das