High Court of KeralaDivision BenchThe appeal is allowed in part; enhanced compens...

N. C. Prasad v. Ladu Naik and others (MACA No. 591 of 2007)

Case / Petition Number:MACA.No.591 of 2007; OPMV.711/1997

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • V. Chittambaresh
Judgment Date
2011-11-11
Court Decision / Holding
This appeal is allowed in part. The appellant is entitled to a further Rs. 89,400 in addition to the Tribunal’s award. The enhanced amount shall carry interest as directed by the Tribunal, but interest shall not accrue on the enhanced amount for the period of delay (427 days). Proportionate costs shall be awarded on the entire amount of compensation calculated as per the dictum in Jeena v. Satheesh Babu.K. All other Tribunal directions are upheld. A separate C.M.Appln. (delay) is allowed to condone the delay, on the condition that no interest on the enhanced amount shall be payable for the 427‑day delay period.
Final Disposition
The appeal is allowed in part; enhanced compensation of Rs. 89,400; interest on the entire compensation as per Tribunal, excluding interest on enhanced amount during 427 days; costs as per Jeena dictum; other Tribunal directions upheld; delay condoned with conditions in the CA.

Parties to the Case

Appellants / Petitioners

  • N. C. Prasad

Respondents

  • Ladu Naik
  • M/S Talaulikal Electrical
  • The Oriental Insurance Co. Ltd
  • L. M. Mohammed Ashraff
  • National Insurance Co. Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri V. Binoy Ram

Counsels for Respondents

  • • Sri P. Jayasankar
  • • Sri John Joseph Vettikad

Case Synopsis & Summary

This is a Motor Accident Claims Appeal from the Kerala High Court challenging the quantum of compensation awarded by the Motor Accidents Claims Tribunal, Irinjalakuda for injuries suffered by the appellant in a motor accident on 10 April 1997. The appellant, a young motor mechanic aged 24 at the time, endured multiple fractures and 39 days of inpatient treatment across three spells, with a certified disability of 30% (Ext. A12). The Tribunal awarded Rs. 81,978 across heads including loss of earning, medical bills, pain and suffering, and loss of amenities. The appellant contends that the Tribunal erred in income estimation (Rs. 1,500/month) and in applying a low reduction in earning capacity (10%) contrary to the disability assessment. He argues under II Schedule Clause 6 of the Motor Vehicles Act for a higher baseline income and for greater compensation for hospitalisation-related costs (e.g., Rs.100/day for nourishment and attendants). The appellant also seeks higher awards for loss of amenities and pain and suffering, contending that the disability should yield at least 15% loss of earning capacity, not merely 10%. The respondents oppose enhancement. The High Court partially allows the appeal, permitting a further Rs. 89,400 in enhanced compensation, revising several heads while upholding other Tribunal directions, and directing interest as per the Tribunal, with a carve-out for 427 days of delay on enhanced amount.

Provisions of Law Cited

Motor Vehicles Act, II Schedule, Clause 6

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal grossly erred in determining monthly income as Rs. 1,500 at the time of the 10.4.1997 accident and that the non-acceptance of Ext. A9 (employment certificate) should not prevent a prudent inference about earnings. Citing Clause 6 of the II Schedule (presumption of prudent earnings) as early as 1994, he seeks to fix higher monthly earnings (Rs. 2,500) and a multiplicand of Rs. 3,000 for calculating loss of earning capacity. He urges fuller compensation for 39 days of hospitalization, proposing Rs. 100 per day for nourishment and attendants rather than the Tribunal’s Rs. 2,600 total. He argues that the disability of 30% should yield at least a 15% reduction in earning capacity, not 10%. With regard to loss of amenities and pain, he seeks Rs. 20,000 and Rs. 15,000 respectively, and a recalculation of the loss of earnings post-disability. He insists on higher interest and consequential costs, and alignment with the Jeena dictum for costs.” ,

Contentions of Respondents

The respondents contest the enhanced quantum, arguing that the Tribunal’s award is reasonable and well-grounded in the medical evidence and the 30% disability finding. They contend there is no basis to significantly increase compensation beyond the Tribunal’s calculation and rely on the Tribunal’s heads of damage and the evidence supporting the existing sums, urging that the appellant’s income should be conservatively assessed and the earning incapacity kept proportionate to the disability certificate. They oppose any retroactive enhancement that would disturb the existing award and its statutory interest framework.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Jeena v. Satheesh Babu.K.2011 (3) KLT 943PositiveCourt applies the dictum from Jeena to determine proportional costs on the entire compensation amount.

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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 R.BASANT & THE HONOURABLE MR. JUSTICE V.CHITAMBARESH FRIDAY, THE 11TH NOVEMBER 2011 / 20TH KARTHIKA 1933 MACA.No. 591 of 2007() ---------------------OPMV.711/1997 of MOTOR ACCIDENT CLAIMS TRIBUNAL, IRINJALAKUDA .................... APPELLANT(S): - -------------- N.C.PRASAD, S/O.CHAKKUNJI, NEDUMPULLIL HOUSE, PONJANAM P.O.,KATTOR, THRISSUR. BY ADV. SRI.V.BINOY RAM RESPONDENT(S): - --------------- 1. LADU NAIK , S/O.SUDO NAIK, C/O.HERO 695,SHRODA PONDA, GOA. 2. M/S.TALAULIKAL ELECTRICAL,NEAR CINI LATA,MARGO,GOA. 3. THE ORIENTIAL INSURANCE CO.LTD, GAFOOR BUILDING, 2ND FLOOR STATION ROAD, SANVORDEM, CURCHORMEM,GOA. 4. L.M.MOHAMMED ASHRAFF, S/O.ABDULLA, CHUNYAR MANZIL, HOUSE NO.64/230,POONNOOR, UNNIKULAM,CLAICUT DISTRICT. 5. NATIONAL INSURANCE CO.LTD, BRANCH OFFICE, KORAMBAYIL ARCADE, PANDIKKOD ROAD, MANJERI. BY ADV. SRI.P.JAYASANKAR FOR R5 BY ADV. SRI.P.JACOB MATHEW, SENIOR ADVOCATE FOR R3 BY ADV. SRI.JOHN JOSEPH VETTIKKAD. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 11/11/2001, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **R.BASANT & V.CHITAMBARESH, JJ.** ------------------------------- **M.A.C.A.No.591 of 2007** ------------------------------- **Dated this the 11[th] day of November, 2011** ## **J U D G M E N T** ## Basant, J. The claimant is the appellant. He claimed compensation for personal injuries suffered by him in a motor accident which took place on 10.4.1997. He had suffered multiple injuries including multiple fractures. He was an inpatient for a total period of 39 days in 3 spells. He suffered segmental fracture left femur, fracture mandible, fracture maxilla and multiple abrasions left forehead and left shoulder. He had allegedly suffered permanent disability. His permanent disability was assessed at 30% by the medical officer. This was certified in Ext.A12 disability certificate. The author of the disability certificate was examined as PW.12. The claimant claimed to be employed as a motor mechanic. According to him, he was getting an income of Rs.125/- per day. In support of this assertion, Ext.A9 employment certificate was also produced. 2. Against a total claim of Rs.2,50,000/-, the Tribunal by the impugned award directed payment of the total amount of Rs.81,978/- as per the details given which we extract below:- M.A.C.A.No.591 of 2007 2 |**_Sl.No._**|**_Head of claim_**|**_Amount_**<br>**_awarded (Rs.)_**| |---|---|---| |1|Loss of earning (1500 x 3)|4500| |2|Transport to hospital|2000| |3|Extra nourishment and wages to attendants(26 x 100)|2600| |4|Damages to clothing|NIL| |5|Medical bills|27278| |6|Pain and sufferings|10000| |7|Loss of amenities|5000| |8|Permanent disability (1500 x 12 x 17 x 10/100)|30600| ||**TOTAL**|**81978**| The fifth respondent insurance company was made entirely liable to the impugned award. 3. We have heard the learned counsel for the appellant and the learned counsel for the insurance company. Challenge is raised only against the quantum of compensation awarded by the Tribunal. 4. Called upon to explain and be specific, the learned counsel for the appellant first of all contends that the Tribunal had erred grossly in reckoning the monthly income as Rs.1500/- The accident had taken place on 10.4.1997. The appellant was aged 24 years on the date of the accident. An employment certificate was also produced. The Tribunal did not think it proper to accept the employment certificate as such. Even in that event, the Tribunal must M.A.C.A.No.591 of 2007 3 have drawn reasonable and prudent inferences, contends counsel for the appellant. Clause 6 of II schedule permits drawal of a presumption of prudence as early as in 1994 that even a non-earning person can safely be assumed to earn an income of Rs.15,000/- per annum. The appellant was a young man aged 24 years. He had started earning as a motor mechanic. We are, in these circumstances, persuaded to agree that Rs.2500/- can safely be assumed to be his monthly earnings at the time of the accident and Rs.3000/- can be reckoned as the multiplicand while ascertaining the quantum of compensation for reduction in earning capacity. The amount of compensation under those heads will have to be re-worked on the basis of the above input. 5. It is then contended that though the appellant was an inpatient for a period of 39 days in 3 spells, only an amount of Rs.2600/- has been awarded under the composite head of extra nourishment and wages of attendants, counsel argues and we agree that compensation under each of those heads can safely be awarded at the rate of Rs.100/- per day for the entire period of hospitalisation (39 days). 6. The learned counsel for the appellant contends that the Tribunal had arbitrarily slashed down the percentage of reduction in M.A.C.A.No.591 of 2007 4 earning capacity from 30% as certified in Ext.A12 disability certificate to 10%. The appellant had examined the author of the certificate as PW.2. PW.2 in Ext.A12 had certified and had asserted before court that 30% is the extent of physical disability. The learned counsel for the appellant argues that even taking note of the gap between physical disability and reduction in earning capacity, it was too unrealistic to reckon the extent of reduction in earning capacity at 10%. We have gone through Ext.A12. Considering the nature of the physical disability certified in Ext.A12, we find it safe to come to the conclusion that that physical disability must have resulted in reduction in earning capacity to an extent of at least 15%. That input can also be accepted while ascertaining the compensation for reduction in earning capacity. 7. For loss of amenities, only an amount of Rs.5000/- has been awarded. The nature of the disability can be ascertained from Ext.A12. Such disability suffered by the claimant is bound to leave behind two fold reflections on his life. It reduces the earning capacity. It also reduces the quality of enjoyment of life which the appellant can aspire to lead after the accident for the entire rest of his life. Considering the nature of injuries, we note that disfiguration must also have resulted. M.A.C.A.No.591 of 2007 5 8. Taking all the dimensions of the disability other than the reduction in earning capacity, we are satisfied that the quantum of compensation under the head of loss of amenities can be fixed at Rs.20,000/-. 9. The learned counsel for the appellant submits that under the head of pain and suffering notwithstanding the serious injuries suffered and the long period of treatment as an inpatient and later as an outpatient, higher amount of compensation has to be awarded. The Tribunal has awarded only an amount of Rs.10,000/under this head. We agree that the amount of compensation under the head pain and sufferings can be enhanced to Rs.15,000/-. 10. We are not persuaded to interfere with the quantum of compensation awarded under any other heads. 11. The above discussions lead us to the conclusion that the appellant is entitled to a further amount of Rs.89,400/- as compensation as shown below in addition to the amount amount awarded by the Tribunal. 1. Loss of Earnings (2500 x 3 = 7500 minus 4500) Rs. 3,000.00 2. Extra nourishment and Bystander's expenses (39 x 200 = 7800 minus 2600) Rs. 5,200.00 M.A.C.A.No.591 of 2007 6 3. Pain and sufferings (15,000 minus 10,000) Rs. 5,000.00 4. Loss of amenities (20,000 minus 5000) Rs.15,000.00 5. Reduction in Earning capacity (3000 x 12 x 17 x 15/100 = 91,800 minus 30, 600) Rs.61,200.00 ## **TOTAL** **Rs.89,400.00** 12. The learned counsel for the appellant points out that interest has been awarded only at the rate of 6% per annum. Counsel submits that interest must have been awarded at a higher rate. We agree with the learned counsel. Proportionate costs before the Tribunal also deserves to be awarded on the entire amount of compensation. ## - 13. In the result: a) This appeal is allowed in part; b) The appellant is found entitled to a further amount of Rs.89,400/- (Rupees eighty nine thousand four hundred and sixty only) in addition to the amount already awarded by the Tribunal under the impugned award; c) We make it clear that the entire amount of M.A.C.A.No.591 of 2007 7 compensation shall carry interest at the rate and for the period as directed by the Tribunal. The interest shall not however be payable on the enhanced amount of compensation for the period of 427 days, i.e., the period of delay in filing an appeal. d) The proportionate cost for the proceedings before the Tribunal shall be awarded on the entire of amount of compensation calculated as per the dictum in **Jeena v. Satheesh Babu.K.** (2011 (3) KLT 943). e) All other directions of the Tribunal are upheld. **R.BASANT, Judge** . **V.CHITAMBARESH, Judge.** **nj.** ## **R.BASANT & V.CHITAMBARESH, JJ.** ------------------------------- **C.M.Appln. No.629 of 2007 in M.A.C.A.No.591 of 2007** ------------------------------- **Dated this the 11[th] day of November, 2011** ## **O R D E R** ## Basant, J. This petition is to condone the delay of 427 days in filing the appeal. Heard the learned counsel for the appellant and the learned counsel for the respondent No.5 which has been made entirely liable under the impugned award to satisfy the award. We take a lenient view. Petition allowed and delay condoned on condition that the appellant shall not be entitled to any interest on the enhanced amount of compensation, if any, for the period of 427 days, the period of delay. **R.BASANT, Judge** . **V.CHITAMBARESH, Judge.** **nj.**