High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation with deta...

Nikhil P. v. M.K. Muhammed & Others

Case / Petition Number:MACA No. 3274 of 2015

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • M.B. Snehalatha, J.
Judgment Date
2024-07-26
Court Decision / Holding
Appeal allowed. The claimant’s compensation is enhanced to ₹2,77,684 (an increase of ₹1,52,900 over the Tribunal’s award of ₹1,24,784). R1–R3 (owner, driver, insurer) are jointly and severally liable to pay the enhanced amount with 9% interest from the date of petition till realization, except that no interest accrues for 73 days due to the delay in filing the appeal. R3 is directed to deposit the enhanced amount in the claimant’s bank account within two months from receipt of a certified copy of this judgment, after adjusting any pre-deposits. The bank details must be furnished within two months. The deposit must comply with Circular No. 3 of 2019 and related OM directives after deducting liabilities such as tax, court fee balance, and legal benefit fund.
Final Disposition
Appeal allowed; enhanced compensation with detailed head-wise augmentation; liability on R1–R3; deposit and interest terms as specified.

Parties to the Case

Appellants / Petitioners

  • Nikhil P., aged 25 years, s/o Surendran

Respondents

  • M.K. Muhammed
  • Muhammed
  • The Oriental Insurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Smt. Divya B. Nair

Counsels for Respondents

  • • Sri. Alexy Augustine
  • • George A. Cherian
  • • Jacob Mathew Kaithalil
  • • George Cherian (Sr.)

Case Synopsis & Summary

This is an appeal under MACA No. 3274 of 2015 from a Motor Accident Claims Tribunal Kozhikode award. The claimant, aged about 21 at the time of the accident (28-11-2011), sustained serious injuries as a pillion rider in bus KL-12-B-5004, resulting in a 10% permanent disability per Ext.C1. The Tribunal awarded ₹1,25,000 with 9% interest. The claimant sought enhanced compensation alleging that notional income of ₹3,000 per month was unrealistically low for a self-employed furniture/woodwork worker and that several heads of compensation were underassessed. The High Court, after evaluating the evidence, relied on precedents to recast the quantum. It fixed the notional income at ₹8,000 per month, relying on Syed Sadiq (notional earnings for similar trades), Rajani (robust view on earnings for self-cultivators), and Pranay Sethi (incremental enhancement for unorganized sector earnings). It computed loss of earnings, transportation, damages to clothing, bystander expenses, pain and suffering, loss of earning power due to permanent disability (multiplier 18 with 10% disability and age 21), and loss of amenities, resulting in a total enhanced award of ₹2,77,684 (enhanced by ₹1,52,900). The respondents R1–R3 are jointly and severally liable; R3 is directed to deposit the enhanced amount within two months. Interest on the enhanced amount is denied for 73 days due to delay in filing the appeal. The judgment directs bank details submission and compliance with circular directives on deposit.

Legal Doctrines & Maxims

  • Notional income doctrine for compensation; generous interpretation of earnings for self-employed/unorganized sector (Pranay Sethi, 2017); robust view on quantum of earnings for self-employed/self-cultivating workers (Rajani)
  • Incremental enhancement in compensation (₹500 per year) for future prospects (Pranay Sethi)

Submissions & Arguments

Contentions of Appellants / Petitioners

The claimant contends that the Tribunal’s award of ₹1,25,000 with 9% interest is inadequate. He asserts that a notional income of ₹3,000 per month is too low for a self-employed furniture worker and that the entitlement should reflect notional earnings around ₹8,000 per month, in line with Supreme Court precedents. He argues for higher compensation across heads including loss of earnings, transport, clothing, bystander expenses, pain and suffering, and loss of future earning power due to a 10% permanent disability. He supports applying incremental enhancements from Pranay Sethi and related jurisprudence to reflect cost of living and economic advancement since 2011.

Contentions of Respondents

The respondents contend that the Tribunal’s award was just and proper in light of the evidence on record and that the notional income should remain closer to ₹3,000 per month. They argue no basis for the substantial enhancement claimed by the claimant, and rely on the insurer’s liability being confined to the amount already awarded, subject to standard heads of damages under the Motor Vehicles Act. They emphasize the need to guard against over-compensation and maintaining a fair, evidence-based calculation.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Syed Sadiq and Others v. Divisional Manager, United India Insurance Co. Ltd.[(2014) 2 SCC 735]PositiveUsed as a precedent for the notional income methodology; Supreme Court fixed higher notional income (₹6,500) for a vegetable vendor, guiding higher earnings assumptions.
Rajani v. Oriental Insurance Company Ltd.[2022(5) KLT Online 1012 (SC)]PositiveCited for taking a robust view on earnings of self-cultivating agriculturist; supports considering higher earnings in absence of documentary evidence.
National Insurance Co. Ltd. v. Pranay Sethi[(2017) 16 SCC 680]PositiveFoundational for incremental enhancement in unorganized sector earnings, with annual ₹500 increases; informs the court’s approach to future earning prospects.

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Extracted Judgment Text

Exact text extracted from official judgment records.

M.A.C.A.No.3274 OF 2015 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MRS. JUSTICE M.B. SNEHALATHA FRIDAY, THE 26[TH] DAY OF JULY 2024 / 4TH SRAVANA, 1946 MACA NO. 3274 OF 2015** **AGAINST THE JUDGMENT DATED 11.02.2015 IN OPMV NO.71 OF 2012 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,KOZHIKODE APPELLANT:** **NIKHIL.P AGED 25 YEARS S/O. SURENDRAN, POVANGOTT HOUSE, P.O KOTTOOLI, PARAMBATHKAVU VIA, KOZHIKODE BY ADV SMT.DIVYA B.NAIR** ## **RESPONDENTS:** |**1**|**M.K. MUHAMMED**| |---|---| ||**S/O. AHAMMEDKUNHI HAJI, MATHUKOOTTIYATHIL HOUSE,**| ||**P.O KIZHAKKOTH, KODUVALLI, KOZHIKODE 673 001**| |**2**|**MUHAMMED, AGED 43 YEARS,**| ||**S/O.MOIDEENKUTTY, THANIKKAL HOUSE, P.O KIZHAKKOTH,**| ||**KODUVALLI, KOZHIKODE 673 001**| |**3**|**THE ORIENTAL INSURANCE COMPANY LTD**| ||**KING'S WAY BUILDING, 1ST FLOOR, MAVOOR ROAD JN,**| ||**KOZHIKODE 673 001**| ||**BY ADVS.**| ||**SRI.ALEXY AUGUSTINE**| ||**GEORGE A.CHERIAN**| ||**JACOB MATHEW KAITHALIL(K/000596/1989)**| ||**GEORGE CHERIAN (SR.)(G-81)**| **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR HEARING ON 1.07.2024, THE COURT ON 26.7.2024 DELIVERED THE FOLLOWING:** M.A.C.A.No.3274 OF 2015 2 ## **M.B.SNEHALATHA, J.** **------------------------------------------M.A.C.A.No.3274 OF 2015 ------------------------------------------Dated, this the 26[th] July, 2024** ## **JUDGMENT** Claimant in OP(MV) No.71/2012 of Motor Accident Claims Tribunal, Kozhikode [hereinafter referred to as ‘the Tribunal’] has filed this appeal seeking enhancement of compensation awarded by the Tribunal. 2. On 28.11.2011, the claimant met with a motor vehicle accident while he was travelling as a pillion rider as he was knocked down by a bus bearing registration No.KL-12-B-5004. The accident occurred due to the rash and negligent driving of R2, who was the driver of the offending bus. R1 is the RC owner and R3 is the insurer of the said bus. 3. By the impugned award, the Tribunal awarded a sum of ₹1,25,000/- as compensation with interest at the rate of 9% per annum. 4. Dissatisfied with the amount awarded, the claimant has M.A.C.A.No.3274 OF 2015 3 come up in appeal contending that the amount awarded is inadequate;that the notional income of ₹3,000/- per month taken for assessing the compensation is very low; that the amount awarded is not a just and reasonable compensation as mandated by law and therefore he seeks enhancement of the compensation. 5. Heard the learned counsel for both sides. Records perused. 6. Now let us see whether the claimant is entitled to any enhanced compensation and if so, what is the quantum. 7. It is not in dispute that on 28.11.2011, while the claimant was travelling as a pillion rider of a motor cycle, he met with an accident. It is also not in dispute that the accident occurred due to the rash and negligent driving of R2 who was the driver of the offending bus bearing registration No.KL-12-B-5004. It is an admitted fact that the offending vehicle was validly insured with R3. 8. Claimant’s case is that in the accident he sustained type II open fracture right leg middle 1/3rd , lacerated wound over right leg, fracture of two upper incisors and loss of one incisor and multiple abrasions on left hand and he was treated as inpatient for the period from 28.11.2011 till 10.12.2011 and he had to undergo a surgery on 4.12.2011. He has produced the medical records which M.A.C.A.No.3274 OF 2015 4 would reveal the nature of the injuries sustained by him. The Medical Board has issued Ext.C1 disability certificate to the effect that he sustained permanent disability of 10% due to the injuries sustained in the accident. 9. The Tribunal has assessed the compensation under various heads by fixing the notional income as ₹3000/- per month. 10. The specific case of the claimant who was then aged 21 years is that he was a self employed person engaged in furniture works and was earning ₹12,000/- per month. 11. In _Syed Sadiq and Others v. Divisional Manager, United India Insurance Co.Ltd. [(2014) 2 SCC 735]_ the Hon’ble Supreme Court fixed the notional income of a vegetable vendor in the year 2006 at the rate of ₹6,500/- per month. 12. In _Rajani v. Oriental Insurance Company Ltd. [2022(5) KLT Online 1012 (SC)]_ , where the victim of a motor vehicle accident was a self cultivating agriculturist, the Hon’ble Apex Court held that a robust view has to be taken on the quantum of earnings of a self cultivating agriculturist since documentary evidence may not be available to specifically prove the quantum of earnings of self skilled worker/self cultivating agriculturist. M.A.C.A.No.3274 OF 2015 5 13. In _National Insurance Co. Ltd. v. Pranay Sethi [(2017) 16 SCC 680]_ the Hon’ble Supreme Court has recognized the principle that there would be incremental enhancement in the case of even self-employed individuals in the unorganized sector and with respect to an unspecified job of a coolie considering the increase in cost of living and economic advancement over the years, it can be safely assumed that even a coolie worker would be eligible for incremental addition of ₹500/- in every subsequent year. 14. Bearing in mind the above yardsticks, this Court is of the view that the notional income of the claimant herein can be fixed at ₹8,000/- per month for the purpose of awarding just compensation in the claim petition filed by him. 15. The Tribunal has awarded a sum of ₹9,000/- towards loss of earning calculated at the rate of ₹3,000/- per month for a period of three months. This Court has fixed the notional income as ₹8,000/- per month. Accordingly, claimant is entitled to get an amount of ₹24,000/-[8000x3] under the head loss of earning during the period of treatment. 16. Under the head transport to the hospital, the Tribunal has awarded a sum of ₹1,000/-. The amount awarded by the Tribunal is M.A.C.A.No.3274 OF 2015 6 found to be very meager. Therefore, an additional sum of ₹2,000/is awarded under the head transportation charges. 17. Under the head damage to clothing and articles, the Tribunal has awarded only a sum of ₹500/-, which is on a lower side. Accordingly an additional sum of ₹500/- is awarded under the said head. 18. Towards bystander expenses, as against the claim of ₹5,000/- the Tribunal has awarded only a sum of ₹2,600/-, which is on a lower side. Hence, an additional sum of ₹2,400/- awarded under the said head. 19. Under the head pain and suffering the Tribunal has awarded only a sum of ₹25,000/-. Regard being had to the nature of injuries and the pain and suffering he had to undergo, an additional sum of ₹15,000/- is awarded. 20. It is in evidence that in the accident the claimant sustained type II open fracture right leg and he sustained fracture of two teeth and loss of one tooth. Ext.C1 would reveal that the medical board has assessed his permanent disability as 10%. 21. As the claimant was aged 21 and self employed at the time M.A.C.A.No.3274 OF 2015 7 of accident, the multiplier applicable to him is 18. So under the head loss of earning power due to permanent disability he is entitled to an amount of ₹1,72,800/- (₹8000x12x18x10/100) instead of ₹64,800/- awarded by the Tribunal. Amount under the said head is enhanced accordingly. 22. Under the head loss of amenities, the Tribunal has awarded only a sum of ₹5,000/-. Hence an additional sum of ₹10,000/- is awarded under the said head. 23. The Tribunal has awarded an amount of ₹15,384/- towards treatment expenses based on Ext.A8 series medical bills. Award under the said head requires no interference. 24. The compensation under all other heads stand unaltered. 25. In the result, appeal is allowed. The compensation payable to the respondent/claimant is as indicated in the tabular statement here below:- |Sl.<br>No.|Head of Claim|Amount<br>awarded by<br>the Tribunal|Total amount after<br>reduction in appeal| |---|---|---|---| |1|Loss of earnings|9000|24,000<br>(8000x3)| 8 M.A.C.A.No.3274 OF 2015 |2|Transport to hospital|1000|3000<br>(1000+2000)| |---|---|---|---| |3|Damage to clothing and<br>articles|500|1000<br>(500+500)| |4|Extra nourishment|1500|1500| |5|Bystander's expenses|2600|5000<br>(2600+2400)| |6|Treatment expenses|15384|15384| |7|Pain and sufferings|25000|40000<br>(25000+15000)| |8|Loss of future earning<br>power|64800|172800<br>(8000x12x18x10/100)| |9|Loss of amenities|5000|15000<br>(10000+5000)| ||Total|124784|277684| Amount enhanced is ₹1,52,900/- (₹277684 - ₹124784) 26. R1 to R3 in the O.P are jointly and severally liable to pay the award amount as enhanced by this Court with 9% interest per annum from the date of petition till realisation. 27. R3 insurance company shall deposit the award amount as enhanced by this Court in the Bank Account of the claimant within a period of two months from the date of receipt of a copy of this judgment after deducting the deposit if any already made. Since there was a delay of 73 days in filing the appeal, the claimant will not be entitled to interest on the enhanced amount for the period of 73 days as directed in C.M.Appli.No.1/2015 in M.A.C.A. No.3274/2015. M.A.C.A.No.3274 OF 2015 9 28. The claimant shall produce the details of the bank account before the Motor Accident Claims Tribunal, Kozhikode within two months from the date of receipt of a certified copy of this judgment. 29. The deposit must be in terms of the directives issued by this Court in Circular No.3 of 2019 dated 06.09.2019 and clarified in O.M.No.D1/62475/2016 dated 07.11.2019 after deducting the liabilities, if any of the claimant towards tax, balance Court Fee and legal benefit fund. Sd/- **M.B.SNEHALATHA, JUDGE** ab