High Court of KeralaSingle JudgeThe appeal is disposed of as above; enhanced co...

Rajan v Sheela Asokan and Others

Case / Petition Number:MACA No. 2412 of 2013
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Murali Purushothaman, J.
Judgment Date
2023-06-26
Court Decision / Holding
The appeal is disposed of as above; enhanced compensation of Rs. 3,47,240 payable by the insurer, with 7.5% interest per annum from the date of petition till deposit, and proportionate costs, to be deposited before the Tribunal within two months from the date of receipt of copy of the judgment.
Final Disposition
The appeal is disposed of as above; enhanced compensation and deposit terms as specified; the court directs payment to be deposited within two months at 7.5% interest per annum; costs to be proportionately allocated.

Parties to the Case

Appellants / Petitioners

  • Rajan

Respondents

  • Sheela Asokan
  • Sajeev Dasan
  • Royal Sundaram Alliance Insurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. P.V. Baby
  • • Sri. A. N. Santhosh

Counsels for Respondents

  • • Sri. P. Jacob Mathew
  • • Sri. P. Jacob Mathew
  • • Sri. Mathews Jacob Sr.

Case Synopsis & Summary

On 22.03.2009, Rajan, a quarry worker aged 35, sustained serious injuries when a lorry owned by Sheela Asokan and insured by Royal Sundaram Alliance Insurance Co. Ltd. collided with his motorcycle KL-8/J 4720. He was hospitalized for 56 days with a compound fracture of both bones in the right leg and claimed Rs. 5,00,000 as compensation in OP(MV) No. 867/2009 before the Motor Accidents Claims Tribunal, Irinjalakkuda. The Tribunal held the accident was due to the negligence of the driver (second respondent) and awarded Rs. 2,26,660 with interest at 7.5% p.a. from filing to realisation, plus costs, against the insurer. The appellant challenged the quantum, arguing several heads were inadequately compensated. Notably, the Tribunal adopted a notional monthly income of Rs. 3,500; applying the principle in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., the court held the notional income should be Rs. 7,000 per month with a multiplier of 16. The judge recalculated loss of earnings to Rs. 56,000 (Rs. 7,000 × 8 months). He fixed permanent disability at 25% (functional disability) and, relying on Raj kumar v. Ajay kumar and Others and related authorities, rejected the Tribunal’s 8%/14.30% figures. Accordingly, enhanced compensation of Rs. 3,47,240 (Rs. 2,82,240 for permanent disability, Rs. 12,000 for pain, Rs. 18,000 for loss of amenities, Rs. 35,000 for other heads) was awarded. The insurer must deposit this amount with 7.5% interest from the petition date within two months, with proportionate costs; the appeal is disposed of as above.

Legal Doctrines & Maxims

  • Notional income principle for compensation (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236)
  • Functional disability vs permanent disability – assessment of loss of earning capacity (Raj kumar v. Ajay kumar and Another, (2011) (1) SCC 343)
  • Multiplier method for future earnings/award calculations
  • Judicial reiteration of the earning-capacity principle (Pappu Deo Yadav v. Naresh Kumar and Others, 2020 KHC 6547 (SC))

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s quantum under various heads is inadequately low. The Tribunal adopted a notional income of Rs. 3,500 per month; applying Ramachandrappa, the notional income should be Rs. 7,000 per month with a multiplier of 16, resulting in higher compensation for loss of earnings. The permanent disability was treated as 14.30% by PW2 but reduced by the Tribunal; the appellant asserts 25% functional disability, supported by the disability certificate and medical evidence, and seeks recalculation using the functional disability percentage to determine future earnings, leading to substantial enhancement. The tribunal’s calculation under heads such as permanent disability, pain and suffering, and loss of amenities is therefore to be re-evaluated using standard guidelines and the earning-capacity approach.

Contentions of Respondents

Not stated in the document. The judgment frames the appellant’s arguments and disposes of the matter accordingly; explicit respondents’ contentions are not detailed in the text.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Ramachandrappa v Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveCited and applied to determine the notional monthly income (Rs. 7,000) as a basis for compensation.
Raj kumar v. Ajay kumar and Another2011 (1) SCC 343PositiveCited to explain that permanent disability does not automatically equate to a fixed loss of earning capacity; functional impact on earnings must be assessed.
Arvind Kumar Mishra v. New India Assurance Co. Ltd.2010(10) SCALE 298Mentioned OnlyCited as supporting authority illustrating the earning-capacity principle but not central to the court’s reasoning in this case.
Yadava Kumar v. D.M., National Insurance Co. Ltd.2010 (8) SCALE 567Mentioned OnlyCited as background authority; used to frame the discussed principles but not a controlling ratio in this decision.
Pappu Deo Yadav v. Naresh Kumar and Others2020 KHC 6547 (SC)PositiveReiterates the approach to assessing loss of earning capacity in relation to permanent disability; supports functional-disability-based calculation.

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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 MURALI PURUSHOTHAMAN ``` ``` MONDAY, THE 26[TH] DAY OF JUNE 2023 / 5TH ASHADHA, 1945 ``` ## _`MACA NO. 2412 OF 2013`_ ``` AGAINST THE ORDER/JUDGMENT DATED 28.06.2023 IN OPMV 867/2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , IRINJALAKUDA ``` ## _`APPELLANT/PETITIONER:`_ ``` RAJAN S/O.VALLOON,KANNOORU HOUSE,ERUMATHADOM DESOM,VADAKKUMKARA VILLAGE,VELLANGLLORE P.O,MUKUNDAPURAM TALUK,THRISSUR DISTRICT BY ADVS. SRI.P.V.BABY SRI.A.N.SANTHOSH ``` ## _`RESPONDENTS/RESPONDENTS:`_ ``` 1SHEELA ASOKAN W/O.ASOKAN,MANAKKATTUPADY HOUSE,ADICHILI KUNNAPPILLY P.O,THRISSUR 680 311 2SAJEEV DASAN S/O.KOCHAPPU DASAN,THANDASSERY HOUSE,POOLANI P.O,MELOOR THRISSUR DISTRICT 680 311 3ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LTD M.G ROAD,ERNAKULAM KOCHI 682 011 BY ADVS. SRI.P.JACOB MATHEW SRI.P.JACOB MATHEW SRI.MATHEWS JACOB SR. ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME ``` ``` UP FOR ADMISSION ON 26.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` M.A.C.A No. 2412 of 2013 2 ## **MURALI PURUSHOTHAMAN, J. --------------------------------------------M.A.C.A No. 2412 of 2013** **-------------------------------------------------** Dated this the 26[th] day of June, 2023 ## **JUDGMENT** The appellant is the petitioner in OP(MV).No.867 of 2009 on the file of the Motor Accidents Claims Tribunal, Irinjalakkuda. He filed this appeal on being aggrieved by the amount of compensation awarded by the Tribunal. The parties to this appeal will hereinafter be referred to as petitioner and respondents in accordance with their status in the claim petition. 2. On 22.03.2009, the petitioner sustained injuries when a lorry driven by the 2[nd] respondent, owned by the 1[st] respondent and insured with the 3[rd] respondent, hit against the motorcycle bearing registration No. KL-8/J 4720 which he was riding. The petitioner was hospitalized for 56 days. He M.A.C.A No. 2412 of 2013 3 sustained compound fracture on both bones at his right leg. He claimed an amount of Rs.5,00,000/- as compensation for the personal injuries sustained in the accident. 3. The Tribunal found that the accident happened due to the negligence of the 2[nd] respondent and awarded an amount of Rs.2,26,660/- as compensation with 7.5% interest per annum from the date of filing petition till realisation and proportionate costs. The insurance company was directed to satisfy the award. 4. This appeal is preferred by the petitioner contending that the amount of compensation awarded by the Tribunal under various heads are too low. 5. The petitioner was a quarry worker and was aged 35 years at the time of the accident. Exhibit A3 disability certificate would show the permanent disability of the petitioner as 14.30%. 4 M.A.C.A No. 2412 of 2013 6. The Tribunal has taken the notional income of the petitioner as Rs.3,500/-. In the absence of any other evidence as regards the income of the petitioner, only notional income can be taken for the purpose of calculation of compensation. Going by the guidelines in **Ramachandrappa v Manager, Royal Sundaram Alliance Insurance Company Limited** [ (2011) 13 SCC 236], the notional income of the petitioner can be taken as Rs.7,000/- per month. The multiplier adopted is 16. 7. Towards loss of earnings, the Tribunal has awarded a sum of Rs.21,000/-. The petitioner was hospitalized for 56 days. In the nature of injuries sustained, it has to be inferred that the petitioner was incapacitated to work atleast for 8 months. Accordingly, I refix the compensation for loss of earnings as Rs.56,000/- (Rs.7,000/- × 8 months). Therefore, he is entitled for an additional amount of Rs.35,000/- (5600021000) under the head loss of earnings. M.A.C.A No. 2412 of 2013 5 8. Towards compensation for permanent disability, the petitioner was awarded only an amount of Rs.53,760/-. Though the doctor who was examined as PW2 assessed the permanent disability of the petitioner as 14.30%, the Tribunal scaled down the same to 8% without assigning specific reason. Therefore, the permanent disability of the petitioner has to be taken as 14.30% as certified in Exhibit A3 disability certificate. Had the insurance Company any objection in accepting Exhibit A3, they could have sought for referring him to a medical board. Though the petitioner was a quarry worker, he has mounted the box and gave evidence as PW1. The evidence adduced by the petitioner and examination of PW2 Doctor and Exhibit A3 disability certificate would go to show that the petitioner has difficulty in squatting and his mobility of right knee and right ankle are restricted. The corelation of permanent disability with functional disability has been explained by the Hon’ble Supreme Court in **Raj kumar Vs. Ajay kumar and Another [2011 (1) SCC 343],** the Court held as follows; M.A.C.A No. 2412 of 2013 6 “Where the claimant suffers a permanent disability as a result of injuries, the assessment of compensation under the head of loss of future earnings, would depend upon the effect and impact of such permanent disability on his earning capacity. The Tribunal should not mechanically apply the percentage of permanent disability as the percentage of economic loss or loss of earning capacity. In most of the cases, the percentage of economic loss, that is, percentage of loss of earning capacity, arising from a permanent disability will be different from the percentage of permanent disability. Some Tribunals wrongly assume that in all cases, a particular extent (percentage) of permanent disability would result in a corresponding loss of earning capacity, and consequently, if the evidence produced show 45% as the permanent disability, will hold that there is 45% loss of future earning capacity. In most of the cases, equating the extent (percentage) of loss of earning capacity to the extent (percentage) of permanent disability will result in award of either too low or too high a compensation. What requires to be assessed by the Tribunal is the effect of the permanently disability on the earning capacity of the injured; and after assessing the loss of earning capacity in terms of a percentage of the income, it has to be quantified in terms of money, to arrive at the future loss of earnings (by applying the standard multiplier method used to determine loss of dependency). We may however note that in some cases, on appreciation of evidence and assessment, the Tribunal may find that the percentage of loss of earning capacity as a result of the M.A.C.A No. 2412 of 2013 7 permanent disability, is approximately the same as the percentage of permanent disability in which case, of course, the Tribunal will adopt the said percentage for determination of compensation (see for example, the decisions of this court in Arvind Kumar Mishra v. New India Assurance Co.Ltd. - 2010(10) SCALE 298 and Yadava Kumar v. D.M., National Insurance Co. Ltd. - 2010 (8) SCALE 567).” This has been reiterated in **Pappu Deo Yadav v. Naresh Kumar and Others [2020 KHC 6547 (SC)]** . Accordingly, taking into account Exhibit A3 disability Certificate, the evidence of PW1 and PW2, I fix the functional disability of the petitioner as 25% for assessing the compensation for permanent disability. 9. The Tribunal has awarded an amount of Rs.53,760/towards compensation for permanent disability. Taking the functional disability as 25%, the compensation for permanent disability is re-calculated as Rs.3,36,000/- (7,000/- × 12 × 16 × 25/100). On deducting the amount already awarded, he M.A.C.A No. 2412 of 2013 8 is entitled for an enhanced compensation of Rs.2,82,240/under the said head. 10. Towards pain and suffering, the Tribunal has awarded an amount of Rs.18,000/-. Taking into account, the nature of injuries sustained by the petitioner and the period of hospitalisation, I fix the compensation for pain and suffering as Rs.30,000/-. Therefore, an additional amount of Rs.12,000/- is granted under the said head. 11. Towards loss of amenities and convenience, only an amount of Rs.10,000/- has been awarded. Taking into account the age of the petitioner the injuries sustained and the disability, I fix the compensation under the said head as Rs.28,000/-. Accordingly, he is entitled for an additional amount of Rs.18,000/- under the said head. 12. I find that the compensation awarded under other heads is just and reasonable. 9 M.A.C.A No. 2412 of 2013 Accordingly, the petitioner is entitled for an additional amount of Rs.3,47,240/-(Rs.2,82,240+12,000+18000+ 35,000). The 3[rd] respondent insurance company shall deposit the same with 7.5% interest per annum from the date of petition till deposit and proportionate costs before the Tribunal within 2 months from the date of receipt of copy of this judgment. The appeal is disposed of as above. **MURALI PURUSHOTHAMAN JUDGE** al/-.+