High Court of KeralaSingle JudgeAppeal allowed in part; enhanced compensation w...

Ramachandran K.B. v. E.V. Martin and Ors.

Case / Petition Number:MACA No.1660 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2021-09-22
Court Decision / Holding
The appeal is allowed in part. The compensation is enhanced to Rs 3,00,000 with interest at 7% per annum from the date of petition till deposit, plus costs of Rs 4,000. The Oriental Insurance Co. Ltd. is directed to deposit the enhanced amount with interest before the Tribunal within sixty days, and the Tribunal shall disburse to the appellant in accordance with law.
Final Disposition
Appeal allowed in part; enhanced compensation with directions for deposit and disbursement by the Tribunal; insurer to indemnify as per enhanced award.

Parties to the Case

Appellants / Petitioners

  • Ramachandran K.B. s/o Balan

Respondents

  • E.V. Martin
  • Johnson K.M.
  • The Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V. Binoy Ram

Counsels for Respondents

  • • Smt. A. Sreekala
  • • Sri. P. Jayasankar

Case Synopsis & Summary

Ramachandran K.B. v. E.V. Martin and Ors. is a Kerala High Court motor accident appeal from MACA No. 1660 of 2011, challenging an award under Section 166 of the Motor Vehicles Act, 1988. The appellant, a mason, sustained serious injuries in a road accident on 3.3.2008 when a bus (KL-10/B 9493) driven by the first respondent allegedly acted rashly, collided with a jeep, and struck an electric post. The Tribunal awarded Rs. 1,24,770 with 7% interest and costs, against the bus owner and insurer. The appellant sought enhancement, arguing higher income, greater disability, and higher compensation under several heads, while the insurer admitted the policy but challenged the driver’s license status. The third respondent Insurance Company admitted the policy and indemnified, but contended the driver lacked a valid license. In reappraisal, the High Court fixes notional income at Rs.6,500 per month (replacing the Tribunal’s Rs.2,000), applies the multiplier of 17 per Sarla Verma, and assesses disability at 15% (functional disability per Raj Kumar). Loss of earnings, disability, and loss of amenities are recalculated, yielding a total enhanced sum of Rs.3,00,000. The appeal is allowed in part; enhanced compensation is awarded with 7% interest and costs, and the insurer is directed to deposit within 60 days for disbursement by the Tribunal.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Functional disability vs permanent disability (as interpreted in Raj Kumar v. Ajay Kumar)
  • Notional income principle with reference to Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.
  • Multiplier rule for calculating compensation (Sarla Verma v. Delhi Transport Corp.)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the notional income should be Rs. 6,500 per month (not Rs. 2,000) and seeks higher compensation for loss of earnings, disability at 15% (per Ext. A7) rather than 10%, and increased amounts under heads like loss of amenities. Relying on Ramachandrappa for income and Raj Kumar for disability, he argues the Tribunal erred in the quantum of compensation awarded.

Contentions of Respondents

The insurer argues policy validity and indemnity; the driver’s license status was disputed, but the policy was admitted. The respondents challenge the quantum and maintain that the Tribunal’s calculation should stand, insisting on the insured’s liability to indemnify only as per policy terms.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveCited to fix the notional income level, following the notional income benchmark approach in MV Act claims.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveApplied multiplier principle (17) as per the Supreme Court guidance.
Raj Kumar v. Ajay Kumar(SC) 2011 (1) KLT 620PositiveUsed the functional disability standard over permanent disability and reliance on medical board framework.

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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 C.S.DIAS** **WEDNESDAY, THE 22[ND] DAY OF SEPTEMBER 2021 / 31ST BHADRA, 1943** **MACA NO. 1660 OF 2011** **AGAINST THE ORDER/JUDGMENT IN OPMV 1185/2008 OF MOTOR ACCIDENT** **CLAIMS TRIBUNAL , IRINJALAKUDA, THRISSUR** ## **APPELLANT/S:** RAMACHANDRAN K.B. S/O.BALAN, KATTOOKKARAN HOUSE,, PALLIPURAM VILLAGE, POYYA DESOM,, THRISSUR DISTRICT. BY ADV SRI.V.BINOY RAM ## **RESPONDENT/S:** 1 E.V.MARTIN,s/o.VARGHESE EDAPPULAVAN HOUSE, PAZHUKKARA,, ANNALLUR P.O., THRISSUR DISTRICT.680307 2 JOHNSON K.M., S/O.MATHEW KIZHAKKUMTHALA HOUSE,, V.R.PURAM, CHALAKUDY, THRISSUR DISTRICT.680307 3 THE BRANCH MANAGER THE ORIENTAL INSURANCE CO. LTD.,, CITY HEIGHTS BUILDING, IST FLOOR,, SOUTH JUNCTION, CHALAKUDY, THRISSUR DISTRICT,, PIN-630307. BY ADVS. SMT.A.SREEKALA SRI.P.JAYASANKAR ## **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME** **UP FOR ADMISSION ON 22.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA No.1660 of 2011 ## **C.S.DIAS, J. ====================== MACA No.1660 of 2011** **====================== Dated this the 22[nd] day of September, 2021.** ## **JUDGMENT** The appellant was the petitioner in OP (MV) No.1185/2008 on the file of the Motor Accidents Claims Tribunal, Irinjalakkuda. The respondents in the appeal were the respondents before the Tribunal. 2. The appellant had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the injuries that he sustained in an accident. 3. It was the case of the appellant in the claim petition that, on 3.3.2008, when he was travelling in a bus bearing registration No.KL-10/B 9493 (bus) driven by the first respondent in a rash and negligent manner along the Mala-Poyya public road, when the bus reached at 3 MACA No.1660 of 2011 Chenthuruthi, a jeep came from the opposite side and the bus suddenly turned and hit on an electric post. The appellant sustained serious injuries. The accident occurred due to the negligence of the first respondent. The bus was owned by the second respondent and insured with the third respondent. The appellant was a Mason by profession and earning a monthly income of Rs.7,500/-. Hence, he claimed a compensation of Rs.3,15,000/- from the respondents, which was limited to Rs.2,50,000/-. 4. The respondents 1 and 2 did not contest the proceedings and were set ex parte. 5. The third respondent filed a written statement admitting that the bus had a valid insurance coverage. However, it was contended that the first respondent did not hold a valid driving licence. 6. The appellant got himself examined as PW1 and marked Exts A1 to A11 in evidence. The third respondent produced and marked Ext B1 insurance policy in evidence. 4 MACA No.1660 of 2011 7. The Tribunal, after considering the pleadings and material on record, by the impugned award allowed the claim petition, in part, by directing the third respondent to pay the appellant an amount of Rs.1,24,770/- with interest at the rate of 7% per annum from the date of petition till the date of realization and proportionate costs. 8. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner is in appeal. 9. Heard; Sri.Binoy Ram, the learned counsel appearing for the appellant/petitioner and Smt.A.Sreekala, the learned counsel appearing for the third respondent. 10. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Negligence and liability** 11. Ext A2 charge-sheet filed by the Police clearly substantiates that the accident occurred due to the negligence of the first respondent. Admittedly, the second 5 ## MACA No.1660 of 2011 respondent was the owner and the third respondent was the insurer of the bus. The third respondent has admitted the insurance policy and has not alleged violation of any policy conditions. Therefore, the third respondent is to indemnify the liability of the second respondent. ## **Notional Income** 12. The appellant had claimed that he was a Mason by profession and earning a monthly income of Rs.7,500/-. Nevertheless, the Tribunal fixed the notional income of the appellant at 2,000/- per month. 13. The Hon'ble Supreme Court in **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011) 13 SCC** **236]** has fixed the notional income of a coolie worker in the year 2004 at Rs.4,500/- per month. 14. Following the benchmark fixed in the aforecited decision and keeping in mind that the accident occurred in the year 2008, I am of the opinion that the 6 MACA No.1660 of 2011 appellant's notional income can safely be fixed at Rs.6,500/- per month. ## **Loss of earnings** 15. It is on record that the appellant sustained serious injuries. The Tribunal held that the appellant was indisposed for a period of three months. Taking into account the above injuries, I confirm the findings of the Tribunal in this regard. Accordingly, in view of the refixation of the notional income of the appellant at Rs.6,500/- per month, I hold that he is entitled for loss of earnings at Rs.19,500/- instead of Rs.6,000/- awarded by the Tribunal. ## **Multiplier** 16. As the appellant was aged 29 years at the time of the accident, following the ratio in **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** , the relevant multiplier is '17'. 7 MACA No.1660 of 2011 ## **Loss due to disability** 17. The appellant had produced Ext A7 disability certificate issued by a Orthopedic surgeon, who has certified that the appellant has 20% permanent disability as per the Mc bride's scale, has pain and inability to lift the left hand above the shoulder level, wasting of the scapular, deltoid and bicep muscles. It is also found that there is a non-union fracture left humerus. It was in the said circumstances that the Doctor assessed the disability of the appellant at 20%. 18. The Tribunal after considering Ext A7 disability certificate arrived at the conclusion that since the Doctor has not objectively assessed the disability of the appellant, the disability has to be fixed at 10%. 19. In **Raj Kumar v. Ajay Kumar** [2011 (1) KLT 620(SC)], the Hon'ble Supreme Court has held that, if the Tribunal is not satisfied with the medical evidence, then the Tribunal has to refer the injured claimant to a 8 MACA No.1660 of 2011 competent Medical Board. 20. In the instant case, the Tribunal accepted and marked Ext A7 disability certificate with consent of both parties. The Tribunal for the reason that the disability of the appellant was not objectively made, scaled down the disability to 10%. 21. In **Raj Kumar** (supra), the Hon'ble Supreme Court has held that what has to be looked into is the functional disability of an injured and not his permanent disability. 22. In the present case, the appellant was a Mason by profession. Going by the nature of injuries and the disability assessed in Ext A7 certificate, I am of the opinion that the appellant's functional disability can be fixed at 15% as per Ext A7. 23. Following the above said parameters, namely, the income of the appellant at Rs.6,500/-, the multiplier at 17 and the disability at 15%, I refix the compensation for loss 9 MACA No.1660 of 2011 due to disability at Rs.1,98,900/- instead of Rs.43,200/awarded by the Tribunal. ## **Loss of amenities** 24. It is seen that the appellant had claimed Rs.10,000/- towards loss of amenities. The Tribunal awarded only an amount of Rs.4,000/-. Taking into account the fact that the appellant has suffered functional disability of 15%, I am of the opinion that he is entitled to Rs.10,000/- as claimed in the claim petition, i.e., an enhancement by a further amount of Rs.6,000/-. ## **Other heads of claim** 25. With respect to the other heads of claim, I find that the Tribunal has awarded reasonable and just compensation. 26. On a comprehensive re-appreciation of the pleadings, materials on record and the law referred to in the afore-cited precedents, I am of the firm opinion that the appellant/petitioner is entitled for enhancement of 10 MACA No.1660 of 2011 compensation as modified and re-calculated above, and given in the table below for easy reference. |SI.<br>No|Head of claim|Amount<br>awarded by<br>the Tribunal<br>(in rupees)|Amounts<br>modified and<br>recalculated<br>bythis Court| |---|---|---|---| |1|Loss of earnings|6,000/-|19,500/-| |2|Medical<br>and<br>miscellaneous<br>expenses|41,070/-|41,070/-| |3|Bystander expenses|12,000/-|12,000/-| |4|Transportation<br>expenses|500/-|500/-| |5|Pain and sufferings|18,000/-|18,000/-| |6|Loss of disabilities|43,200/-|1,98,900/-| |7|Loss of amenities|4,000/-|10,000/-| ||Total|1,24,770/-|2,99,970/-<br>rounded off<br>to<br>Rs.3,00,000/-| In the result, the appeal is allowed by enhancing the compensation by a further amount of Rs.1,75,230/- (Rupees One Lakh Seventy Five Thousand Two Hundred and Thirty only) with interest at the rate 11 MACA No.1660 of 2011 of 7% per annum from the date of claim petition till the date of deposit, and a cost of Rs.4,000/-. The third respondent is ordered to deposit the enhanced compensation amount with interest and costs before the Tribunal within a period of sixty days from the date of receipt of a certified copy of the judgment. The Tribunal shall disburse the enhanced compensation to the appellant/petitioner, in accordance with law. sd/- sks/22.9.2021 **C.S.DIAS, JUDGE**