RAMESAN ACHARI v. SANISH BABU, CHANDRAMATHI SREEDHARAN, and UNITED INDIA INSURANCE COMPANY LTD.
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- C.S. Dias
- Judgment Date
- 2022-03-17
- Court Decision / Holding
- The appeal is allowed. The compensation awarded by the Tribunal is enhanced by Rs.74,000 with interest at 6% per annum from the date of petition till deposit and costs of Rs.5,000. The insurer is ordered to deposit the enhanced amount with interest and costs before the Tribunal within 60 days from receipt of a certified copy of this judgment; upon deposit, the Tribunal shall disburse the amount to the appellant in accordance with law. All pending interlocutory applications are closed.
- Final Disposition
- Appeal allowed; enhanced compensation; deposit and disbursement to be done by Tribunal; costs; all interlocutory applications closed.
Parties to the Case
Appellants / Petitioners
- RAMESAN ACHARI, aged 56, S/O. THANKAPPAN, ATHIRA, THEVALLI, KOLLAM
Respondents
- Sanish Babu (Driver) S/O Dinesh Babu, Kalivilakathu Veedu, Ayantthi, Cherunniyoor, Palachira P.O., Varkkala-697612.
- Chandramathi Sreedharan (Owner), Kuzhuvila House, Palachira P.O., Varkkala-697612.
- The Divisional Manager, United India Insurance Company Ltd., Divisional Office, Attingal, Thiruvananthapuram (Insurer) - 695711.
Legal Representation & Advocates
Counsels for Petitioners
- • Sri K.S. Manu (Punukkonnoor)
- • Sri P. Sreekumar
Counsels for Respondents
- • Smt. P.A. Reziya
Case Synopsis & Summary
Ramesan Achari, the appellant, challenged the II Additional Motor Accidents Claims Tribunal, Kollam's common award in OP(MV) No.110/2004, which partially allowed his claim for damages arising from a motor vehicle collision on 5 April 2003. He alleged severe injuries in the left forearm, femur and right tibial condyle; he was employed as an Executive Engineer in the Irrigation Department, Kerala, earning about Rs.15,000 per month. The Tribunal awarded the third respondent-insurer Rs.1,66,114 with Rs.3,000 costs, but the appellant sought a higher compensation, particularly in the head of loss of earning capacity (LEC). At issue was whether the amount of LEC adequately reflected his post-accident diminished earning capacity and his long-term prospects after retirement. The High Court found the Tribunal's overall compensation otherwise reasonable but held that LEC required enhancement in light of evidence of a 15% functional disability, 1 inch shortening of the right leg, and the appellant’s near-retirement life expectancy. Citing Puttamma v. K.L. Narayana Reddy to emphasize that split multiplier must be grounded in cogent reasons, and relying on Ramachandrappa and Alliance Insurance principles for determining LEC, the court adopted a multiplier of 11 and a notional income of Rs.7,500 per month, resulting in Rs.99,000 for LEC and total enhanced compensation of Rs.74,000 beyond the Tribunal’s award. The insurer was directed to deposit the amount with interest and costs within 60 days, with disbursement by the Tribunal thereafter.
Provisions of Law Cited
Legal Doctrines & Maxims
- Split multiplier method can be adopted only for cogent reasons
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant contends that the Tribunal's quantum for loss of earning capacity is inadequate and seeks enhancement based on his pre-accident status as an Executive Engineer in the Irrigation Department (Kerala) and his disability (15% functional disability with 1 inch shortening of the right leg). He argues for a higher monthly notional income and a suitable multiplier, reflecting his post-retirement earning capacity.
Contentions of Respondents
The respondents (insurance) contend that the Tribunal's award is fair and just, noting that liability exists under the insured vehicle; they dispute a higher compensation and rely on the existing medical evidence and the insurance coverage; the challenge is mainly on the quantum in the LEC head.
Cited Precedents (2)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Puttamma v. K.L.Narayana Reddy & Anr. | 2014(1) KLT 738 | Positive | Cited for the proposition that the split multiplier method should be adopted only for cogent reasons. |
| Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. | (2011) 13 SCC 236 | Positive | Following its principles to determine loss of earning capacity, including notional income. |
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