High Court of KeralaSingle JudgePartly allowed

Ramesh v. Poulose P.V., Saimon Joseph & The Oriental Insurance Company Ltd.

Case / Petition Number:MACA NO. 111 OF 2016

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Devan Ramachandran
Judgment Date
2023-03-10
Court Decision / Holding
Partly allowed. The Court enhanced several heads of compensation: (a) Permanent disability increased to Rs. 15,72,480, with notional income Rs. 6,500 and 40% future prospects, using multiplier 18 (Sarla Verma). (b) Loss of Earning enhanced to Rs. 65,000, with notional income Rs. 6,500 and 10 months period. (c) Bystander Expenses enhanced to Rs. 11,600 (Rs. 200 per day for 58 days). (d) Extra Nourishment enhanced to Rs. 8,700 (Rs. 150 per day for 58 days). (e) Pain and Suffering enhanced to Rs. 50,000. (f) Other heads remain as awarded by the Tribunal. The appellant is entitled to interest at 7.5% (instead of 9%) on the enhanced amount, due to escalation, and costs on the enhanced portion. The Insurance Company is directed to deposit the enhanced amounts within two months from receipt of a copy of the judgment. (The orders are subject to liberty to recover from the Insurance Company.)
Final Disposition
Partly allowed

Parties to the Case

Appellants / Petitioners

  • Ramesh

Respondents

  • Poulose P.V.
  • Saimon Joseph
  • The Oriental Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Sunil Nair Palakkat
  • • Sri. K.N. Abhilash
  • • Sri. M.A. Ahammad Saheer

Counsels for Respondents

  • • Smt. Bobby Raphael.C
  • • K.S. Santhi, SC
  • • Sri. E.C. Poulose

Case Synopsis & Summary

This is a Motor Accident Claims Appeal (MACA) from Kerala High Court arising out of a 2008 accident in which the appellant, Ramesh, sustained grave injuries including amputation of his leg, and challenged the Motor Accidents Claims Tribunal, Palakkad’s award in OP(MV)760/2009 (awarded on 8.7.2014) of Rs.12,50,050 on a claim of Rs.23,32,000. The appeal was admitted with consent of both sides for final disposal. The key dispute centered on the calculation of compensation and the notional income used for assessment. The learned judge accepted undisputed evidence and, relying on established jurisprudence, enhanced multiple heads of compensation. Notably, on the question of notional income, the court applied the Ramachandrappa principle to fix Rs.6,500 per month for 2008, and adopted 40% future prospects per Pranay Sethi for an 80% disability. It corrected the Loss of Earning period from 12 to 10 months, consistent with the medical record. The court also applied the Sarla Verma multiplier (18) for calculation. The final order partly allowed the appeal, increasing compensation across several heads including permanent disability, loss of earning, bystander expenses, extra nourishment and pain & suffering, while altering interest and costs and directing deposit within two months. The judgment cites several precedents to justify the enhancements and clarifies the operative orders.

Legal Doctrines & Maxims

  • Notional income principle (Ramachandrappa)
  • 40% future prospects (Pranay Sethi)
  • Multiplier rule (Sarla Verma)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal adopted a notional income of Rs.5,000 per month, though the appellant was earning more, leading to under-compensation. He argues that the heads of Pain and Suffering, Bystander Expenses and Extra Nourishment were understated and not properly linked to the injuries. He seeks enhancement of overall compensation, including applying 40% future prospects for a disability rated at 80%, and using a notional income of Rs.6,500 (2008 terms) with a 18× multiplier per Sarla Verma for appropriate calculation; also urges reducing the Loss of Earning period from 12 to 10 months and incorporating future prospects and correct disability assessments.

Contentions of Respondents

The Insurance Company submits that the Tribunal’s computation followed 2008 standards and was just and fair; the appeal should be dismissed. The company notes that the Tribunal’s finding of 80% disability is not contested; it relies on undisputed evidence and maintains the existing heads and amounts, arguing against any upward revision in the award.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.2011 (13) SCC 236PositiveUsed to justify fixing a higher notional income (Rs.6,500) for 2008 in cases of unascertainable income.
National Insurance Company Ltd. v. Pranay Sethi2017 (4) KLT 662PositiveUsed to support 40% future prospects for disability in computation of compensation.
Sarla Verma & Others v. Delhi Transport Corporation & Another2010 (2) KLT 802PositiveUsed for multiplier (18) and related calculation framework for compensation.

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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 DEVAN RAMACHANDRAN FRIDAY, THE 10[TH] DAY OF MARCH 2023 / 19TH PHALGUNA, 1944 ``` ## `MACA NO. 111 OF 2016` ``` [AGAINST THE AWARD DATED 8.7.2014 IN OP(MV)NO.760/2009 ON THE FILE OF THE MOTOR ACCIDENTS CLAIMS TRIBUNAL, PALAKKAD] ``` ## `APPELLANT/PETITIONER` ``` RAMESH, AGED 30 YEARS, S/O.CHANDRAN, 288(2/415), NALLUR, KOZHIPARA (P.O), PALAKKAD DISTRICT. ``` ``` BY ADVS.SRI.SUNIL NAIR PALAKKAT SRI.K.N.ABHILASH SRI.M.A.AHAMMAD SAHEER ``` ## `RESPONDENTS/RESPONDENTS:` ``` 1POULOSE P.V, AGED NOT KNOWN, S/O.VARGHESE, 4/618, PYNADATH HOUSE, KARUKUTTY P O, ANGAMALY, ERNAKULAM DISTRICT, PIN – 683 572. 2SAIMON JOSEPH, AGED 33 YEARS, S/O.OUSEPH, GMDS, KANJOOKKARAN HOUSE, KOKKUNNU, PERUMBAVOOR (P.O), ERNAKULAM – 683 542. 3THE ORIENTAL INSURANCE COMPANY LTD., PALAKKATT BUILDING, MARKET JUNCTION, THRIPUNITHURA, COCHIN – 682301. ``` ``` BY ADVS.SMT.BOBBY RAPHEAL.C K.S.SANTHI, SC SRI.E.C.POULOSE THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 10.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO. 111 OF 2016 ``` ``` -2- ``` ## `JUDGMENT` ``` This matter is of the year 2016 and has not been admitted. However, both sides are ad idem that it can be disposed of, after being formally ``` ``` admitted, based on the undisputed evidence on record, handed over by them across the Bar. I, ``` ``` therefore, admit this Appeal and proceed to dispose it of finally, with the consent of both sides. ``` ``` 2.The appellant was driving along the main ``` ``` road on 08.12.2008, when the offending tipper ``` ``` lorry ran into it, causing him grave injuries and leading to amputation of leg. He thereupon filed OP(MV)No.760/2009 before the Motor ``` ``` Accidents Claims Tribunal, Palakkad (‘Tribunal’, ``` ``` for short), seeking compensation of an amount of Rs.23,32,000/-; but which has been allowed only to a sum of Rs.12,50,050/-. He impugns the said ``` ``` compensation as being exiguous. ``` ``` MACA NO. 111 OF 2016 ``` ``` -3- ``` ``` 3.Sri.Rithik S.Anand – learned counsel for the appellant, argued that the primary reason why the compensation has been fixed so low by the learned Tribunal is because it has adopted ``` ``` the notional income of his client to be a mere ``` ``` Rs.5,000/- per month; when, in fact, he was earning much more than that. He then asserted ``` ``` that the compensation awarded under the heads “Pain and Suffering”, “Bystander Expenses” and “Extra Nourishment” is absolutely low, which has no nexus to the gravity of the injuries ``` ``` sustained by his client. He thus prayed that this Appeal be allowed and the compensation enhanced as prayed for. ``` ``` 4.Smt.K.S.Santhi – learned Standing ``` ``` Counsel for the Insurance Company, on the other hand, submitted that the computations arrived at by the Tribunal are as per the standards available in the year 2008 – when the accident ``` ``` MACA NO. 111 OF 2016 ``` ``` -4- ``` ``` occurred – and are, therefore, just and fair. ``` ``` She thus prayed that this Appeal be dismissed. 5.I have considered the afore rival ``` ``` submissions on the touchstone of the evidence on ``` ``` record – copies of which have been handed over across the Bar by the learned counsel for the parties with the express consent that it can be ``` ``` acted upon by this Court without dispute. ``` ``` 6.On the question of notional income of the appellant, I find favour with the ``` ``` submissions of Sri.Rithik S.Anand because, even ``` ``` going by the judgment of the Hon’ble Supreme Court inRamachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. [(2011) ``` ``` 13 SCC 236], the minimum notional income that ``` ``` could have been reckoned by the learned Tribunal in favour of the appellant was Rs.6,500/-, in the year 2008. This is because, said judgment postulates that even for a person, with an ``` ``` MACA NO. 111 OF 2016 ``` ``` -5- ``` ``` unascertainable income or a ‘coolie’, such a figure ought to be the minimum reckoned. Since it is admitted that the appellant sustained serious injuries, leading to amputation of leg, and since the Tribunal has correctly found that his disability is 80% - which is not controverted by the Insurance Company by filing an Appeal – he is certainly entitled to future prospects at the rate of 40%, as per the declarations of the Hon’ble Supreme Court in National Insurance Company Ltd. v. Pranay Sethi [2017 (4) KLT 662)]. ``` ``` 7.That said, I notice that the learned Tribunal has granted Rs.42,000/- under the head ``` ``` “Loss of Earning”, reckoning a period of 12 months. However, if this period is reckoned, then the multiplier to be adopted in the case of computation for disability would have to be reduced. I am, therefore, of the firm view that ``` ``` MACA NO. 111 OF 2016 ``` ``` -6- ``` ``` the period reckoned for the grant of compensation under the head “Loss of Earning” must be reduced to 10 months, which is also supported by the medical records. ``` ``` 8.As far as the injuries of the appellant are concerned, Ext.A5 - Wound Certificate and Ext.A7 – Discharge Certificate, establish ``` ``` unequivocally that he has sustained “closed multi-fragmentary fracture diaphysis left femur, ``` ``` grade IIIA open fracture right tibia multi- ``` ``` fragmentary, closed fracture mid-shaft of femur right side, fracture inferior pole of right ``` ``` patella and fracture pelvis involving anterior ``` ``` and posterior column, right and superior pubic ramus left.” (sic). He was hospitalized initially for 12 days and then further for 46 days, which is evident from Exts.A13 and A13(a) – Discharge Certificates. The learned Tribunal has also said that when he appeared before it on ``` ``` MACA NO. 111 OF 2016 ``` **==> picture [22 x 8] intentionally omitted <==** ``` 16.06.2014, his leg was seento have been ``` ``` amputated above the knee and an artificial limb fixed. ``` ``` 9.Obviously, the appellant must have gone ``` ``` through great amount of trauma, particularly ``` ``` when he claimed – though without being ``` ``` substantiated – that he was a professional ``` ``` driver at the time of the accident. ``` **==> picture [377 x 12] intentionally omitted <==** ``` thecompensationfor “Pain and Suffering” ``` ``` requires to be doubled from what has been ``` ``` granted by the Tribunal; while the compensation ``` ``` under the heads “Bystander Expenses” and “Extra ``` ``` Nourishment” must be granted at the rates of ``` ``` Rs.200/- and Rs.150/- per day respectively. ``` ``` Resultantly, this Appeal is partly allowed ``` ``` in the following manner: ``` ``` (a)Thecompensationunder the head permanentdisabilityisenhancedto ``` ``` MACA NO. 111 OF 2016 ``` **==> picture [22 x 9] intentionally omitted <==** ``` Rs.15,72,480/- (Rupees fifteen lakhs seventy two thousand, four hundred and eighty only), reckoning the notional income of the appellant to be Rs.6,500/- with 40% future prospects added to it and adopting the multiplier to be ‘18’, as perSarla Verma & Others v.Delhi Transport ``` ``` Corporation & Another [2010 (2) KLT 802]. ``` - `(b) Axiomatically, the compensation under` ``` the head“Loss of Earning” is enhanced to Rs.65,000/-(Rupees sixty five thousand only), ``` ``` reckoning the notional income of the appellant to be Rs.6,500/- and taking 10 months period for such purpose. ``` **==> picture [377 x 12] intentionally omitted <==** ``` “Bystander Expenses” is enhanced to Rs.11,600/- (Rupeeseleven thousand six hundred only), granting Rs.200 per day for 58 days of hospitalization. ``` ``` (d) An additional amount of Rs.8,700/- ``` ``` MACA NO. 111 OF 2016 ``` ``` -9- ``` ``` (Rupees eight thousand seven hundred only) is granted under the head “Extra Nourishment”, reckoning Rs.150/- as per diem expenses for 58 days hospitalization. ``` - `(e) The compensation under the head “Pain` ``` and Suffering” is enhanced to Rs.50,000/- ``` ``` (Rupees fifty thousand only), from Rs.25,000/- ``` ``` as awarded by the Tribunal. ``` - `(f) In all other heads, the compensation` ``` granted by the Tribunal will remain intact. ``` ``` Needless to say, theappellant will be at ``` ``` full liberty to recover the compensation, as ``` ``` enhanced by this Court from the Insurance ``` ``` Company, along with interest at the rate of ``` ``` 7.5%, modifying the rate of interest of ‘9’ ``` ``` awarded by the Tribunal, taking note of the ``` ``` escalation granted by this Court, from the date ``` ``` of claim until it is recovered. He will also be ``` ``` entitled to proportionate costs on the enhanced ``` ``` MACA NO. 111 OF 2016 ``` **==> picture [30 x 9] intentionally omitted <==** ``` amount as ordered by the Tribunal. ``` ``` In view of the afore, the amount as fixed above shall be deposited by the Insurance Company before the Tribunal, within a period of two months from the date of receipt of a copy this judgment. ``` ``` Sd/- ``` ``` DEVAN RAMACHANDRAN ``` ``` JUDGE ``` ``` akv ```