High Court of KeralaDivision BenchAppeal partly allowed; enhanced compensation to...

Rasheed K. S/o Late Alavi v. The Branch Manager, The New India Assurance Company Ltd.

Case / Petition Number:MACA.No.1546 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • Anil K. Narendran
Judgment Date
2017-06-01
Court Decision / Holding
Partly allowed. The High Court re-fixed the claimant’s notional monthly income at Rs. 5,500 and, applying the multiplier of 17 (per Sarla Verma v. Delhi Transport Corporation), reworked the compensation for permanent disability and other heads. It increased the disability head to Rs.1,12,200 (after considering the 10% disability) and, after deducting the Tribunal’s earlier Rs.64,800, allowed an additional Rs.47,400. Re-fixation under loss of earnings added Rs.20,000, under bystander expenses Rs.3,800, under pain and suffering Rs.5,000, and under loss of amenities Rs.10,000, totaling an additional Rs.86,200. The insurer is directed to deposit the enhanced amount before the Tribunal within two months from receiving a certified copy of this judgment, with interest at 8% per annum from the date of petition till realization. No costs.
Final Disposition
Appeal partly allowed; enhanced compensation to be deposited by insurer within two months; no costs.

Parties to the Case

Appellants / Petitioners

  • Rasheed K. S/o Late Alavi

Respondents

  • The Branch Manager, The New India Assurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Celine Joseph

Counsels for Respondents

  • • Sri A. A. Ziyad Rahman

Case Synopsis & Summary

This Motor Accidents Claims Appeal arises from an award passed by the Motor Accidents Claims Tribunal, Kalpetta, in O.P.(MV) No.401 of 2007, relating to injuries suffered by the appellant on 21 May 2007 while he was a pillion rider on a motorcycle insured with the respondent insurer. The Tribunal held that the accident occurred due to rash and negligent riding by the rider (respondent 1) and, since the vehicle was insured under a valid package policy, the insurer (3rd respondent) was liable to indemnify the owner. It awarded Rs 1,52,400 in total under heads including permanent disability, loss of earnings, bystander expenses, pain and suffering, and loss of amenities, with interest at 7.5% per annum and costs. On appeal, the appellant contends that the Tribunal erred in fixing income at a nominal Rs 3,000 per month due to lack of corroborative material, while he asserts he runs an upholstery business with possible earnings of Rs 15,000-20,000 per month. He seeks re fixation at Rs 5,500 per month and the application of the correct multiplier. The High Court re-evaluates income and applies the multiplier 17 (per Sarla Verma) instead of 18, resulting in enhanced compensation. It fixes the disability as 10% and directs the insurer to deposit the enhanced amount, with interest, in two months. The appeal is allowed in part; no costs.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Multiplier principle in motor-accident compensation cases (Sarla Verma v. Delhi Transport Corporation)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal erred in fixing a very low notional monthly income of Rs. 3,000 due to lack of corroborative material, while he claims to operate an upholstery business with actual earnings in the range of Rs. 15,000-20,000 per month. He points to Ext.A11 (lease) and current work to argue for higher income and for the application of the correct judicial multiplier. He asserts that the Tribunal should re-fix monthly income at Rs.5,500 and apply the multiplier 17 (per Sarla Verma) given his age (28) at the time of the accident, to enhance disability compensation, loss of earnings, bystander expenses, pain and suffering, and loss of amenities. He seeks overall enhanced compensation with interest.

Contentions of Respondents

The respondents, represented by counsel, contend the insurer is liable under the package policy and that the Tribunal's award is appropriate given the evidence. They rely on the absence of conclusive proof of the claimant’s higher monthly income and emphasize the insurer's obligation to indemnify the owner. They urge adherence to the Tribunal’s findings on liability and the structure of the award, resisting any substantial upward revision absent clear, admissible evidence of earnings or disability claims.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802PositiveThe court applied the multiplier rule from Sarla Verma to set the appropriate multiplier at 17 (instead of 18), resulting in higher compensation for the claimant.

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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.T.RAVIKUMAR & THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN THURSDAY, THE 1ST DAY OF JUNE 2017/11TH JYAISHTA, 1939 MACA.No. 1546 of 2012 () ------------------------AGAINST THE AWARD IN OPMV 401/2007 of MACT, KALPETTA DATED 29-10-2011 APPELLANT(S)/APPELLANT/PETITIONER: --------------------------------- RASHEED K. S/O.LATE ALAVI, KAIPPANGADAN HOUSE, KOLAMPETTA, KAKKAVAYAL POST, WAYANAD DISTRICT. BY ADV. SMT.CELINE JOSEPH RESPONDENT(S)/REPSONDENT NO.3: ------------------------------ THE BRANCH MANAGER THE NEW INDIA ASSURANCE COMPANY LTD., M.G.T. BUILDINGS, KALPETTA-673121. BY SRI.A.A.ZIYAD RAHMAN THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 01-06-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C.T. RAVIKUMAR &** ## **ANIL K. NARENDRAN, JJ.** ## **========================== M.A.C.A. No.1546 OF 2012 ==========================** Dated this the 1[st ] day of June, 2017 ## **JUDGMENT** _Anil K Narendran, J._ This appeal arises out of the award passed by the Motor Accidents Claims Tribunal, Kalpetta dated 29.10.2011 in O.P.(MV). No.401 of 2007, an application filed by the appellant herein under Section 166 of the Motor Vehicles Act, 1988 claiming compensation on account of the injuries sustained in a motor vehicle accident occurred on 21.5.2007 while he was travelling as a pillion rider on a motor cycle bearing Reg.No.KL-12/A 3341, ridden and owned by respondents 1 and 2 before the Tribunal and insured with the respondent herein (3[rd] respondent before the Tribunal). Due to the rash and negligent riding of the motor cycle by the 1[st] respondent rider, it capsized and the appellant sustained injuries. Claiming a total compensation of Rs.3,00,000/- for the injuries sustained in the accident, claim petition was filed before the Tribunal. 2. Before the Tribunal, the claimant was examined as PW1 and Exts.A1 to A11 were marked on his side. The disability certificate M.A.C.A.1546/2012 2 was marked as Ext.C1. The respondents have not chosen to adduce any oral or documentary evidence. 3. After considering the evidence on record, the Tribunal arrived at the conclusion that the accident occurred due to the rash and negligent riding of the motor cycle by the first respondent rider. Since the vehicle is covered by a valid package policy, the third respondent insurer (sole respondent in this appeal) was held liable to indemnify the second respondent owner. Under different heads, the Tribunal awarded a total compensation of Rs.1,52,400/- and the insurer was directed to deposit the said amount before the Tribunal together with interest @ 7.5% per annum and proportionate cost. 4. Dissatisfied with the quantum of compensation awarded by the Tribunal, the appellant/claimant is before this Court in this appeal. 5. We heard the learned counsel for the appellant/claimant and also the learned counsel for the respondent insurer. 6. In the accident occurred on 21.5.2007, the appellant had sustained the following injuries, which is evident from Ext.A8 wound certificate:- “Fracture to left clavicle, fracture to the 1[st] , 3[rd] , 4[th] , 5[th] , 6[th] and 7[th] ribs, fracture to both bones M.A.C.A.1546/2012 3 left forearm and fracture to right 2[nd] and 3[rd] metatarsals.” Details of the inpatient treatment the appellant had undergone for a period of 38 days is evident from the discharge card and other medical records. Ext.C1 disability certificate would show that due to the injuries sustained in the accident, the appellant is having 10% permanent disability. 7. Before the Tribunal, the appellant contended that he is conducting an upholstery shop and earning an average monthly income of Rs.15,000-20,000. Though the appellant was examined as PW1, no relevant materials like the licence issued by the local authority, were produced to prove his income. The appellant has only produced Ext.A11 lease agreement which was one executed only on 25.6.2010, as admitted by him during cross examination. It was in the absence of any reliable materials that the Tribunal notionally fixed his monthly income as Rs.3,000/-. 8. At the time of accident, the appellant was aged 28 years. Applying the multiplier of 18 and the percentage of disability as 10% as certified in Ext.C1, the Tribunal awarded a sum of Rs.64,800/(3,000x12x18x10/100) as disability compensation. 9. Considering the fact that the accident is of the year 2007 M.A.C.A.1546/2012 4 and at the time of the accident, the appellant was an able bodied person aged 28 years, we deem it appropriate to re-fix his monthly income notionally at Rs.5,500/- for calculating compensation under different heads. In view of the judgment of the Apex Court in **Sarla** **Verma v. Delhi Transport Corporation [2010 (2) KLT 802],** the proper multiplier applicable is only 17. Therefore, on notional fixation of monthly income as Rs.5,500/-, the compensation for permanent disability has to be reworked as Rs.1,12,200/(5,500x12x17x10/100). After deducting Rs.64,800/- awarded by the Tribunal under this head, the appellant will be entitled for an additional compensation of **Rs.47,400/-** . 10. Towards loss of earning, the Tribunal awarded a sum of Rs.24,000/- @ Rs.3,000/-, for a period of eight months. Since we have already re-fixed the monthly income of the appellant notionally at Rs.5,500/-, the compensation payable under this head will come to Rs.44,000/- (5,500x8), resulting an additional compensation of **Rs.20,000/-** . 11. Towards bystanders expenses, the Tribunal awarded a sum of Rs.3,800/- @ Rs.100/- for a period of 38 days. Considering the fact that the accident is of the year 2007, we deem it appropriate to M.A.C.A.1546/2012 5 re-fix the compensation under this head @ Rs.200/- for 38 days. Accordingly, the compensation under this head is re-fixed as Rs.7,600/- (200x38) resulting an additional compensation **Rs.3,800/-** . 12. Towards pain and suffering, the Tribunal awarded a sum of Rs.20,000/-. Considering the nature of the injuries sustained and the treatment the appellant had undergone, we deem it appropriate to re-fix the compensation under this head as Rs.25,000/- resulting an additional compensation of **Rs.5,000/-** . 13. Towards loss of amenities, no amount was awarded by the Tribunal. Considering the nature of the injuries sustained and the disability that had arisen therefrom, as certified in Ext.C1, we deem it appropriate to grant a sum of **Rs.10,000/-** under this head. 14. In the result, the appellant will be entitled for an additional compensation of **Rs.86,200/-** (47,400+20,000+3,800+5,000+10,000) in this appeal which will carry interest @ 8% per annum from the date of the petition till realisation. 15. Since the insurance coverage of the vehicle is not in dispute, the respondent insurer shall deposit the said amount before the Tribunal within two months from the date of receipt of a certified M.A.C.A.1546/2012 6 copy of this judgment. No order as to costs. **Sd/-** **C.T. RAVIKUMAR (JUDGE)** **Sd/ANIL K. NARENDRAN (JUDGE)** **spc/** M.A.C.A.1546/2012 7 ## **C.T. RAVIKUMAR, J.** **JUDGMENT September, 2010** M.A.C.A.1546/2012 8