High Court of KeralaSingle JudgeRemanded to the Principal Motor Accidents Claim...

Sadanandan P.A. v. Geetha Devi, Ahamedkutty, United India Insurance Co. Ltd.

Case / Petition Number:M.A.C.A. No.149 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. D. Rajan
Judgment Date
2018-06-11
Court Decision / Holding
The Principal Motor Accidents Claims Tribunal, Kozhikode’s award is set aside. The matter is remitted to the Tribunal for fresh consideration. The tribunal is directed to re-number the amendment application; the insurer may object to amendments; any amount already paid shall be adjusted against the final award. Both parties are to appear before the Tribunal on 14.08.2018 to process the amendment and dispose of the matter in accordance with law.
Final Disposition
Remanded to the Principal Motor Accidents Claims Tribunal, Kozhikode for fresh consideration with liberty to amend pleadings; insurer may file objections to amendments; appearance on 14.08.2018; final adjudication to be in accordance with law.

Parties to the Case

Appellants / Petitioners

  • Sadanandan P.A.

Respondents

  • Geetha Devi
  • Ahammedkutty
  • United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • SMT.K.V.RASHMI

Counsels for Respondents

  • • Sri P.V. Jayachandran
  • • Sri P. Sankarankutty Nair

Case Synopsis & Summary

This Motor Accident Claims Appeal (MACA No.149 of 2010) arises from an award of Rs.54,900 towards compensation by the Principal Motor Accidents Claims Tribunal, Kozhikode, in O.P.(M.V.) No.2307/2003 for injuries sustained in a bus collision on 29 June 2003. The appellant, a rubber tapper aged about 52, contends the tribunal erred in reducing the claimed income and in inadequately compensating the disability. Ext.C1 shows 50% permanent disability. The appellant relies on Supreme Court pronouncements that compensation for personal injuries must be fair and adequate, using the multiplier approach and recognizing the earning capacity in unorganized sectors where documentary proof may be limited. The insurer accepts insurance of one vehicle but not the entire extent of loss claimed; the matter involves assessment of income, disability, medical and special damages. The High Court reviews the principles governing quantum of damages, emphasizes that there is no uniform yardstick and that awards must reflect the facts, evidence, and evolving jurisprudence on compensation. The court ultimately sets aside the tribunal’s award and remits the matter to the Tribunal for fresh disposal, inviting amendment of pleadings and allowing the insurer to object, with final award to be issued in due course.

Provisions of Law Cited

Kerala Motor Vehicles Rules, 1989, Rule 395Motor Vehicles Act, 1988Code of Civil Procedure, 1908 – Order V, Rules 16-18; Order VI (Rules 9-18); Order IX, Rule 3; Order XIII, Rules 1-21; Order XVI, Rules 1-3; Order XXIII, Rules 1-21; Order XXVI of the First Schedule to the CPC

Legal Doctrines & Maxims

  • Basis of assessment of damages for personal injury is compensation; the victim has done no wrong and must receive full and fair compensation (as stated in Yadava Kumar v. D.M. National Insurance Co. Ltd).
  • Multiplier method is the conventional basis for computing pecuniary loss on an annual basis; damages for permanent disability are higher than those for death; discretion in injury cases depends on evidence and the nature of injury.
  • In unorganized sector cases, income proof may be scarce; courts may rely on credible estimates and well-grounded assessments (as per Syed Sadiq and Others; Ramachandrappa; Ramachandrappa case).
  • Amendment to pleadings can be allowed at any stage if necessary to determine the real question in controversy (as per Annamma Philip; Raj Kumar Guruwara; Nanduri Yogananda Lakshminarasimhachari).

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal undervalued the claimant's income (insisting on Rs.6,000 per month rather than the Rs.1,500 adopted by the Tribunal), failed to fully account for loss of earning during disability, and did not adequately compensate for permanent disability (50%) and pain and suffering. Reliance is placed on Yadava Kumar and Syed Sadiq to argue that the basis of assessment is fair compensation, using the multiplier method, and that unverified earnings, especially in unorganized sectors, should be accepted when credible evidence is provided. The appellant also urges that the tribunal’s decision be amended to reflect the true facts and to empower appropriate remedies, including re-pleading for alternate prayers and amplification of the claim. The High Court is urged to set aside the award and remand for fresh determination with opportunity to amend pleadings to reflect the true quantum of loss and disability.

Contentions of Respondents

The respondents contend that compensation should be computed based on evidence led before the tribunal, and that the tribunal rightly exercised discretion in assessing earnings and disability. The insurer’s role is to scrutinize the claim and verify insurance coverage; the court should ensure that any amendment does not cause prejudice. The respondents argue that the insurer is entitled to raise objections to amendments and that final award must accord with law after proper consideration of evidence, including medical reports and the extent of disability. The Respondents also emphasize that the Tribunal’s proceedings were valid under the Motor Vehicles Act and CPC provisions, and that the award did not warrant a presumption of actuarial perfection but a reasoned, lawful calculation.”},

Cited Precedents (8)

Case NameCitationTreatmentExplanation
Yadava Kumar v. D.M. National Insurance Co. Ltd.2010 (8) SCALE 567PositiveCited to establish the principle that compensation for personal injury must be fair and that the ‘multiplier’ approach should be used to assess the pecuniary loss, with the aim of putting the claimant in the same position as before the injury.
Syed Sadiq and Others v. Divisional Manager, United India Insurance Company Limited(2014) 2 Supreme Court Cases 735PositiveCited to support the view that courts may consider earning capacity and evidence of income in unorganized sectors when determining compensation.
Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd.SCC (para 13-15)PositiveCited for guidance on compensation related to earnings and the treatment of loss of income in the context of disability.
Raj Kumar Guruwara v. S.K. Sarwagi & Co. (P) Ltd.(2008) 14 SCC 364PositiveCited to support the principle that just and proper amendments to pleadings can be made to determine the real question.
Nanduri Yogananda Lakshminarasimhachari and Ors. v. Sri. AgastheswaraswamivaruAIR 1960 Supreme Court 622PositiveCited for the principle that appellate courts may permit amendments in the pleadings and that the issue may be reframed with necessary changes.
Annamma Philip v. Accidents Claims TribunalAIR 1980 Ker. 196PositiveCited to justify tribunal jurisdiction to allow amendments and to implead parties in MAC Tribunals.
Dixit Kumar v. Om Prakash Goel(2017) ACJ 2057PositiveCited for the proposition that, in the absence of contrary evidence, the income claimed by a claimant in unorganized sectors can be accepted.
Rajkumar v. Ajay Kumar and Anr.(2011) ACJ 1PositiveCited to support decisions on just and proper compensation based on the facts and evidence presented.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **THE HONOURABLE MR. JUSTICE P.D.RAJAN** **MONDAY, THE 11TH DAY OF JUNE 2018 / 21ST JYAISHTA, 1940** **AGAINST THE AWARD IN O.P.(M.V.) NO.2307/2003 OF THE PRINCIPAL MOTOR ACCIDENTS CLAIMS TRIBUNAL, KOZHIKODE DATED 29.04.2009** **-----------------------** **APPELLANT(S)/CLAIMANT :** **--------------------** **SADANANDAN P.A., S/O APPUTTY, POYILIL HOUSE, AGED 52, KALLURUTTY P.O., THIRUVAMBADY(VIA),KOZHIKODE.** **BY ADV.SMT.K.V.RASHMI** ## **RESPONDENT(S)/RESPONDENTS:** **-------------------------** **1. GEETHA DEVI.I.P. CHERETTUKUZHI HOUSE, P.O. MANASSERY, MUKKAM, KOZHIKODE DISTRICT.** **2. AHAMMEDKUTTY, S/O.AITHU, AGED 33, PARAKAMANNA HOUSE, P.O. PANNIPPARA, KOZHIKODE DISTRICT.** **3. THE UNITED INDIA INSURANCE CO.LTD, DIVISIONAL OFFICE 2, SEEMA TOWERS, MAVOOR ROAD, KOZHIKODE.** **R1 BY ADV. SRI.P.V.JAYACHANDRAN** **R3 BY ADV. SRI.P.SANKARANKUTTY NAIR** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 11-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **NS** ## **P.D. RAJAN, J. -----------------------M.A.C.A. No.149 of 2010 ---------------------------------Dated this the 11[th ] day of June, 2018** ## **J U D G M E N T** This appeal is preferred against the award in O.P. (M.V.) No.2307 of 2003 of the Principal Motor Accidents Claims Tribunal, Kozhikode by the injured. Appellant sustained injuries in a motor accident on 29.06.2003 at 11.45 a.m., while he was travelling in a bus KL-11/M-8456 and the learned Tribunal awarded compensation of Rs.54,900/- (Rupees Fifty Four Thousand Nine Hundred only) with interest and cost. Being aggrieved by that, the injured preferred this appeal. 2. In the lower court, claimant's case is that, on 29.06.2003 at 11.45 a.m., while he was travelling in a bus KL-11/M-8456 and when he reached at the place of occurrence, it collided with another bus KL-11/J-3663 thereby he sustained serious injuries. Immediately he was removed to Medical College Hospital, Kozhikode. He is a Rubber Tapper by profession and was getting Rs.6,000/per month. The driver and owner of the vehicle were ex ## M.A.C.A. No.149 of 2010 2 parte and the insurer admitted the insurance of the vehicle KL-11/J-3663. Claimant was examined as PW1 and his documents were marked as Exts.A1 to A7. The disability certificate was marked as Ext.C1 which shows 50% disability to the appellant. 3. In **Yadava Kumar** v. **D.M. National Insurance Co. Ltd. [2010 (8) SCALE 567]** Apex Court reiterated the principle in relation to the assessment of damages for personal injuries cases as follows: “ We do not intend to review in detail state of authorities in relation to assessment of all damages for personal injury. Suffice it to say that the basis of assessment of all damages for personal injury is compensation. The whole idea is to put the claimant in the same position as he was insofar as money can. Perfect compensation is hardly possible but one has to keep in mind that the victim has done no wrong; he has suffered at the hands of the wrongdoer and the court must take care to give him full and fair compensation for that he had suffered. 10. In some cases for personal injury, the claim could be in respect of lifetime's earning lost because, though he will live, he cannot earn his living. In others, the claim may be made for partial loss of earnings. Each case has to be considered in the light of its own facts and at the end, one must ask whether the sum awarded is a fair and reasonable sum. The conventional basis of assessing compensation in personal injury cases, and that is now recognised mode as to the proper measure of M.A.C.A. No.149 of 2010 3 compensation-is taking an appropriate multiplier of an appropriate multiplicand.” 4. The assessment of compensation in permanent disability cases would differ from person to person according to the nature of injury. Vast discretion is vested with the court for assessment of just compensation in injury cases. There can be no uniform standard and yardstick provided for assessing such compensation. When two persons sustain similar injury, that can attract the same compensation, but the heads under which, compensation can be attributed are truly amazing. The scope for awarding general damages and special damages are too wide for articulation. It is settled law that compensation for injury claims would be higher than that in death cases. The reason is that the injured has to suffer disability for the remaining period of his life. Generally in practical terms it is found that discretion vested in assessment has to be on the basis of injury sustained to the victim and also on the nature of evidence in that case. 5. It was contended by the appellant that he was ## M.A.C.A. No.149 of 2010 4 getting Rs.6,000/- per month, but the learned Tribunal took only Rs.1,500/- per month. Apex Court in **Syed Sadiq and Others V. Divisional Manager, United India Insurance Company Limited [(2014) 2 Supreme Court Cases 735]** held as follows: 8. The appellant claimant in his appeal further claimed that he had been earning Rs.10,000/- p.m. By doing vegetable vending work. The High Court however, considered the loss of income at Rs.3,500/- p.m. Considering that the claimant did not produce any document to establish his loss of income. It is difficult for us to convince ourselves as to how a labour involved in an unorganized sector doing his own business is expected to produce documents to prove his monthly income. In this regard, this Court, in Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd, has held as under: (SCC pp.242-43, paras 13-15) 13. In the instant case, it is not in dispute that the appellant was aged about 35 years and was working as a coolie and was earning Rs.4500/- per month at the time of accident. This claim is reduced by the tribunal to a sum of Rs.3,000/- only on the assumption that the wages of a labourer during the relevant period viz. Int he year 2004, was Rs.100 per day. This assumption in out view has no basis. Before the Tribunal, though the Insurance Company was served, it did not choose to appear before the court nor did it repudiate the claim of the claimant. Therefore, there was no reason for the Tribunal to have ## M.A.C.A. No.149 of 2010 5 reduced the claim of the claimant and determined the monthly earning to be a sum of Rs.3000 per month. Secondly, the appellant was working as a coolie and therefore, we cannot except him to produce any documentary evidence to substantiate his claim. In the absence of any other evidence contrary to the claim made by the claimant, in our view, in the facts of the present case, the Tribunal should have accepted the claim of the claimant. 14. We hasten to add that in all cases and in all circumstances, the Tribunal need not accept the claim of the claimant in the absence of supporting material. It depends on the facts of each case. In a given case, if the claim made is so exorbitant or if the claim made is contrary to ground realities, the Tribunal may not accept the claim and may proceed to determine the possible income by resorting to some guesswork, which may include the ground realities prevailing at the relevant point of time. 15. In the present case, appellant was working as a coolie and in and around the date of the accident, the wage of a labourer was between Rs.100 to Rs.150 per day or Rs.4500 per month. In our view, the claim was honest and bona fide and, therefore, there was no reason for the Tribunal to have reduced the monthly earning of the appellant from Rs.4500/- to Rs.3000/- per month. We, therefore, accept his statement that his monthly earning was Rs.4500/-.” 9. There is no reason in the instant case for the Tribunal and the High Court to ask for evidence of monthly income of the appellant claimant. On the other hand, going by ## M.A.C.A. No.149 of 2010 6 the present state of economy and the rising prices in agricultural products, we are inclined to believe that a vegetable vendor is reasonably capable of earning Rs.6500/- per month. 6. In another decision, **Dixit Kumar and Ors.** Vs. **Om Prskash Goel [2017 ACJ 2057]** it was held that, in the absence of any contra evidence, the income stated by the claimant has to be considered. The learned Tribunal took a meagre amount in this case as the monthly income. Claimant is a Rubber Tapper by profession and he is entitled to get just amount as compensation in view of **Rajkumar** v. **Ajay Kumar and Anr. [2011 ACJ 1]** . No reasons are stated by the Tribunal for reducing the disability from 50% to 10%. There was no proper application of mind and awarded the following amounts as compensation: Medical bills Rs.15,000/-, Incidental charges Rs.2,000/-, Pain and suffering Rs.10,000/-, Disability Rs.23,400/-, Loss of notional income (in 2003) Rs.4,000/and Transportation Rs.500/-. The total is Rs.54,900/(Rupees Fifty Four Thousand Nine Hundred only). ## M.A.C.A. No.149 of 2010 7 7. In permanent injury case, the injured is entitled to get higher amount as compensation than that in death case. The damages are to be assessed separately as pecuniary and special damages. The object is to compensate injury so far as money can compensate. When compensation is to be awarded for pain, suffering and loss of amenities in life, special circumstances of the claimant have to be taken into account. Amount of compensation for non-pecuniary loss is not easy to determine, but award must reflect that different circumstances have been taken into consideration. Hence, the multiplier method has to be followed to calculate pecuniary loss upon annual basis. 8. The claimant filed I.A. No.1874 of 2018 and contended that the compensation awarded by the Tribunal is a meagre one, hence the amendment of the petition is necessary. Rule 395 of the Kerala Motor Vehicles Rules, 1989 reads as follows: 395. Code of Civil Procedure to apply in certain cases.- The provisions of Rules 9 to 13 and 15 to 30 of Order V, Rules 16 to 18 of Order VI, Order IX, Rules 3 to ## M.A.C.A. No.149 of 2010 8 10 of Order XIII, Rules 1 to 21 of Order XVI, Rules 1 to 3 of Order XXIII and Order XXVI of the First Schedule to the Code of Civil Procedure, 1908, shall, so far as may be, apply to the proceedings before the Claims Tribunal. The power to grant amendment of the pleadings must be regarded as inherent in all Motor Accident Tribunals for enquiring into rights and liabilities of parties for adjudicating their claims or disputes. Where pleadings play an important part in legal proceedings before Tribunals, they afford the basis for evidence during the enquiry and the power to amend must be necessarily an indispensable factor to their jurisdiction. Error cannot be completely avoided from any human conduct especially in matters of writing or drafting. An amendment application can be allowed at any stage which do not cause injustice to the other side and which are necessary for the purpose of determining the real question in controversy between the parties. This Court in **Annamma Philip v. Accidents Claims Tribunal [AIR 1980 Ker. 196]** held that in view of the scheme of the Act and the Kerala Motor Accidents Claims Tribunal Rules, 1977, the M.A.C.A. No.149 of 2010 9 Tribunal has jurisdiction to allow the claimants to implead parties and to amend the petition accordingly. Another decision in **Raj Kumar Guruwara V. S.K. Sarwagi & Co, (P) Ltd. [(2008) 14 SCC 364]** it was held that “just and proper amendment to pleadings can be introduced at any stage as may be necessary for the purpose of determining the real question in controversy”. 9. In view of the scheme of the Motor Vehicles Act, 1988 and the Kerala Motor Accident Rule, 1989, the tribunal has jurisdiction to amend the petition. In **Nanduri Yogananda Lakshminarasimhachari and Ors. v. Sri. Agastheswaraswamivaru [AIR 1960 Supreme Court 622]** the apex court held that; “The High Court was right in allowing at the appellate stage the amendment by the addition of a new prayer in the prayer clause of the plaint, when all the allegations had been made in the plaint, requisite plea had been raised by the appellant, an issue was framed on the question, the parties were fully cognizant of the points in controversy and they had led the necessary evidence. ” In this case, the Doctor certified 50% disability to the ## M.A.C.A. No.149 of 2010 10 appellant. For awarding just amount as compensation, amendment of the application is necessary. In the circumstances, the award of the Principal Motor Accidents Claims Tribunal, Kozhikode is set aside and the matter is remitted to the Tribunal for fresh consideration. Tribunal is directed to re-number the amendment application and the insurer is at liberty to file objection if any on such amendment application. The amount if any paid by the insurer shall be adjusted with final award amount. Both parties are directed to appear before the Principal Motor Accidents Claims Tribunal, Kozhikode on 14.08.2018 and on such appearance, the Tribunal shall consider the amendment application and dispose the matter as per law. Sd/- **P.D. RAJAN, JUDGE** NS /True Copy/ P.A. To Judge