High Court of KeralaSingle JudgeAppeal partly allowed

Saibunisa v. Muhammed Shafi and The New India Assurance Company Ltd. and Hayarunisa and Muhammed Hakkim

Case / Petition Number:MACA No.128 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S.Dias, J.
Judgment Date
2021-07-13
Court Decision / Holding
The appeal is allowed, in part. Enhanced compensation by Rs.18,800 with interest at 7.5% p.a. on the enhanced amount from the date of petition till realisation, plus proportionate costs. The insurer (2nd respondent) shall deposit the enhanced compensation with interest and costs before the Tribunal within two months from receiving a certified copy of the judgment; the Tribunal will disburse in accordance with law.
Final Disposition
Appeal partly allowed

Parties to the Case

Appellants / Petitioners

  • Saibunisa, Kanjirankalayil, Omanamukku Bhagom, Padinjattum Bhagom, Athirammpuzha Village, Kottayam

Respondents

  • Muhammed Shafi, Kanjirankalayil, Omanamuku Bhagom, Athirampuzha, Kottayam
  • The New India Assurance Company Ltd., Kottayam
  • Hayarunisa, Kanjirirnkalayil Omanamuku Bhagom, Athirampuzha, Kottayam
  • Muhammed Hakkim, Kanjirirnkalayil Omanamuku Bhagom, Athirampuzha, Kottayam

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.Philip T.Vargheese
  • • Sri.Thomas T.Varghese

Counsels for Respondents

  • • Sri.VPK.Panicker

Case Synopsis & Summary

Saibunisa v. Muhammed Shafi and The New India Assurance Company Ltd. and others, MACA No.128 of 2009, arises from an award of the Motor Accidents Claims Tribunal, Kottayam, in OP(MV)No.2424/2004. On 27.01.2004, Saibunisa, a pillion rider, sustained serious injuries when the motorcycle KL 5L/471, driven by the 1st respondent, toppled after the driver lost control. The Tribunal held the 3rd respondent (insurer) liable to indemnify the owner and awarded Rs.45,165 as compensation, with interest at 7.5% p.a. and costs. The appellant challenged the quantum. Following orders deleting respondents 3 and 4 from the party array (8.04.2021 IA No.1/2021), the High Court, in a single-judge decision by C.S. Dias, revisited several heads of claim. Invoking Pranay Sethi (Constitution Bench) on just compensation under the Motor Vehicles Act and Ramachandrappa for notional income, the court re-assessed income, loss of earnings, bystander expenses, and loss of amenities. It fixed notional income at Rs.4,000/month, increased loss of earnings to Rs.12,000, bystander expenses to Rs.1,800, and loss of amenities to Rs.14,000, declining disability claims due to lack of doctor examination per Rajkumar v. Ajayakumar. The appeal is allowed in part, enhancing compensation by Rs.18,800 with 7.5% interest from petition date until payment, plus costs, payable within two months, for disbursement as per law. The decision reiterates the ‘just compensation’ doctrine under MV Act s168.

Provisions of Law Cited

Motor Vehicles Act, 1988, s.168

Legal Doctrines & Maxims

  • Just compensation under the Motor Vehicles Act, 1988
  • Fairness, reasonableness and equitableness in determining compensation
  • Notional income approach (as in Ramachandrappa)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal’s quantum was inadequate. Citing Ramachandrappa for fixation of notional income and Pranay Sethi for the overarching framework of ‘just compensation’, the appellant seeks higher notional income (Rs.4,000/month) and enhanced heads—loss of earnings, bystander expenses and loss of amenities—while challenging the finding on disability because the certificate was not subjected to doctor’s examination under Rajkumar v. Ajayakumar. The appellant also argues for a more liberal assessment of total compensation to reflect earnings loss during incapacity and the petitioner’s actual livelihood.

Contentions of Respondents

The insurer-defendant defends the Tribunal’s quantum, contending the policy liability and the fact of negligence are established, while contending the assessment should align with policy terms and customary caps. It maintains that ex-parte respondents had contested the petition and argues there is no basis for further enhancement beyond the amount already awarded, and that the evidence of disability was not proved by proper medical corroboration.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Pranay Sethi v. National Insurance Company Ltd.(2017) 16 SCC 680PositiveCited to frame the just compensation doctrine under MV Act s.168 as fairness, reasonableness and equity.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveCited for notional income determination, fixing Rs.4,500 as monthly income for a laborer.
Rajkumar v. Ajayakumar(2011) 1 KLT 620 (SC)PositiveCited to require medical examination of disability certificates, affecting disability assessment.

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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** **TUESDAY, THE 13[TH] DAY OF JULY 2021 / 22ND ASHADHA, 1943** **MACA NO. 128 OF 2009** **AGAINST THE AWARD IN OP(MV)NO. 2424/2004 OF MOTOR ACCIDENT** ## **CLAIMS TRIBUNAL ,KOTTAYAM** ## **APPELLANT/PETITIONER:** **SAIBUNISA, KANJIRANKALAYIL, OMANAMUKKU BHAGOM, PADINJATTUM BHAGOM, ATHIRAMPUZHA VILLAGE,, KOTTAYAM.** **BY ADVS. SRI.PHILIP T.VARGHESE SRI.THOMAS T.VARGHESE** ## **RESPONDENTS:** - **1 MUHAMMED SHAFI,KANJIRANKALAYIL, OMANAMUKU BHAGOM, ATHIRAMPUZHA.** - **2 THE NEW INDIA SSURANCE COMPANY LTD. KOTTAYAM.** - ***3 MUHAMMED RAFI, KANJIRAMKALAYIL OMANAMUKU BHAGOM, ATHIRAMPUZHA. (DELETED)** - ***4 MUHAMMED HASIM, KANJIRAMKALAYIL OMANAMUKU BHAGOM, ATHIRAMPUZHA KOTTAYAM.(DELETED)** **(THE RESPONDENTS 3 AND 4 ARE DELETED FROM THE PARTY ARRAY AT THE RISK OF THE APPELLANT AS PER ORDER DATED 08.04.2021 IN IA NO.1 OF 2021)** - **5 HAYARUNISA, KANJIRAMKALAYIL OMANAMUKU BHAGOM, ATHIRAMPUZHA, KOTTAYAM.** MACA.No.218 of 2009 _2_ **6 MUHAMMED HAKKIM, KANJIRAMKALAYIL OMANAMUKU BHAGOM, ATHIRAMPUZHA, KOTTAYAM.** **BY ADV SRI.VPK.PANICKER** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 13.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA.No.218 of 2009 _3_ ## **C.S.DIAS,J** - - - - - - - - - - - - - - - - - - - - - - - - MACA No.128 of 2009 - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 13[th] day of July, 2021 ## **JUDGMENT** The appellant was the petitioner in OP(MV)No.2424 of 2004 on the file of the Motor Accidents Claims Tribunal, Kottayam. The respondents in the appeal were the respondents before the Tribunal. Pursuant to the orders of this Court on 08.04.2021 in IA No.1 of 2021, the respondents 3 and 4 were deleted from the party array. The parties are, for the sake of convenience, wherever the context so requires are referred to as per their status in the claim petition, 2. The facts in brief in the claim petition, relevant for the determination of the appeal, are : on 27.01.2004 while the petitioner was a riding pillion on MACA.No.218 of 2009 _4_ motorcycle bearing registration No.KL 5L/471 driven by the 1[st] respondent, when the vehicle reached Kavalabhagam, the 1[st] respondent lost control of the vehicle, which turned turtle. The petitioner sustained serious injuries and was treated as an in-patient at Carithas Hospital, Kottayam from 27.01.2004 to 04.02.2004. She sustained a 1 Type compound fracture both knees (right) leg lower 1/3 region. The petitioner was a Tailor by profession and was also doing poultry business. She was earning a monthly income of Rs.4,000/-. The accident occurred on account of the negligence on the part of the 1[st] respondent. The 2[nd] respondent was the owner of the vehicle and the 3[rd] respondent was the insurer. As the 2[nd] respondent died, the supplemental respondents 4 to 7 were impleaded as his legal representatives. 3. The respondents 1 and 5 did not contest the MACA.No.218 of 2009 _5_ ## proceedings and were set ex-parte. 4. The 3[rd] respondent filed a written statement disputing the age, occupation and income of the petitioner. It was contended that the rider of the motorcycle did not hold a valid insurance policy and hence there was a violation of the policy conditions. Therefore, the 3[rd] respondent prayed that the petition be dismissed. 5. The respondents 4, 6 and 7 filed a joint written statement stating that the 1[st] respondent drove the vehicle with due care and caution. The accident did not occur due to the negligence on the part of the 1[st] respondent. The 1[st] respondent had a valid driving license bearing No.4056/1996. Hence, the 3[rd] respondent is liable to indemnify the liability of the owner of the vehicle. 6. The petitioner marked Exts.A1 to A10 in MACA.No.218 of 2009 _6_ evidence. The 3[rd] respondent marked Ext.B1 and B2 in evidence. 7. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition, in part, by permitting the petitioner to recover an amount from the 3[rd] respondent of Rs.45,165/- with interest at the rate of 7.5% per annum from the date of petition till the date of realisation along with cost of Rs.2,500/-. 8. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioner/appellant is in appeal. 9. Heard the learned Counsel appearing for the appellant/petitioner and the learned Counsel appearing for the 2[nd] respondent – insurance company. 10. The sole question that emerges for consideration in this appeal is whether the quantum of MACA.No.218 of 2009 _7_ compensation awarded by the Tribunal is reasonable and just? 11. A Constitution Bench of the Hon'ble Supreme Court in **v. National Insurance Company Ltd. Pranay Sethi** [(2017) 16 SCC 680], has held that Section 168 of the Motor Vehicles Act, 1988, deals with the concept of 'just compensation' and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptable legal standards. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 12. Ext.A3 charge-sheet filed by the Ettumanur police in Crime No.55 of 2004 substantiates that the accident occurred on account of the negligence on part of the 1[st] respondent. Undisputedly, it was the MACA.No.218 of 2009 _8_ deceased 2[nd] respondent who was the owner of the vehicle and the 3[rd] respondent was the insurer of the vehicle. Therefore, it is the 3[rd] respondent who is liable to indemnify the liability of the 2[nd] respondent arising out of the accident. ## **Notional income** 13. The petitioner had claimed that she was a Tailor by profession and also doing poultry farming and earning a monthly income of Rs.4,000/-. The Tribunal fixed the notional income of the appellant at Rs.2,000/- per month. 14. 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. Following the ratio in the afore-cited decision, I am of MACA.No.218 of 2009 _9_ the opinion that the petitioner's income has to be fixed at Rs.4,000/- as claimed in the claim petition. ## **Loss of earnings** 15. Ext.A7 discharge summary and Ext.A8 disability certificate proves that the petitioner had suffered a Type 1 compound fracture both knees (right) leg lower 1/3 region and also there was a punctured wound on the right leg. Therefore, the petitioner was necessarily incapacitated for a period of three months. In the said circumstances and in view of the re-fixation of the income of the petitioner at Rs,4,000/-, I re-fix the compensation under the head ‘loss of earnings’ at Rs. 12,000/- instead of Rs.2,000/fixed by the Tribunal ## **Byestander expenses** 16. It is on record that the petitioner was treated as an in-patient for the period from 27.01.2004 to MACA.No.218 of 2009 _10_ 04.02.2004 i.e., the period of 9 days. The Tribunal fixed the 'byestander expenses' at Rs.1,000/-, which according to me is on the lower side. Hence, I re-fix the 'byestander expenses' at Rs.200/- per day for a period of 9 days, i.e., an amount of Rs.1,800/-, which is an enhancement by Rs.800/-. ## **Loss of amenities** 17. The petitioner had claimed an amount of Rs.60,000/- towards 'loss of amenities'. However, the Tribunal only awarded an amount of Rs.6,000/-, which again according to me is on the lower side. Considering the fact that the appellant had sustained a compound fracture as mentioned above and that she was incapacitated for a period of three months, I am of the opinion that the compensation under the head 'loss of amenities' has to be enhanced by a further amount of Rs.8,000/-, i.e., a total of Rs.14,000/-. MACA.No.218 of 2009 _11_ ## **Loss due to disability** 18. Although, the petitioner had claimed that she has suffered permanent disability at 8% as per Ext.A8 disability certificate, the petitioner did not examine the Doctor who authored the said certificate as per the mandate in **Rajkumar v. Ajayakumar** [2011(1) KLT 620(SC)]. Hence, it has to be inferred that the petitioner does not have any disability. 19. With respect to the other heads of compensation, I find that the Tribunal has awarded reasonable and just compensation. 20. On an overall re-appreciation of the pleadings, materials on record and the law laid down in the afore-relied decision, I am of the opinion that the appellant/petitioner is entitled for enhancement of compensation as modified and recalculated above, that is enhancement by a further amount of Rs.18,800/-, MACA.No.218 of 2009 _12_ namely, Rs.10,000/- towards 'loss of earnings' and Rs.800/- towards 'bye-stander expenses' and Rs.8,000/towards 'loss of amenities'. In the result, the appeal is allowed, in part, by enhancing the compensation by a further amount of Rs.18,800/- with interest on the enhanced compensation at the rate of 7.5% per annum from the date of petition till the date of deposit and proportionate costs. The 2[nd] respondent shall deposit the enhanced compensation awarded in this appeal with interest and proportionate before the Tribunal within a period of two months from the date of receipt of a certified copy of this judgment. The Tribunal shall disburse the enhanced compensation to the appellant/petitioner in accordance with law. ## **C.S.DIAS,JUDGE** dlk 13.07.2021