High Court of KeralaSingle JudgeAppeal disposed of as above.

Saneesh P.N. v. P.X. Jose, V.T. Rajesh and United India Insurance Company Ltd

Case / Petition Number:MACA No. 963 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Ziyad Rahman A.A.
Judgment Date
2021-09-03
Court Decision / Holding
Appeal disposed of in terms that enhance the compensation by an additional Rs.3,30,280 after applying the Pranay Sethi future-prospects principle, and directing the Insurance Company to deposit this amount with interest within three months. The insurer is entitled to recover the augmented amount from the insured, after deposit. The original award remains subject to the enhanced calculation and heads.
Final Disposition
Appeal disposed of as above.

Parties to the Case

Appellants / Petitioners

  • Saneesh P.N.

Respondents

  • P.X. Jose
  • V.T. Rajesh
  • United India Insurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Anil S. Raj
  • • Anila Peter
  • • G. Arun Gopan
  • • K.N. Rajani
  • • J. Vivek George

Counsels for Respondents

  • • P.A. Reziya

Case Synopsis & Summary

This Kerala High Court judgment arises from MACA No. 963 of 2012, a motor-accident claims appeal filed by Saneesh P.N. challenging the Motor Accidents Claims Tribunal, Ernakulam award in OP(MV)No.75/2004 arising from a 13.10.2003 accident wherein Saneesh, a pillion rider and electrician aged about 21, sustained severe injuries. The Tribunal found the rider of KL-07/AK-6186 negligent, and while awarding compensation (Rs. 6,87,679) held there was policy violation but allowed recovery from the insured. The appellant challenged the quantum, contending a higher disability, including 100% functional disability, and arguing that future prospects should be added under the Supreme Court’s Pranay Sethi dicta (40% of income for those under 40). The Insurance Company contested liability and quantum, maintaining policy conditions and disputing the extent of disability. The High Court held 70% functional disability to be reasonable, but observed the Tribunal did not include future prospects. Relying on Pranay Sethi, the Court fixed monthly income at Rs.3,500, recalculated disability benefits to Rs.7,40,880, and awarded an additional Rs.2,87,280 in disability compensation. It also enhanced awards under heads of pain and suffering, loss of amenities, attendant expenses, and loss of earnings (by Rs.3,000). The total additional compensation fixed is Rs.3,30,280, to be deposited with interest and costs, with the insurer allowed to recover from the insured. The appeal is disposed of accordingly.

Legal Doctrines & Maxims

  • Pranay Sethi principle on future prospects – addition of 40% of income for claimants below 40 years (National Insurance Company Ltd. v. Pranay Sethi)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the disability is effectively 100% functional, particularly given his young age and occupation as an electrician, and that future prospects must be added under the Pranay Sethi framework. He urges the Tribunal’s 70% functional disability be treated as 100%, requests adjustment of monthly income (claimed Rs.3,500) and inclusion of future prospects, and seeks higher amounts under heads of pain and suffering, loss of amenities, attendant expenses, and loss of earnings, along with appropriate re-computation of the overall compensation.

Contentions of Respondents

The Insurance Company contends policy conditions may be violated by the insured but admits coverage; disputes the quantum and the extent of disability, arguing there is no basis to elevate disability to 100% and questions the need to add future prospects. It maintains that the Tribunal’s calculations were reasonable and that the liability/quantum should not be amplified beyond the award, while allowing recovery of any amount from the insured.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi2017(4)KLT 662PositiveCourt applied the Pranay Sethi rule, adding 40% of income as future prospects for claimants under 40 years to recompute 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 ZIYAD RAHMAN A.A. FRIDAY, THE 3[RD] DAY OF SEPTEMBER 2021 / 12TH BHADRA, 1943 ## MACA NO. 963 OF 2012 [AGAINST THE COMMON AWARD DATED 27.7.2011 IN OP(MV)NO.75/2004 ON THE FILE OF THE MOTOR ACCIDENTS CLAIMS TRIBUNAL, ERNAKULAM] ## APPELLANT/PETITIONER: SANEESH P.N., AGED 30 YEARS S/O.NARAYANAN, RESIDING AT PALIYAMPARAMBIL HOUSE, AZHEEKAL P.O., VYPEEN, ERNAKULAM DISTRICT. BY ADVS. SRI.ANIL S.RAJ SMT.ANILA PETER SRI.G.ARUN GOPAN SMT.K.N.RAJANI SRI.J.VIVEK GEORGE ## RESPONDENTS/RESPONDENTS: 1 P.X.JOSE,S/O.XAVIER, PARAVARA HOUSE, NEAR LAW COLLEGE HOSTEL, MARKET ROAD, ERNAKULAM,COCHIN-682 011. 2 V.T.RAJESH,S/O.V.N.THANKAPPAN, VELIYIL HOUSE, AYYAMPILLYKAVU, EROOR P.O., TRIPUNITHURA, ERNAKULAM. 3 UNITED INDIA INSURANCE COMPANY LTD DIVISIONAL OFFICER, ERNAKULAM, COCHIN-682 016. BY ADV SMT.P.A.REZIYA THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 03.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA No.963 of 2012 2 ## JUDGMENT This is an appeal filed by the petitioner in OP(MV)No.75 of 2004 on the file of the Motor Accidents Claims Tribunal, Ernakulam. The aforesaid claim petition was filed by the appellant seeking compensation for the injuries sustained to him in a motor accident occurred on 13.10.2003. The appellant was a pillion rider on a motor cycle bearing registration No.KL-07/T 6115 and the same collided with another motor cycle bearing registration No.KL-07/AK-6186 ridden by the 1[st] respondent, owned by the 2[nd] respondent and insured with the 3[rd] respondent. He contends that, he was an electrician with a monthly income of Rs.3,500/and was aged 21 years at the time of accident. Due to the injuries sustained in the said accident, he sustained permanent disability which prevented him MACA No.963 of 2012 3 from continuing his avocation as electrician. In such circumstances, he submitted the petition seeking a total compensation of Rs.7,46,000/-. 2. The Insurance Company alone contested the matter by filing a written statement, wherein, they admitted the coverage of policy, but disputed the liability mainly on the ground that, there was violation of policy conditions by the insured. The quantum of compensation was also seriously disputed by them. 3. The aforesaid claim petition was tried along with OP(MV)Nos.209 of 2004 and 119 of 2004 which arose from the very accident. The evidence in this case consists of Exts.A1 to A22 and the oral evidence of PW1. After the trial, the Tribunal allowed the above claim petition by holding that the rider of the motor cycle bearing registration No.KL7/AK-6186 was negligent in causing the MACA No.963 of 2012 4 accident. The quantum of compensation in this case was fixed as Rs.6,87,679/- and the Insurance Company was directed to deposit the same along with interest at the rate of 7.5% per annum. The Tribunal also found that there was violation of policy conditions and the Insurance Company was granted the right to recover the compensation from the 1[st] respondent, after satisfying the award. 4. This appeal is filed by the appellant being dissatisfied with the quantum of compensation. 5. Heard both sides. 6. The learned counsel for the appellant mainly contended that, the percentage of disability suffered by the appellant is 55% by the certificate issued by the Medical Board. However, it is submitted that the nature of physical disability resulted in 100% functional disability particularly in view of the fact that he was an electrician and MACA No.963 of 2012 5 he is completely prevented from continuing his avocation. The learned counsel also relies on the observations made by the Tribunal in the award to the effect that, he is unable to continue any profession consequent to the physical disability suffered by him. It is discernible from the award that, taking note of the above aspect, the Tribunal has taken 70% as the functional disability and the compensation was calculated on the basis of the same. Even though the learned counsel for the appellant strenuously argued that this is a case in which 100% functional disability has to be taken into consideration, the learned counsel for the Insurance Company seriously disputed the same. It is true that the appellant had suffered serious injuries. In the facts and circumstances of this case, I am of the view that, the nature of disablement and the extent thereof is not of that MACA No.963 of 2012 6 severity which would warrant taking 100% functional disability as contended by the appellant. The percentage of occupational disability taken by the Tribunal seems to be reasonable and practical. However, it is noticed that, while computing the compensation, the Tribunal has not taken into consideration the future prospects he might have acquired, if he was continuing in the avocation. As per the decision rendered by the Hon’ble Supreme Court in National Insurance Company Ltd. v. Pranay Sethi [2017(4)KLT 662], in respect of persons below the age of 40 years, 40% of his income can be added towards future prospects and the said addition can be made in this case also. At this juncture, the learned counsel for the appellant points out that even though the monthly income claimed by the appellant was Rs.3,500/-, the Tribunal has taken only Rs.3,000/- which is on lower side. I find some MACA No.963 of 2012 7 force in the said contention. Going by the date of accident and the nature of avocation the petitioner was engaged in, the monthly income can be reasonably fixed as Rs.3,500/-. In such circumstances, while re-computing the compensation for permanent disability with the revised criteria as mentioned above, it comes to Rs.7,40,880/[(Rs.3500+1400)x12x18x70/100]. The Tribunal has awarded an amount of Rs.4,53,600/- under this head and hence the appellant is entitled for an additional compensation of Rs. 2,87,280 /- under this head. 7. The learned counsel for the appellant also contends that the amounts awarded by the Tribunal under the heads of pain and suffering and loss of amenities which are Rs.30,000/- and Rs.20,000/respectively, are on lower side. Even though the learned counsel for the Insurance Company disputed MACA No.963 of 2012 8 the said contentions, taking into account the serious nature of injuries and the percentage of physical disability suffered by him coupled with the young age of the appellant, this Court is of the view that the amounts awarded under the said heads require re-consideration. As regards the amount awarded under the head of compensation for pain and suffering, this Court is of the view that a further amount of Rs. 10,000 /- can be granted. Similarly the amount awarded under the head of compensation for loss of amenities, a further sum of Rs. 20,000 /- is justifiable and reasonable, and it is accordingly awarded. The learned counsel for the appellant further submits that as the nature of disability suffered by him makes it necessary for the appellant a support of a third person throughout his life and some amount is also to be granted under the head of attendant expenses. The MACA No.963 of 2012 9 amount already awarded by the Tribunal under the head of bystander expenses is Rs.4250/-. Considering the nature of injuries and consequent disability, I am of the view that a further sum of Rs. 10,000 /- can be granted towards future attendant expenses. It is further contended that the Tribunal has awarded an amount of Rs.18,000/- under the head of loss of earnings which was calculated at the rate of Rs.3,000/- for a period of six months. Consequent to the revision of monthly income as Rs.3,500/-, he is entitled for a further sum of Rs. 3,000 /- under this head. 8. Accordingly, an amount of Rs. 3,30,280 /- (Rs.2,87,280+ 10,000+ 20,000 +10,000+ 3,000)(Rupees Three Lakhs Thirty thousand and Two hundred and eighty only) is fixed as the total additional compensation and the third respondent Insurance Company shall deposit the said amount along with MACA No.963 of 2012 10 interest at the rate of 7.5% per annum and proportionate cost thereof, within a period of three months from the date of receipt of copy of this judgment. The Insurance Company shall be entitled to recover the compensation from the 1[st] respondent, after depositing the additional amount awarded as per this judgment. The appeal is disposed of as above. Sd/ZIYAD RAHMAN A.A. JUDGE pkk