Sebastian @ Sebi v. Raveendran K., Geo and Tata AIG General Insurance Co. Ltd., MACA No. 1877 of 2012

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** # **FRIDAY, THE 22ND DAY OF NOVEMBER 2019 / 1ST AGRAHAYANA, 1941** ## **MACA.No.1877 OF 2012** **AGAINST THE AWARD IN OPMV 808/2008 DATED 16-03-2012 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, IRINJALAKUDA** ## **APPELLANT/PETITIONER:** **SEBASTIAN @ SEBI, AGED 29 YEARS, S/O.DOMANIC, POYYATHARA HOUSE, P.O.NATTIKA, THRISSUR DISTRICT.** **BY ADVS. SMT.JEENA JOSEPH SRI.G.D.PANICKER** ## **RESPONDENTS/RESPONDENTS:** **1 RAVEENDRAN K., S/O.KRISHNAN, PATHIRUPARAMBIL HOUSE, P.O.METHALA,KODUNGALLUR, PIN-680 664. 2 GEO, S/O.JOHN, PADAMATTUMMEL HOUSE, P.O.AZHIKODE, KOTTIKAL, PIN - 680 673.** **3 TATA AIG GENERAL INSURANCE CO.LTD., MIDC POST OFFICE, P.O.BOX NO.9407, CHAKKALA, MUMBAI - 400 093.** **R3 BY ADVS.SRI.C.AJITH KUMAR SRI.K.B.RAMANAND** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 22.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **MACA.No.1877 OF 2012** -2- ## **JUDGMENT** The appellant is the claimant in O.P(MV)No.808 of 2008 on the file of the Motor Accidents Claims Tribunal, Irinjalakuda, a claim petition filed under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the injuries sustained by him in a motor accident, which occurred on 06.06.2008, while he was travelling in a tipper lorry bearing registration No.KL-18/B-4699, owned by the 1[st] respondent, driven by the 2[nd] respondent and insured with the 3[rd] respondent. At the place of accident, the tipper lorry hit on the backside of a bus bearing registration No.KL-8/AF-2122. In the accident, the appellant/claimant sustained injuries. Alleging that the accident occurred due to the rash and negligent riding of tipper lorry by the 2[nd] respondent, claim petition was filed before the Tribunal claiming a total compensation of Rs.1,64,500/-, under various heads, which was limited to Rs.1,50,000/- for the purpose of payment of Court Fee. 2. Before the Tribunal, respondents 1 and 2 remained absent and they were set ex-parte. **MACA.No.1877 OF 2012** -3- 3. The 3[rd] respondent insurer filed written statement admitting insurance coverage of the tipper lorry involved in the accident; however, denying the negligence alleged against the 2[nd] respondent driver. The age, occupation, monthly income, etc. stated in the claim petition were denied and it was contended that the compensation claimed is highly excessive. 4. Before the Tribunal, Exts.A1 to A6 were marked on the side of the appellant/claimant and the doctor who issued Ext.A5 disability certificate was examined as PW1. The respondents have not chosen to adduce any oral or documentary evidence. 5. After considering the pleadings and materials on record, the Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent driving of the lorry by the 2[nd ] respondent driver. Since insurance coverage of the said vehicle was not in dispute, the insurer was held liable to indemnify the insured. Under various heads, the Tribunal awarded a total compensation of Rs.52,957/-, together with interest at the rate of 7.5% per annum from the date of **MACA.No.1877 OF 2012** -4- petition till realisation, with proportionate cost and the insurer was directed to satisfy the award. 6. Dissatisfied with the quantum of compensation awarded by the Tribunal, the appellant/claimant is before this Court in this appeal. 7. Heard the learned counsel for the appellant/ claimant and also the learned Standing Counsel for the 3[rd] respondent/insurer. Since the insurance coverage of the offending vehicle is admitted by the insurer, service of notice on respondents 1 and 2 is dispensed with. 8. The issue that arises for consideration in this appeal is as to whether the appellant is entitled for enhancement of the compensation awarded by the Tribunal under various heads. 9. In **State of Haryana v. Jasbir Kaur [(2003) 7 SCC 484]** the Apex Court held that the Tribunal under Section 168 of the Motor Vehicles Act, 1988 is required to make an award determining the amount of compensation which is to be in the real sense 'damages' which in turn appears to it to be 'just and reasonable'. It has to be borne in mind that **MACA.No.1877 OF 2012** -5- compensation for loss of limbs or life can hardly be weighed in golden scales. But at the same time it has be to be borne in mind that the compensation is not expected to be a windfall for the victim. Statutory provisions clearly indicate that the compensation must be 'just' and it cannot be a bonanza; not a source of profit; but the same should not be a pittance. 10. In **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** a Constitution Bench of the Apex Court 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 standard because such determination can never be in arithmetical exactitude. It can never be perfect. The aim is to achieve an acceptable degree of proximity to arithmetical precision on the basis of materials brought on record in an individual case. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 11. In the instant case, the compensation awarded by **MACA.No.1877 OF 2012** -6- ## the Tribunal under various heads reads thus; |Sl<br>No|The<br>compensation<br>claimed under various<br>heads|Amount<br>claimed<br>(Rs.)|Amount<br>awarded<br>(Rs.)|Basis/vital details in a<br>nutshell| |---|---|---|---|---| |1|Loss of earning (Total)|24,000|2,000|Rs.2,000 x 1 month| |2|Medical and miscellaneous|30,000|5,257|| |3|Bystander's expenses|3,000|1,600|Rs.100 x 16 days| |4|Transportation expenses|4,500|500|| |5|Pain and suffering|30,000|12,000|| |6|Compensation for<br>permanent disability|30,000|30,000|Rs.2,000x12x18x10%<br>(Rs.43,200/- Limited to<br>Rs.30,000)| |7|Damage to clothing|500|---|| |8|Extra nourishment|2,500|1,600|| |9|Loss of earning power|20,000|---|| |10|Loss of amenities and<br>enjoyment of life|20,000|---|| ||**Total**|**1,64,500/-**<br>Limited to<br>Rs.1,50,000/-|**52,957/-**|Rs.52,957/-<br>along<br>with interest at the<br>rate of 7.5% p.a.<br>from 28.8.08 <br>till<br>realisation.| 12. The accident occurred on 06.06.2008. At the time of accident, the appellant was aged 25 years. The appellant claimed a monthly income of Rs.3,000/- as Cleaner of the offending vehicle. No materials were produced before the Tribunal to prove the monthly income of the appellant. The appellant has also not chosen to mount the box. In the absence of any reliable materials, the Tribunal fixed the monthly income notionally as Rs.2,000/-, for the purpose of **MACA.No.1877 OF 2012** -7- assessing compensation under various heads. 13. In **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011)** **13 SCC 236]** the Apex Court reckoned the monthly income of a coolie (manual labourer), who met with a road accident in the year 2004, at the age of 35 years, notionally as Rs.4,500/-. The Apex Court held that, the claimant who was working as a coolie cannot be expected 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 the facts of the said case, the Tribunal should have accepted the claim of the claimant. The Apex Court made it clear 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 guess work, which may include the ground realities prevailing at the **MACA.No.1877 OF 2012** -8- relevant point of time. 14. In **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** , taking note of the earlier decision in **Ramachandrappa's case (supra)** , the Apex Court reckoned the monthly income of a vegetable vendor, who met with a road accident in the year 2008, at the age of 24 years, notionally as Rs.6,500/-. In the said decision, the Apex Court held that, a labourer in an unorganised sector doing his own business cannot be expected to produce documents to prove his monthly income. Therefore, there was no reason for the Tribunal and the High Court to ask for evidence to prove his monthly income. Going by the state of economy prevailing at that time and the rising prices in agricultural products, the Apex Court accepted his case that a vegetable vendor is reasonably capable of earning 6,500/- per month. 15. In the absence of any reliable evidence, considering the economic conditions prevailing at the time of accident, i.e., during the year 2008, and taking note of the fixation of notional monthly income by the Apex Court in the decisions **MACA.No.1877 OF 2012** -9- referred to supra, the monthly income of Rs.3,000/- claimed in the claim petition cannot be said to be on the higher side and the same is fixed as his notional monthly income, for the purpose of assessing compensation under various heads. 16. The document marked as Ext.A3 is the wound certificate and Ext.A4 is the discharge card. As per medical records, the appellant had sustained punctured lacerated wound left leg 2x1x1 cm; fracture dislocation left hip; lacerated wound 2x1x1/2 cm left little finger; multiple abrasions right knee anterior, left hand dorsum; and avulsion fracture of tibial spine (L). As per Ext.A4, he had undergone inpatient treatment for a period of 16 days. Ext.A6 series of medical bills are for a sum of Rs.5,256.94/-. 17. Ext.A5 is the disability certificate issued by PW1, in which the permanent disability of the appellant, on account of the injuries sustained in the motor accident is assessed as 10%. The assessment made by PW1 in Ext.A5 was accepted by the Tribunal for the purpose of awarding compensation under various heads. 18. Towards loss of earning, the Tribunal awarded a **MACA.No.1877 OF 2012** -10- sum of Rs.2,000/-, for a period of 1 month. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the period of 1 month fixed by the Tribunal for granting loss of earning is re-fixed as 4 months. Since the monthly income of the appellant is re-fixed notionally as Rs.3,000/-, the compensation under the head loss of earning is re-fixed as Rs.12,000/- (3,000 x 4), resulting an additional compensation of **Rs.10,000/-** (12,000 - 2,000). 19. On account of the injuries sustained in the accident, the appellant had undergone inpatient treatment for 13 days. Towards transportation expenses, the Tribunal awarded a sum of Rs.500/-. Considering the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under this head is re-fixed as Rs.1,000/-, resulting an additional compensation of **Rs.500/-** (1,000 - 500). 20. Towards bystander expenses, the Tribunal awarded a sum of Rs.1,600/- (100 x 16). Towards extra nourishment, the Tribunal awarded a further sum of Rs.1,600/-. Considering **MACA.No.1877 OF 2012** -11- the nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation under the head bystander expenses is re-fixed as Rs.3,200/- (200 x 16), resulting an additional compensation of **Rs.1,600/-** (3,200 - 1,600). The compensation under the head extra nourishment is re-fixed as Rs.2,400/- (150 x 16), resulting an additional compensation of **Rs.800/-** (2,400 - 1,600). 21. The Tribunal awarded no amount towards damage to clothing. Considering the fact that the accident is of the year 2008, this Court deem it appropriate to grant a sum of **Rs.1,000/-** under this head. 22. Towards medical and miscellaneous expenses, the Tribunal awarded a sum of Rs.5,257/-, covered by Ext.A6 series of medical bills. In the absence of any further materials, the compensation awarded by the Tribunal under this head represents just and reasonable compensation, which requires no enhancement in this appeal. 23. As compensation towards pain and suffering, the Tribunal awarded a sum of Rs.12,000/-. Considering the **MACA.No.1877 OF 2012** -12- nature of injuries sustained and the treatment the appellant had undergone, as borne out from medical records, the compensation awarded by the Tribunal under the head pain and suffering is re-fixed as Rs.15,000/-, resulting an additional compensation of **Rs.3,000/-** (15,000 - 12,000) under this head. 24. In **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** , the Apex Court, after referring to its earlier decisions in **Kerala State Road Transport Corporation v. Susamma Thomas [(1994) 2 SCC 176]** , **U.P. State Road Transport Corporation v. Trilok Chandra [(1996) 4 SCC 362]** and **New India Assurance Co. Ltd. v. Charlie [(2005) 10 SCC 720]** held that the multiplier to be used should be as mentioned in column (4) of the Table in paragraph 40 of the said decision [prepared by applying **Susamma Thomas** , **Trilok Chandra** and **Charlie** ], which starts with an operative multiplier of **18** [for the age groups of 15 to 20 and 21 to 25 years], reduced by one unit for every five years, i.e., multiplier of **17** for 26 to 30 years, multiplier of **16** for 31 to 35 years, multiplier of **15** for 36 to 40 years, **MACA.No.1877 OF 2012** -13- multiplier of **14** for 41 to 45 years, and multiplier of **13** for 46 to 50 years, then reduced by two units for every five years, i.e., multiplier of **11** for 51 to 55 years, multiplier of **9** for 56 to 60 years, multiplier of **7** for 61 to 65 years and multiplier of **5** for 66 to 70 years. 25. In **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** a Constitution Bench of the Apex Court held that, as far as the multiplier is concerned, the Claims Tribunal and the Courts shall be guided by Step 2 that finds place in paragraph 19 of **Sarla Verma** , read with paragraph 42 of the said judgment. 26. In the instant case, as on the date of accident, the appellant was aged 25 years. In the light of the decisions of the Apex Court in **Sarla Verma's case** and **Pranay Sethi's case** referred to supra, the multiplier of **18** applied by the Tribunal is correct and proper. 27. Towards compensation for permanent disability, the Tribunal awarded a sum of Rs.30,000/- [(2,000 x 12 x 18 x 10/100) = 43,200/-; limited to Rs.30,000/-]. The Tribunal was not justified in limiting the compensation under this head to **MACA.No.1877 OF 2012** -14- Rs.30,000/- since the appellant claimed only that much. Since the monthly income of the appellant is re-fixed notionally as Rs.3,000/-, applying the multiplier of 18 applicable to the age group of the appellant and the percentage of permanent disability as 10%, the compensation under the head permanent disability is re-fixed as Rs.64,800/- (3,000 x 12 x 18 x 10/100), resulting an additional compensation of **Rs.34,800/-** (64,800 - 30,000). 28. The Tribunal awarded no amount towards loss of amenities. In Ext.A5 disability certificate the permanent disability of the appellant, on account of the injuries sustained in the accident, is assessed as 10%. Considering the nature of injuries sustained and the permanent disability that has been certified in Ext.A5 disability certificate, this Court deem it appropriate to grant a sum of **Rs.10,000/-** under this head. 29. In the result, the appellant will be entitled for payment of an additional compensation of **Rs.61,700/-** (Rupees sixty one thousand seven hundred only) [10,000 + 500 + 1,600 + 800 + 1,000 + 3,000 + 34,800 + 10,000] in this appeal, which will carry interest at the rate of **8%** per **MACA.No.1877 OF 2012** -15- annum from the date of petition till realisation. The 3[rd] respondent/insurer shall satisfy the additional compensation granted in this appeal, together with interest, within a period of two months from the date of receipt of a certified copy of this judgment, after deducting the liability, if any, of the appellant/claimant towards Balance Court Fee and Legal Benefit Fund. The disbursement of the amount to the appellant shall be in terms of the directives issued by this Court in Circular No.3 of 2019 dated 06.09.2019 and clarified further in Official Memorandum No.D1-62475/2016 dated 07.11.2019. This appeal is disposed of as above. No order as to costs. Sd/- **ANIL K. NARENDRAN JUDGE** bpr