High Court of KeralaDivision BenchPartly allowed; enhanced compensation by Rs. 82...

Shamsudheen v. V.K. Sathyan, Balan M.K. and The Oriental Insurance Co. Ltd.

Case / Petition Number:MACA.No.1430 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • V. Chitambaresh
Judgment Date
2011-11-09
Court Decision / Holding
The appeal is allowed in part. The appellant is entitled to an additional Rs. 82,870 in compensation, computed by reworking loss of earnings (Rs 3,000 x 2 minus Rs 4,000), reduction in earning capacity (Rs 3,250 x 12 x 17% x 17/100 minus Rs 51,840) and Rs 20,000 for loss of amenities. The entire amount of compensation shall carry interest as directed by the Tribunal. Proportionate costs for the proceedings before the Tribunal shall be payable on the entire amount as per Jeena v. Satheesh Babu.K. All other directions of the Tribunal are upheld. The appeal, therefore, is part-allowed, with enhanced compensation and costs as specified, and the bench is R. Basant, J., and V. Chitambresh, J.
Final Disposition
Partly allowed; enhanced compensation by Rs. 82,870; proportionate costs; other Tribunal directions upheld.

Parties to the Case

Appellants / Petitioners

  • Shamsudheen

Respondents

  • V.K. Sathyan
  • Balan M.K.
  • The Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V.S. Chandrasekharan
  • • Smt. Lekshmi Swaminathan

Counsels for Respondents

  • • Sri. George Cheriyan (Thiruvalla) for R3

Case Synopsis & Summary

Shamsudheen, a 23-year-old salesman injured in a motor-vehicle accident on 14 November 2006, sought compensation of Rs. 3,00,000 before the Motor Accidents Claims Tribunal, Kozhikode. The Tribunal awarded Rs. 1,20,628, under heads including transport, nourishment, loss of earnings, treatment, bystander’s expenses, pain and suffering, and permanent disability (the medical board assessed 17% disability, though the Tribunal had reduced it to 12%). The appellant challenges the Tribunal’s quantum, contending that the Tribunal unreasonably fixed monthly income at Rs. 2,000 despite an employer’s certificate showing Rs. 6,000 per month. The High Court relies on the presumption of prudence under Clause 6 of the II Schedule of the Motor Vehicles Act and precedents (Latha Wadhwa; Laxmi Devi) to hold that a non-earning home maker or an unskilled worker can be assumed to earn Rs. 3,000 per month, and, for future prospects, Rs. 3,250 per month. The court also determines that 17% is the appropriate loss in earning capacity, rejecting the Tribunal’s 12% finding due to residual polio. It awards Rs. 20,000 for loss of amenities, reduces/adjusts the multiplier to 17 (instead of 18), and determines an enhanced compensation of Rs. 82,870 in addition to the Tribunal’s award. Proportionate costs are directed as per Jeena v. Satheesh. The appeal is allowed in part; other Tribunal directions are upheld; the judgment is by R. Basant, J., and V. Chitambresh, J., dated 9 November 2011.

Provisions of Law Cited

Motor Vehicles Act, II Schedule, Clause 6

Legal Doctrines & Maxims

  • Presumption of prudence under Clause 6 of II Schedule to the Motor Vehicles Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal erred in fixing monthly income at Rs. 2,000 contrary to the employer’s certificate showing Rs. 6,000 per month. Relying on Latha Wadhwa and Laxmi Devi, the appellant argues that a reasonable monthly income for a young, unskilled claimant or a non-earning home maker should be Rs. 3,000, with future prospects raising it to Rs. 3,250 for calculation of loss of earning capacity under Sarala Verma. The appellant also submits that disability should be taken as 17% (not 12%), that Rs. 20,000 should be awarded for loss of amenities, and that the correct multiplier is 17 (not 18). He seeks an overall enhancement of Rs. 82,870 in addition to the Tribunal award, along with proportionate costs as per Jeena v. Satheesh Babu.K.

Contentions of Respondents

The respondents’ counsel argued to sustain the Tribunal’s quantum and to resist any unwarranted enhancement. The challenge was limited to the amount of compensation; the insurer emphasized adherence to the Tribunal’s heads and amounts, resisting disproportionate increases in earnings, disability, or amenities, and urged no changes beyond the Tribunal’s framework.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Latha Wadhwa v. State of BiharAIR 2001 SC 3218PositiveUsed to justify the presumption of prudence in income estimation under II Schedule, Clause 6.
Laxmi Devi & Ors. v. Mohammad Tabbar & Anr.2008 ACJ 1488PositiveSupports adopting an income assumption for non-earning or unskilled individuals.
Sarala Verma v. Delhi Transport Corporation2009 (6) SCC 121PositiveAffirms considering future prospects and appropriate multiplier in earning capacity.
Jeena v. Satheesh Babu.K.2011 (3) KLT 943PositiveSupports awarding proportionate costs on the entire amount of 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 R.BASANT & THE HONOURABLE MR. JUSTICE V.CHITAMBARESH WEDNESDAY, THE 9TH NOVEMBER 2011 / 18TH KARTHIKA 1933 MACA.No. 1430 of 2011() ----------------------OPMV.635/2007 of MOTOR ACCIDENT CLAIMS TRIBUNAL, KOZHIKODE .................... APPELLANT(S): PETITIONER: ------------------------- SHAMSUDHEEN, AGED 23 YEARS, S/O.MUHAMMED, NAMBODANKUTTI KUNIYIL HOUSE, MUTTUNGAL POST, VADAKARA-VIA KOZHIKODE. BY ADV. SRI.V.S.CHANDRASEKHARAN SMT.LEKSHMI SWAMINATHAN RESPONDENT(S): --------------- 1. V.K.SATHYAN, AGE NOT KNOWN, S/O.KUNHIRAMAN, VANNANKANDY HOUSE, CHERODU POST, VADAKARA, KOZHIKODE. 2. BALAN.M.K., AGE NOT KNOWN S/O.CHEKKINI, MULLARIKANDIYIL HOUSE, VANIMAL POST, BADAGARA, KOZHIKODE. 3. THE ORIENTAL INSURANCE CO.LTD., DIVISIONAL OFFICE, SEEMA BUILDINGS, G.H.ROAD, KOZHIKODE. BY ADV. SRI.GEORGE CHERIYAN (THIRUVALLA) FOR R3. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 09/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **R.BASANT & V.CHITAMBARESH, JJ.** ------------------------------- ## **M.A.C.A.No.1430 of 2011** ------------------------------- **Dated this the 9[th] day of November, 2011** ## **J U D G M E N T** Claimant is the appellant. He, a 23 year old salesman in a fancy shop claimed compensation for the personal injuries suffered by him in a motor accident which took place on 14.11.2006. He claimed a total amount of Rs.3 lakhs. He had suffered multiple injuries including fractures. He was an inpatient for a period of 33 days. He had suffered permanent disability as a result of the accident. The extent of disability was assessed by the medical board under Ext.C1 to be 17%. The Tribunal by the impugned award against a total claim of Rs.3 lakhs awarded an amount of Rs.1,20,628/- as compensation as per the details given in paragraph 13 of the impugned award which we extrat below. |**_Sl.No._**|**_Head of claim_**|**_Amount_**<br>**_awarded_**<br>**_(Rs.)_**| |---|---|---| |1|Transport to hospital|400| |2|Extra nourishment|400| |3|Loss of earnings (2000 x 2)|4000| |4|Treatment expenses|50688| |5|Bystander's expenses|3300| |6|Pain and suffering|10000| |7|Permanent disabilit<br>(2000 x 12 x 18 x 12/100)|51840| ||**TOTAL**|**120628**| M.A.C.A.No.1430 of 2011 2 The insurance company is made entirely liable under the impugned award to satisfy the award. 2. We have heard the learned counsel for the appellant and the learned counsel for the insurance company. Challenge is raised only against the quantum of compensation awarded by the Tribunal. 3. Called upon to explain and be specific, the learned counsel for the appellant first of all contends that the Tribunal had most unreasonably assumed the monthly income of the 23 year old young petitioner to be Rs.2,000/- only. The Tribunal did not accept and act upon the salary certificate issued by the employer of the appellant which showed that he was earning an income of Rs.6,000/- per mensem. The learned counsel for the appellant submits that an appropriate enhancement has to be given on the monthly income of the appellant. 4. We take note of the presumption of prudence under Clause 6 of II schedule of the Motor Vehicles Act which has remained in force from 1994. We take note of the dictum in **Latha Wadhwa v. State of Bihar** (AIR 2001 SC 3218) and **Laxmi Devi & Ors. v. Mohammad Tabbar & Anr.** (2008 ACJ 1488) which permit the Tribunals to assume that even a non earning home M.A.C.A.No.1430 of 2011 3 maker as also an unskilled labourer can be assumed to earn an income of Rs.3,000/- per mensem. We are satisfied that Rs.3000/can safely be held to be the income of the appellant on the date of the accident. While ascertaining the compensation for reduction in earning capacity, making due provision for future increase in prospectus and employment as held in **Sarala Verma v. Delhi Transport Corporation** (2009 (6) SCC 121) we are satisfied that Rs.3,250/- can be reckoned as the monthly income. The amount awarded under the head of loss of earnings and loss of earning capacity will hence have to be re-worked with the above inputs. 5. The learned counsel for the appellant submits that the medical board has assessed the disability of the appellant to be 17%, the Tribunal had arbitrarily reduced it to 12%. The only reason stated by the Tribunal in support of this is that there was some residual post polio paralysis for the appellant as indicated in the discharge summary. We are of the opinion that in any view of the matter, 17% can safely be reckoned to be the extent of reduction in earning capacity consequent to the accident suffered. 6. The learned counsel for the appellant submits that no amount of compensation has been awarded under the head loss of amenities. The physical disability suffered by the claimant is bound M.A.C.A.No.1430 of 2011 4 to leave behind two fold reflections on his life. It reduces the earning capacity and it also reduces the quality of enjoyment of life which the 23 year old young appellant can aspire to lead hereafter for the entire rest of his life. We are satisfied that an amount of Rs.20,000/- can be awarded as compensation under this head. 7. The learned counsel for the insurance company submits that the multiplier to be adopted considering the age of the appellant is not 18, but 17, in the light of the II schedule to the Motor Vehicles Act. We agree. 8. We are not persuaded to interfere with the quantum of compensation awarded under any other heads. 9. The above discussions lead us to the conclusion that the appellant is entitled to a further amount of Rs.82,870/- as compensation as shown below in addition to the amount amount awarded by the Tribunal. 1. Loss of earnings (3000 x 2 minus 4000) Rs. 2,000.00 2. Reduction in earning capacity (3250 x 12 x 17 x 17/100 = 1,12,710 minus 51,840) Rs. 60,870.00 3. Loss of amenities (No amount awarded by Rs. 20,000.00 the Tribunal) M.A.C.A.No.1430 of 2011 5 ## **TOTAL** ## **Rs. 82,870.00** 10. The learned counsel for the appellant points out that proportionate cost has not been awarded as per the dictum in **Jeena v. Satheesh Babu.K.** (2011 (3) KLT 943) and only an amount of Rs.1,500/- has been awarded as cost. We direct that proportionate cost on the entire amount of compensation for the proceedings before the Tribunal shall be paid to appellant as held in **Jeena v. Satheesh Babu.K.** (2011 (3) KLT 943). ## - 11. In the result: a) This appeal is allowed in part; b) The appellant is found entitled to a further amount of Rs.82,870/- (Rupees eighty two thousand eight hundred and seventy only) in addition to the amount already awarded by the Tribunal under the impugned award; c) We make it clear that the entire amount of compensation shall carry interest at the rate and for the period as directed by the Tribunal. d) The proportionate cost for the proceedings before the Tribunal shall be payable on the entire of amount of compensation calculated as per the dictum in **Jeena v. Satheesh** M.A.C.A.No.1430 of 2011 6 **Babu.K.** (2011 (3) KLT 943). e) All other directions of the Tribunal are upheld. **R.BASANT, Judge** . **V.CHITAMBARESH, Judge.** **nj.** ## **R.BASANT & V.CHITAMBARESH, JJ.** ------------------------------- ## **C.M.Appln.No.2182of 2011 in M.A.C.A.No.1430 of 2011** ------------------------------- **Dated this the 9[th] day of November, 2011** ## **J U D G M E N T** This petition is filed to condone the delay of 337 days in filing the appeal. We have heard the learned counsel for the appellant and the learned counsel for the insurance company which has been made entirely liable under the impugned award to satisfy the award. We take a lenient view. Petition allowed. Delay condoned. **R.BASANT, Judge** . **V.CHITAMBARESH, Judge.** ## **nj.**