High Court of KeralaSingle JudgeThe appeal is allowed to the extent of enhancin...

Sijeesh Kumar v Abdul Azeez and Others

Case / Petition Number:MACA NO. 1037 OF 2014
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Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sophy Thomas
Judgment Date
2024-04-01
Court Decision / Holding
Appeal allowed in part. Enhanced compensation awarded: Loss of earning Rs.60,000; Pain and suffering Rs.30,000; Loss of future earning power Rs.8,50,500; Loss of amenities Rs.40,000; Total enhanced compensation Rs.4,44,900. The insurer is directed to deposit the enhanced amount in the appellant’s bank account with 8% interest from the petition date till deposit, within two months, after which liability can be recovered from the first respondent RC owner. No costs. The pay-and-recover arrangement against the RC owner is retained for the enhanced amount. The appeal thus partially succeeds, and the enhanced compensation is payable subject to the deposit and recoveries specified.
Final Disposition
The appeal is allowed to the extent of enhancing the compensation as stated above; enhanced amount to be deposited with 8% interest, with pay-and-recover rights reserved for the RC owner against the insurer; no costs awarded.

Parties to the Case

Appellants / Petitioners

  • Sijeesh Kumar

Respondents

  • Abdul Azeez
  • Samarooq
  • The New India Assurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.V.S.Chandrasekharan
  • • Smt.Lekshmi Swaminathan
  • • Sri.K.L.Mohanachandran

Counsels for Respondents

  • • K.P.Sudheer
  • • Sri.P.Jacob Mathew
  • • Sri.Mathews Jacob Sr.

Case Synopsis & Summary

This is a Motor Accident Claims Appeal before the Kerala High Court, arising from an award of Rs. 6,62,740 granted by the Motor Accidents Claims Tribunal, Kozhikode, in OP(MV) No.160 of 2011 for injuries suffered by the appellant in a 5 May 2010 accident involving a stage carriage driven by the second respondent. The appellant, a 36-year-old coolie with a monthly income of about Rs. 9,000, sustained multiple serious injuries, was hospitalized for 97 days, and faced permanent disability. The Tribunal fixed the appellant’s notional income at Rs. 4,000 per month, and awarded compensation across several heads for loss of earnings, pain and suffering, future earning power, and loss of amenities. The appellant challenged the adequacy of compensation, relying on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. (AIR 2011 SC 2951) to contend that a coolie’s notional income in 2010 should be Rs. 7,500 per month and that future prospects should be considered. The insurer contested liability on policy grounds, contending the driver had no license and relying on policy conditions, while the pay-and-recover mechanism was explored. The High Court, by allowing the appeal in part, recalculated compensation, fixing Rs. 7,500 as notional income, enhancing losses for earnings, pain, disability, and amenities, and directing the insurer to deposit enhanced compensation with an 8% interest in two months, with liberty to recover from the owner. The order clarifies the approach to notional income and MACT disability compensation on appeal.

Provisions of Law Cited

Motor Vehicles Act, 1988, Section 3(1) r/w 181

Legal Doctrines & Maxims

  • Notional income principle for wage earners in MACT cases (as per Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.)
  • Future prospects addition for disability compensation (discussed in context of 40% addition)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argues that the award is inadequate. Relying on Ramachandrappa (AIR 2011 SC 2951), he contends that a coolie’s notional income in 2010 should be fixed at Rs.7,500 per month rather than Rs.4,000, and that the calculation of loss of earnings should reflect eight months at the higher notional income (Rs.7,500 x 8 = Rs.60,000). He asserts 63% permanent disability with potential loss of future earning power; since the medical certificate (Ext.C1) and the facts indicate substantial disability and some occupational impact, an addition for future prospects (roughly 40%) might be warranted if supported by evidence, which is not conclusively denied. He seeks enhanced compensation across heads for loss of earnings, pain and suffering, and loss of amenities, and upholds the pay-and-recover mechanism against the RC owner. The appellant also emphasizes the 97 days of hospitalization and ongoing disability resulting in substantial impairment of earning capacity.

Contentions of Respondents

The respondents contend that the insurer is not liable due to policy conditions and the 2nd respondent’s lack of a driving license; Ext.B2 demonstrates license issues, justifying a pay-and-recover directive against the RC owner. They emphasize policy terms and set-off against liability, arguing that the Tribunal’s award reflects a reasonable assessment within the framework of policy restrictions. They oppose the large figures for future prospects and insist that liability be confined under the policy and MACT guidelines, with the insurer’s obligation limited to indemnification; they also highlight that the pay-and-recover mechanism was properly directed by the Tribunal and should be retained in the appellate order.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company LimitedAIR 2011 SC 2951PositiveCourt relies on Ramachandrappa to justify fixing a higher notional income for a coolie in 2010 (Rs.7,500/month) and to support the general principle of assessing compensation in MACT cases.

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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 MRS. JUSTICE SOPHY THOMAS MONDAY, THE 1 [ ST ] DAY OF APRIL 2024 / 12TH CHAITHRA, 1946 ``` ``` MACA NO. 1037 OF 2014 ``` ``` AGAINST THE ORDER/JUDGMENT DATED 09.04.2013 IN OPMV NO.160 OF 2011 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,KOZHIKODE ``` ## **`APPELLANT/PETITIONER:`** ``` SIJEESH KUMAR AGED 35 YEARS S/O. KRISHNANKUTTY, RESIDING AT KAYAKKAL HOUSE, P.O.PAYIMBRA, KURUVATTOR(VIA), KOZHIKODE. BY ADVS. SRI.V.S.CHANDRASEKHARAN SMT.LEKSHMI SWAMINATHAN SRI.K.L.MOHANACHANDRAN ``` ## **`RESPONDENTS/RESPONDENTS:`** ``` 1 ABDUL AZEEZ AGED 25 YEARS S/O. KUTTIYAMI, AGE NOT KNOWN, RESIDING AT H/NO.7, MUHAMMEDALI, S/O. KUNJOTHI, RESIDING AT POTTAPILAKKAL HOUSE, P.O.MANIPPURAM, KO, PALLIYEDATH HOUSE, P.O.KURUVATTOOR, KOZHIKODE. 2 SAMAROOQ AGED 19 YEARS S/O. ABDULSALEEM, RESIDING AT SHERIN MANZIL, ULARATHAYIL, PARAMBIL BAZAR, CHERUVATTA, KOZHIKODE. 3 THE NEW INDIA ASSURANCE COMPANY LTD. DIVISIONAL OFFICE-II, SHAFEER COMPLEX, OPP.YMCA, KANNUR ROAD, KOZHIKODE. BY ADVS. K.P.SUDHEER ADVOCATE SRI.P.JACOB MATHEW SRI.MATHEWS JACOB SR. ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 01.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` MACA NO.1037 OF 2014 2 ## **J U D G M E N T** ``` The appellant herein is the petitioner in ``` ``` OP(MV) No.160 of 2011 on the file of Motor ``` ``` Accidents Claims Tribunal, kozhikode, challenging ``` ``` the impugned award on the ground of inadequacy of ``` ``` compensation. ``` `2. On 5/4/2010 at about 6.30 am, while the` ``` appellant was riding a motorcycle from Payimbra to ``` ``` Ambalam, KL-07/AK 6582 stage carriage driven by the ``` ``` 2nd respondent in a rash and negligent manner, ``` ``` dashed against his motorcycle, and he was thrown ``` ``` down, and he sustained serious injuries leading to ``` ``` permanent disability. He was a 36 year old coolie ``` MACA NO.1037 OF 2014 3 ``` earning monthly income of Rs.9,000/-. He was ``` ``` hospitalized for 97 days, and he suffered much pain ``` ``` and agony and also financial loss. Though he ``` ``` approached the Tribunal claiming compensation of ``` ``` Rs.10 lakh, the Tribunal awarded only Rs.6,62,740/-, and hence this appeal. ``` **==> picture [412 x 13] intentionally omitted <==** ``` offending stage carriage. The 2nd respondent was ``` ``` its driver, and the 3rd respondent was its insurer. ``` ``` Respondents 1 and 2 remained exparte. The 3rd ``` ``` respondent insurer contested the case, but admitted ``` ``` the policy. According to the insurer, the 2nd ``` ``` respondent had no driving licence to drive the ``` MACA NO.1037 OF 2014 4 ``` stage carriage at the time of accident. Since there ``` ``` was violation of the policy conditions, they are ``` ``` not liable to indemnify its owner. ``` `4. In the appeal, respondents 1 and 3 entered` ``` appearance. Though service was complete on the 2nd ``` ``` respondent, none appeared for him. ``` `5. Heard learned counsel for the appellant and` ``` learned counsel for the 3rd respondent/insurer. ``` ``` 6. Learned counsel for the appellant is ``` ``` challenging the award mainly on the ground of ``` ``` inadequacy of compensation. The appellant was a 36 ``` ``` year old coolie earning monthly income of ``` ``` Rs.9,000/-, but learned Tribunal fixed his notional ``` MACA NO.1037 OF 2014 5 ``` income at Rs.4,000/- per month. Though there is no ``` ``` document to prove his income, he would rely upon ``` ``` the decision Ramachandrappa v. Manager, Royal ``` ``` Sundaram Alliance Insurance Company Limited [AIR ``` ``` 2011 SC 2951] ,to say that even a coolie worker in ``` ``` the year 2010, was eligible to get his notional ``` ``` income fixed @ Rs.7,500/-. Relying on that decision ``` ``` this Court is inclined to fix his notional income ``` ``` @ Rs.7,500/-per month. ``` ``` 7. Learned Tribunal assessed loss of income for ``` ``` 8 months @ Rs.4,000/- per month. Since this Court ``` ``` has fixed his notional income @ Rs.7,500/-, he is ``` ``` eligible to get Rs.60,000/-(7,500x8). After ``` MACA NO.1037 OF 2014 6 ``` deducting Rs.32,000/- already awarded, he is ``` ``` entitled to get the balance amount of Rs.28,000/- ``` ``` as enhanced compensation, towards loss of earning. ``` ``` 8. Towards pain and suffering, learned Tribunal ``` ``` awarded Rs.25,000/- against his claim of ``` ``` Rs.40,000/-. The appellant had sustained fracture ``` ``` acetabulam right, fracture shaft of right femur, ``` ``` fracture sub trochanteric right, fracture left clavicle, fracture both bone right leg and ``` ``` lacerated wound on right eyebrow and scalp, and he ``` ``` was admitted in hospital for 97 days. Considering ``` ``` that fact, this Court is inclined to give enhancement of Rs.5,000/-, towards pain and ``` MACA NO.1037 OF 2014 7 ``` suffering. ``` `9. Learned counsel for the appellant would say` ``` that, the appellant had suffered permanent ``` ``` disability of 63%, as seen from Exhibit C1 ``` ``` disability certificate issued by the medical board ``` ``` attached to the Medical College Hospital, Kozhikode. The certificate shows that, the ``` ``` appellant was having partial ankylosis of right hip ``` ``` and knee, and 3 inch shortening of right lower ``` ``` limb. His percentage of permanent disability was ``` ``` assessed as 63%. His occupational disability was ``` ``` not assessed by the medical board. Moreover, it is ``` ``` not mentioned in that certificate the permanent ``` MACA NO.1037 OF 2014 8 ``` disability mentioned as 63% was with respect to his ``` ``` whole body. It is true that, the appellant had ``` ``` suffered shortening of his lower limb by 3 inch and ``` ``` partial ankylosis of right hip and knee. That does ``` ``` not mean that, he was not able to do any job at ``` ``` all, and the disability mentioned in Ext.C1 cannot ``` ``` be taken as his occupational disability, as the ``` ``` certificate is silent about his occupational ``` ``` disability. Learned counsel for the appellant would ``` ``` say that, since he was aged below 40, 40% addition, ``` ``` towards future prospects had to be given as the ``` ``` disability suffered was 63%. Since it is not ``` ``` mentioned in Ext.C1, that the permanent disability ``` MACA NO.1037 OF 2014 9 ``` mentioned therein was with respect to his whole ``` ``` body, and percentage of occupational disability is ``` ``` not mentioned therein, this Court is not inclined to give an addition of 40%, towards future ``` ``` prospects as claimed by the appellant. So the ``` ``` compensation for permanent disability of 63% as ``` ``` stated in Ext.C1, and accepted by the Tribunal can ``` ``` be re-calculated as Rs.8,50,500/- ``` ``` (7500x12x15x63/100). After deducting Rs.4,53,600/- ``` ``` already awarded by the Tribunal, the appellant is ``` ``` entitled to get Rs.3,96,900/- as enhancement in ``` ``` disability compensation. ``` ``` 10. Towards loss of amenities, learned Tribunal ``` MACA NO.1037 OF 2014 10 ``` awarded Rs.25,000/-. Ext.C1 certificate show that, ``` ``` the appellant suffered partial ankylosis of right ``` ``` hip and knee, and shortening of right lower limb by ``` ``` 3 inches. The shortening of leg might have ``` ``` resulted in limping also. Considering that fact, ``` ``` this Court is inclined to award Rs.15,000/- more, ``` ``` towards loss of amenities. ``` ``` 11. The compensation awarded under all other ``` ``` heads seems to be reasonable, and hence it needs no ``` ``` modification. ``` ``` 12. The enhanced compensation awarded in this ``` ``` appeal is stated in the table below:- ``` MACA NO.1037 OF 2014 11 |Head of claim|Amount<br>awarded by<br>the Tribunal|Amount<br>awarded in<br>appeal|Difference to be<br>drawn as enhanced<br>compensation| |---|---|---|---| |Loss of earning|32,000/-<br>(4,000x8)|60,000/-<br>(7,500x8)|28,000| |Pain and<br>suffering|25,000|+5,000|5,000| |Loss of future<br>earning power|4,53,600|8,50,500|3,96,900| |Loss of<br>amenities|25,000|+15,000|15,000| |TOTAL 4,44,900/-|||| ``` 13. So the appellant is entitled to get ``` ``` enhanced compensation of Rs.4,44,900/- (28,000+ ``` ``` 5,000+3,96,900+15,000), towards enhanced ``` ``` compensation. ``` ``` 14. The 3rd respondent/insurer would submit that, the 2 nd respondent driver had no driving ``` MACA NO.1037 OF 2014 12 ``` licence, and so he was charged under Section 3(1) ``` ``` r/w 181 of Motor Vehicles Act also. Ext.B2 copy of ``` ``` charge sheet substantiates that fact. Learned Tribunal directed the 3 rd respondent insurer to pay ``` ``` the award amount initially to the appellant, and then to recover the same from the 1 st respondent RC ``` ``` owner. Though the 1st respondent appeared in the ``` ``` appeal he has not made any challenge against the ‘pay and recover’ order given to the insurer. Learned counsel for the 3 rd respondent is seeking ``` ``` the same direction from the appellate court also. ``` **==> picture [412 x 14] intentionally omitted <==** ``` driving licence as seen from Ext.B2 charge sheet ``` MACA NO.1037 OF 2014 13 ``` there was violation of the policy conditions so the ``` ``` ‘pay and recover’ order given to the 3 rd respondent ``` ``` by the Tribunal is retained, with respect to the ``` ``` enhanced compensation also. ``` ``` 16. The 3rd respondent/insurer is directed to ``` ``` deposit the enhanced compensation in the bank ``` ``` account of the appellant, with 8% interest per ``` ``` annum, from the date of petition till the date of ``` ``` deposit (excluding 263 days of delay in filing the ``` ``` appeal) within a period of two months from the date ``` ``` of receipt of a copy of this judgment. The deposit ``` ``` must be in terms of the directives issued by this ``` ``` Court in Circular No.3 of 2019 dated 06/09/2019 and ``` MACA NO.1037 OF 2014 14 ``` clarified in O.M.No.D1/62475/2016 dated 07/11/2019 ``` ``` after deducting the liabilities, if any, of ``` ``` appellant towards Tax, balance court fee and legal ``` ``` benefit fund. ``` ``` 17. The 3 rd respondent is at liberty to recover ``` ``` the said amount from the 1 st respondent registered ``` ``` owner and his assets. ``` ``` The appeal is allowed to the extent as above, ``` ``` and no order is made as to costs. ``` ``` Sd/- ``` ## **SOPHY THOMAS,** ## **JUDGE** ska