High Court of KeralaDivision BenchAppeal allowed in part; enhanced compensation a...

Sujith N. v. M. Alavi and Others

Case / Petition Number:MACA No. 1361 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • M. C. Hari Rani
Judgment Date
2011-10-13
Court Decision / Holding
Appeal allowed in part. Appellant is entitled to a further Rs.69,380 in addition to the tribunal award (Rs.5,500 for loss of earnings; Rs.38,880 for reduced earning capacity; Rs.25,000 for loss of amenities). The entire compensation shall carry interest at the rate and for the period specified by the Tribunal. All other directions of the Tribunal are upheld.
Final Disposition
Appeal allowed in part; enhanced compensation awarded; other Tribunal directions upheld.

Parties to the Case

Appellants / Petitioners

  • Sujith N.

Respondents

  • M. Alavi
  • K. M. Abdul Nazar
  • The Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

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

Counsels for Respondents

  • • Adv. Sri George Cherian (Thiruvalla) for R3

Case Synopsis & Summary

This Kerala High Court judgment (MACA 1361 of 2011) concerns a motor accident claim by Sujith N. against M. Alavi, the insurer The Oriental Insurance Co. Ltd., and others. The Motor Accidents Claims Tribunal, Kozhikode, had awarded Rs 1,18,669 on a claim of Rs 2,00,000 with 7% interest from 16/09/2008. The appellant contends that the quantum is inadequate, arguing that the tribunal erred in fixing monthly income at Rs 2,500 for a 22-year-old in 2008 and that Clause 6 of Schedule II of the MV Act (as amended in 1994) and decisions like Lata Wadhwa v. State of Bihar and Laxmi Devi v. Mohammad Tabbar support a higher figure (Rs 3,500). He also claims longer involuntary unemployment and seeks a separate award for loss of amenities, arguing the disability (18%) reduces earning capacity and quality of life. The Tribunal’s award treated most components as earnings-related, including loss of amenities within earning capacity. The High Court partially allows the appeal, holding that the claimant is entitled to a further Rs 69,380 in addition to the Tribunal award: Rs 5,500 for loss of earnings, Rs 38,880 for reduced earning capacity, and Rs 25,000 for loss of amenities. The total compensation remains subject to the Tribunal’s interest provisions, and other Tribunal directions are upheld. The decision is by a Division Bench consisting of R. Basant and M. C. Hari Rani.

Provisions of Law Cited

Clause 6 of Schedule II, Motor Vehicles Act, 1988The Motor Vehicles Act, 1988 (as amended)

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellant contends that the tribunal erred in fixing monthly income at Rs.2,500 for a 22-year-old in 2008 and should have applied Clause 6 of Schedule II of the MV Act, supported by Lata Wadhwa v. State of Bihar and Laxmi Devi v. Mohammad Tabbar to fix Rs.3,500. He asserts longer involuntary unemployment (3 months) and seeks Rs.25,000 separately under loss of amenities; argues disability (18%) impacts earning & life quality.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Lata Wadhwa and Others v. State of Bihar and Others2001 SC 3218PositiveCited and relied upon to justify higher earning capacity/income consideration in the calculation of compensation; the court agrees with applying this line of reasoning.
Laxmi Devi v. Mohammad Tabbar2008 ACJ 1488PositiveCited as supportive authority for the approach toward determining income/earning capacity in compensation computation; the court aligns with this principle.

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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 MRS. JUSTICE M.C.HARI RANI THURSDAY, THE 13TH OCTOBER 2011 / 21ST ASWINA 1933 MACA.No. 1361 of 2011() ----------------------OPMV.1132/2008 of MOTOR ACCIDENT CLAIMS TRIBUNAL, KOZHIKODE .................... ## APPELLANT/PETITIONER ------------------------ SUJITH N., AGED 22 YEARS, S/O. RAVEENDRAN, NALUPURAKKAL HOUSE, ARTS COLLEGE POST, KOZHIKODE. BY ADV. SRI.V.S.CHANDRASEKHARAN SMT.LEKSHMI SWAMINATHAN ## RESPONDENTS/RESPONDENTS ------------------------- 1. M.ALAVI, AGE NOT KNOWN, S/O. MOHAMMED, MANAPPADAM HOUSE, PANDIKKAD ROAD, MANJERI, MALAPPURAM. 2. K.M.ABDUL NAZAR, S/O. K.MOHAMMED, - (2ND RESPONDENT DELETED AS PER ORDER IN I.A. DTD. 7.12.09). 3. THE ORIENTAL INSURANCE CO. LTD., DIVISIONAL OFFICE, SEEMA BUILDINGS, G.H.ROAD, KOZHIKODE. ADV. SRI.GEORGE CHERIAN (THIRUVALLA) FOR R3 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 13/10/2011, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ## **R.BASANT & M.C.HARI RANI, JJ. * * * * * * * * * * * * *** M.A.C.A.No.1361 of 2011 ---------------------------------------Dated this the 13[th] day of October 2011 ## **J U D G M E N T** ## **R.BASANT,J** Claimant is the appellant. He claimed compensation for the personal injuries suffered by him in a motor accident which took place on 06/01/2008. Against a total claim of Rs.2,00,000/-, the tribunal awarded a total amount of Rs.1,18,669/- as compensation as per the details given in paragraph 10 of the impugned award which we extract below: |**_Sl._**<br>**_No_**|**_Head of claim_**|**_Amount_**<br>**_claimed (Rs.)_**|**_Amount_**<br>**_awarded (Rs)_**|**_Details_**| |---|---|---|---|---| |1.|Transport|1,000/-|300/-|--| |2.|Extra nourishment|3,000/-|500/-|--| |3.|Loss of earnings|25,000/-|5,000/-|2500 x 2 months| |4|Bystander's expenses|Nil|1,900|100 x 19 days| |5|Treatment expenses|25,000/-|3,769/-|Entire bill amount| |6|Pain and suffering|25,000/-|10,000/-|--| |7|Loss of amen|70,000/-|97,200/-|2500x12x18x18x100| ||Total||**1,18,669/-**|7% interest from<br>16/9/2008| 2. The appellant claims to be aggrieved by the impugned award. Challenge is only on the plank that the quantum of compensation awarded is inadequate. Insurer has been made 2 M.A.C.A.No.1361 of 2011 entirely liable. We have heard the learned counsel for the appellant and the learned counsel for the insurance company. 3. Called upon to explain and be specific, the learned counsel for the appellant contends that the monthly income reckoned by the tribunal at Rs.2,500/- is too low. The accident had taken place in 2008. The claimant is a young man aged 22 years. The tribunal ought to have taken note of clause 6 of schedule 2 of the M.V.Act which came into existence in 1994. The tribunal should have taken note of the decision in **Lata Wadhwa and Others v. State of Bihar and Others [2001 SC 3218]** and **Laxmi Devi v. Mohammad Tabbar [2008 ACJ 1488]** . In any view of the matter, Rs.3,500/- must have been reckoned as the monthly income, contends counsel. We readily agree. The appellant was an in-patient for 19 days. The tribunal had accepted the same. The loss of earnings was granted only for a period of two months. The learned counsel argues and we agree that the appellant must have been involuntarily unemployed for a longer period. We reckon three months as the period of involuntary unemployment. 4. Finally, the learned counsel for the appellant contends 3 M.A.C.A.No.1361 of 2011 that the tribunal has not awarded any amount under the head of loss of amenities. Though an amount of Rs.97,200/- is shown to be awarded under the head of loss of amenities, it is in fact the amount of compensation awarded for reduction in earning capacity by employing the multiplier-multiplicand method. Physical disability of 18% is proved convincingly by Ext.C1 report of the medical board. The tribunal has accepted the same. Physical disability suffered by a person has two fold reflections on his life. It reduces his earning capacity. It also impairs and reduces the quality of enjoyment of life. We are satisfied that for loss of amenities, amount is liable to be awarded separately under that head. Considering the age of the claimant and the nature of disability, we are satisfied that an amount of Rs.25,000/- can be awarded under that head. 5. No other contentions are raised. The above discussions lead us to the conclusion that the appellant is entitled to a further amount of 69,380/- as compensation in addition to the amount awarded by the tribunal. i) Loss of earnings Rs.5,500/[Rs.10,500/-(Rs.3,500/- x 3 months) minus Rs.5,000/-] 4 M.A.C.A.No.1361 of 2011 - ii) Reduction in earning capacity [Rs.1,36,080/- (Rs.3,500 x 12 x 18 x 18/100) minus Rs.97,200/-] - Rs.38,880/- iii) Loss of amenities Rs.25,000/- ------------------ **Total Rs.69,380/=======** 6. In the result, - a) This appeal is allowed in part. b) Appellant is found entitled to a further amount of Rs.69,380/- (Rupees sixty nine thousand three hundred and eighty only) in addition to the amount already awarded by the Tribunal. c) We make it clear that the entire amount of compensation shall carry interest at the rate and for the period as specified by the tribunal in the impugned award. d) All other directions of the Tribunal are upheld. ## **(R.BASANT, JUDGE)** ## **(M.C.HARI RANI, JUDGE)** jsr // True Copy// PA to Judge M.A.C.A.No.1361 of 2011 5 M.A.C.A.No.1361 of 2011 6 7 M.A.C.A.No.1361 of 2011 **K.M.JOSEPH & M.C.HARI RANI, JJ.** .No. of 200 ORDER/JUDGMENT 30/082010