High Court of KeralaSingle JudgeAppeal allowed in part; enhanced compensation a...

Susheela v. Suju s/o Kumaran; Sudhakaran Pillai s/o Raghavan Pillai; The Manager, National Insurance Co. Ltd. (MACA No. 612 of 2017)

Case / Petition Number:MACA NO. 612 OF 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • SOPHY THOMAS
Judgment Date
2024-04-11
Court Decision / Holding
The appeal is allowed to the extent set out in the judgment. Enhanced compensation of Rs. 83,960 is awarded (Rs. 48,000 for loss of earning; Rs. 24,960 for loss of earning power; Rs. 10,000 for loss of amenities; Rs. 1,000 for bystander expenses). The 3rd respondent/insurer is directed to deposit the enhanced amount with interest at 9% per annum from the date of petition until the date of deposit (excluding 512 days of delay in filing the appeal) before the Motor Accidents Claims Tribunal within two months from receipt of the judgment. The Tribunal shall disburse the amount to the appellant after deducting liabilities, if any, towards tax, balance court fee, and the legal benefit fund. The appeal is allowed to that extent; no order as to costs.
Final Disposition
Appeal allowed in part; enhanced compensation awarded; insurer to deposit with interest; no costs.

Parties to the Case

Appellants / Petitioners

  • Susheela, aged 56 years, D/o Lekshmikutty, Laksham Veedu Colony, House No. 7, Kilikolloor, Kollam

Respondents

  • 1. Suju S/o. Kumaran, Kazhakkootathathu Padinjattathil, Kureepuzha Cherry, Kavandan P.O, Kollam - 691003
  • 2. Sudhakaran Pillai S/o. Raghavan Pillai, Lekshmi Bhavan, K.R.N. Nagar 21, Piravoor Kizhakkathil, Sakthikulangara P.O, Kollam - 691581
  • 3. The Manager National Insurance Co. Ltd, Parameswara Pillai Bhavan, Hospital Road, Kollam Branch - 691001.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri C. P. Anil Raj
  • • Sri C. Rajendran
  • • Smt. Sreevidya R.S

Counsels for Respondents

  • • Smt. P.A. Reziya

Case Synopsis & Summary

Susheela, the claimant in OP(MV) No.1983/2012 before the Motor Accidents Claims Tribunal, Kollam, challenged the quantum of compensation awarded in the 2015 award, arguing that the Tribunal undervalued her losses and failed to reflect her true earning capacity after a road accident on 17 October 2007. She sustained a compound fracture of the left leg with deformity, required 15 days of hospitalization, and was employed in a cashew factory earning Rs 6,000 per month. The Tribunal awarded Rs 37,333, leaving her with a substantial shortfall. The appellant pressed for a notional monthly income of Rs 6,000, supported by the employer's manager and documentary Exhibit A13. She invoked the Supreme Court decision Ramachandrappa v. Manager (AIR 2011 SC 2951) to justify the notional income approach and asked for eight months of loss of earnings due to medical treatment and leave. The High Court, after evaluating the injuries and the period of incapacity, recalculated damages. It fixed Rs 6,000 as notional monthly income for eight months (Rs 48,000) and added Rs 31,680 for loss of earning capacity (6,000 x 12 x 11 x 4%), offset by Rs 6,720 already awarded, leaving Rs 24,960; it also increased by Rs 10,000 for loss of amenities and Rs 1,000 for bystander expenses, culminating in enhanced compensation of Rs 83,960. The insurer was directed to deposit this amount with 9% interest within two months; the appeal was allowed to that extent, with no costs.

Legal Doctrines & Maxims

  • Notional income concept in personal injury claims (as applied in Ramachandrappa v. Manager, AIR 2011 SC 2951)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Tribunal did not accept her monthly income of Rs.6,000, though PW2 (Manager) testified and Exhibit A13 indicates the Rs.6,000 figure. Relying on Ramachandrappa v. Manager (AIR 2011 SC 2951), she argues for fixing notional income at Rs.6,000 and for eight months of loss of earnings, given the injury severity and hospitalization period. She also seeks higher compensation for loss of earning capacity (4% functional disability with multiplier 11) and for loss of amenities and bystander expenses, arguing that the Tribunal’s deductions under leave and disability provisions understate her overall loss. The appellant prays for an enhanced quantum as per the chart in the judgment.

Contentions of Respondents

The respondents contested the claim, with the insurer admitting the policy. The 3rd respondent-insurer opposed only to the extent of the award and liability, while the owner and rider were not seriously pressing separate pleas in the appeal; the insurer's counsel participated for the policy. The Respondents supported the Tribunal’s reasoning on loss of earnings during ESI leave and liability allocation, opposing substantial enhancement except to the extent directed by the court.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company LimitedAIR 2011 SC 2951PositiveCited by the appellant to justify the notional income of Rs. 6,000 per month for loss of earnings and used by the court to support the notional income approach.

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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`** ``` THURSDAY, THE 11 [ TH ] DAY OF APRIL 2024 / 22ND CHAITHRA, 1946 ``` ## **`MACA NO. 612 OF 2017`** ``` [AGAINST THE AWARD DATED 25/5/2015 IN OP(MV) NO.1983/2012 PASSED BY THE MACT, KOLLAM] ``` ``` APPELLANT/PETITIONER: ``` ``` SUSHEELA AGED 56 YEARS D/O. LEKSHMIKUTTY, LAKSHAM VEEDU COLONY,HOUSE NO. 7, KILIKOLLOOR, KOLLAM. ``` - **`BY ADVS. SRI.C.P.ANIL RAJ SRI.C.RAJENDRAN SMT.SREEVIDYA R.S`** ## **`RESPONDENTS/RESPONDENTS:`** - **`1 SUJU S/O. KUMARAN, KAZHAKKOOTTATHU PADINJATTATHIL, KUREEPUZHA CHERRY, KAVANAD P.O, KOLLAM - 3, PIN - 691003.`** - **`2 SUDHAKARAN PILLAI S/O. RAGHAVAN PILLAI, LEKSHMI BHAVAN, K.R.N. NAGAR 21,PIRAVOOR KIZHAKKATHIL, SAKTHIKULANGARA P.O,KOLLAM - 691581`** - **`3 THE MANAGER NATIONAL INSURANCE CO.LTD,PARAMESWARA PILLAI BHAVAN, HOSPITAL ROAD,KOLLAM BRANCH - 691 001.`** ``` BY ADV SMT.P.A.REZIYA-R3 ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 11.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO. 612 OF 2017 ``` ``` 2 ``` ## **J U D G M E N T** ``` The appellant herein is the claimant in OP(MV) ``` ``` No.1983 of 2012 on the file of Motor Accidents Claims Tribunal, Kollam, challenging the award as the quantum of compensation is on the lower side. ``` ``` 2. On 17/10/2007 at 3.00 pm, the appellant was hit by KL-2 V 4272 motorcycle ridden by the 2nd respondent in a rash and negligent manner. She sustained serious injuries including compound fracture of left leg lower 1/3rd and her left leg was deformed. She was admitted and treated in the ``` ``` hospital for 15 days in total. She was working in a cashew factory earning monthly income of ``` ``` Rs.6,000/-. She approached the Tribunal claiming ``` ``` compensation of Rs.1,50,000/-, but the Tribunal awarded only Rs.37,333/-, and hence this appeal. ``` `3. The 1st respondent was the owner of the` ``` MACA NO. 612 OF 2017 ``` ``` 3 ``` ``` offending motorcycle, the 2nd respondent was its ``` ``` rider and the 3rd respondent its insurer. The 3rd ``` ``` respondent insurer contested the case, but ``` ``` admitted the policy. ``` `4. In the appeal, notice to respondents 1 and 2` ``` was dispensed with, since the 3rd respondent ``` ``` insurer entered appearance through counsel and admitted the policy. ``` `5. Heard learned counsel for the appellant and` ``` learned counsel for the 3rd respondent/insurer. ``` ``` 6. The appellant is challenging the award mainly ``` ``` on the ground that, learned Tribunal refused to accept her monthly income as Rs.6,000/- though PW2 the Manager of her employer was examined to prove ``` ``` her job and income. Exhibit A13 document was produced by PW2 to show that the appellant was working in a cashew factory drawing monthly income ``` ``` MACA NO. 612 OF 2017 ``` ``` 4 ``` ``` of Rs.6,000/-. ``` ``` 7. Learned counsel for the appellant would submit that, even without that document going by the decision Ramachandrappa v. Manager, Royal ``` ``` Sundaram Alliance Insurance Company Limited [AIR ``` ``` 2011 SC 2951] , she was eligible to get her notional income fixed @ Rs.6,000/-. Learned Tribunal did not award any amount under the head loss of earnings, finding that, since she was on ESI leave, she might have received salary during the period of leave. PW2 deposed before the Tribunal that, the appellant was on ESI leave from 17/10/2007 till 5/7/2009. But, no records were produced to show the period of leave or to show any loss of income during that period. Considering the nature of the ``` ``` injuries suffered by the appellant, and the period ``` ``` of hospitalization, this Court is inclined to take, a period of eight months for computing compensation ``` ``` MACA NO. 612 OF 2017 ``` ``` 5 ``` ``` for loss of earning. Even if she had received salary/wages during that period, she lost that leave only because of that accident. So considering the loss of leave, she can be ``` ``` compensated @ Rs.6,000/- per month for a period of 8 months. So she is entitled to get Rs.48,000/-. ``` ``` 8. Learned Tribunal found that, since she was employed till her superannuation, there was no loss of salary due to the disability if any suffered by her. But considering her functional disability after superannuation, 4% reduction in her earning capacity was taken into account by the Tribunal and an amount of Rs.6,720/- was awarded. In the year 2007, the age of superannuation was 55. So the multiplier applicable was 11. Taking her monthly ``` ``` income as Rs.6,000/- compensation for loss of ``` ``` earning capacity due to 4% functional disability could be assessed as Rs.31,680/- (6,000x12x11x4%). ``` ``` MACA NO. 612 OF 2017 ``` ``` 6 ``` ``` After deducting Rs.6,720/- already awarded, she is entitled to get the balance amount of Rs.24,960/-. ``` `9. Towards loss of amenities, the Tribunal` ``` awarded only Rs.2,240/-. she was a 52 year old lady at the time of accident, and she suffered compound fracture of left leg lower 1/3rd and her left leg was deformed also. Considering that aspect, this Court is inclined to award Rs.10,000/-, more towards loss of amenities. ``` `10. Towards bystander expenses, the Tribunal` ``` awarded only Rs.1,500/-, though the appellant was hospitalised for 15 days. Since she suffered compound fracture of left leg with deformity, even after discharge, she might have been under attention of a bystander, considering that aspect this Court is inclined to award Rs.1,000/- more, towards bystander expenses. ``` ``` MACA NO. 612 OF 2017 ``` ``` 7 ``` ``` 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:- ``` |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|-|48,000/-<br>[6,000x8]|48,000/-| |Compensation<br>for loss of<br>earning power|6,720/-|31,680/-<br>[6,000x12x11x<br>4%]|24,960/-| |Loss of<br>amenities|2,240/-|12,240/-|10,000/-| |Bystander<br>expenses|1,500/-|2,500/-|1,000/-| |TOTAL 83,960/-|||| ``` 13. So the appellant is entitled to get enhanced compensation of Rs.83,960/- ``` ``` MACA NO. 612 OF 2017 ``` ``` 8 ``` ``` [48,000+24,960+10,000+1,000] as enhanced ``` ``` compensation. ``` ``` 14. The 3rd respondent/insurer is directed to deposit the enhanced compensation with interest @ ``` ``` 9% per annum, from the date of petition till the date of deposit (excluding 512 days of delay in filing the appeal) before the Motor Accidents Claim ``` ``` Tribunal concerned within a period of two months ``` ``` from the date of receipt of a copy of this judgment. Learned Tribunal shall disburse that ``` ``` amount to the appellant, after deducting the ``` ``` liabilities, if any, towards Tax, balance court fee and legal benefit fund. ``` ``` The appeal is allowed to the extent as above, ``` ``` and no order is made as to costs. ``` ``` Sd/- ``` ``` SOPHY THOMAS, JUDGE ``` ``` ska ```