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2024 Supreme(Ker) 596

IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.B. SNEHALATHA, J.
Sarath P.D., S/o. Dineswaran - Appellant
Versus
Prasanth & Ors. - Respondents
M.A.C.A.No.1735 of 2015
Decided On : 05-07-2024

Advocates Appeared:
For the Appellant : Sri. T.C. Suresh Menon, Sri. P.S. Appu.
For the Respondent: Sri. John Joseph Vettikatt-Standing Counsel.

Future prospects must be considered when assessing compensation for permanent disability in motor accident claims, ensuring just and adequate compensation.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Appeal for enhancement of compensation - Appellant sustained grievous injuries in an accident caused by negligent driving - Tribunal awarded Rs.11,82,000; appellant sought enhancement citing permanent disability and loss of future earnings - Appellant's notional income fixed at Rs.8,000, increased for future prospects - Additional amounts awarded for extra nourishment, damage to clothing, bystander expenses, and future treatment. (Paras 11, 12, 19, 29)

Facts of the case:
Appellant, aged 21, sustained severe head injuries in an accident on 30.10.2011 caused by the negligent riding of another motorcyclist. The appellant sought compensation for extensive injuries and loss of earning capacity, contending the Tribunal's award was inadequate.

Findings of Court:
Compensation was reevaluated based on permanent disability and additional claims for various expenses, resulting in a total enhancement. The compensation payable was recalculated to Rs.15,68,992, reflecting just indemnification for losses.

Issues: Whether the compensation awarded by the Tribunal was adequate, consideration of future loss of earnings and prospects due to permanent disability.

Ratio Decidendi: The decision confirmed that future prospects must be considered in cases of permanent disability, enhancing the notional income accordingly, and re-evaluated various heads of claims to ensure just compensation for the claimant.

Result: Appeal allowed, and claim amount enhanced to Rs.15,68,992.

Table of Content
1. appellant seeks enhancement of compensation awarded. (Para 1 , 2 , 3 , 4)
2. appellant argues inadequacy of compensation due to serious injuries. (Para 5 , 8)
3. court calculates enhanced compensation based on medical expenses. (Para 6 , 11 , 13 , 27)
4. assessment and determination of notional income for compensation calculation. (Para 7 , 17)
5. court applies precedents for calculating notional income. (Para 9 , 10 , 20)
6. future prospects considered significant for compensation. (Para 14 , 19 , 26)
7. entitlement to compensation for future loss in serious injuries. (Para 22 , 23)
8. final compensation and liability determined. (Para 28 , 29)
9. directions for payment and compliance with court's order. (Para 30 , 31 , 32 , 33)

JUDGMENT :

Appellant who is the claimant in OP(MV) No.1292/2012 of Motor Accident Claims Tribunal, Kottayam [hereinafter referred to as ‘Tribunal’] has filed this appeal seeking enhancement of compensation awarded by the Tribunal.

2. On 30.10.2011 while the appellant was riding a scooter through the public road, another motor cycle bearing registration No.KL-36/5941 ridden by the 1st respondent hit on the motor cycle ridden by the appellant and in the said accident, the appellant sustained grievous injuries. Accident occurred due to the rash and negligent riding of R1, who was the rider-cum-registered owner of the offending motor cycle. R2 is the insurer of the offending vehicle. Appellant approached the Tribunal seeking compensation of Rs.37,32,633/-. By the impugned award, the Tribunal awarded a sum of Rs.11,82,000/-as compensation with interest at 8.5% per annum. Aggrieved by the inadequacy of the sum awarded, appellant has come in appeal seeking enhanced compensation.

3. Notice served to respondents. Heard the learned counsel for both sides and gone through the materials placed on record.

4. There is no dispute over the fact that on 30.10.2011 appellant met with a motor vehicle accident while he was riding the scooter bearing registration No.KL-5/Q-6233 through Thalayolaparambu-Vaikom road. It is also not in dispute that the motor cycle bearing registration No.KL-36/5941 owned and ridden by R1 was the offending vehicle. Admittedly, R2 is the insurer of the offending vehicle.

5. It is contended by the learned counsel for the appellant that the compensation awarded by the Tribunal is meager and inadequate; that while awarding compensation, the Tribunal failed to take note of the fact that the appellant, who was then aged only 21 years sustained severe head injuries and had to undergo prolonged treatment and he sustained permanent whole body disability; that while awarding compensation under the head loss of earning capacity, the Tribunal has not considered the loss of future prospects. According to the learned counsel for the appellant, the Tribunal has not awarded a just compensation; that the compensation awarded by the Tribunal under all heads are on lower side.

6. Let us see whether the appellant is entitled to any enhanced compensation and if so, what is the quantum.

7. Appellant’s case is that he is a Diploma holder in Hotel Management; that he was a trainee in a hotel at Kollam and was earning Rs.6,000/-per month apart from the tip, free food and accommodation. He has produced Ext.A19 to prove that he is a Diploma holder in Hotel Management.

8. The learned counsel for the appellant contended that going by the decision of the Apex Court in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011) 13 SCC 236], the Tribunal ought to have taken at least Rs.8,000/-per month as notional income instead of Rs.6,000/-.

9. In Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011) 13 SCC 236], the Hon’ble Supreme Court fixed the notional income of a coolie worker in the year 2004 as Rs.4,500/-per month. In Syed Sadiq and Others v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735] the Hon’ble Supreme Court fixed the notion

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