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2025 Supreme(Online)(KER) 15282

HIGH COURT OF KERALA
C. PRATHEEP KUMAR, J
RAFNA @ FARNA MUHAMMED – Appellant
Versus
MANI.E – Respondent
MACA 1346/2018



Advocates:
SRI.AVM.SALAHUDIN, SRI.THOMAS MATHEW NELLIMOOTTIL

Important Points

The court established that compensation for injuries must reflect accurate assessments of notional income and permanent disability, including future prospects, ensuring just compensation for the victim.

Subject

Motor Accident Claims - Compensation Claims

Act Referred

Headnote

(A) Motor Vehicles Act, 1988 - Sections 140 and 166 - Compensation for injuries sustained in a motor vehicle accident - The petitioner sustained serious injuries when an autorickshaw overturned on her - The Tribunal awarded Rs.74,194/- which was contested for being inadequate. (Paras 1-6)

(B) Notional income - The petitioner argued that her notional income was set too low at Rs.2,500/-; it should be Rs.10,500/- as per the Supreme Court's ruling in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. - The court agreed to fix her notional income at Rs.10,500/-. (Paras 9-10)

(C) Permanent disability - The Tribunal reduced the assessed permanent disability from 6% to 3% without proper justification; the court reinstated the 6% disability as per the disability certificate. (Paras 10-11)

(D) Future prospects - The court ruled that future prospects should be considered even with a lower percentage of disability, affirming the principle that living victims can progress in life post-accident. (Paras 12-13) (E) Compensation enhancement - The court enhanced compensation for pain and suffering, loss of amenities, and extra nourishment, resulting in a total compensation of Rs.2,96,006/-. (Paras 15-17)

Findings of Court:
The total compensation was recalculated and enhanced to Rs.2,96,006/-.

Issues: The main issue was whether the quantum of compensation awarded was just and reasonable.

Ratio Decidendi: The court emphasized the need for fair compensation based on accurate assessments of income and disability, and the importance of considering future prospects.

Result: Appeal allowed in part.

JUDGMENT

The petitioner in O.P.(M.V.)No.1008/2016 on the file of the Motor Accident Claims Tribunal, Kozhikode is the appellant herein. The respondents in the O.P. are the respondents herein. The petitioner filed the above O.P. under Section 140 and 166 of the Motor Vehicles Act, 1988 , claiming compensation for the injuries sustained in a motor vehicle accident that occurred on 14.01.2016.

2. According to the petitioner, while she was standing by the side of the road near old Corporation Building, an autorickshaw bearing Reg.No.KL-11-AA-145 driven by the 1st respondent in a rash and negligent manner and in exorbitant speed, abruptly swerved his vehicle. In the process the autorickshaw overturned and fell on the body of the petitioner. As a result, she sustained serious injuries.

3. The 2nd respondent filed a written statement admitting the accident, valid insurance policy and denying negligence on part of the 1st respondent.

4. The evidence in the case consists of Exts.A1 to A8 and C1.

5. After evaluating the evidence on record, the Tribunal awarded a total compensation of Rs.74,194/- rounded to Rs.74,500/-.

6. Aggrieved by the quantum of compensation awarded by the Tribunal, the petitioner preferred this appeal.

7. Now the point that arises for consideration is the following:

Whether the quantum of compensation awarded by the Tribunal is just and reasonable.

8. Heard Sri.A.V.M.Salahudin, the learned Counsel appearing for the appellant, and Sri.Thomas Mathew Nellimoottil, learned Standing Counsel for the 3rd respondent.

9. The points: One of the contentions raised by the learned counsel for the petitioner is that, though she was a tailor cum student, her notional income was fixed at Rs.2,500/-, which is too meager. It is argued that, during the year 2016, even the notional income of a Coolie, in the light of a dictum laid down in the decision of the Hon’ble Supreme Court in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. [2011 (13) SCC 236] , will come to Rs.10,500/-. Therefore, according to him, the notional income fixed by the Tribunal less than that of a Coolie is liable to be rectified. It is true that the petitioner could not prove his claim that, she was a tailor by profession. Therefore, her notional income is liable to be fixed as that of a Coolie, at Rs.10,500/-.

10. In the accident, the petitioner sustained fracture tibia right. As per Ext.C1 disability certificate, the permanent disability of the petitioner is assessed as 6%. However, the Tribunal has scaled down the percentage of disability to 3%. It appears that Ext.C1 disability certificate was marked without objection. In the above circumstances, if the Tribunal was not satisfied with the percentage of disability assessed in the disability certificate, the remedy was to refer the petitioner to a medical board. Having not resorted to such a remedy, the Tribunal was not justified in scaling down the percentage of disability from 6 to 3. Therefore, I hold that, the percentage of permanent disability of the petitioner is liable to be fixed at 6%.

11. Since, the petitioner was aged 18 at the date of the accident, 40% of the income is to be added towards future prospects and the multiplier to be applied is 18.

12. Relying upon the decision of the Hon’ble Supreme Court in Sidram v. The Divisional Manager, United India Insurance Co.Ltd. and ors. [2023 (3) SCC 439], the learned counsel for the 3rd respondent argued that, in cases where the percentage of disability is less, future prospects cannot be awarded. In paragraph 31 of the above decision, Hon’ble Apex Court held that,

“34. It is now a well settled position of law that even in cases of permanent disablement Incurred as a result of a motor-accident, the claimant can seek, apart from compensation for future loss of income, amounts for future prospects as well. We have come across many orders of different tribunals and unfortunately affirmed by different High Courts, taking the view that the claimant is no

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