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2021 Supreme(Online)(KER) 28971

HIGH COURT OF KERALA
T. R. Ravi, J
SHAJI FRANCIS – Appellant
Versus
DIVISIONAL MANAGER – Respondent
MACA 2064 2015



Compensation for personal injury should reflect true earning potential and include future economic losses adequately.

Headnote:

Compensation - Personal Injury - Motor Vehicles Act - 1, 2, 3 - The court enhanced the awarded compensation, using judicial precedents to appropriately assess income for disability and bystander expenses.

Fact of the Case:

The appellant was severely injured in a car accident while on his scooter, resulting in permanent disability and extensive medical expenses. A tribunal awarded insufficient compensation, prompting the appellant to appeal for enhancement.

Issues: Whether the tribunal's assessment of income for disability and bystander expenses was adequate to calculate appropriate compensation.

Ratio Decidendi: The court established that compensation should reflect realistic earning potential and include future prospects, citing precedents that ensure fair assessment of damages.

Final Decision: The appeal was allowed, and compensation was enhanced to ₹20,15,000 with applicable interest.

JUDGMENT

On 25.02.2013, while the appellant was riding his scooter, he was hit by a car driven in a rash and negligent manner. The appellant suffered severe head injury, diffuse axonal injury, fracture (R) zygoma, contusion right forearm, right pinna lacerated and sutured, right preorbital edema, swelling over right forearm, extensive abrasions over right side of face and limbs. The appellant had to undergo multiple surgeries and he has become paraplegic and is bedridden. He was treated as an inpatient for 78 days. An amount of Rs.4,27,084/- was spent towards medical expenses alone. The Medical Board attached to the Medical College Hospital, Kottayam assessed his permanent disability as 87%. According to the appellant, he was working as a Captain in Hotel Ambady, Thekkady and was getting a monthly income of Rs.12,000/- at the time of accident. The Tribunal awarded a sum of Rs.23,95,000/- as against a claim of Rs.69,01,000/- limited to 35 lakhs. Aggrieved by the award, the appellant has preferred this appeal, seeking enhancement of the compensation.

2. Heard.

3. The primary contention of the appellant is that the Tribunal went wrong in adopting a notional income of Rs.7,500/-. It is submitted that going by the dictum inRamachandrappa v. Manager, Royal Sundaram Alliance Insurance Co.Ltd., reported in[ AIR 2011 SC 2951 ], a coolie would have been earning Rs.9,000/- in the year 2013. The Apex Court inSyed Sadique & Ors. v. Divisional Manager, United India Insurance Company Ltd. reported in [ 2014 (2) SCC 735 ] considered the case of a vegetable vendor who was assessed a functional disability of 85% and held that he would have been earning Rs.6,500/- per month and added an increment of 50% towards future prospects. The learned counsel for the appellant also pointed out that in the judgment in MACA No.2101/2015 dated 27.9.2018, this Court had considered the case of a mason who met with an accident in 2013 and fixed the monthly income as Rs.10,000/- and added 25% towards future prospects. The counsel for the appellant submits that the amount of Rs.7,500/- applied by the Tribunal is unjustified. It is also submitted that the amount awarded towards loss of earning has to be modified in accordance with the income to be applied. The counsel also contends that the appellant is entitled to increased compensation under the head future bystander expenses and pain and sufferings. Reference is made to the decision inKajal V. Jagdish Chand reported in[ 2020 (1) KLT 743 ], to contend that it is a case where compensation has to be awarded for bystander throughout life following the multiplier method.

4. Having heard the learned counsel on either side, I am of the view that the appellant is entitled to enhanced compensation. In the light of the judgments quoted above, a sum of Rs.10,000/- can be taken as the monthly income and having regard to his age and occupation, 25% of the income is to be added as future prospects. The income for the purpose of calculating the permanent disability would hence be Rs.12,500/-. The Tribunal has calculated the compensation for permanent disability treating the functional disability as 100%. Thus the appellant will be entitled to a sum of Rs.21,00,000/-(10000x125%x12x14) under the head permanent disability. After reducing the amount of Rs.12,60,000/- awarded by the Tribunal, the appellant will be entitled to an additional compensation of Rs.8,40,000/- under the said head. Regarding bystander's expenses, the Hon'ble Supreme Court has held in Kajal (supra) that in cases of this nature, the bystander's expenses should also be calculated by applying the multiplier method. Considering an amount of Rs.7,500/- as payment for bystander's expenses for a month, applying the multiplier method, the appellant will be entitled to a sum of Rs.12,60,000/- (7500x12x14) towards bystander's expenses. After deducting the sum of Rs.1 lakh awarded by the Tribunal, the appellant will be entitled to an additional sum of Rs.11,60,000/- under

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