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2026 Supreme(Online)(Ker) 31181

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Shoba Annamma Eapen, J
Nithin Xavier – Appellant
Versus
New India Assurance Company Limited – Respondent
MACA NO. 537 OF 2020



Advocates:
For the Appellants/Petitioners: Rahul Sasi, Neethu Prem
For the Respondents: A. Sreekala

Appellate courts possess the authority to re-fix notional income and recalculate compensation for disability and loss of earnings in motor accident claims to ensure the final award is just, reasonable, and reflective of the claimant's actual professional circumstances and suffering, while excluding interest for periods of unjustified delay.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Motor accident - Quantum of compensation - Enhancement of compensation - Notional income - Appellant aggrieved by assessment of monthly income and heads of compensation - Tribunal committed error by taking insufficient monthly income and duration for loss of earnings - Appellate court re-fixed notional monthly income based on professional profile and established principles - Permanent disability compensation recalculated utilizing corrected income figures and recognized judicial precedents - Loss of amenities awarded in accordance with age and enjoyment of life - (Paras 5, 7)

(B) Appellate Practice - Enhancement of compensation - Adjudication in appeal is based on assessment of just and reasonable compensation - No interference necessary under heads where tribunal’s award is found to be just and reasonable - Deduction for delay in filing appeal applied as a condition for interest entitlement - (Paras 6, 7)

Facts of the case:
Claimant sustained serious injuries in a motorcycle accident while pillion riding. The vehicle overturned due to sudden braking. The tribunal awarded a sum of Rs. 1,96,600/-, which the claimant sought to enhance, arguing that the notional income, duration of loss of earnings, and compensation for permanent disability and loss of amenities were undervalued.

Findings of Court:
The court determined that the tribunal erred in fixing the notional income and the period for loss of earnings. Re-fixing the income and adjusting the duration of incapacitation resulted in an additional compensation amount. The court also recognized the necessity of awarding compensation for loss of amenities which was previously omitted.

Issues: Whether the compensation awarded by the tribunal was just and reasonable, and whether the claimant is entitled to an enhancement under the heads of notional income, loss of earnings, permanent disability, and loss of amenities.

Ratio Decidendi: Compensation must be just and reasonable, calculated based on the realistic notional income and established evidentiary support for duration of incapacitation and disability, while applying approved multipliers consistently even when other heads of compensation remain adequate.

Result: Appeal allowed in part; additional compensation of Rs. 99,480/- awarded with 8% interest, excluding the period of delay in filing the appeal.

Table of Content
1. factual background and summary of the tribunal award. (Para 2 , 3)
2. assessment of notional income, loss of earnings, and permanent disability. (Para 4 , 5)
3. final calculation of enhanced compensation and interest directions. (Para 6 , 7)

JUDGMENT

This appeal is filed by the claimant in O.P(MV) No.543 of

2016 on the file of the Motor Accidents Claims Tribunal, Ernakulam, claiming enhancement of compensation. The respondent herein is the second respondent before the tribunal.

2. According to the claimant, on 21.06.2015, at about

10.00 p.m., while the claimant was pillion riding on a motorcycle bearing registration No.KL-43/F-9343 along Fortkochi – Jubilee road, ridden by the first respondent in a rash and negligent manner suddenly applied the brake without proper care and as a result, the motorcycle skidded and overturned, thereby the claimant sustained serious injuries. The claimant approached the tribunal claiming a total compensation of ₹11,30,000/-.

3. The first respondent who was the rider-cum-owner of the offending vehicle remained ex parte before the tribunal.

The second respondent, insurer, filed a written statement admitting the insurance policy but disputing the liability and quantum of compensation claimed. Before the tribunal, Pws.1 to 3 were examined and Exts.A1 to A21 and Ext.X1 were marked. The tribunal, after analysing the pleadings and materials on record, found that the accident was due to negligence on the part of the second respondent and the claimant was awarded a sum of ₹1,96,625/- which is rounded to ₹1,96,600/- (though the total amount assessed by the tribunal was ₹1,96,625/-, in the tabular statement, it was wrongly stated as ₹1,94,625/-) as compensation under different heads with interest @ 9% per annum from the date of petition till realization against the respondent – insurer. Dissatisfied with the quantum of compensation awarded by the tribunal, the claimant has come up in appeal.

4. Heard the learned counsel for the appellant and the learned standing counsel for the respondent insurer.

5. The learned counsel for the appellant claims enhancement mainly under the following heads:

I. Notional income The learned counsel for the appellant submits that though the appellant had claimed an amount of ₹15,000/- as the monthly income, who was a tile worker, the tribunal had taken only an amount of ₹7,000/-. The learned counsel further submitted that even going by the judgment in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. [2011 (13) SCC 236], the monthly income of a coolie for an accident in 2015 is taken at ₹10,000/- and sought enhancement of the income. The learned counsel for the appellant further submitted that the appellant had mounted the box and deposed that he was working as a tile worker and earning ₹15,000/- per month. It was also stated in the affidavit that the appellant was employed as a tile worker by profession and was drawing a monthly income of ₹15,000/-. However, considering the entire facts, I find it appropriate to re-fix the notional monthly income at11,000/-.

II. Loss of earnings The learned counsel for the appellant submitted that the appellant had deposed before the tribunal that, due to the injuries sustained in the accident, he could not attend his work for a period of nine months. However, the tribunal has taken only a period of six months for awarding compensation under the head loss of earnings. Following are the injuries sustained by the appellant:

i) Fracture shaft of right femur – displaced ii) Pain in right middle 3rd of thigh iii) Deferment iv) Movement difficult and painful right thigh v) Swelling thigh and shortening right femur On the basis of the deposition of the appellant and considering the nature of injuries sustained by the appellant, I find that a period of seven months can be taken for awarding compensation under the said head. Since the notional monthly income has been re-fixed at ₹11,000/-, the total compensation payable un

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