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Varghese George v. United India Insurance Co. Ltd.

1. Leave granted.

(J.K. Maheshwari and Rajesh Bindal, JJ.)

Varghese George @ Jomon (Died) Through Its Lrs. ______ Appellant(s);

v.

United India Insurance Co. Ltd. _____________________ Respondent.

Civil Appeal No. of 2024 (Arising out of SLP (C) No. 18661 of 2019), decided on October 14, 2024

The Order of the Court was delivered by

Rajesh Bindal, J.:—

1. Leave granted.

2. This appeal has been filed against the order dated 31.01.2018 passed by the High Court of Kerala1 seeking enhancement of compensation in a motor accident claim case. The Tribunal2 had awarded compensation of Rs. 51,58,458/- under various heads along with interest @ 7.5% per annum from the date of filing of the petition till realization. The High Court reduced the compensation to Rs. 45,18,208/- by mainly reducing the income of the injured.

3. The facts as available on record are that on 09.10.2005 at about 8 PM, the appellant was returning after worship from Velankanni Church along with other passengers in a Toyota Qualis Van bearing Registration No. KL-4/R-4796 on Kottayam-Kumali National Highway, when the vehicle suddenly fell into a gorge called “Mathai Kokka” situated 500 meters east of Peerumade. The appellant and other passengers were severely injured. The injured passengers were shifted to Pushpagiri Medical College Hospital, Thiruvalla where the appellant remained under treatment for 42 days.

4. The appellant (now deceased and represented through his legal representatives) was 24 years old when the accident took place. He was working as Sales Officer at a Hyundai dealership. On account of the accident, the appellant suffered injuries over the spine and head causing complete quadriplegia. He remained permanently bedridden and paralyzed for the rest of his life.

4.1. The appellant filed a claim petition3 before the Tribunal. On the basis of the disability certificate, the Tribunal assessed the functional disability of the deceased-appellant as 100% and his monthly income was taken as Rs. 12,000/-. While granting compensation under various other heads, the Tribunal awarded a total amount of Rs. 51,58,458/-. The details are as under:

Heads

Compensation (Rs.)

Loss of earning from date of accident till Petition

60,000/-

Loss of future earning

24,48,000/-

Pain and suffering

50,000/-

Medical Expenses

14,56,458/-

Future Treatment expenses

8,00,000/-

Loss of amenities

3,00,000/-

Extra nourishment

4,000/-

Loss of marriage prospects

40,000/-

Total

51,58,458/-

5. The award of the Tribunal was challenged before the High Court. The High Court reduced the amount of compensation from Rs. 51,58,458/- to Rs. 45,18,208/- primarily reducing the income of the appellant (now deceased). However, the error in applying the multiplier of 17 was corrected by the High Court by granting multiplier of 18 and attendant charges were granted. The total amount of compensation assessed by the High Court and the details thereof are as under:

Heads

Compensation (Rs.)

Loss of future earning

(reduced) 17,82,000/-

Loss of earning from date of accident till Petition

(reduced) 35,750/-

Pain and suffering

(enhanced) 1,00,000/-

Medical Expenses (no comments by HC)

14,56,458/-

Bystander expense

(granted) 3,00,000/-

Future Treatment expenses

(upheld) 8,00,000/-

Loss of amenities

(upheld) 3,00,000/-

Extra nourishment

(upheld) 4,000/-

Loss of marriage prospects (no comments by HC)

40,000/-

Total

45,18,208/-

6. The aforesaid order passed by the High Court is under challenge in the present appeal. At the time of filing of the petition, the injured was alive, however during the pendency thereof before this Court, he died on 20.08.2022.

7. A perusal of the order passed by this Court shows that the delay in filing the Special Leave Petition was condoned and notice was issued limited to enhancement of the amount quantified for bystander expenses. However, while examining the matter in detail, it is noticed that the future prospects as awarded by the High Court at 50% was not in consonance with the judgment of this Court in National Insurance Company Limited v. Pranay Sethi4. The injured (now deceased) being in private employment on fixed salary was entitled to future prospects of 40%. The income of the deceased was also taken on lower side, which in our opinion instead of Rs. 5,500/- per month deserves to be enhanced to Rs. 7,000/- per month, considering the evidence produced on record. From a perusal of the order passed by the High Court, it is not very clear as to how final compensation of Rs. 45,18,208/- was arrived at. If all the heads under which the compensation has been awarded are calculated, the amount comes out to Rs. 48,18,208/- and not Rs. 45,18,208/-.

8. In our opinion, if correction is made on the assessment of the income of the injured (now deceased) and the future prospects, and the compensation as awarded by the High Court under other heads is upheld, the total amount of compensation would come to Rs. 51,59,250/-.

9. As the Tribunal had awarded total compensation of Rs. 51,58,458/-, in our opinion, the ends of justice will be met in case the order of the High Court is set aside and the amount as awarded by the Tribunal is restored as there is not much difference in the final compensation as assessed by this Court.

10. Accordingly, the present appeal is allowed. The impugned order passed by the High Court is set aside. The award of the Tribunal is restored assessing the compensation at Rs. 51,58,458/-.

———

1 In M.A.C.A. No. 2325 of 2012.

2 Additional Motor Accidents Claim Tribunal, Alappuzha.

3 OP (MV) No. 360 of 2006.

4 (2017) 16 SCC 680; [2017] SCR 100; 2017 INSC 1068