High Court of KeralaSingle JudgeAppeal allowed in part; enhanced compensation a...

Appukuttan and Others v. I.B. Rajeev and The National Insurance Co. Ltd.

Case / Petition Number:MACA No.1390 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-09-03
Court Decision / Holding
The appeal is allowed in part. The compensation is enhanced from Rs.1,66,166 to Rs.7,55,600 as recalculated, and an additional enhancement of Rs.5,89,434 is awarded with interest at 7% per annum from the date of the claim petition until realization, after deducting 101 days for delay in filing. The insurer is directed to deposit the enhanced amount before the Tribunal within 60 days, and the Tribunal shall disburse the enhanced compensation to the appellants in the ratio 40:40:20, after accounting for any liability of the petitioners. All pending interlocutory applications are closed.
Final Disposition
Appeal allowed in part; enhanced compensation and directions issued for deposit and disbursement; all interlocutory matters closed.

Parties to the Case

Appellants / Petitioners

  • Appukuttan
  • Thanka
  • Vijesh N.

Respondents

  • I.B. Rajeev
  • Ramakrishnan P.
  • The National Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Latha Prabhakaran
  • • K.M. Jamaludheen

Counsels for Respondents

  • • Deepa George

Case Synopsis & Summary

This Kerala High Court MACT appeal arises from a Motor Vehicle Act petition (O.P.(MV) No.1323/2004) concerning the death of Gireesh, a coolie worker, following a collision between a jeep and a lorry on 23 March 2004. The Principal MACT, Kozhikode, awarded a partial compensation of Rs.1,66,200 with 7% interest and costs, finding the lorry driver negligent and the insurer liable to indemnify. The appellants contended that the quantum was inadequate and urged recalibration of several heads of compensation under the statutory framework. The court re-evaluated the deceased’s income, applying Ramachandrappa’s notional income for coolies at Rs.4,500 per month (in 2004), and used a multiplier of 17 as prescribed in Sarla Verma. It also applied 40% future prospects and deducted one-half for personal living expenses in light of Sarla Verma and Pranay Sethi. Conventional heads were adjusted: funeral expenses increased to Rs.15,000; loss of estate Rs.15,000; loss of consortium Rs.80,000 for parents; and the previously granted loss of love and affection and pain and sufferings were excised in light of Somavathy and Satinder Kaur. The result is a total enhanced compensation of Rs.7,55,600, with a further Rs.5,89,434 capitalized enhancement ordered, plus 7% interest and costs, to be deposited and disbursed by the insurer through the Tribunal in a 40:40:20 ratio.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Multiplier principle as per Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121
  • Notional income for calculating dependency (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.)
  • Deduction of personal living expenses (50%) for a bachelor (Sarla Verma; Pranay Sethi)
  • Future prospects at 40% (Sarla Verma; Pranay Sethi)
  • No duplication of compensation (New India Assurance Co. Ltd v. Somavathy)
  • No reduction in compensation in excess of claim petition (Nagappa v. Gurudayal Singh; Rajesh v. Rajbir Singh)
  • Pain and suffering/loss of love & affection not payable when loss of consortium awarded (Somavathy; Satinder Kaur)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal erred in fixing the notional income, did not adequately apply Sarla Verma’s multiplier and deduction rules, and failed to grant reasonable sums for conventional heads. They contended for enhanced compensation reflecting actual economic loss, future prospects, and appropriate heads of damages.

Contentions of Respondents

The insurer contended that the award was proper in light of the evidence and law, and that liability was correctly placed on the insurer; they disputed the higher calculation and demanded adherence to the Tribunal’s findings unless reversed by a higher court.

Cited Precedents (7)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.[(2011) 13 SCC 236]PositiveNotional income for a coolie fixed at Rs.4,500 per month (as per Ramachandrappa) applied to determine the claimant’s earnings.
Sarla Verma v. Delhi Transport Corporation[(2009) 6 SCC 121]PositiveSets the multiplier (17) and supports deductions for personal living expenses and future prospects.
Pranay Sethi[(2017) 16 SCC 680]PositiveAffirms 40% future prospects and other related dependents’ compensation concepts.
New India Assurance Co. Ltd v. Somavathy and Ors[(2020) 9 SCC 644]PositivePrevents duplication of compensation when loss of consortium is awarded and affects head of love and affection.
United India Insurance Co. Ltd v. Satinder Kaur @ Satwinder Kaur and others[(2020) (3)KHC 760]PositiveNo award under pain and sufferings in death cases as per Supreme Court view cited.
Nagappa v. Gurudayal Singh[2003 (1) KLT 115(SC)]PositiveNo restriction on awarding more compensation than claimed in the petition.
Rajesh v. Rajbir Singh[2013 (3) KLT 89 (SC)]PositiveAffirms possibility of higher compensation than claimed.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1 MACA No.1390 of 2009 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **FRIDAY, THE 3[RD] DAY OF SEPTEMBER 2021 / 12TH BHADRA, 1943 MACA NO. 1390 OF 2009** **AGAINST THE ORDER/JUDGMENT IN OPMV 1323/2004 OF THE PRINCIPAL MOTOR ACCIDENT CLAIMS TRIBUNAL ,KOZHIKODE.** **APPELLANT/S:** 1 APPUKUTTAN, S/O.LATE VELU, AGED 69 YEARS. 2 THANKA, W/O.APPUKUTTAN, AGED 54 YEARS. 3 VIJESH N., S/O.APPUKUTTAN, AGED 26 YEARS., (ALL RESIDING AT NECHIYIL DHAIVATHUMKANDY HOUSE, CHELEMBRA POST, IDIMOOZHIKKAL,, MALAPPURAM). BY ADVS. SMT.LATHA PRABHAKARAN SRI.K.M.JAMALUDHEEN ## **RESPONDENT/S:** 1 I.B.RAJEEV, IYEHATH HOUSE, SOUTH EROOR, THRIPPOONITHURA, ERNAKULAM. (DELETED) 2 RAMAKRISHNAN P., S/O.PONNAN, CHETHONI HOUSE, FEROKE POST, KOZHIKODE.(DELETED) 3 THE NATIONAL INSURANCE CO.LTD., S7 THIRUVIKA INDUSTRIAL ESTATE, GUINDY. (RESPONDENTS 1 AND 2 ARE DELETED FROM THE PARTY ARRAY AT THE RISK OF THE APPELLANTS AS PER ORDER DATED 4.8.2021 IN IA 1/2021). BY ADVS. SMT.DEEPA GEORGE FOR R3. **THIS MOTOR ACCIDENTS CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 03.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA No.1390 of 2009 ## **C.S.DIAS, J. ====================== MACA No.1390 of 2009** ## **====================== Dated this the 3rd day of September, 2021.** ## **JUDGMENT** The appellants were the petitioners in OP (MV) No.1323/2004 on the file of the Principal Motor Accidents Claims Tribunal, Kozhikode. The respondent in the appeal was the third respondent before the Tribunal. Even though the appellants had impleaded the respondents 1 and 2 before the Tribunal as respondents 1 and 2 in the appeal, at the instance of the appellants, the respondents 1 and 2 were deleted from the party array as per order dated 4.8.2021 in IA 1/2021. Hence, the parties are, for the sake of convenience, referred to as per their status in the claim petition. 2. The petitioners had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming 3 MACA No.1390 of 2009 compensation on account of the death of Gireesh (deceased), the son of the petitioners 1 and 2 and the brother of the third petitioner. 3. The concise case of the petitioners in the claim petition was that; On 23.3.2004, while the deceased was travelling in a Jeep bearing registration No.KL-10/A 6426 (Jeep) from Idimuzhikkal to Kodungalloor, the Jeep hit on a tanker lorry bearing registration No.KL-7/U-7745 (lorry). The deceased sustained serious injuries and was taken to the Taluk Government Hospital, Tirur, where he lost his life. The accident occurred due to the negligent driving of the lorry by the second respondent. The lorry was owned by the first respondent and insured with the third respondent. The deceased was a coolie worker by profession and earning a monthly income of Rs.6,000/-. The petitioners were the dependents of the deceased. Hence, they claimed a total compensation of Rs.3,00,000/- 4 MACA No.1390 of 2009 from the respondents. 4. The respondents 1 and 2 did not contest the proceeding and were set ex parte. 5. The third respondent filed a written-statement admitting that the lorry had a valid insurance coverage. However, the third respondent disputed the other contentions in the claim petition. 6. The petitioners produced and marked Exts A1 to A3 in evidence. The respondents did not let in any evidence. 7. The Tribunal, after considering the pleadings and materials on record, allowed the claim petition, in part, by permitting the petitioners to realise from the third respondent an amount of Rs.1,66,200/- with interest @ 7% per annum from the date of claim petition till the date of realisaton, and costs of 1,500/-. 8. Dissatisfied with the quantum of compensation, 5 MACA No.1390 of 2009 the petitioners are in appeal. 9. Heard; Sri.Jamaludheen K.M, the learned counsel appearing for the appellants/petitioners and Smt.Deepa George, the learned counsel appearing for the third respondent/insurer. 10. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Negligence and liability** 11. Ext A1 FIR lodged before the Kuttipuram Police proves the fact that the accident occurred due to the negligence of the second respondent. Undisputedly, the first respondent was the owner and the third respondent was the insurer of the Lorry Therefore, it is the third respondent who is to indemnify the liability of the first respondent arising out of the accident. 6 MACA No.1390 of 2009 ## **Notional Income** 12. The petitioners had claimed that the deceased was a coolie worker and earning a monthly income of Rs.6,000/-. Nevertheless, the Tribunal fixed the notional income of the deceased at Rs.20,000/- per year. 13. The Hon'ble Supreme Court in ## **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011) 13 SCC** **236]** has fixed the notional income of a coolie worker in the year 2004 at Rs.4,500/- per month. 14. Following the ratio in the aforecited decision and taking into account the fact that the accident occurred in the year 2004, I hold that the deceased's notional income can safely be fixed at Rs.4,500/- per month. ## **Multiplier** 15. Undisputedly, the deceased was aged 26 years on the date of his death. In the light of the law laid down 7 MACA No.1390 of 2009 in **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** , the relevant multiplier is '17'. ## **Personal living expenses** 16. It is admitted that the deceased was a bachelor at the time of his death. As held in **Sarla Verma** (supra) and **National Insurance Co.Ltd v Pranay Sethi [(2017) 16 SCC 680]** , one-half of the compensation has to be deducted towards the personal living expenses of the deceased, as he was a bachelor. ## **Future prospects** 17. Following the ratio in **Sarla Verma** and **Pranay Sethi** (supra), and considering that the relevant multiplier at '17', the petitioners are entitled for future prospects at 40% on the compensation for loss of dependency. ## **Loss of dependency** 18. Taking into account the above mentioned factors, that is, the notional income of the deceased at Rs.4,500/-, the 8 ## MACA No.1390 of 2009 multiplier at 17, the future prospects at 40%, and after deducting one-half of the compensation for loss of dependency towards the personal living expenses of the deceased, I refix the compensation for loss of dependency for the petitioners at Rs.6,42,600/- instead of Rs.1,46,666/awarded by the Tribunal. ## **Conventional Heads of Compensation** 19. The Hon'ble Supreme Court in Clause (viii) of paragraph 61 of **Pranay Sethi** (supra) has held that the dependents of the deceased are entitled for compensation under the conventional heads viz., funeral expenses, loss of estate and loss of consortium at Rs.15,000/-, Rs.15,000/and Rs.40,000/- respectively. 20. In the instant case, the Tribunal has awarded only an amount of Rs.2,500/- towards funeral expenses. Following **Pranay Sethi** (supra), I enhance the compensation under the said head by a further amount of 9 MACA No.1390 of 2009 Rs.12,500/-. 21. The Tribunal has not awarded any amount under the head loss of estate and loss of consortium. Hence, I award an amount of Rs.15,000/- towards loss of estate. Taking into account the fact that the petitioners 1 and 2 are the parents of the deceased, I hold that they are entitled for loss of consortium at Rs.40,000/- each, totalling to an amount of Rs.80,000/-. ## **Loss of love and affection and pain and sufferings** 22. It is seen that the Tribunal has awarded an amount of Rs.10,000/- under the head loss of love and affection and Rs.5,000/- under the head compensation for pain and sufferings. 23. In **New India Assurance Co. Ltd v. Somavathy and Ors [(2020) 9 SCC 644]** , the Hon'ble Supreme Court has held that once compensation under the head loss of consortium is awarded, no amount can be awarded 10 MACA No.1390 of 2009 under the head loss of love and affection as it would be amounted to duplication of compensation. Similarly, in **United India Insurance Co. Ltd v. Satinder Kaur @ Satwinder Kaur and others- [(2020(3)KHC 760],** the Hon'ble Supreme Court has held that in a case of death, no amount can be awarded under the head pain and sufferings. 24. Thus, I set aside Rs.10,000/- and Rs.5,000/awarded under the heads 'loss of love and affection' and 'pain and sufferings'. ## **Transportation and medical expenses** 25. With respect to the compensation awarded under the head transportation expenses and medical expenses, I find that the Tribunal has awarded reasonable and just compensation. 26. On a comprehensive re-appreciation of the pleadings, materials on record and the law referred to in 11 MACA No.1390 of 2009 the afore-cited precedents, I am of the firm opinion that the appellants are entitled for enhancement of compensation as modified and re-calculated above, and given in the table below for easy reference. |SI.<br>No|Head of claim|Amount<br>awarded by<br>the Tribunal<br>(in rupees)|Amounts<br>modified<br>and<br>recalculated<br>by<br>this<br>Court| |---|---|---|---| |1|Dependency|1,46,666/-|6,42,600/-| |2|Pain and sufferings|5,000/-|nil| |3|Love and affection|10,000/-|nil| |4|Transportation|1,500/-|1,500/-| |5|Funeral expenses|2,500/-|15,000/-| |6|Medical treatment|1,500/-|1,500/-| |7|Loss of consortium|Nil|80,000/-| |8|Loss of estate|Nil|15,000/-| ||Total|1,66,166/-|7,55,600/-| 27. Even though the petitioners had claimed only an amount of Rs.3,00,000/- as compensation, in view of the ratio in **Sarla Verma** and **Pranay Sethi** (supra) that the dependents of the deceased are entitled for future 12 MACA No.1390 of 2009 prospects and compensation based on multiplier, the amount of compensation has been enhanced, which is more than the amount claimed. 28. In **Nagappa vs. Gurudayal Singh [2003 (1) KLT 115(SC)]** and **Rajesh vs. Rajbir Singh [ 2013 (3) KLT 89 (SC)],** the Hon'ble Supreme Court has held that there is no restriction in awarding more compensation than what is claimed in the claim petition. In the result, the appeal is allowed in part, by enhancing the compensation by a further amount of Rs.5,89,434/- (Rupees Five Lakh Eighty Nine Thousand Four Hundred and Thirty Four only) with interest on the enhanced compensation at the rate of 7% per annum from the date of claim petition till the date of realisation, after deducting the interest for the period of 101 days, i.e., the period of delay in preferring the appeal and as ordered by this Court on 4.8.2021 in C.M Appln 1590/2009, and 13 MACA No.1390 of 2009 costs of Rs.4,000/-. The third respondent/insurer shall deposit the enhanced compensation awarded in this appeal before the Tribunal together with interest and costs within a period of sixty days from the date of receipt of a certified copy of the judgment. The Tribunal shall disburse the enhanced compensation to the appellants/ petitioners in the ratio of 40: 40: 20 and in accordance with law, after deducting their liability if any, towards payment of court-fee. All pending interlocutory applications will stand closed. Sd/- sks/3.9.2021 **C.S.DIAS, JUDGE**