High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation awarded; ...

A.S. Sheeba; Jithu P. Ajith (minor) v. T.H. Santhosh; Kabeer; Bajaj Allianz Insurance Co. Ltd.

Case / Petition Number:MACA NO.58 OF 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Badharudeen
Judgment Date
2022-06-17
Court Decision / Holding
Appeal allowed. Appellants are entitled to Rs. 8,13,349 as total compensation, with Rs. 5,41,349 already granted by the Tribunal and Rs. 2,72,000 enhanced compensation payable by the Insurance Company, from the date of petition till deposit/realization, excluding 25 days delay. Insurance Company to deposit the enhanced amount in equal shares in the appellants’ names within two months from today; upon deposit, the appellants may release the funds.
Final Disposition
Appeal allowed; enhanced compensation awarded; deposit directed within two months; release upon deposit.

Parties to the Case

Appellants / Petitioners

  • A.S. Sheeba, wife of late Ajith Kumar
  • Jithu P. Ajith (minor) represented by mother Mrs. Sheeba Ajith

Respondents

  • T.H. Santhosh S/o Harikrishnan, Thrikkakara Post, Ernakulam
  • Kabeer S/o Abdul M.A., Kunnumpuram, Karumallur Village
  • The Bajaj Allianz Insurance Co. Ltd., M.G. Road, Ernakulam, Kochi

Legal Representation & Advocates

Counsels for Petitioners

  • • T.K. Radhakrishnan (Advocate)

Counsels for Respondents

  • • P.S. Ramu (Advocate)

Case Synopsis & Summary

This Motor Accident Claims Appeal arises from an award in O.P.(MV) No.1345/2004 before the Motor Accidents Claims Tribunal, Ernakulam, following the death of Ajith Kumar in a 2004 vehicle crash. The appellants, Ajith Kumar’s wife A.S. Sheeba and his son Jithu P. Ajith (represented by his mother), challenged the Tribunal’s award of Rs. 5,41,249 along with interest. The core dispute centered on the deceased’s income, with the appellants contending for Rs. 7,000 per month (supported by Ext. A-12), while the Tribunal fixed Rs. 4,000. The Insurance Company argued Ext. A-12 lacked reliability, as it did not establish basic pay, DA, PF, etc. The court scrutinized Ext. A-12, rejected it, and, invoking Ramachandrappa, held the deceased’s monthly income should be Rs. 4,500 (instead of Rs. 4,000). Applying Pranay Sethi and National Insurance principles, the court added 25% for future prospects and recalculated the loss of dependency: Rs. 6,75,000 total, with Rs. 4,80,000 already granted by the Tribunal, leaving Rs. 1,95,000 as enhanced loss of dependency. The court also awarded additional sums for loss of consortium (Rs. 65,000), loss of estate (Rs. 10,000), and funeral expenses (Rs. 12,000), while reducing Rs. 10,000 awarded for loss of love and affection per United India Insurance Co. v. Satinder Kaur. The appeal was allowed, directing payment of Rs. 8,13,349 as total compensation, with Rs. 2,72,000 enhanced amount, payable by the insurer within two months. They deposit in equal shares and release once deposited.

Provisions of Law Cited

Section 173 Motor Vehicles Act, 1988Section 166 Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. (2011) 13 SCC 236 — approach to determining income for compensation under MV Act; loss of dependency and future prospects principles.
  • Pranay Sethi and Ors. v. National Insurance Co. Ltd. (2017 (4) KLT 662) — guidelines on heads of compensation (loss of dependency, consortial, funeral expenses, etc.).
  • National Insurance Co. Ltd. v. Pranay Sethi and Ors. (2017 (4) KLT 662) — reaffirmation of Pranay Sethi doctrine in Kerala context.
  • United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur and Others [2020(3) KHC 760] — reduction of heads like loss of love and affection when warranted by ratio.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that Ajith Kumar’s monthly income was Rs.7,000 per month (as per Ext.A-12) supported by PW1 and the salary certificate; Tribunal erred in fixing Rs.4,000; Ext.A-12, though lacking details like PF, basic pay, DA, cannot be wholly discarded; Ramachandrappa supports determining accurate income; after applying 25% future prospects per Pranay Sethi, dependency loss and conventional heads should be recalculated; sought enhanced compensation accordingly.

Contentions of Respondents

The Insurance Company argued Ext.A-12 evidence is insufficient to establish Rs.7,000 income; cross-examination showed lack of basis for such income; the Tribunal’s assessment was proper; Ext.A-12 cannot justify the salary; the Tribunal’s fixed income should stand, and no enhancement is warranted.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveUsed to justify fixing the deceased’s income (Rs. 4,500) based on the principle of determining income for compensation under MV Act.
Pranay Sethi and Ors. v. National Insurance Co. Ltd.(2017 (4) KLT 662)PositiveUsed for heads of compensation and the 25% addition for future prospects; applied in calculating enhanced loss of dependency.
National Insurance Co. Ltd. v. Pranay Sethi and Ors.(2017 (4) KLT 662)PositiveReinforces the Pranay Sethi framework for calculating compensation, including damages heads and percentages.
United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur and Others[2020(3) KHC 760]PositiveUsed to justify reduction of Rs. 10,000 on the head of loss of love and affection in line with ratio.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ## **`THE HONOURABLE MR. JUSTICE A. BADHARUDEEN`** ``` FRIDAY, THE 17[TH] DAY OF JUNE 2022 / 27TH JYAISHTA, 1944 ``` ``` MACA NO. 58 OF 2012 ``` ``` AGAINST THE AWARD IN OPMV 1345/2004 OF SPECIAL C SPE/CBI-I & 3 ADDITIONAL DISTRICT COURT/I ADDITIONAL MOTOR ACCIDENT CLAIMS ``` ## **`TRIBUNAL, ERNAKULAM`** ## **`APPELLANTS/PETITIONERS:`** - **`1 A.S.SHEEBA AGED 39, W/O.LATE SRI.AJITH KUMAR, PUTHUPARAMBATH HOUSE, AROOR, CHERTHALA TALUK.`** - **`2 JITHU.P.AJITH (MINOR) AGED 16, S/O.LATE SRI.AJITH KUMAR, PUTHUPARAMBATH HOUSE, AROOR, CHERTHALA TALUK, (REPRESENTED BY HIS NEXT FRIEND AND MOTHER IST CLAIMANT MRS.SHEEBA AJITH). BY ADV SRI.T.K.RADHAKRISHNAN`** ## **`RESPONDENTS/RESPONDENTS:`** - **`1 T.H.SANTHOSH S/O.HARIKRISHNAN, THOPPIL HOUSE, THRIKKAKARA POST, ERNAKULAM, PIN-682 028.`** - **`2 MR.KABEER S/O.ABDUL.M.A, MANGATTU HOUSE, MANJALI, KUNNUMPURAM, NEAR L.P.SCHOOL, KARUMALLUR VILLAGE, PIN-683 511.`** - **`3 THE BAJAJ ALLIANZ INSURANCE CO.LTD. M.G.ROAD, ERNAKULAM, KOCHI-682 016. BY ADV SRI.P.S.RAMU`** ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 17.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO.58 OF 2012 ``` ``` 2 ``` ## **JUDGMENT** Dated this the 17[th] day of June, 2022 Petitioners in O.P.(MV) No.1345/04 on the files of the Motor Accidents Claims Tribunal, Ernakulam, who are wife and son of deceased Ajith Kumar, have preferred this appeal under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the MV Act’), challenging award dated 20.01.2011 in the above case. Respondents herein are the respondents before the Tribunal. 2. Heard the learned counsel for the appellants and the learned Standing Counsel for 3[rd] respondent-Insurance Company. 3. Brief facts of the case are as follows:- Consequent on the death of one Ajith Kumar in a motor accident occurred on 27.03.2004, the legal heirs of the deceased put up claim petition under Section 166 of the MV Act on the ground that the accident and the ``` MACA NO.58 OF 2012 ``` ``` 3 ``` consequential death of the said Ajith Kumar was the outcome of negligence on the part of the second respondent, who had driven car bearing registration No. KL-4G 765. The appellants claimed compensation to the tune of Rs.12,20,500/-. 4. The first and second respondents were declared ex parte by the Tribunal. 5. The third respondent Insurance Company filed written statement by denying accident and negligence. The quantum of compensation challenged, while admitting policy. 6. The Tribunal ventured the matter. PW1 examined and Exts.A1 to A16 marked on the side of the appellants. No evidence let in by the respondents. 7. On evaluation of the evidence, the Tribunal granted Rs.5,41,249/- along with interest at the rate of 7.5% per annum. ``` MACA NO.58 OF 2012 ``` ``` 4 ``` 8. It is submitted by the learned counsel for the appellants that the monthly income fixed by the Tribunal is on lower side, in a case, where the appellants claimed the monthly income of the deceased as Rs.7,000/- per month, being an accountant in Saroj Steels. Though Ext.A12 salary certificate showing the said income was produced before the Tribunal and the author of Ext.A12 also was examined, the Tribunal fixed the same at Rs.4,000/-. 9. The learned counsel for the Insurance Company would submit that the evidence adduced by PW1 and Ext.A12 is quite insufficient to accept the income as claimed since PW1 could not justify Rs.7,000/- as the income of the said Ajith Kumar when he was subjected to cross-examination. 10. I have gone through Ext.A12. Ext.A12 would suggest that a person under the title ‘partner’ had signed in Ext.A12 with title Saroj Steels. No details regarding registration under any of the Act or Rules could be ``` MACA NO.58 OF 2012 ``` ``` 5 ``` gathered therefrom. While examining PW1 - the author, though he admitted the authenticity of Ext.A12 as his own, his evidence during cross-examination to the effect that he did not know when Ajith Kumar joined this institution and there was no deduction towards PF and the certificate did not suggest the basic pay, DA, batta etc. in particular. Therefore, Ext.A12 cannot be accepted as such. The Tribunal rightly rejected the same and I endorse the said finding. However, following the ration in **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. [(2011) 13 SCC 236],** the monthly of Ajith Kumar is liable to be fixed at Rs.4,500/- as against Rs.4,000/- fixed by the Tribunal. The Tribunal applied ‘15’ as the multiplier. No dispute raised as regards to the multiplier applied by the Tribunal. Similarly, since the deceased is in the age group between 40 – 50 years, 25% addition also is entitled, following the ratio in **National Insurance Company Limited v.** ``` MACA NO.58 OF 2012 ``` ``` 6 ``` **Pranay Sethi and Ors (2017 (4) KLT 662).** Thus, ‘loss of dependency income’ requires re-calculation on that basis (4500 + 4500 x 25% = 5625). Accordingly, loss of ‘dependency income’ is re-calculated as under:- 5625 x 12 x 15 x 2/3 = 6,75,000/- Out of which, Rs.4,80,000/- was granted by the Tribunal. Thus, **Rs.1,95,000/-** (6,75,000 – 4,80,000) is granted as enhanced compensation under the head ‘loss of dependency’. 11. Apart from that, the appellants, who are wife and son, are entitled to get compensation under conventional and traditional heads following the ratio in **Pranay Sethi’** case (supra). Thus, the appellants together are entitled to get ‘loss of consortium’ to the tune of Rs.80,000/- (Rs.40,000 x 2). Out of which, the Tribunal granted Rs.15,000/-. Deducting the same, **Rs.65,000/-** more is granted under the head ‘loss of consortium’. Towards ‘loss of estate’, the Tribunal granted only 5,000/-. ``` MACA NO.58 OF 2012 ``` ``` 7 ``` Hence, **Rs.10,000/-** more is granted following the ration in **Pranay Sethi’** case (supra). 12. Similarly, towards ‘funeral expense’, the Tribunal granted Rs.3,000/- only. Therefore, the same is increased by **Rs.12,000/-** more. 13. It is pointed out by the learned Standing Counsel for the third respondent/Insurance Company that Rs.10,000/- granted under the head ‘loss of love and affection’ is liable to be reduced as per the ratio in **United India Insurance Co.Ltd. v. Satinder Kaur @ Satwinder Kaur and Others [2020(3) KHC 760].** Thus, **Rs.10,000/-** is reduced under the said head. In the result, this appeal stands allowed. It is held that the appellants are entitled to get Rs.8,13,349/- as compensation out of which Rs.5,41,349/- was granted by the Tribunal and the balance amount of **Rs.2,72,000/-** (Rupees two lakh seventy two thousand only) is granted as enhanced compensation with the same rate of interest ``` MACA NO.58 OF 2012 ``` ``` 8 ``` awarded by the Tribunal, excluding interest for a period of 25 days specifically excluded by this Court while allowing the delay petition – C.M.Application No.1 of 2012 as per order dated 19.11.2021, payable by the Insurance Company, from the date of petition till the date of deposit or realisation. The Insurance Company is directed to deposit the amount in equal proportion in the name of the appellants within two months from today. On deposit, the appellants can release the same. **Sd/-** **A. BADHARUDEEN JUDGE** nkr