High Court of KeralaSingle JudgeCommon judgment disposed of MACA Nos. 1073/2009...

Beevi and others v. Sundara Raj Saw Mill & Industries and The National Insurance Co. Ltd., MACA Nos. 1073 & 2183 of 2009

Case / Petition Number:MACA Nos. 1073 of 2009 and 2183 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-03-18
Court Decision / Holding
The Appeals are allowed; the Compensation awarded by the Tribunal is enhanced. The court recalculates notional income and applies the multiplier, future prospects, and deductions as per Supreme Court precedents, resulting in a total enhanced compensation of Rs.13,43,500 (an increase of Rs.7,10,500). The third respondent/insurance company is to deposit the enhanced amount before the Tribunal within two months from the certified copy of the judgment, after deducting any balance court-fee, with disbursement in accordance with the impugned award and law, including proportionate costs.
Final Disposition
Common judgment disposed of MACA Nos. 1073/2009 and 2183/2009 by enhancing the compensation payable to the petitioners to Rs.13,43,500 with 6% interest from the date of petition till realization; insurer to deposit within two months; disbursement to be in accordance with law and the impugned award.

Parties to the Case

Appellants / Petitioners

  • Beevi
  • Thajunnisa
  • Thasneem
  • Kunhokk ar
  • Amina

Respondents

  • V. Sundar Raj
  • Senthil Kumar
  • The National Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri U.P. Balakrishnan
  • • Sri K.R. Avinash (Kunnath)

Counsels for Respondents

  • • Sri E.M. Joseph
  • • Sri K.R. Avinash (Kunnath)
  • • Sri U.P. Balakrishnan
  • • Sri Millu Dandapani

Case Synopsis & Summary

These cross-appeals arise from a common Motor Accident Claims Tribunal award in OP(MV) No. 643/2005 (Vadakara) concerning the death of Kunhimoidy, husband of the 1st petitioner, and the consequent dependants (Beevi and others). The tribunal held the respondents liable for compensation to the petitioners but awarded a total of Rs. 6,32,000 with 6% interest and costs, which the appellants challenge. The insurer also contests the quantum while the employer-owner defends the liability. The High Court, applying the Supreme Court’s jurisprudence on ‘just compensation’ under Section 168 of the Motor Vehicles Act, 1988, re-evaluates the notional income and the dependency loss. The court notes that the petitioners had claimed the deceased, a pharmacist, earned Rs. 25,000 per month, but the tribunal accepted a lower figure. Relying on seminal cases (Minu Rout; Ramachandrappa; Syed Sadiq) and the Pranay Sethi framework for fairness and reasonableness, the court fixes notional income at Rs.7,000–Rs.7,500 per month (in light of the date of accident 2005). It applies a multiplier of 14, includes 25% future prospects, deducts 1/4 for personal living expenses, and awards enhanced heads for loss of dependency, loss of estate, funeral expenses, and loss of consortium. In total, compensation is increased to Rs.13,43,500, an increment of Rs.7,10,500 from the tribunal’s award. The insurer is directed to deposit the enhanced amount within two months, with disbursement in accordance with law.

Provisions of Law Cited

Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation under the MV Act; Notional income doctrine; Future prospects for dependents; Multiplier method for loss of dependency; Deduction for personal living expenses (1/4); Heads of damages (loss of estate, funeral expenses, loss of consortium)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the deceased was a pharmacist by profession and that the Tribunal erred in fixing the notional income. They produced Ext.A6–A9 and related documents to establish professional earnings and demanded a higher compensation based on the 2004 standard notional income and the Supreme Court's guidance on just compensation, future prospects, and conventional heads of damages. They relied on Pranay Sethi and Sarla Verma to claim enhanced compensation for loss of dependency and additional heads such as loss of estate, funeral expenses, and loss of consortium.

Contentions of Respondents

The respondents argued that the tribunal’s findings on income and liability were appropriate and that the petitioners had not proven a higher, sustainable income. The insurer contested the quantum and fault-free liability while emphasizing the need to adhere to statutory limits and the evidence on record. They urged adherence to the notional income framework and contested unwarranted enhancement without solid contemporaneous evidence.

Cited Precedents (6)

Case NameCitationTreatmentExplanation
National Insurance Co. Ltd. v. Company Pranay Sethi(2017) 16 SCC 680PositiveDefines the framework of ‘just compensation’ under MV Act and guides fair, reasonable, and equitable assessment.
Minu Rout and Others v. Satya Pradyumna Mohapatra and Others(2013) ACJ 2544PositiveNotional income for a driver in 2004 fixed at Rs.6,000/month, cited to support notional income methodology.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveNotional income framework and related principles used in calculation.
Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd.(2014) 2 SCC 735PositiveFixes notional income for specific classes; used to underpin income assessment.
Sarala Verma v Delhi Transport Corporation(2010) 2 SCC 802PositiveFuture prospects to be awarded to dependants; multiplier framework applied.
Pranav SethisupraPositiveSupport for conventional heads of compensation and related principles.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**MACA.Nos.1073 & 2183 OF 2009** 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **THURSDAY, THE 18TH DAY OF MARCH 2021 / 27TH PHALGUNA, 1942** ## **MACA.No.1073 OF 2009** **AGAINST THE AWARD IN OP(MV)NO. 643/2005 DATED 09-09-2008 OF MOTOR ACCIDENT CLAIMS TRIBUNAL VADAKARA** ## **APPELLANTS/CLAIMANTS:** **1 BEEVI,AGED 37, W/O.KUNHI MOIDY, UNNICHIRAKANDY HOUSE, NOCHAD AMSOM, CHENOLI DESOM,, POST CHENOLI, KOYILANDY - 673525. 2 THAJUNNISA, AGED 19DO.KUNHI MOIDY UNNICHIRAKANDY HOUSE,NOCHAD AMSOM,, CHENOLI DESOM, POST CHENOLI, KOYILANDY-673525. 3 THASNEEM,AGED 15 YEARS, S/O.KUNHIMOIDY DATE OF BIRTH 24/101993,REP.BY MOTHER/ NEXT FRIEND BEEVI, W/O. KUNHI MOIDY, UNNICHIRAKANDY, HOUSE, NOCHAD AMSOM, CHENOLI DESOM, POST, CHENOLI, KOYILANDY-673525. 4 KUNHOKKAR, AGED 84 YEARS,S/O. AMMED UNNICHIRAKANDY HOUSE, NOCHAD AMSOM, CHENOLI DESOM,, POST CHENOLI, KOYILANDY-67352. 5 AMINAAGED, 69 YEARS, W/O. KUNHOKKAR UNNICHIRAKANDY HOUSE, NOCHAD AMSOM, CHENOLI DESOM,, POST CHENOLI, KOYILANDY - 673525.** **BY ADVS. SRI.U.P.BALAKRISHNAN SRI.K.R.AVINASH (KUNNATH)** **MACA.Nos.1073 & 2183 OF 2009** 2 ## **RESPONDENTS/RESPONDENTS:** - **1 V.SUNDAR RAJ, MANAGING PARTNER, SUNDARA RAJ SAW MILL & INDUSTRIES, NETHAJI ROAD,, THRISSUR DISTRICT (OWNER OF THE KL 8/E 4887, NO.LORRY)** - **2 SENTHIL KUMAR, AGED 32 YEARS S/O.RAMASWAMY, HOUSE NO.V/6,MGR NAGAR,, CHETTIPPALAYAM, COIMBATORE, D.L.NO.463/TN 37/00, (DRIVER OF THE KL 8/E 4887 NO.LORRY)** - **3 THE NATIONAL INSURANCE CO.LTD. REGD. OFFICE III,MIDDLETEN STREET, P.B.NO.9229,, KOLKATTA,WEST BENGAL, POLICY NO.650201/31/04/, 6703682, VALID FROM 11.10.2004 TO 10.10.2005, (INSURER OF THE KL 8/E 4887 NO LORRY)** **R1 BY ADV. SRI.E.M.JOSEPH** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 16-03-2021, ALONG WITH MACA.2183/2009, THE COURT ON 18-032021 DELIVERED THE FOLLOWING:** **MACA.Nos.1073 & 2183 OF 2009** 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE C.S.DIAS** **THURSDAY, THE 18TH DAY OF MARCH 2021 / 27TH PHALGUNA, 1942** ## **MACA.No.2183 OF 2009** **AGAINST THE AWARD IN OP(MV) NO. 643/2005 DATED 09-09-2008 OF MOTOR ACCIDENT CLAIMS TRIBUNAL VADAKARA** ## **APPELLANT/3RD RESPONDENT:** **NATIONAL INSURANCE CO. LTD. KOLKATTA, REP.BY THE MANAGER,, REGIONAL OFFICE, M.G.ROAD, COCHIN-35. BY ADV. SRI.E.M.JOSEPH** ## **RESPONDENTS:** |**1**|**BEEVI, AGED 37 YEARS, W/O.KUNHI MOIDY,**| |---|---| ||**UNNICHIRAKANDY HOUSE, NOCHAD AMSOM,,**| ||**CHENOLI DESOM, POST CHENOLI,,**| ||**KOYILANDY TALUK, PIN-673525.**| |**2**|**THAJUNNISA, AGED 19 YEARS**| ||**D/O.KUNHI MOIDY, UNNICHIRAKANDY HOUSE,,**| ||**NOCHAD AMSOM, CHENOLI DESOM,**| ||**POST CHENOLI,, KOYILANDY TALUK, PIN-673525.**| |**3**|**THASNEEM, AGED 14 YEARS**| ||**S/O.KUNHI MOIDY, REP.BY MOTHER BEEVI,,**| ||**UNNICHIRAKANDY HOUSE, NOCHAD AMSOM,,**| ||**CHENOLI DESOM, POST CHENOLI,,**| ||**KOYILANDY TALUK, PIN-673525.**| |**4**|**KUNHOKKAR AGED 83 S/O.AMMED**| ||**UNNICHIRAKANDY HOUSE, NOCHAD AMSOM,,**| ||**CHENOLI DESOM, POST CHENOLI,,**| ||**KOYILANDY TALUK, PIN-673525.**| |**5**|**AMINA, AGED 68 YEARS, W/O.KUNHOKKAR**| **MACA.Nos.1073 & 2183 OF 2009** 4 **UNNICHIRAKANDY HOUSE, NOCHAD AMSOM,, CHENOLI DESOM, POST CHENOLI,, KOYILANDY TALUK, PIN-673525.** **6 V.SUNDAR RAJ MANAGING PARTNER SUNDARA RAJ SAW MILL & INDUSTRIES,, NETHAJI ROAD, THRISSUR-1. 7 SENTHIL KUMAR, AGED 28, S/O.RAMASWAMY, HOUSE NO.V/6,, M.G.R.NAGAR, CHETTIPPALAYAM,, COIMBATORE. R1-5 BY ADVS. SRI.K.R.AVINASH (KUNNATH) SRI.U.P.BALAKRISHNAN R6 BY ADV. SRI.MILLU DANDAPANI** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 16-03-2021, ALONG WITH MACA.1073/2009, THE COURT ON 18-032021 DELIVERED THE FOLLOWING:** **MACA.Nos.1073 & 2183 OF 2009** 5 ## **C.S.DIAS,J** - - - - - - - - - - - - - - - - - - - - - - - - MACA Nos.1073 & 2183 of 2009 - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 18[th] day of March, 2021 ## **COMMON JUDGMENT** As these appeals arise out of the common award between the same parties in OP(MV)No.643 of 2005 on the file of the Motor Accident Claims Tribunal, Vatakara, they are being disposed of by this common judgment. The parties are, for the sake of convenience, referred to as per their status in the claim petition. 2. The case of the petitioners in brief in the claim petition is that : on 15.02.2005 when one Kunhimoidy (deceased), the husband of the 1[st] petitioner and the father of the petitioners 2 and 3 and son of petitioners 4 and 5, was riding a motorcycle bearing registration No. KL 18 A 5773, a Lorry bearing registration No.KL/08 E 4887 (offending vehicle) driven by the 2[nd] respondent in a rash and negligent manner, hit the motorcycle driven **MACA.Nos.1073 & 2183 OF 2009** 6 by the deceased. The deceased was taken to Deeja Hospital, Perambra and later to the Malabar Institute of Medical Science, Kozhikode, but he succumbed to the injuries. The accident occurred solely due to the negligence on the part of the 2[nd] respondent. The 1[st] respondent is the owner and the 3[rd] respondent is the insurer of the offending vehicle. The deceased was working as a Pharmacist in Saudi Arabia. After he returned to India, he started his own pharmaceutical shop at Perambra named 'Thaj Medical' and he was getting a monthly income of Rs. 25,000/-. The petitioners, who are the dependants of the deceased are entitled to a compensation of Rs.10,00,000/-. 3. The respondents 1 and 2 did not contest the proceedings and were set ex-party. 4. The 3[rd] respondent – insurance company – filed a written statement, _inter alia_ , contending that the offending vehicle was insured by the 3[rd] respondent. **MACA.Nos.1073 & 2183 OF 2009** 7 However, the 2[nd] respondent did not have the vehicular documents or a valid driving license. The accident occurred solely due to the negligence of the decease. The amount claimed in the claim petition was exorbitant and excessive. The claim petition be dismissed. 5. The 1[st] petitioner was examined as PW1 and Exts.A1 to A18 were marked through her. The 3[rd] respondent marked Ext.D1 in evidence. 6. The Tribunal, after analysing the pleadings and materials on record, by the impugned award allowed the claim petition, in part, by holding that the petitioners were entitled to get a total compensation of Rs.6,32,000/- with interest at the rate of 6% per annum from the date of petition till the date of realisation and Rs.16,000/- as costs. The 3[rd] respondent was directed to pay the compensation amount. 7. Dissatisfied with the quantum of compensation **MACA.Nos.1073 & 2183 OF 2009** 8 awarded by the Tribunal the petitioners have filed MACA No.1073 of 2009 and aggrieved by the impugned award, the 3[rd] respondent has filed MACA No.2183 of 2009. 8. Heard the learned counsel appearing for the appellants/claimants and the learned counsel appearing for the 3[rd] respondent – insurance company. 9. The question that emerges for consideration in these appeals is whether the quantum of compensation awarded by the Tribunal reasonable and just? 10. A Constitution Bench of the Hon'ble Supreme Court in **National Insurance Ltd. v. Company Pranay Sethi** [(2017) 16 SCC 680], has held that Section 168 of the Motor Vehicles Act, 1988, deals with the concept of 'just compensation' and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptable legal standards. The conception of 'just compensation' has to **MACA.Nos.1073 & 2183 OF 2009** 9 be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. 11. Ext.A2 charge-sheet substantiates that the accident occurred due to the rash and negligent driving of the offending vehicle by the 2[nd] respondent. Ext.P3 postmortem report proves that the deceased died in the accident on 15.02.2005. 12. The principal area of dispute in these appeals is whether the notional income fixed by the Tribunal at Rs.5,000/- is correct or not? 13. The petitioners had claimed that the deceased was a Pharmacist by profession. To prove this aspect they produced Ext.A6 Pharmacy Diploma Course Certificate, Ext.A7 identity card issued by the Kerala State Pharmacy Council and Ext.A9 license issued by the Perambra Grama Panchayath. Eventhough, they produced Ext.A11 salary certificate, the same was not accepted by the Tribunal as it was an unsigned **MACA.Nos.1073 & 2183 OF 2009** 10 document. The petitioners also produced documents to prove that the deceased was a subscriber of chitties. The fact remains that eventhough the petitioners claimed that the deceased had an income of Rs.25,000/per month, it is undisputed that the deceased was not an income tax assessee. More over, they did not produce the audited balance sheet or accounts to prove that the deceased was getting an income of Rs,25,000/as alleged in the claim petition. Therefore, we would have to proceed with the case on the basis of the notional income of the deceased. 14. The Hon'ble Supreme Court in **Minu Rout and Others v. Satya Pradyumna Mohapatra and Others.** (2013 ACJ 2544) has fixed the notional income of a driver for an accident that took place in the year 2004 at the rate of Rs.6,000/- per month. In _**Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited**_ [ _(2011) 13_ **MACA.Nos.1073 & 2183 OF 2009** 11 _SCC 236_ ] and **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** has fixed the notional income of a coolie worker in the year 2004, at Rs.4,500/- per month and that of a vegetable vendor in the year 2008, at Rs.6,500/- per month. ## **Notional Income** 15. Following the parameters laid down by the Hon'ble Supreme Court in the afore-cited decisions and taking into consideration that the deceased was a Pharmacist by profession, and that the accident was occurred in the year 2005, I am of the considered opinion that the petitioner's notional income can safely be fixed at Rs.7,000/- per month. Hence, I fix the deceased's notional income at Rs.7,500/- per month. ## **Multiplier** 16. In view of the re-fixation of the notional income of the petitioners, the consequential **MACA.Nos.1073 & 2183 OF 2009** 12 compensation to be awarded has to necessarily be enhanced. In **Sarala Verma v Delhi Transport Corporation** reported in 2010(2) KLT 802 (SC) and **Pranav Sethi** (supra) the Hon'ble Supreme Court has held that the future prospects has also to be awarded to the dependants of the deceased under the head 'loss of dependency'. As the deceased was aged 41 at the time of accident, the relevant multiplier is '14' and, therefore, 25% has to be taken as future prospects. In the light of the fact that the deceased had five dependants, 1/4[th] of the total compensation payable under the head 'loss of dependency' and 'future prospects' has to be deducted towards the personal living expenses of the deceased. In the said circumstances, I re-fix the compensation for loss of dependency with the future prospects at Rs.11,02,0500/- instead of Rs.6,00,000/- 17. In **Pranav Sethi** (supra), the Hon'ble Supreme **MACA.Nos.1073 & 2183 OF 2009** 13 Court has held that in Clause No.8 of paragraph 61 that the dependants of the deceased are entitled for compensation under the conventional heads namely loss of estate, loss consortium and funeral expenses at Rs.15,000/-, 40,000/- and 15,000/- respectively. Thus, I hold that the petitioners are entitled to compensation under the heads loss of estate at Rs.15,000/-, funeral expenses at Rs.15,000/-, loss of consortium at Rs.40,000/- each i.e, Rs.40,000/- towards the spousal consortium of the 1[st] petitioner, Rs.80,000/- toward the parental consortium to the petitioners 2 and 3 and Rs.80,000/- towards filial consortium to the petitioners 4 and 5. 18. With respect to the amount of compensation awarded by the Tribunal under the head transport, I find the same to be reasonable and just. 19. On an overall re-appreciation of the pleadings, materials on record and the law laid down by the **MACA.Nos.1073 & 2183 OF 2009** 14 Hon'ble Supreme Court in the afore-cited decisions, I am of the firm opinion that the petitioners are entitled for enhancement of compensation as modified and recalculated above and given in the table below for easy reference. |Sl.<br>No|Heads of claim|Amount awarded by<br>the Tribunal (in<br>rupees)|Amounts modified<br>and recalculated<br>by this Court| |---|---|---|---| |1|Transport|1,000/-|1,000/-| |2|Funeral expenses|2,000/-|15,000/-| |3|Pain and suffering|nil|10,000/-| |4|Loss of estate|0|15,000/-| |5|Loss of consortium|5,000/-|2,00,000/-| |6|Loss of dependency|6,00,000/-|11,02,500/-| |7|Love and affection|25,000/-|nil| |||6,33,000|13,43,500/-| In the result, MACA No.1073 of 2009 and MACA No.2183 of 2009 are disposed of by enhancing the compensation compensation by a further amount of Rs.7,10,500/- (Rupees seven lakh ten thousand and five hundred only) with interest at the rate of 6% per annum from the date of petition till the date of realisation with **MACA.Nos.1073 & 2183 OF 2009** 15 proportionate costs. The third respondent/insurance company shall deposit the additional compensation before the Tribunal with proportionate interest and costs within a period of two months from the date of receipt of a certified copy of the judgment, after deducting the liability of the appellants towards balance court-fee, if any. The disbursement of the additional compensation to the petitioners shall be done in the proportion and as per the conditions laid down in the impugned award and in accordance with law. **Sd/-** **C.S.DIAS,JUDGE** dlK 19.03.2021