High Court of KeralaSingle JudgeThe appeal is allowed, in part, by enhancing co...

Johnson George, Annamma Johnson and LinU G. Johnson v. Gireeshan, ShyLaja Sugathan and National Insurance Company Limited

Case / Petition Number:MACA No.845 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2022-02-21
Court Decision / Holding
The appeal is allowed, in part. The High Court enhanced the compensation to Rs.10,30,700 (from Rs.3,74,500) after recalculating notional income, multiplier, future prospects, and deductions, and held Rs.6,56,200 as further enhancement with interest at 6% per annum and costs. The third respondent/insurer is ordered to deposit the enhanced amount within 60 days, with disbursement to appellants in the ratio 40:40:20. Loss of love and affection was disallowed; pain and suffering was set aside; loss of consortium and funeral expenses/loss of estate were recalibrated to Rs.88,000 and Rs.16,500 respectively; the Tribunal’s other heads were found reasonable. The overall direction is to distribute the enhanced compensation accordingly.
Final Disposition
The appeal is allowed, in part, by enhancing compensation and directing deposit and disbursement of the enhanced amount; certain heads of compensation were modified or disallowed in line with Supreme Court precedents.

Parties to the Case

Appellants / Petitioners

  • Johnson George
  • Annamma Johnson
  • Linu G. Johnson

Respondents

  • Gireeshan (Driver)
  • Shylaja Sugathan
  • National Insurance Company Limited (Divisional Office, Kottayam)

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Philip T. Varghese
  • • Smt. Achu Subha Abraham
  • • Sri Thomas T. Varghese

Counsels for Respondents

  • • Smt. Sarah Salvy

Case Synopsis & Summary

The appellants, who are the dependants of Leejo G. Johnson (deceased), filed a claim under Section 166 of the Motor Vehicles Act, 1988, for compensation following a fatal accident on 22 August 2007 on the Kaviyoor-Changanassery road when a lorry, insured with the third respondent and owned by the second respondent, allegedly collided with the deceased’s motorcycle KL-29/1399. The Motor Accidents Claims Tribunal, Kottayam, granted Rs. 3,74,500 in compensation. The appellants challenged the quantum, contending higher entitlement based on well‑established Supreme Court guidelines for notional income, multiplier, future prospects, and conventional heads. The High Court re‑evaluated material evidence, holding the deceased’s notional monthly income at Rs.6,000 (rejecting abroad employment proof) and applying a multiplier of 18 (Sarla Verma). Future prospects were fixed at 40% with 50% deduction for personal living expenses (Pranay Sethi). Conventional heads were reconsidered: funeral expenses Rs.16,500, loss of estate Rs.16,500, loss of consortium Rs.44,000 each; loss of love and affection and pain and suffering were partially disallowed per New India Assurance v. Somwati and Satinder Kaur. The result was an enhanced total of Rs.10,30,700, with a further allowed enhancement of Rs.6,56,200 at 6% interest, to be deposited within 60 days and disbursed to the appellants in the ratio 40:40:20. The appeal is allowed in part.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants submitted that the Tribunal under-compensated the dependants. They argued for higher notional income (Rs.6,000 monthly based on evidence), 18 as the correct multiplier (per Sarla Verma), 40% future prospects, and appropriate deduction for living expenses (50%). They urged enhancement under conventional heads and application of 10% escalation on heads as per newer Supreme Court rulings; they contended that the Tribunal erred in reducing damages for love and affection and pain and suffering and challenged the treatment of loss of consortium.

Contentions of Respondents

The respondents argued that the accident stemmed from the negligence of the deceased’s own actions, the lorry and insurer liability being straightforward, and that the insurer should indemnify the owner's liability. They contested the deceased’s age, income and occupation and maintained that the insurer bears primary liability; they argued against higher compensation based on the evidence presented.

Cited Precedents (8)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveCited for notional income baseline; court adopts Ramachandrappa's yardstick but fixes Rs.6,000 after documentary review.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveUsed to apply multiplier 18.
Pranay Sethi v. Union of India(2017) 16 SCC 680PositiveUsed for future prospects (40%) and personal living expense deduction; fundamental to calculation.
New India Assurance Co. v. Somwati(2020) 9 SCC 644PositiveGuides duplication rule; prevents double compensation for loss of love and affection.
United India Insurance Co. Ltd v. Satinder Kaur(2020) SCC Online 410PositiveSupports removal of pain and suffering in instantaneous death.
N.Jayasree v. Cholamandalam M.S. General Insurance Co Ltd.(2021) SCC Online SC 967PositiveSupports 10% escalation on conventional heads every three years in light of Pranay Sethi.
Rasmita Biswal and others v. Divisional Manager, National Insurance Co., Ltd. and another(2021) SCC Online SC 1193PositiveAffirms 10% escalation approach per newer SC decisions.
Sarla Verma v. Delhi Transport Corporation (repeated for emphasis)(2009) 6 SCC 121PositiveReiterates the multiplier and dependency framework.

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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 C.S.DIAS** **MONDAY, THE 21[ST] DAY OF FEBRUARY 2022 / 2ND PHALGUNA, 1943** **MACA NO. 845 OF 2012** **AGAINST THE ORDER/JUDGMENT IN OPMV 2012/2007 OF MOTOR ACCIDENT** **CLAIMS TRIBUNAL ,KOTTAYAM** ## **APPELLANT/S:** - 1 JOHNSON GEROGE,S/O. MATHEW GEORGE, ALINITE, PADEETATHIL HOUSE, PALLARIMANGALAM.P.O, MAVELIKKARA, NOW RESIDING AT EDAPALLIMANNIL HOUSE, CHANGANASSERY.P.O, VAZHAPPALLY EAST VILLAGE, KOTTAYAM. - 2 ANNAMMA JOHN,,W/O. JOHNSON GEORGE, ALINITE, PADEETATHIL HOUSE, PALLARIMANGALAM.P.O, MAVELIKKARA, NOW RESIDING AT EDAPALLIMANNIL HOUSE, CHANGANASSERY.P.O, VAZHAPPALLY EAST VILLAGE, KOTTAYAM. - 3 LINU G. JOHNSON,D/O. JOHNSON GEORGE, ALINITE, PADEETATHIL HOUSE, PALLARIMANGALAM.P.O, MAVELIKKARA, NOW RESIDING AT EDAPALLIMANNIL HOUSE, CHANGANASSERY.P.O, VAZHAPPALLY EAST VILLAGE, KOTTAYAM. (REPRESENTED BY HER FATHER AND NEXT FRIEND AND GUARDIAN, JOHNSON GEORGE, ALINITE, PADEETATHIL HOUSE, PALLARIMANGALAM.P.O, MAVELIKKARA, NOW RESIDING AT EDAPALLIMANNIL HOUSE, CHANGANASSERY.P.O, VAZHAPPALLY EAST VILLAGE, KOTTAYAM. BY ADVS. SRI.PHILIP T.VARGHESE SMT.ACHU SUBHA ABRAHAM SRI.THOMAS T.VARGHESE ## **RESPONDENT/S:** - 1 GIREESHAN,S/O. LAKSHMANAN, KUNNUKATTU PUTHUPARAMBU HOUSE, POTTASSERY BHAGOM, THRIKKODITHANAM.P.O, THRIKODITHANAM VILLAGE, CHANGANASSERY- 686 105. - 2 SHYLAJA SUGATHAN,W/O. SUGHATHAN, PATTATHIL HOUSE, FATHIMAPURAM.P.O, CHANGANASSERY 686 101. - 3 NATIONAL INSURANCE COMPANY LIMITED DIVISIONAL OFFICE, KOTTAYAM - 686 001. BY ADV SMT.SARAH SALVY -R3 ## **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION** **ON 21.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 MACA No.845 of 2012 ## **C.S.DIAS, J.** ## **====================== MACA No.845 of 2012** ## **====================== Dated this the 21[st] day of February, 2022.** ## **JUDGMENT** The appellants were the petitioners in OP (MV) No.2012/2007 on the file of the Motor Accidents Claims Tribunal, Kottayam. The respondents in the appeal were the respondents before the Tribunal. 2. The appellants had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the death of Sri.Leejo G.Johnson (deceased) - the son of the appellants 1 and 2 and the brother of the third appellant. It was their case that, on 22.8.2007, while the deceased was riding his motorcycle bearing registration No.KL-29/1399 along the Kaviyoor-Changanassery road, a lorry bearing registration 3 MACA No.845 of 2012 No.KL-06/4365, driven by the first respondent in a rash and negligent manner, hit the motorcycle of the deceased. The deceased fell down and sustained fatal injures. He lost his life on the same day at the Pushpagiri Medical College Hospital, Thiruvalla. The lorry was owned by the second respondent and insured with the third respondent. The deceased was a part-time Accountant in the Gulf Bank, UAE and was earning a monthly income of Rs.10,000/-. The appellants were the dependents of the deceased. Hence, they claimed a compensation of Rs.42,73,000/from the respondents, which claim was limited to Rs.15,00,000/-. 3 The respondents 1 and 2 had filed a joint writtenstatement contending that the accident occurred due to the negligence of the deceased. They denied the allegation that there was negligence on the part of the first 4 MACA No.845 of 2012 respondent. The respondents 1 and 2 also disputed the age, income and occupation of the deceased. However, they contended that as the lorry was validly insured, it was the third respondent who was to indemnify the liability of the second respondent arising out of the accident. 4. The third respondent/insurer had filed a written statement reiterating the very same assertions as of the respondents 1 and 2. The third respondent also disputed the age, income and occupation of the deceased. 5. The appellants had produced and marked Exts A1 to A17 in evidence. The third respondent produced inquest report of the deceased, which was marked as Ext B1. 6. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition, in part, by permitting the appellants to realise from the third 5 ## MACA No.845 of 2012 respondent an amount of Rs.3,74,500/- with interest and cost. 7. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioners are in appeal. 8. Heard; Sri.Philip T.Varghese, the learned counsel appearing for the appellants/petitioners and Smt.Sarah Salvy, the learned counsel appearing for the third respondent/insurer . 9. The point that arises for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Negligence and liability** 10. Ext A8 charge-sheet laid by the Changanassery Police in crime No.507/2007 proves that the accident occurred due to the negligence of the first respondent. Indisputably, the second respondent was the owner and 6 MACA No.845 of 2012 the third respondent was the insurer of the lorry. The respondents have not let in any evidence to discredit Ext A8 charge-sheet. The third respondent has also not proved that the second respondent had violated the insurance policy conditions. Therefore, the third respondent is to indemnify the liability of the second respondent arising out of the accident. ## **Notional Income** 11. The appellants had averred in the claim petition that the deceased was a part-time Accountant in the Gulf Bank, UAE and was drawing a monthly income of Rs.10,000/-. For the want of materials, the Tribunal fixed the notional monthly income of the deceased at Rs.4,000/-. 12. On a re-appreciation of the materials on record, I do not find any evidence to hold that the appellant was 7 MACA No.845 of 2012 employed abroad other than for Ext A12 call letter. On an appreciation of Ext A12, it is seen that it is only a call letter that was issued to the deceased to join DHL Express with effect from 5.7.2006. However, there is nothing to show that he had joined the above said Company till 22.8.2007, the date of accident. Thus, the monthly income of the deceased is only to be treated as per the Indian standards. 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 yardstick in the aforecited decision and considering the fact that the accident occurred in the year 2007, I refix the notional monthly income of the 8 MACA No.845 of 2012 deceased at Rs.6,000/-. ## **Multiplier** 15. Admittedly, the deceased was aged 20 years at the time of the accident/death. In the light of the law laid down in **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** , the relevant multiplier to be adopted is '18'. ## **Personal living expenses of the deceased** 16. Admittedly, the deceased was a bachelor. In the light of the law laid down 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. ## **Future prospects** 17. In the light of the law laid down in **Sarla Verma** 9 MACA No.845 of 2012 and **Pranay Sethi** (supra), and considering the fact that the deceased was aged 20 years at the time of his death, I hold that the appellants are entitled to future prospects @ 40%. ## **Loss of dependency** 18. Taking into account the above mentioned factors, i.e., the monthly income of the deceased at Rs.6,000/-, the multiplier at 18, future prospects at 40% and after deducting one-half of the compensation towards the personal living expenses of the deceased, I refix the compensation for loss of dependency of the appellants at Rs.9,07,200/-, instead of Rs.3,36,000/- awarded by the Tribunal. ## **Conventional/Traditional heads of compensation** 19. In paragraph 59.8 of **Pranay Sethi (supra)** it is held that the dependents of the deceased are entitled for 10 MACA No.845 of 2012 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/- per dependent, respectively. It is further held that the above amounts have to be enhanced by 10% every three years. 20. In **N.Jayasree vs. Cholamandalam M.S, General Insurance Co Ltd. [2021 SCC Online SC 967]** and **Rasmita Biswal and others vs. The Divisional Manager, National Insurance Co., Ltd and another [2021 SCC Online SC 1193]** , the Hon'ble Supreme Court, for the accidents that happened in the years 2011 and 2013, respectively, has granted 10% escalation on the conventional heads, irrespective of the dates of the accident. Thus, it is to be construed and inferred that the 10 % escalation is to be granted every three years from the date of pronouncement of the judgment in **Pranay Sethi** 11 ## MACA No.845 of 2012 (supra), which was rendered on 31.10.2017, and not for accidents that occur every three years after 31.10.2017. Thus, the dependents of the deceased are, after 31.10.2020, entitled to amounts of Rs.16,500/- each under the heads 'funeral expenses' and 'loss of estate', and Rs.44,000/- under the head 'loss of consortium'. 21. In the instant case, the Tribunal has awarded an amount of Rs.6,000/- under the head ‘funeral expenses’. Thus, I award the appellants a further amount of Rs.10,500/- under the head 'funeral expenses'. Likewise, I award the appellants an amount of Rs.16,500/- under the head 'loss of estate' and an amount of Rs.44,000/- each to the appellants 1 and 2 under the head ‘loss of consortium’.,i.e., a total amount of Rs.88,000/-. ## **Loss of love and affection** 22. The Tribunal has awarded an amount of 12 MACA No.845 of 2012 Rs.20,000/- under the head 'loss of love and affection'. 23. In **New India Assurance Co. v. Somwati and others [(2020) 9 SCC 644]** the Honourable Supreme Court has held that once compensation is awarded under the head 'loss of consortium', no amount shall be awarded under the head 'loss of love and affection', as it would amount to duplication of compensation. Therefore, I set aside the amount of Rs.20,000/- awarded under the head 'loss of love and affection'. ## **Pain and sufferings** 24. The Tribunal has awarded an amount of Rs.10,000/- under the head ‘pain and sufferings’ to the appellants. 25. In paragraph 19 of **Sarla Varma** (supra), the Honourable Supreme Court has held that no amount shall be awarded to the dependents of the deceased under the 13 MACA No.845 of 2012 head 'pain and sufferings' in the case of instantaneous death. The said view has been reiterated in **United India Insurance Co. Ltd v. Satinder Kaur @ Satwinder Kaur** **and others- [ ((2020) SCC Online 410].** Hence, I set aside the amount of Rs.10,000/- awarded under the head 'pain and sufferings' as the deceased had died instantaneously. ## **Other heads of claim** 26. With respect to the other heads of claim, namely, transport to hospital and damage to clothing, I find that the Tribunal has awarded reasonable and just compensation. 27. On a comprehensive re-appreciation of the pleadings, materials on record and the law referred to in the afore-cited precedents, I hold that the appellants /petitioners are entitled for enhancement of compensation 14 MACA No.845 of 2012 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|Transport to hospital|2,000/-|2,000/-| |2|Damage to clothing|500/-|500/-| |3|Pain and sufferings|10,000/-|Nil| |4|Loss of consortium|Nil|88,000/-| |5|Loss of love and<br>affection|20,000/-|Nil| |6|Funeral expenses|6,000/-|16,500/-| |7|Loss of estate|Nil|16,500/-| |8|Loss of dependency|3,36,000/-|9,07,200/-| ||Total|3,74,500/-|10,30,700/-| In the result, the appeal is allowed, in part, by enhancing the compensation by a further amount of **Rs.6,56,200/-** with interest at the rate of 6% per annum from the date of petition till the date of realisation and 15 MACA No.845 of 2012 proportionate cost. The third respondent/insurer is ordered to deposit the enhanced compensation with interest and cost before the Tribunal within a period of sixty days from the date of receipt of a certified copy of the judgment. Immediately on the compensation amount being deposited, the Tribunal shall disburse the deposited amount to the appellants in the ratio of 40:40:20, and in accordance with law. ## Sd/- sks/21.2.2022 **C.S.DIAS, JUDGE**