High Court of KeralaDivision BenchPartial allowed; enhanced compensation; interes...

Jolly Chandrababu & two minors (Jithin Babu & Jeevan Babu) v. T. Jayakumar, Joseph P.J. and United India Insurance Company

Case / Petition Number:MACA No.1506 of 2011-A

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • V. Chitambaresh
Judgment Date
2011-11-08
Court Decision / Holding
M.A.C.A is allowed in part; the appellants are entitled to a further Rs. 1,52,000 in addition to the Tribunal’s award. The entire compensation shall carry interest as per the impugned award, but no interest on the enhanced amount shall be payable for the 643-day delay in filing the appeal. Proportionate costs for the proceedings before the Tribunal on the total compensation shall be payable to the appellants (Jeena). All other Tribunal directions are upheld.
Final Disposition
Partial allowed; enhanced compensation; interest rules as stated; costs to be awarded as per Jeena; tribunal directions upheld.

Parties to the Case

Appellants / Petitioners

  • JOLLY CHANDRABABU, W/o LATE CHANDRABABU, Viswanatha Vilasom, Eramal loo r P.O., Ward-5, Ezhupunna Panchayat, Alappuzha
  • JITHIN BABU, S/O LATE CHANDRABABU, Aged 16 years
  • JEEVAN BABU, S/O LATE CHANDRABABU, Aged 7½ years

Respondents

  • T. Jayakumar, S/o. Thankappan, Nikarthil, Olavaypu, Poojakkal, Cherthala-688 526
  • Joseph P.J., S/o. Ouseph, Thekkeputhenpurayil, Vaikom, presently residing at Thekkeputhenpurayil, East of Water Tank, Ward No.1, Thrippoonithura Municipality, PIN-682 038
  • United India Insurance Company represented by its Divisional Manager, Mullakkal, Alappuzha-688 010

Legal Representation & Advocates

Counsels for Petitioners

  • • Nidhi Balachandran
  • • T. Jayakrishnan

Counsels for Respondents

  • • M.A. George (for R3)

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No.1506 of 2011-A) filed before the Kerala High Court by the widow, two minor children and the father of a deceased person who died from injuries sustained in a road accident on 24.03.2004. The Motor Accidents Claims Tribunal, Alappuzha, awarded Rs. 2,90,000 as compensation against a claimed Rs. 10 lakhs, with the insurer held liable to satisfy the award. The appellants challenge the quantum, arguing that the Tribunal unrealistically assessed the deceased’s monthly income at Rs. 2,000 despite his claimed role as a finance company manager and LIC agent, and that several heads of compensation (loss of love and affection, loss of consortium, pain and suffering, funeral expenses) were inadequately awarded. The High Court, while acknowledging the absence of definitive evidence, applied Sarla Verma’s principle of future income enhancement and determined a monthly income of Rs. 3,250 for the deceased for dependency calculations, applying an appropriate multiplier (as guided by Sarla Verma). Consequently, the Court enhanced the compensation by Rs. 1,52,000 in addition to the Tribunal’s award, after recomputing for heads such as loss of dependency, love-and-affection, consortium, pain and suffering and funeral expenses. The court upheld other Tribunal directions, allowed proportionate costs per Jeena, and directed that interest on the enhanced amount not accrue for the delay period in filing the appeal. The petition for delay was condoned subject to the same condition. The judgment was delivered by a Division Bench of Justices R. Basant and V. Chitambaresh on 08.11.2011.

Provisions of Law Cited

Second Schedule, Clause 6, Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Future income enhancement for dependency (Sarla Verma v. Delhi Transport Corporation)
  • Multiplier principle for assessing compensation (as per Sarla Verma)
  • Proportionate costs for proceedings (Jeena v. Satheesh Babu.K)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal unrealistically fixed the deceased’s monthly income at Rs. 2,000; since the deceased was a finance company manager and LIC agent, better proof (Ext. A11) should have informed the quantum. They urged applying the Second Schedule Clause 6 presumptions and the Sarla Verma principles to grant future income enhancement, which would yield a higher monthly income and a higher multiplier. They requested enhanced compensation across all heads, citing Lata Wadhwa and Laxmi Devi as guiding precedents. They pressed for proportional costs as per Jeena.

Contentions of Respondents

The respondents supported the Tribunal’s calculation, pointing to lack of reliable evidence of earnings and reliance on Ext. A11 being inadequate. They implicitly urged stability of the Tribunal’s award. The insurer’s liability remained the central point, with no substantial challenge to the Liability assignment. The respondents did not contest the need for future income projection beyond the Tribunal’s computation, but the emphasis was on maintaining the Tribunal’s award, pending any reason to adjust the heads of compensation.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Lata Wadhwa v. State of BiharAIR 2001 SC 3218Mentioned OnlyCited as a guiding precedent but not followed or distinguished in this decision.
Laxmi Devi & Ors. v. Mohammad Tabbar & Anr.2008 ACJ 1488Mentioned OnlyCited as potential guidance; not applied to alter the outcome.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveUsed to justify future income enhancement and multiplier selection.
Jeena v. Satheesh Babu.K(2011) 3 KLT 943PositiveUsed to support award of proportionate costs for the proceedings.

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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 R.BASANT & THE HONOURABLE MR. JUSTICE V.CHITAMBARESH TUESDAY, THE 8TH NOVEMBER 2011 / 17TH KARTHIKA 1933 MACA.No. 1506 of 2011(A) ----------------------OPMV.1209/2004 of MOTOR ACCIDENT CLAIMS TRIBUNAL, ALAPPUZHA .................... APPELLANTS : -------------- 1. JOLLY CHANDRABABU, W/O.LATE CHANDRABABU, VISWANATHA VILASOM, ERAMALLOOR P.O., WARD -5, EZHUPUNNA PANCHAYAT, ALAPPUZHA. 2. JITHIN BABU, S/O.LATE CHANDRABABU, AGED 16 YEARS OF DO. DO. 3. JEEVAN BABU, S/O.LATE CHANDRABABU, AGED 7 AND HALF YEARS OF DO. DO. (MINOR APPELLATS 2 & 3 ARE REPRESENTED BY THEIR MOTHER, THE 1ST PETITIONER. - BY ADV. SRI.NIDHI BALACHANDRAN SRI.T.JAYAKRISHNAN RESPONDENTS: - --------------- 1. T.JAYAKUMAR, S/O.THANKAPPAN, NIKARTHIL, OLAVAYPU P.O., POOCHAKKAL, CHERTHALA-688 526. 2. JOSEPH P.J., S/O.OUSEPH, THEKKEPUTHENPURAYIL, VAIKOM, PRESENTLY RESIDING AT THEKKEPUTHENPURAYIL, EAST OF WATER TANK WARD NO.1, THRIPPOONITHURA MUNICIPALITY, PIN-682 038. 3. UNITED INDIA INSURANCE COMPANY REPRESENTED BY ITS DIVISIONAL MANAGER, MULLAKKAL, ALAPPUZHA-688 010. ADV. SRI.M.A.GEORGE FOR R3 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 08/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **R.BASANT & V.CHITAMBARESH, JJ. *********************** M.A.C.A No.1506 of 2011-A** ## ********************************* Dated this the 8[th] day of November, 2011 ## **JUDGMENT** ## BASANT, J. Claimants are the appellants. They are the wife, 2 minor children and father of a deceased person, aged 38 years, who suffered injuries in a motor accident, which took place on 24.03.2004 and succumbed to the same on the same day. Against a total claim of Rs.10 lakhs, the Tribunal awarded an amount of Rs.2,90,000/- as compensation as per the details given in para.8 of the impugned award, which we extract below: |**_Sl.No._**|**_Head of claim_**|**_Amount awarded_**| |---|---|---| |1|Compensation for the pecuniary loss caused<br>to the petitioners due to the death of Chandra<br>Babu|Rs.2,56,000.00<br>(2000X12X2/3X16)| |2|Compensation for loss of love and affection|Rs. 12,000.00| |3|Compensation for loss of consortium to the<br>1stpetitioner|Rs. 12,000.00| |4|Compensation for pain and suffering|Rs. 5,000.00| |5|Ambulance charge|Rs. 2,000.00| |6|Funeral expenses|Rs. 3,000.00| ||Total|Rs.2,90,000.00| The insurance company was made entirely liable under the impugned award to satisfy the award. 2 **M.A.C.A No.1506 of 2011-A** 2. We have heard the learned counsel for the appellants and the learned counsel for the insurance company. Challenge is raised only against the quantum of compensation awarded by the Tribunal. 3. Called upon to explain and be specific, the learned counsel for the appellants first of all contends that the Tribunal was absolutely unrealistic in reckoning the monthly income of the deceased at Rs.2,000/-. The accident had taken place on 24.03.2004. It was claimed that the deceased was the manager of a finance company. He was having earnings as an L.I.C agent also, it was contended. A salary certificate was thrust into Court as Ext.A11. No satisfactory proof was offered. The Tribunal, by the impugned award, reckoned the monthly income of the deceased at Rs.2,000/-. 4. The learned counsel for the appellants submits that the Tribunal ought to have, even in the absence of any better evidence, come to reasonable conclusions about the quantum of monthly income. The Tribunal should have noted that his wife and two children were dependent on him to keep body and soul together. The presumption under clause 6 of the Second Schedule, which remains in force from 1994, should have been 3 **M.A.C.A No.1506 of 2011-A** taken note of. The precedents in **Lata Wadhwa V. State of Bihar** [AIR 2001 SC 3218] and **Laxmi Devi & Ors. V. Mohammad Tabbar & Anr.** [2008 ACJ 1488] must also have guided the Tribunal, contends the learned counsel for the appellants. 5. We take note of all the relevant circumstances. Even in the absence of better, more authentic, crisp and cogent evidence on the quantum of monthly income, the Tribunals cannot throw their hands up in helplessness. Reasonable inferences will have to be drawn taking into account the totality of inputs available. We take note of the dictum in **Sarla Verma v. Delhi Transport Corporation** [(2009) 6 SCC 121] which mandates that due provision must be made for future enhancement of income. Taking all the relevant circumstances into account, we are satisfied that an amount of Rs.3,250/- can be reckoned as the monthly income for the purpose of ascertainment of compensation for loss of dependency. The learned counsel for the insurance company alertly points out that going by the dictum in **Sarla** (supra) 16, and not 15 as reckoned by the Tribunal, should have been accepted as the multiplier. We agree. 4 **M.A.C.A No.1506 of 2011-A** 6. The learned counsel argues that the amount of compensation awarded under the heads loss of love and affection (12,000), loss of consortium (12,000), pain and suffering (5,000) and funeral expenses (3,000) are painfully low and inadequate. We find force in that submission. 7. The above discussions lead us to the conclusion that the appellants are entitled to a further amount of Rs.1,52,000/as shown below in addition to the amounts already awarded by the Tribunal under the impugned award. i) Compensation for pain and suffering : Rs.5,000.00 (10,000 minus 5,000) ii) Funeral expenses :Rs.2,000.00 (5,000 minus 3,000) iii) Compensation for loss of love and affection :Rs.3,000.00 (15,000 minus 12,000) iv) Loss of consortium :Rs.8,000.00 (20,000 minus 12,000) v) Loss of dependency :Rs.1,34,000.00 (3,250X12X15X2/3 = 3,90,000 minus 2,56,000) .......................... Total :Rs.1,52,000.00 ========== 5 **M.A.C.A No.1506 of 2011-A** 8. We are not persuaded to interfere with the amount awarded under any other head. The learned counsel for the appellants points out that proportionate cost has not been awarded as per the dictum in **Jeena V. Satheesh Babu.K** [2011 (3) KLT 943]. Only an amount of Rs.3,000/- has been awarded as cost. We agree that proportionate cost as held in **Jeena** (supra) is liable to be awarded. 9. In the result: a) This M.A.C.A is allowed in part; b) The appellants are found entitled to a further amount of Rs.1,52,000/- (Rupees One lakh fifty two thousand only) in addition to the amount already awarded by the Tribunal under the impugned award; c) We direct that the entire amount of compensation shall carry interest at the rate and for the period as specified in the impugned award. But we make it clear that no interest amount on the enhanced amount of compensation will be payable for the period of delay in filing this appeal, ie. 643 days; d) Proportionate cost for the proceedings before the 6 ## **M.A.C.A No.1506 of 2011-A** Tribunal on the entire amount of compensation shall be payable to the appellant as held in **Jeena** (supra); e) All other directions of the Tribunal are upheld. **(R.BASANT, JUDGE)** **(V.CHITAMBARESH, JUDGE)** rtr/ 7 **M.A.C.A No.1506 of 2011-A** ## **R.BASANT & V.CHITAMBARESH, JJ. *********************** C.M.Appl.No.2304 of 2011 in M.A.C.A No.1506 of 2011 ******************************* Dated this the 8[th] day of November, 2011 ## **ORDER** ## BASANT, J. This petition is to condone the delay of 643 days in filing the appeal. Heard. We take a lenient view. Petition allowed. Delay condoned on condition that if there be enhancement of compensation in this appeal, no interest on the enhanced amount shall be payable for the period of delay, ie. 643 days. **(R.BASANT, JUDGE)** **(V.CHITAMBARESH, JUDGE)** rtr/