High Court of KeralaSingle JudgeAppeal partly allowed; enhanced compensation aw...

Kallianikutty and others v. Mohammed Sali and others

Case / Petition Number:MACA No. 151 of 2013
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sophy Thomas J.
Judgment Date
2024-06-04
Court Decision / Holding
The appeal is allowed to the extent noted: the Tribunal's compensation is enhanced using the Pranay Sethi framework. The 3rd respondent-insurer is directed to deposit Rs. 1,35,000 with interest at 8% per annum from the date of petition till deposit, within two months. The Tribunal shall disburse the enhanced amount to appellants 1–4 in the ratio 70:10:10:10 after deducting liabilities. No costs are awarded. Enhanced compensation is Rs. 1,35,000 (Rs. 1,62,000 in the Tribunal’s table minus Rs. 27,000 already held).
Final Disposition
Appeal partly allowed; enhanced compensation awarded; insurer directed to deposit within two months; Tribunal to disburse 70:10:10:10; no costs.

Parties to the Case

Appellants / Petitioners

  • KALLIANIKUTTY
  • BINDU
  • REGHA
  • JAYESH

Respondents

  • MOHAMMED SALI
  • SHANAVAS
  • ORIENTAL INSURANCE COMPANY LTD

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.K.MOHANAKANNAN
  • • SMT.A.R.PRAVITHA

Counsels for Respondents

  • • A.R.GEORGE, SC, ORIENTAL INSURANCE COMPANY LTD.

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No. 151 of 2013) before the Kerala High Court arising from an award of the Motor Accidents Claims Tribunal, Manjeri, in MACT No. 28 of 2009, relating to the death of Sivaraman Nair in a road accident on 18 March 2008 caused by an autorickshaw driven rashly by the first respondent. The appellants, legal representatives of the deceased, challenged the award of Rs. 2,48,378 on grounds of inadequate compensation. The Tribunal held the accident occurred due to rash driving and held the 3rd respondent-insurer liable under the policy. The appellants argued that the deceased, aged 61, was a security guard with a monthly income of Rs. 3,000, and that the Tribunal erred in deducting personal expenses and selecting an inappropriate multiplier; they asserted all four dependents (wife and three children) should be considered dependents, requiring a higher calculation. They invoked the Supreme Court decision in Pranay Sethi (2017) to push for higher sums under heads like loss of consortium, loss of estate, and funeral expenses. The Respondents contended the Tribunal’s award was just. The High Court, applying Pranay Sethi and correcting the calculation, enhanced compensation by Rs. 1,35,000, directed the insurer to deposit with 8% interest, and ordered disbursement among appellants in the ratio 70:10:10:10, with no costs.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the MACT award under heads such as loss of dependency, loss of consortium, loss of love and affection, loss of estate, and funeral expenses was inadequately calculated. They argued that all four dependents (wife and three children) should be treated as dependents, necessitating a 1/4 deduction for personal expenses rather than 1/3, and that a multiplier of 7 was appropriate since the deceased was 61 years old. They claimed the loss of dependency would be Rs. 1,89,000 (after adjusting 1/4 deduction and applying 7 as multiplier to Rs. 2,250 monthly income). They relied on Pranay Sethi (2017) to seek higher sums for loss of consortium (Rs. 40,000 per claimant, total Rs. 1,60,000) and for loss of estate and funeral expenses (Rs. 15,000 and Rs. 15,000, respectively). They argued the Tribunal erred in not applying these principles, and that the enhanced compensation should be Rs. 1,35,000 in total after appropriate adjustments.

Contentions of Respondents

The 3rd respondent-insurer submitted that the compensation awarded by the Tribunal was just and reasonable and did not require modification. They contended that the Tribunal correctly assessed the quantum, including the dependency calculation, and that there was no basis to alter the multiplier or treat all four claimants as dependents. They relied on the evidence and policy terms, arguing that the existing award should stand and that INR limits of liability under the policy should not be exceeded by unnecessary enhancements.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi and Others[(2017) 16 SCC 680]PositiveThe court explicitly applies the Pranay Sethi framework from the cited decision to re-calculate heads of compensation (loss of consortium, loss of estate, funeral expenses), indicating endorsement of the ruling.

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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 MRS. JUSTICE SOPHY THOMAS TUESDAY, THE 4[ TH ] DAY OF JUNE 2024 / 14TH JYAISHTA, 1946`** ## **`MACA NO. 151 OF 2013`** ``` AGAINST THE AWARD DATED 21.07.2012 IN OPMV NO.28 OF 2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , MANJERI ``` ## **`APPELLANTS/PETITIONERS:`** - **`1 KALLIANIKUTTY, AGED 58 YEARS, W/O.SIVARAMAN NAIR, JAYESH NIVAS, ARAKKUPARAMBA P.O., PERINTHALMANNA TALUK, MALAPPURAM DISTRICT.`** - **`2 BINDU, 32 YEARS, D/O.SIVARAMAN NAIR, JAYESH NIVAS, ARAKKUPARAMBA P.O., PERINTHALMANNA TALUK, MALAPPURAM DISTRICT.`** - **`3 REGHA, 30 YEARS, D/O.SIVARAMAN NAIR, JAYESH NIVAS, ARAKKUPARAMBA P.O., PERINTHALMANNA TALUK, MALAPPURAM DISTRICT.`** - **`4 JAYESH, 28 YEARS, S/O.SIVARAMAN NAIR, JAYESH NIVAS, ARAKKUPARAMBA P.O., PERINTHALMANNA TALUK, MALAPPURAM DISTRICT.`** ``` BY ADVS. SRI.K.MOHANAKANNAN SMT.A.R.PRAVITHA ``` ## **`RESPONDENTS/RESPONDENTS:`** ## **`1 MOHAMMED SALI,`** - **`S/O.KOMU, ALAYAN HOUSE, KOTTOPADAM P.O., MANNARKKAD, PALAKKAD DISTRICT (DRIVER) - 679 534.`** MACA 151 of 2013 2 - **`2 SHANAVAS, S/O.KUNHALI HAJI, CHERUMALAYIL HOUSE, KOTTOPADAM P.O., MANNARKKAD, PALAKKAD DISTRICT (OWNER) - 679 534.`** - **`3 ORIENTAL INSURANCE COMPANY LTD, JASEELA COMPLEX, NILAMBUR ROAD, MANJERI P.O. - 676 121.`** ``` R3 BY ADV A.R.GEORGE, SC, ORIENTAL INSURANCE COMPANY LTD. ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 04.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` MACA 151 of 2013 3 ## **J U D G M E N T** The claimants in OP(MV) No.28 of 2009 on the file of Motor Accidents Claims Tribunal, Manjeri, filed this appeal impugning the award on the ground of inadequacy of compensation. 2. One Mr.Sivaraman Nair, who is the husband of the 1st appellant and father of appellants 2 to 4, died in a motor accident occurred on 18.03.2008. While he was walking through the side of the road at Angadippuram, he was knocked down by an autorickshaw bearing registration No. KL-9/R-9712, which was driven by the 1st respondent in a rash and negligent manner. He was rushed to Moulana Hospital, Perinthalmanna, but he succumbed to the injuries on the next day. His legal representatives approached the Tribunal claiming compensation of Rs.4,00,000/-. But the Tribunal awarded only Rs.2,48,378/-. Hence this appeal. 3. The 3rd respondent-Insurer entered appearance and contested the matter before the Tribunal. They admitted the accident and Policy of the offending vehicle. Learned Tribunal MACA 151 of 2013 4 found that the accident occurred due to the rash and negligent driving of the offending autorickshaw by the 1st respondent, which was owned by the 2nd respondent. Since there was valid Policy for that vehicle as on the date of the accident, the 3rd respondent-Insurer was found liable to indemnify the insured and thereby to compensate the claimants. 4. Now this Court is called upon to answer whether there is any illegality, irregularity or impropriety in the impugned award warranting interference by this Court. 5. Heard learned counsel for the appellants and learned counsel for the 3rd respondent-Insurer. 6. Learned counsel for the 3rd respondent would submit that the compensation awarded by the Tribunal is just and reasonable, and it needs no modification. But learned counsel for the appellants would submit that the compensation awarded is too meager and so it has to be enhanced. 7. According to the appellants, the deceased was a 61 year old Security Guard, earning monthly income of Rs.3,000/-. Learned Tribunal accepted his monthly income as MACA 151 of 2013 claimed by the appellants and assessed compensation for loss of dependency as Rs.2,16,000/- adopting multiplier of 9. But **⅓** was seen deducted towards personal expenses. The deceased was survived by his wife aged only 55 years and three children. The eldest daughter was only 30 years old. So, learned Tribunal ought to have found all the claimants as dependents of the deceased and so, only ¼ was liable to be deducted for the personal expenses of the deceased. So his monthly income could have been taken as Rs.2,250 [3,000-(3000x¼)]. The multiplier applicable was only 7 as the deceased was aged 61. So the compensation for loss of dependency could have been assessed as Rs.1,89,000/- (2,250x12x7). Since Rs.2,16,000/was awarded by the Tribunal under the head ‘loss of dependency’, there is an excess award of Rs.27,000/-, which is liable to be deducted from the compensation amount awarded by the Tribunal under that head. 8. Under the head ‘loss of consortium’, learned Tribunal awarded only Rs.10,000/-, and under the head ‘loss of love and affection’ awarded Rs.10,000/-, totalling Rs.20,000/-. As MACA 151 of 2013 6 per the decision **National Insurance Company Ltd. v. Pranay Sethi and Others, [(2017) 16 SCC 680]** , the appellants were entitled to get Rs.40,000/- each under the head ‘loss of consortium’, which will come to Rs.1,60,000/- in total. After deducting Rs.20,000/- already awarded by the Tribunal, they are entitled to get the balance amount of Rs.1,40,000/-. 9. Under the head ‘loss of estate’, learned Tribunal awarded only Rs.5,000/-. Relying on **Pranay Sethi’s** case cited _supra_ , they were eligible to get Rs.15,000/- and so, they will get the balance Rs.10,000/- as enhancement under the head ‘loss of estate’. 10. Towards funeral expenses, only Rs.3,000/- was seen awarded by the Tribunal. Based on **Pranay Sethi’s** case cited _supra_ , they were eligible to get Rs.15,000/-. So, they will get the balance Rs.12,000/- under the head ‘funeral expenses’. 11. The compensation awarded under all other heads seems to be reasonable and it needs no modification. MACA 151 of 2013 7 |Head of claim|Amount<br>awarded by<br>the Tribunal|Amount<br>awarded in<br>appeal|Amounts<br>deducted in<br>appeal|Difference to<br>be drawn as<br>enhanced<br>compensation| |---|---|---|---|---| |Loss of<br>dependency|Rs.2,16,000/-|Rs.1,89,000/-|Rs.27,000/-|| |Loss of<br>consortium|Rs.10,000/-|Rs.1,60,000/-||Rs.1,40,000/-| |Loss of love and<br>affection|Rs.10,000/-|||| |Loss of estate|Rs.5,000/-|Rs.15,000/-||Rs.10,000/-| |Funeral<br>expenses|Rs.3,000/-|Rs.15,000/-||Rs.12,000/-| |Total|||Rs.27,000/-|Rs.1,62,000/-| |Enhanced compensation is Rs.**1,35,000/-**(1,62,000 - 27,000)||||| |||||| 12. In the result, the appellants are entitled to get enhanced compensation of Rs.1,35,000/-. 13. The 3rd respondent-Insurer is directed to deposit the enhanced compensation of Rs.1,35,000/- (Rupees One Lakh Thirty Five Thousand only) with interest @ 8% per annum, from the date of petition till the date of deposit, before the Motor Accidents Claims Tribunal, Manjeri, within a period of two months from the date of receipt of a copy of this judgment. MACA 151 of 2013 8 Learned Tribunal shall disburse that amount to appellants 1 to 4 in the ratio 70:10:10:10, after deducting their liabilities, if any, towards tax, balance court fee, legal benefit fund etc. The appeal is allowed to the extent as above, and no order is made as to costs. Sd/- **SOPHY THOMAS JUDGE** DSV/-