High Court of KeralaSingle JudgeAppeal disposed of; enhanced compensation grant...

Lekshmi Amma w/o Late V. Krishnan Nair & ors. vs Pushpakumar s/o Damodaran & ors.

Case / Petition Number:MACA.No.1218 of 2014
Neutral Citation::null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • ANIL K.NARENDRAN
Judgment Date
2020-01-24
Court Decision / Holding
The appeal is disposed of as above. The enhanced compensation totals Rs.1,25,750 over the Tribunal’s award, with interest at 8% per annum from the petition date, payable within two months from receipt of a certified copy of this judgment (excluding the period of delay). The insurer must satisfy the enhanced amount within two months, after deducting recoveries, in terms of Circular No.3 of 2019 and Official Memorandum No.D1-62475/2016. The enhanced sums are to be disbursed to the appellants per the court’s directions, with no costs. This decision clarifies the application of Pranay Sethi and Magma in fixing conventional heads and confirms the prorated distribution among dependants.
Final Disposition
Appeal disposed of; enhanced compensation granted; insurer to pay; no costs.

Parties to the Case

Appellants / Petitioners

  • Lekshmi Amma w/o Late V.Krishnan Nair; Chandran Mohanan Nair; Raja Mohanan Nair; Radhamony w/o Unnikrishnan; Vikraman Nair M.K.; Vrindakumari; Krishnakumari w/o Anilkumar

Respondents

  • Pushpakumar s/o Damodaran
  • Sreedharan (deceased) s/o Kunju Panickan
  • The Branch Manager United India Insurance Co. Ltd.
  • V. Rajan
  • The Branch Manager National Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. George Varghese (Perumpallikuttiyil)
  • • Sri. A.R. Dileep
  • • Sri. Manu Sebastian

Counsels for Respondents

  • • Sri K. Ajayakumar
  • • Sri John Joseph Vettikkad (Standing Counsel)

Case Synopsis & Summary

This High Court of Kerala appeal concerns an award under Section 166 of the Motor Vehicles Act, 1988 (MACT) in respect of the death of Krishnan Nair in a motor-vehicle collision on 03.03.2000. The Motor Accidents Claims Tribunal, Pathanamthitta, awarded Rs.1,72,000 (together with 7.5% interest from 27.06.2000 and costs) to seven claimants, with the amount to be divided equally. The insurer admitted coverage but contested negligence and quantum. The appellants seek enhancement under heads including loss of dependency, loss of estate, love and affection, loss of consortium, funeral expenses, and pain and suffering; while the insurer opposes large upward revisions. The Court relies on Sarla Verma v. Delhi Transport Corp. (just compensation framework) and Pranay Sethi (standardised conventional heads and 10% escalation) to reassess quantum, noting the deceased was 68 at the date of death and determining a notional monthly income of Rs.2,500 with a multiplier of 5. Deduction for personal living expenses is fixed at 1/3 for the surviving dependants. The Court also applies Magma General Insurance and related decisions to restructure loss of consortium and filial/ parental heads for the children and parents of the deceased. Consequently, the court increases several heads: loss of estate Rs.15,000; funeral Rs.15,000; loss of consortium Rs.40,000; six grown children’ parental/filial consortium Rs.20,000 each (total Rs.95,000); and adjusts loss of love and affection. An additional amount of Rs.1,25,750 is awarded, with 8% interest, payable within two months, allocation of enhanced sums among appellants, and no costs. The judgment emphasizes avoiding windfall, ensuring fairness consistent with Pranay Sethi and Magma, and clarifies that Article 142 directions do not bind as law. No costs.

Provisions of Law Cited

Motor Vehicles Act, 1988 – Section 166Motor Vehicles Act, 1988 – Section 168Constitution of India – Article 142

Legal Doctrines & Maxims

  • Just compensation (Sarla Verma)
  • Multiplier method for dependency (Sarla Verma; Trilok Chandra; Charlie)
  • Deduction for personal and living expenses (Sarla Verma)
  • Consortium rights – spousal/ parental/ filial (Magma General Insurance)
  • Pranay Sethi framework for conventional heads and escalation
  • Non-duplication of compensation under heads
  • Article 142 directions vs ratio decidendi (ABS Marine; Masih)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal’s award under several heads is inadequate. Relying on Sarla Verma and Pranay Sethi, they insist that ‘just compensation’ must be fair and non-windfall, calculated by notional income, proper deduction for living expenses, and standardized conventional heads. They seek enhancement under heads including loss of dependency, loss of love and affection, loss of consortium, loss of estate, funeral expenses, and pain and suffering, with standardised figures per the Constitution Bench decisions and expanding parental/filial consortium for the children. They emphasize consistency and avoidance of windfall while ensuring family stability.

Contentions of Respondents

The respondents contend the Tribunal’s quantum is reasonable and the insurer’s liability is limited to indemnification. They emphasize lack of documentary evidence for income, that the deceased’s age and economic context in 2000 justify notional income levels, and that enhancement could amount to windfall. They rely on established precedents to uphold the award and argue against large, disproportionate revisions in conventional heads.

Cited Precedents (13)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation[(2009) 6 SCC 121]PositiveUsed to frame ‘just compensation’ and multiplier-based computation for death in road accidents.
National Insurance Company Ltd. v. Pranay Sethi[(2017) 16 SCC 680]PositiveConstitution Bench decision standardising conventional heads and guidance on escalation.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.[(2011) 13 SCC 236]PositiveAffirms notional income for unorganised workers and evidentiary considerations.
Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd.[(2014) 2 SCC 735]PositiveNotional income for unorganised sector workers; supports inference without documents.
Rajesh v. Rajesh[(2013) 9 SCC 54]Partly Overruled / LimitedHead relating to loss of care and guidance for minor children revisited; later decisions limit this head.
Santosh Devi v. Mahaveer Singh[(2018) 9 SCC 146]PositiveStandardises conventional heads and escalation pattern per Pranay Sethi.
Sureshchandra Bagmal Doshi v. New India Assurance Co. Ltd.[(2018) 15 SCC 649]PositiveAffirms standardisation and application to parents in certain contexts.
Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram[(2018) 18 SCC 130]PositiveDefines ‘consortium’ (spousal/ parental/ filial) and guides quantum on conventional heads.
Indian Bank v. ABS Marine Products (P) Ltd.[(2006) 5 SCC 72]PositiveDistinguishes Article 142 directions from law and cautions on ratio decidendi.
State of Punjab v. Rafiq Masih[(2014) 8 SCC 883]PositiveAffirms Article 142 directions are not binding precedent and clarifies jurisprudence.
Kerala State Road Transport Corporation v. Susamma Thomas[(1994) 2 SCC 176]Mentioned OnlyReferenced in multiplier lineage but not central to the instant modification.
U.P. State Road Transport Corporation v. Trilok Chandra[(1996) 4 SCC 362]PositiveUsed in multiplier framework as part of statutory evolution.
New India Assurance Co. Ltd. v. Charlie[(2005) 10 SCC 720]PositivePart of the chain for multiplier and compensation norms.

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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 ANIL K.NARENDRAN** **FRIDAY, THE 24TH DAY OF JANUARY 2020 / 4TH MAGHA, 1941** **MACA.No.1218 OF 2014** **AGAINST THE AWARD IN OPMV 716/2000 DATED 02-12-2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, PATHANAMTHITTA** ## **APPELLANTS/PETITIONERS:** - **1 LEKSHMI AMMA W/O.LATE V.KRISHNAN NAIR, MAVOLLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM, PATHANAMTHITTA DISTRICT.** |**2**|**CHANDRA MOHANAN NAIR M.K.**| |---|---| ||**S/O.LATE V.KRISHNAN NAIR,**| ||**MAVOLLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM,**| ||**PATHANAMTHITTA DISTRICT.**| |**3**|**RAJA MOHANAN NAIR M.K.**| ||**S/O.LATE V.KRISHNAN NAIR,**| ||**MAVOLLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM,**| ||**PATHANAMTHITTA DISTRICT.**| - **4 RADHAMONY W/O.UNNIKRISHNAN, THADATHIL PUTHEN VEEDU, KOTTAVAKKAVU, MAVELIKKARA.** - **5 VIKRAMAN NAIR M.K. S/O.LATE V.KRISHNAN NAIR, MAVOLLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM, PATHANAMTHITTA DISTRICT.** |**6**|**VRINDAKUMARI**| |---|---| ||**W/O.LATE SREEDHARAN,**| ||**MAVOLLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM,**| ||**PATHANAMTHITTA DISTRICT.**| |**7**|**KRISNAKUMARI, W/O.ANILKUMAR,**| |---|---| ||**MAVOLIL PERUMPULICKAL HOUSE, MANNAM NAGAR, PANDALAM,**| ||**PATHANAMTHITTA DISTRICT.**| **BY ADVS. SRI.GEORGE VARGHESE(PERUMPALLIKUTTIYIL) SRI.A.R.DILEEP SRI.MANU SEBASTIAN** MACA No.1218 of 2014 2 ## **RESPONDENTS/RESPONDENTS:** - **1 PUSHPAKUMAR S/O.DAMODARAN, PUSHPA MANDIRAM, V.KOTTAYAM P.O., PATHANAMTHITTA-689 656.** - ***2 SREEDHARAN (DIED) S/O.KUNJU PANICKAN, THALUVELIL VEEDU, KURATHICADU, MAVELIKKARA, THEKKEKKARA VILLAGE, MAVELIKKARA - 690107** **IMPLEADING THE LEGAL REPRESENTATIVES OF DECEASED RESPONDENT NO.2 IS DISPENSED WITH VIDE ORDER DATED 19/3/2019 IN IA 2/2019** - **3 THE BRANCH MANAGER UNITED INDIA INSURANCE CO. LTD., KAYAMKULAM BRANCH, KAYAMKULAM - 690 502.** - **4 V.RAJAN, S/O.VARGHESE, NELLIVILAMURUPPEL VEEDU, PARANTHAL P.O., PANDALAM - 689 518.** - **5 THE BRANCH MANAGER NATIONAL INSURANCE CO. LTD., KOZHENCHERRY ROAD, PATHANAMTHITTA.** **R5 BY ADV. SRIS.K.AJAYAKUMAR R3 BY SRI JOHN JOSEPH VETTIKKAD- STANDING COUNSEL** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 24.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA No.1218 of 2014 3 ## **JUDGMENT** The appellants are the claimants in O.P.(MV)No.716 of 2000 on the file of the Motor Accidents Claims Tribunal, Pathanamthitta, a claim petition filed under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the death of one Krishnan Nair, husband of the 1[st] appellant and father of appellants 2 to 7, in a motor accident which occurred on 03.03.2000, while he was travelling in an autorickshaw bearing registration No.KL-3/C-5776 owned and driven by the 4[th] respondent and insured with the 5[th] respondent. At the place of accident, the autorikshaw was hit by a bus bearing registration No. KCF-4415, driven by the 1[st] respondent, owned by the 2[nd] respondent and insured with the 3[rd] respondent. In the accident, he sustained fatal injuries, who succumbed to the injuries on the date of accident itself. Alleging that the accident occurred due to the rash and negligent driving of the bus by the 1[st] respondent driver, claim petition was filed before the Tribunal, claiming a total compensation of Rs.5,00,000/- under various heads. 2. Before the Tribunal, the 3[rd] respondent insurer filed written statement admitting insurance coverage of the bus MACA No.1218 of 2014 4 involved in the accident; however, denying negligence alleged against the driver of that vehicle. The insurer contended that the accident occurred due to the rash and negligent driving of the autorikshaw by the 4[th] respondent. The insurer disputed the age, occupation, monthly income, etc. stated in the claim petition and it was contended that the compensation claimed is highly excessive. 3. Before the Tribunal, the claim petition was tried along with connected matters. Exts.A1 to A20 were marked on the side of the claimants. The respondents have not chosen to adduce any oral or documentary evidence. 4. After considering the pleadings and materials on record, the Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent driving of bus by the 1[st] respondent driver. Since insurance coverage of the said vehicle was not in dispute, the 3[rd] respondent insurer was held liable to indemnify the insured. Under various heads, the Tribunal awarded a total compensation of Rs.1,72,000/- together with interest at the rate 7.5% per annum from the date of petition, i.e., from 27.06.2000, till realisation, with a cost of Rs.4,500/- and directed the 3[rd] respondent insurer to satisfy the award. The amount of MACA No.1218 of 2014 5 compensation was ordered to be apportioned among the appellants equally. 5. Dissatisfied with the quantum of compensation awarded by the Tribunal under various heads, the appellants/ claimants are before this Court in this appeal. 6. Heard the learned counsel for the appellants/claimants and also the learned Standing Counsel for the 3[rd] respondent insurer. 7. The issue that arises for consideration in this appeal is as to whether the appellants are entitled for enhancement of the compensation awarded by the Tribunal under various heads. 8. In **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** the Apex Court laid down the principles governing determination of quantum of compensation in the case of death in a motor accident. The Apex Court held that, the compensation awarded does not become 'just compensation' merely because the Tribunal considers it to be just. Just compensation is adequate compensation which is fair and equitable, on the facts and circumstances of the case, to make good the loss suffered as a result of the wrong, as far as money can do so, by applying the well settled principles relating to award MACA No.1218 of 2014 6 of compensation. It is not intended to be a bonanza, largesse or source of profit. To have uniformity and consistency, Tribunals should determine compensation in cases of death, by following the well settled steps, namely, ascertaining the multiplicand (annual contribution to the family), the multiplier and calculation of loss of dependency by multiplying the multiplicand by such multiplier. 9. In **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** , a Constitution Bench of the Apex Court 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 standard because such determination can never be in arithmetical exactitude. It can never be perfect. The aim is to achieve an acceptable degree of proximity to arithmetical precision on the basis of materials brought on record in an individual case. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and non-violation of the principle of equitability. In a case of death, the legal heirs of the claimants cannot expect a windfall. Simultaneously, the compensation granted cannot be MACA No.1218 of 2014 7 an apology for compensation. It cannot be a pittance. Though the discretion vested in the Tribunal is quite wide, yet it is obligatory on the part of the Tribunal to be guided by the expression, i.e., just compensation. 10. In the instant case, the compensation awarded by the Tribunal under various heads reads thus; |unal|under various heads reads thus;|| |---|---|---| |1|Loss of dependency/loss of life|1,00,000| |2|Loss of estate/loss of expectancy of life|10,000| |3|Loss of love and affection to petitioners 2<br>to 7|25,000| |4|Loss of consortium to first petitioner|10,000| |5|Pain and sufferings endured by the<br>deceased|15,000| |6|Transportation expenses and damage to<br>clothing|2,000| |7|Funeral and allied expenses|10,000| ||TOTAL|**172,000**| 11. The accident occurred on 03.03.2000. At the time of accident, the deceased was aged 68 years (as per Ext.A9 postmortem report). It was claimed that, at the time of accident, the deceased was earning a monthly income of Rs.3,000/- as an agriculturist. None of the appellants have chosen to mount the box to prove the monthly income of the deceased. The Tribunal fixed the monthly income of the deceased notionally as Rs.2,500/-. ## 12. In **Ramachandrappa v. Manager, Royal Sundaram** MACA No.1218 of 2014 8 ## **Alliance Insurance Company Limited [(2011) 13 SCC 236]** the Apex Court reckoned the monthly income of a coolie (manual labourer), who met with a road accident in the year 2004, at the age of 35 years, notionally as Rs.4,500/-. The Apex Court held that, the claimant who was working as a coolie cannot be expected to produce any documentary evidence to substantiate his claim. In the absence of any other evidence contrary to the claim made by the claimant, in the facts of the said case, the Tribunal should have accepted the claim of the claimant. The Apex Court made it clear that, in all cases and in all circumstances, the Tribunal need not accept the claim of the claimant, in the absence of supporting material. It depends on the facts of each case. In a given case, if the claim made is so exorbitant or if the claim made is contrary to ground realities, the Tribunal may not accept the claim and may proceed to determine the possible income by resorting to some guess work, which may include the ground realities prevailing at the relevant point of time. 13. In **Syed Sadiq v. Divisional Manager, United India Insurance Co. Ltd. [(2014) 2 SCC 735]** , taking note of the earlier decision in **Ramachandrappa's case (supra)** , the Apex Court reckoned the monthly income of a vegetable vendor, who MACA No.1218 of 2014 9 met with a road accident in the year 2008, at the age of 24 years, notionally as Rs.6,500/-. In the said decision, the Apex Court held that, a labourer in an unorganised sector doing his own business cannot be expected to produce documents to prove his monthly income. Therefore, there was no reason for the Tribunal and the High Court to ask for evidence to prove his monthly income. Going by the state of economy prevailing at that time and the rising prices in agricultural products, the Apex Court accepted his case that a vegetable vendor is reasonably capable of earning 6,500/- per month. 14. In the absence of any reliable evidence, considering the economic conditions prevailing at the time of accident, i.e., during the year 2000, and taking note of the fixation of notional monthly income by the Apex Court in the decisions referred to supra, the monthly income of Rs.2,500/- fixed by the Tribunal in the impugned award, cannot be said to be on the lower side, which requires no enhancement in this appeal. 15. In **Sarla Verma [(2009) 6 SCC 121]** , the Apex Court, after referring to its earlier decisions in **Kerala State Road Transport Corporation v. Susamma Thomas [(1994) 2 SCC 176]** , **U.P. State Road Transport Corporation v. Trilok** MACA No.1218 of 2014 10 **Chandra [(1996) 4 SCC 362]** and **New India Assurance Co. Ltd. v. Charlie [(2005) 10 SCC 720]** held that the multiplier to be used should be as mentioned in column (4) of the Table in paragraph 40 of the said decision [prepared by applying **Susamma Thomas** , **Trilok Chandra** and **Charlie** ], which starts with an operative multiplier of **18** [for the age groups of 15 to 20 and 21 to 25 years], reduced by one unit for every five years, i.e., multiplier of **17** for 26 to 30 years, multiplier of **16** for 31 to 35 years, multiplier of **15** for 36 to 40 years, multiplier of **14** for 41 to 45 years, and multiplier of **13** for 46 to 50 years, then reduced by two units for every five years, i.e., multiplier of **11** for 51 to 55 years, multiplier of **9** for 56 to 60 years, multiplier of **7** for 61 to 65 years and multiplier of **5** for 66 to 70 years. 16. In **Pranay Sethi [(2017) 16 SCC 680]** the Constitution Bench of the Apex Court held that, as far as the multiplier is concerned, the Claims Tribunal and the Courts shall be guided by Step 2 that finds a place in paragraph 19 of **Sarla Verma** , read with paragraph 42 of the said judgment. 17. In the instant case, as on the date of accident, the deceased was aged 68 years. In the light of the decisions of the MACA No.1218 of 2014 11 Apex Court in **Sarla Verma's case** and **Pranay Sethi's case** referred to supra, the multiplier of **5** applied by the Tribunal is correct and proper. 18. In **Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121]** the Apex Court, on the question of deduction towards the personal and living expenses of the deceased held that, the personal and living expenses of the deceased should be deducted from his monthly income, to arrive at the contribution to the dependents. Where the deceased was **married** , the deduction towards personal and living expenses of the deceased should be **one-third** where the number of dependent family members is **2 to 3** ; **one-fourth** where the number of dependent family members is **4 to 6** ; and **one-fifth** where the number of dependent family members **exceeds 6** . In regard to **bachelors** , normally, **50%** is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father MACA No.1218 of 2014 12 is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependent. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father. Thus even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where family of the bachelor is **large and dependent on the income of the deceased** , as in a case where he has a widowed mother and large number of younger nonearning sisters or brothers, his personal and living expenses may be restricted to **one-third** and contribution to the family will be taken as **two-third** . 19. In **Reshma Kumari [(2013) 9 SCC 65]** a ThreeJudge Bench of the Apex Court reproduced paragraphs 30, 31 and 32 of **Sarla Verma** and approved the same, in paragraph 38 of the decision, by stating that, the standards fixed in **Sarla Verma** provide guidance for the appropriate deduction for personal and living expenses. One must bear in mind that the proportion of a MACA No.1218 of 2014 13 man's net earnings that he saves or spends exclusively for the maintenance of others does not form part of his living expenses but what he spends exclusively on himself does. The percentage of deduction on account of personal and living expenses may vary with reference to the number of dependent members in the family and the personal living expenses of the deceased need not exactly correspond to the number of dependants. Therefore, the standards fixed in **Sarla Verma** on the aspect of deduction for personal living expenses in paras 30, 31 and 32 must ordinarily be followed unless a case for departure in the circumstances noted in the preceding paragraph is made out. In paragraph 43.6 the Apex Court directed that, insofar as deduction for personal and living expenses is concerned, the Tribunals shall ordinarily follow the standards prescribed in paragraphs 30, 31 and 32 of the judgment in **Sarla Verma** , subject to the observations made in para 38 of **Reshma Kumari** . 20. In **Pranay Sethi [(2017) 16 SCC 680]** , the Constitution Bench of the Apex Court, after considering the analysis made in **Sarla Verma** , which was reconsidered in **Reshma Kumari** , approved the method provided therein by stating that, as far as the guidance provided for appropriate MACA No.1218 of 2014 14 deduction for personal and living expenses is concerned, the Tribunals and Courts should be guided by the conclusion in paragraph 43.6 of **Reshma Kumari** . 21. In the instant case, at the time of accident, the deceased was aged 68 years with a family consisting of 2 dependants. The wife and the youngest son of the deceased alone can be treated as his dependants. In the light of the decisions of the Apex Court in **Sarla Verma, Reshma Kumari** and **Pranay Sethi** referred to supra, deduction of 1/3[rd] of the notional monthly income of the deceased towards his personal and living expenses is perfectly legal. 22. Towards loss of dependency, the Tribunal awarded a sum of Rs.1,00,000/- (2,500 x 12 x 5 x 2/3). The compensation awarded by the Tribunal under this head represents just and reasonable compensation, which requires no enhancement in this appeal. 23. In the impugned award, towards funeral expenses, the Tribunal awarded a sum of Rs.10,000/-. Towards loss of consortium the 1[st] appellant is awarded a sum of Rs.10,000/-. Towards loss of love and affection appellants 2 to 7 are awarded a sum of Rs.25,000/- The Tribunal awarded a sum of Rs.10,000/- MACA No.1218 of 2014 15 under the head loss of estate. 24. In **Rajesh [(2013) 9 SCC 54]** a Three-Judge Bench of the Apex Court granted Rs.25,000/- towards funeral expenses, Rs.1,00,000/- towards loss of consortium and Rs.1,00,000/towards loss of care and guidance for minor children. 25. In **Pranay Sethi [(2017) 16 SCC 680]** the Constitution Bench of the Apex Court held that the head relating to loss of care and guidance for minor children does not exist. Though **Rajesh** refers to **Santosh Devi v. National Insurance Company Limited [(2012) 6 SCC 421]** , it does not seem to follow the same. The conventional and traditional heads cannot be determined on percentage basis because that would not be an acceptable criterion. Unlike determination of income, the said heads have to be quantified. Any quantification must have a reasonable foundation. There can be no dispute over the fact that price index, fall in bank interest, escalation of rates in many a field have to be noticed. The Court cannot remain oblivious to the same. There has been a thumb rule in this aspect. Otherwise, there will be extreme difficulty in determination of the same and unless the thumb rule is applied, there will be immense variation lacking any kind of consistency as a consequence of which, the MACA No.1218 of 2014 16 orders passed by the Tribunals and Courts are likely to be unguided. Therefore, the reasonable figures on conventional heads, namely, **loss of estate** , **loss of consortium** and **funeral expenses** should be **Rs.15,000/-** , **Rs.40,000/-** and **Rs.15,000/-** respectively. The principle of revisiting the said heads is an acceptable principle. But the revisit should not be fact-centric or quantum-centric. The Apex Court observed that, it would be condign that the amounts that have quantified as above should be enhanced on percentage basis **in every three years** and the enhancement should be at the rate of **10% in a span of** **three years** , which will bring in consistency in respect of those heads. 26. In **Santosh Devi v. Mahaveer Singh [(2018) 9 SCC 146]** a Three-Judge Bench of the Apex Court granted compensation on conventional heads, in terms of the figures standardised by the Constitution Bench in the year 2017, in **Pranay Sethi** , to the wife and children of one Puran Chand, who died in a motor accident, which occurred on **30.12.1992** . 27. In **Sureshchandra Bagmal Doshi v. New India Assurance Company Limited [(2018) 15 SCC 649]** the Apex Court granted the figures on conventional heads standardised by MACA No.1218 of 2014 17 the Constitution Bench in the year 2017, in **Pranay Sethi** , i.e., Rs.15,000/- as loss of estate; Rs.40,000/- towards loss of consortium; and Rs.15,000/- as funeral expenses to the parents [appellants before the Apex Court], who lost their only daughter in a motor accident which occurred on **16.08.1998** . In the said decision, Rs.40,000/- granted in **Pranay Sethi** towards loss of consortium was granted to the appellants, who are the **parents** of the deceased, towards **loss of love and affection** . Paragraphs 1 and 14 of the said decision read thus; “ **1.** Fate can be cruel. This is a tragic case where the only daughter of a lawyer husband and a doctor wife, who got married early and unfortunately became a widow also at a young age, died in a vehicular accident, which took place on **16.8.1998** . The claim of the parents (appellants herein) in respect of this unfortunate demise forms the subject matter of the present appeal. xxx xxx xxx **14.** Now coming to the last aspect, i.e., the conventional heads, in **National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]** , it has been standardised at Rs.15,000 for loss of estate; Rs.40,000 towards loss of consortium (in the present case loss of love and affection) and Rs.15,000 towards funeral expenses. The total amount, thus, would be Rs.70,000, which as per the said judgment is capable of being enhanced @ 10 percent in the span of MACA No.1218 of 2014 18 every three years. However, we are still within the window of three years.” “underline supplied” 28. In **Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram [(2018) 18 SCC 130]** , after referring to the decision in **Pranay Sethi** , the Apex Court held that in legal parlance, 'consortium' is a compendious term which encompasses 'spousal consortium', 'parental consortium' and 'filial consortium'. The right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual relations with the deceased spouse. **Spousal consortium** is generally defined as rights pertaining to the relationship of a husband-wife which allows compensation to the **surviving spouse** for loss of 'company, society, co-operation, affection, and aid of the other in every conjugal relation'. **Parental consortium** is granted to the **child** upon the premature death of a parent, for loss of 'parental aid, protection, affection, society, discipline, guidance and training'. **Filial consortium** is the right of the **parents** to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The MACA No.1218 of 2014 19 greatest agony for a parent is to lose their child during their lifetime. Children are valued for their **love** , **affection** , companionship and their role in the family unit. 29. In **Magma General Insurance** the Apex Court held that consortium is a special prism reflecting changing norms about the status and worth of actual relationships. Modern jurisdictions world-over have recognised that the value of a child’s consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions, therefore, permit parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded to the parents is a compensation for loss of the **love** , **affection** , care and companionship of the deceased child. The Motor Vehicles Act is a beneficial legislation aimed at providing relief to the victims or their families, in cases of genuine claims. In a case where parents have lost their **minor child** , or **unmarried son or daughter** , the parents are entitled to be awarded loss of consortium under the head of **filial consortium** . Parental Consortium is awarded to children who lose their parents in motor vehicle accidents under the Motor Vehicles Act. The Apex Court held further that, the amount of compensation to be awarded as consortium will be MACA No.1218 of 2014 20 governed by the **principles** of awarding compensation under 'loss of consortium' as laid down in **Pranay Sethi** . 30. In **Magma General Insurance** , the deceased was aged 24 years, who was engaged in the business of manufacturing 'namkeen products', who died in a motor accident which occurred on 01.12.2013. The **father** , **brother** and **sister** of the deceased filed claim petition under Section 166 of the Motor Vehicles Act. The Claims Tribunal did not award any compensation to the **brother** of the deceased, as he could not be considered to be a dependent. Compensation was awarded to the **father** and **unmarried sister** of the deceased, who were held to be dependents. The father and sister of the deceased filed appeal before the Punjab and Haryana High Court for enhancement of the compensation awarded by the Claims Tribunal. The High Court found that the Claims Tribunal used the wrong principle for application of multiplier. The multiplier ought to have been taken on the basis of the age of the deceased and not that of his father. The High Court, while re-assessing the compensation granted a sum of Rs.1,00,000/- (Rs.50,000/- x 2) towards loss of love and affection to the father and unmarried sister of the deceased. The insurer filed S.L.P. before the Apex Court contending, inter alia, MACA No.1218 of 2014 21 that the father and sister of the deceased could not be considered as dependants, and were not entitled to compensation. In case of death of bachelor, only the mother could be considered to be a dependant. The grant of Rs.1,00,000/- on account of loss of love and affection, and Rs.25,000/- towards funeral expenses is erroneous. It was contended that only Rs.30,000/- could have been awarded as per the judgment in **Pranay Sethi** . [i.e., loss of estate - Rs.15,000/- and funeral expenses – Rs.15,000/-] The Apex Court held that, considering that the deceased was living in a village, where he was residing with his aged father, who was about 65 years old, and an unmarried sister, the High Court correctly considered them to be dependants of the deceased, and made a deduction of 1/3[rd] towards personal expenses of the deceased. [Para.16 @ page 135 of SCC] The Apex Court found that the deceased was a bachelor, whose mother had **predeceased** him. The father of the deceased was about 65 years old and his sister was unmarried. The deceased was **contributing** a part of his meagre income to the family for their sustenance and survival. Therefore, the Apex Court held that the father and unmarried sister of the deceased would be entitled to compensation under his dependants. [Para.18 @ page 136 of MACA No.1218 of 2014 22 SCC] Dealing with the contention of the insurer that the High Court had wrongly awarded Rs.1,00,000/- towards loss of love and affection, and Rs.25,000/- towards funeral expenses, the Apex Court, after quoting Para.52 of the decision in **Pranay Sethi** , decreased the compensation under the head funeral expenses from Rs.25,000/- to Rs.15,000/-. However, the amount awarded under the head loss of love and affection was maintained. After explaining the concept of **spousal consortium** , **parental consortium** and **filial consortium** , the Apex Court deem it appropriate to award the father and unmarried sister of the deceased, an amount of Rs.40,000/- each for loss of filial consortium. 31. In view of the law laid down by the Constitution Bench of the Apex Court in **Pranay Sethi** , which was followed in **Santhosh Devi** and **Suresh Chandra Bagmaldoshi** referred to supra, the compensation payable under the conventional heads of loss of estate, loss of consortium and funeral expenses should be Rs.15,000/-, 40,000/- and Rs.15,000/- respectively. The aforesaid figures quantified by the Apex Court should be enhanced on percentage basis, at the rate of 10%, in a span of every three years. MACA No.1218 of 2014 23 32. In view of the law laid down by the Apex Court in **Magma General Insurance Company Ltd** ., after referring to the decision in **Pranay Sethi** , the surviving spouse is entitled for spousal consortium; children of the deceased are entitled for parental consortium; and parents of a deceased child, who died in a motor accident, are entitled for filial consortium. The amount of compensation that has to be awarded will be governed by the principles of awarding compensation under the head loss of consortium, as laid down in **Pranay Sethi** . 33. In **Indian Bank v. ABS Marine Products (P) Ltd. [(2006) 5 SCC 72]** one of the contentions raised was that, any direction issued by the Apex Court in exercise of power under Article 142 of the Constitution of India to do proper justice and the reasons, if any, given for exercising such power, cannot be considered as law laid down by that Court under Article 141. It was also pointed out that, other Courts do not have the power similar to that conferred on the Apex Court under Article 142 and any attempt to follow the exercise of such power will lead to incongruous and disastrous results. The Apex Court left open that question, observing as follows; "Though there appears to be some merit in the first respondent's submission, we do not propose to MACA No.1218 of 2014 24 examine that aspect." Though the said question was left open, the Apex Court observed as follows in Para.26 of the judgment; "26. ….... Many a time, after declaring the law, this Court in the operative part of the judgment, gives some directions which may either relax the application of law or exempt the case on hand from the rigour of the law in view of the peculiar facts or in view of the uncertainty of law till then, to do complete justice. While doing so, normally it is not stated that such direction/order is in exercise of power under Article 142. It is not uncommon to find that Courts have followed not the law declared, but the exemption/ relaxation made while moulding the relief in exercise of power under Article 142. When the High Courts repeatedly follow a direction issued under Article 142, by treating it as the law declared by this Court, incongruously the exemption/ relaxation granted under Article 142 becomes the law, though at variance with the law declared by this Court. The Courts should therefore be careful to ascertain and follow the ratio decidendi, and not the relief given on the special facts, exercising power under Article 142. …..." 34. In **State of Punjab v. Rafiq Masih [(2014) 8 SCC** **883]** a Three-Judge Bench of the Apex Court affirmed the view taken in **ABS Marine Products' case (supra)** holding that, the directions issued under Article 142 do not constitute a binding precedent unlike Article 141 of the Constitution of India. They are direction issued to do proper justice and exercise of such power, MACA No.1218 of 2014 25 cannot be considered as law laid down by the Supreme Court under Article 141 of the Constitution of India. The Apex Court held further that, the directions of the Court under Article 142 of the Constitution, while moulding the relief, that relax the application of law or exempt the case in hand from the rigour of the law in view of the peculiar facts and circumstances do not comprise the ratio decidendi and therefore lose its basic premise of making it a binding precedent. Paras.11 to 13 of the judgment read thus; "11. Article 136 of the Constitution of India was legislatively intended to be exercised by the Highest Court of the Land, with scrupulous adherence to the settled judicial principle well established by precedents in our jurisprudence. Article 136 of the Constitution is a corrective jurisdiction that vests a discretion in the Supreme Court to settle the law clearly and make the law operational to make it a binding precedent for the future instead of keeping it vague. In short, it declares the law, as under Article 141 of the Constitution. 12. Article 142 of the Constitution is supplementary in nature and cannot supplant the substantive provisions, though they are not limited by the substantive provisions in the Statute. It is a power that gives preference to equity over law. It is a justice oriented approach as against the strict rigors of the law. The directions issued by the Court can normally be categorised into one, in the nature of moulding of relief and the other, as the declaration of law. MACA No.1218 of 2014 26 'Declaration of Law' as contemplated in Article 141 of the Constitution: is the speech express or necessarily implied by the Highest Court of the land. This Court in the case of **Indian Bank v. ABS Marine Products (P) Ltd. [(2006) 5 SCC 72]** , **Ram Pravesh Singh v. State of Bihar [(2006) 8 SCC 381]** and in **State of U.P. v. Neeraj Awasthi [(2006) 1 SCC 667]** , has expounded the principle and extolled the power of Article 142 of the Constitution of India to new heights by laying down that the directions issued under Article 142 do not constitute a binding precedent unlike Article 141 of the Constitution of India. They are direction issued to do proper justice and exercise of such power, cannot be considered as law laid down by the Supreme Court under Article 141 of the Constitution of India. The Court has compartmentalised and differentiated the relief in the operative portion of the judgment by exercise of powers under Article 142 of the Constitution as against the law declared. The directions of the Court under Article 142 of the Constitution, while moulding the relief, that relax the application of law or exempt the case in hand from the rigour of the law in view of the peculiar facts and circumstances do not comprise the ratio decidendi and therefore lose its basic premise of making it a binding precedent. This Court on the qui vive has expanded the horizons of Article 142 of the Constitution by keeping it outside the purview of Article 141 of the Constitution and by declaring it a direction of the Court that changes its complexion with the peculiarity in the facts and circumstances of the case. 13. Therefore, in our opinion, the decisions of the Court MACA No.1218 of 2014 27 based on different scales of Article 136 and Article 142 of the Constitution of India cannot be best weighed on the same grounds of reasoning and thus in view of the aforesaid discussion, there is no conflict in the views expressed in the first two judgments and the latter judgment." 35. In **Magma General Insurance Company Ltd.** , the Apex Court maintained the compensation awarded by the High Court at the rate of Rs.50,000/- to the father and unmarried sister of the deceased towards loss of love and affection. However, the compensation under the head funeral expenses was decreased from Rs.25,000/- to Rs.15,000/-, after quoting para 52 of the decision in **Pranay Sethi** . After explaining the concept of spousal consortium, parental consortium and filial consortium, the Apex Court awarded the father and unmarried sister of the deceased an amount of Rs.40,000/- each for loss of filial consortium. 36. As already noticed, the compensation that has to be awarded to the surviving spouse towards spousal consortium; to the children of the deceased towards parental consortium; or to the parents of the deceased child towards filial consortium, is for loss of **love and affection** and such other matters. In such circumstances, once the surviving spouse is awarded MACA No.1218 of 2014 28 compensation towards spousal consortium; or the children of the deceased are awarded compensation towards parental consortium; or the parents of the deceased child are awarded compensation towards filial consortium, they are not entitled for award of further compensation under the head loss love and affection, as it would result in duplication or overlapping of compensation under the relevant heads. 37. The concept of spousal consortium to the surviving spouse; parental consortium to the children of the deceased; and filial consortium to the parents of the deceased child laid down by the Apex Court in **Magma General Insurance Company Ltd.** does not speak anything as to the right of **siblings** to get compensated under the head loss of consortium. In **Magma** , after noticing the fact that the mother of the deceased had predeceased him, his father was aged 65 years old, his sister was unmarried, and the deceased was **contributing** a part of his meagre income to the family for their sustenance and survival, the Apex Court granted a sum of Rs.40,000/- as compensation to unmarried sister of the deceased under the head filial consortium, after maintaining the compensation (Rs.50,000/- x 2) awarded by the High Court towards loss of love and affection, which can only MACA No.1218 of 2014 29 be treated as a direction issued by the Apex Court in exercise of its powers under Article 142 of the Constitution of India to do proper justice and the exercise of such power cannot be considered as law laid down by the Apex Court under Article 141 of the Constitution of India. 38. In view of the law laid down by the Apex Court in **Pranay Sethi** and **Magma General Insurance Company Ltd.** referred to supra, Rs.10,000/- awarded by the Tribunal in the impugned award towards funeral expenses is enhanced to Rs.15,000/-, resulting an an additional compensation of **Rs.5,000/-** (15,000 – 10,000); and Rs.10,000/- awarded towards loss of consortium to the 1[st] appellant is enhanced to Rs.40,000/- and the same is granted under the head spousal consortium, resulting an an additional compensation of **Rs.30,000/-** (40,000 – 10,000). The Tribunal awarded Rs,25,000/- towards loss of love and affection to appellants 2 to 7, who are the grown-up children of the deceased, out of which, appellants 4, 6 and 7 are his married daughters. Six grown-up children of the deceased are granted a sum of Rs.20,000/- each (20,000 x 6 = 1,20,000) under the head parental consortium, resulting an additional compensation of **Rs.95,000/-** (1,20,000 – MACA No.1218 of 2014 30 25,000). 39. The Tribunal awarded Rs.10,000/- as compensation towards loss of estate. In view of the law laid down by the Apex Court in **Pranay Sethi [(2017) 16 SCC 680]** an amount Rs.15,000/- can be granted under the head loss of estate. Accordingly, the appellants are granted a sum of **Rs.15,000/-** towards loss of estate, resulting an additional compensation of **Rs.5,000/-** (15,000 – 10,000). 40. The Tribunal awarded Rs.15,000/- as compensation towards pain and suffering of the deceased. 41. In **Jyni and others v. Raphel P.T. and others [2016 (2) KHC 870]** a Division Bench of this Court held that, death in an accident is generally the result of violent impact on the body resulting in serious injuries causing severe pain. The magnitude of the ordeal may vary from case to case depending upon the nature of injuries sustained. In cases of instantaneous deaths also pain and suffering is invariably present, as in the case of survival for hours or days. In cases of instantaneous death as well as cases where the deceased was unconscious between the time of accident and the time of his death, some notional amount is payable under the head pain and suffering. A slightly higher MACA No.1218 of 2014 31 amount can be awarded under this head, if the death is not instantaneous. Therefore, a conventional amount in the range of Rs.5,000/- to Rs.15,000/- could be awarded under the head pain and suffering in such cases. 42. In the instant case, the deceased succumbed to the injuries on the date of accident itself. Considering the said fact, the compensation awarded by the Tribunal towards pain and suffering of the deceased is scaled down to Rs.5,000/-, resulting an **excess payment** of **Rs.10,000/-** (15,000 – 5,000). 43. Towards transportation expenses and damage to clothing, the Tribunal awarded a sum of Rs.2,000/-. The accident is of the year 2000. The deceased succumbed to the injuries on the date of accident itself. Therefore, the compensation under the head transportation expenses and damage to clothing is re-fixed as Rs.2,750/- (2,000 + 750), resulting an additional compensation of **Rs.750/-** (2,750 – 2,000). 44. In the result, the appellants/claimants will be entitled for payment of an additional compensation of **Rs.1,25,750/-** (Rupees one lakh twenty five thousand seven hundred and fifty only) [(5,000 + 30,000 + 95,000 + 5,000 + 750) - 10,000] in this appeal, which will carry interest at the rate of **8%** per annum MACA No.1218 of 2014 32 from the date of petition till realisation, excluding the period of delay of 1492 days in filing this appeal, which was condoned by the order dated 24.01.2020, subject to the condition that in case enhanced compensation is awarded, the appellants will not be entitled for interest for the said amount for the period of delay. The additional compensation granted in this appeal, excluding that granted to appellant 2 to 7 under the head parental consortium, shall be paid to the 1[st] appellant, who is the wife of the deceased. The 3[rd] respondent insurer shall satisfy the additional compensation granted in this appeal, together with interest, within a period of two months from the date of receipt of a certified copy of this judgment, after deducting the liability, if any, of the appellants/claimants towards Balance Court Fee and Legal Benefit Fund. The disbursement of additional compensation to the appellants/claimants shall be made taking note of the law on the point and in terms of the directives issued by this Court in Circular No.3 of 2019 dated 06.09.2019 and clarified further in Official Memorandum No.D1-62475/2016 dated 07.11.2019. The appellants shall provide their Bank account details (attested copy of the relevant page of the Bank Passbook having details of the Bank Account Number and IFSC Code of the branch) before the MACA No.1218 of 2014 33 Tribunal, with copy to the learned Standing Counsel for the 3[rd] respondent insurer within one month from the date of a certified copy of this judgment. This appeal is disposed of as above. No order as to costs. **Sd/-** **ANIL K.NARENDRAN** JV **JUDGE**