High Court of KeralaDivision BenchPartly Allowed

Lillykutty and others v. K.K. Shaji, Alavudheen and The New India Assurance Co. Ltd.

Case / Petition Number:MACA.No.1651 of 2006

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • Anil K. Narendran
Judgment Date
2017-06-13
Court Decision / Holding
Appeal partly allowed. The court enhanced several heads of compensation: notional monthly income 2,500; multiplier 7; 1/3 deduction for personal expenses; loss of dependency increased to 1,40,000; after deducting the original 60,000 for loss of life, an additional 80,000 for dependency. Loss of love and affection fixed at 50,000; funeral expenses at 15,000; loss of consortium at 50,000. An additional compensation of 1,68,000 is awarded (with 8% interest from the date of petition, excluding 606 days condoned). The insurer is directed to deposit the enhanced amount within two months, with rights of recovery against the owner for sums paid. No costs awarded.
Final Disposition
Partly Allowed

Parties to the Case

Appellants / Petitioners

  • Lillykutty, W/o. Late C.A. Stephen
  • C.A. Lisa, D/o. Late C.A. Stephen
  • C.S. Mini, D/o. Late C.A. Stephen

Respondents

  • K.K. Shaji
  • Alavudheen
  • The New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri N.J. Antony

Counsels for Respondents

  • • Adv. Sri PMM. Najeeb Khan

Case Synopsis & Summary

This Motor Accidents Claims Appeal arises from an award of the Motor Accidents Claims Tribunal, Wayanad, under Section 166 of the Motor Vehicles Act, 1988, in O.P.(MV) No.174/2002, relating to the death of Stephen on 2.4.2002 after being struck by an autorickshaw (KL 12/A-9147) driven by the 1st respondent and owned by the 2nd respondent, insured by the 3rd respondent. The Tribunal found negligence on the driver’s part and held the insurer liable to indemnify the owner; it awarded a total compensation of 98,000 with 9% interest and costs, and directed the insurer to deposit the amount. The appeal challenges the quantum of compensation, contending that the deceased, aged 62 with a dependent family, warrants higher heads of damages. The High Court re-evaluates several components, adjusting the notional monthly income to 2,500 and applying a multiplier of 7, with a 1/3 deduction for personal expenses, resulting in an improved dependency award of 1,40,000. After accounting for the amount already awarded for loss of life (60,000), the court grants an additional 80,000 for dependency. It also revises other heads: loss of love and affection to 50,000, funeral expenses to 15,000, and loss of consortium to 50,000, citing Rajesh v. Rajbir Singh and Valsamma cases. The total enhanced compensation is to be deposited by the insurer with 8% interest, while the insurer retains recourse against the owner for amounts paid. No costs are ordered.

Provisions of Law Cited

Section 166 of Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income with multiplier method for calculating compensation (age-based multiplier)
  • 1/3 deduction for personal expenses and 2/3 for dependency
  • Age considerations in 'loss of consortium' when awarding damages
  • Use of Rajesh v. Rajbir Singh as persuasive authority for higher 'loss of love and affection'
  • Valsamma & anr. v. Binju Jose & ors. on relevance of age in loss of consortium

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Tribunal’s compensation was inadequate in view of the deceased’s age, dependence, and family obligations. They urged adoption of a higher notional income and the standard multiplier approach, and relied on precedents such as Rajesh v. Rajbir Singh to justify enhanced amounts under heads like loss of life, loss of love and affection, and loss of consortium, along with a larger funeral expense. They argued that the driver’s negligence and lack of a valid licence should inform the quantum against the insurer.

Contentions of Respondents

The respondents contended that the Tribunal’s award was reasonable and just, given the evidence and the date of accident (2002). They argued against disproportionate enhancement and emphasized policy limits, with the insurer liable only to indemnify the owner, and to exercise recourse against the owner for sums paid due to policy violations.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Rajesh v. Rajbir Singh2013 (9) SCC 54PositiveCited to justify higher compensation for 'loss of love and affection' where the children are adults or where circumstances warrant higher awards; used as persuasive authority to justify enhanced damages.
Valsamma & anr. v. Binju Jose & ors.2014(1) KLT 10PositiveCited to support the proposition that the age of the widow and the deceased are relevant factors in determining 'loss of consortium'.

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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.T.RAVIKUMAR** **& THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** **TUESDAY, THE 13TH DAY OF JUNE 2017/23RD JYAISHTA, 1939** **MACA.No. 1651 of 2006 ( ) -------------------------AGAINST THE AWARD IN O.P.(M.V.) 174/2002 OF MACT,KALPETTA,WAYANAD** **---** **APPELLANT(S)/APPELLANTS (PEITIONERS): ------------------------------------** **1. LILLYKUTTY, W/O.LATE C.A.STEPHEN, AGED 57 YEARS, CHERADIYIL,, KELLOOR P.O., KAPPANKUNNU, MANANTHAVADY TALUK.** **2. C.A.LISA, D/O.LATE C.A.STEPHEN, AGED 31 YEARS, CHERADIYIL, KELLOOR P.O., KAPPANKUNNU, MANANTHAVADY TALUK.** **3. C.S.MINI, D/O.LATE C.A.STEPHEN, AGED 28 YEARS, CHERADIYIL, KELLOOR P.O., KAPPANKUNNU, MANANTHAVADY TALUK.** **BY ADV. SRI.N.J.ANTONY** **RESPONDENT(S):** **--------------** **1. K.K.SHAJI, AGED 36 YEARS, S/O.KURIAKOSE, KATTICHIRAKKAL HOUSE, NALLORNADU POST, PAYADODE,, (DRIVER OF AUTORICKSHAW KL/12A 9147).** **2. ALAVUDHEEN, S/O.MUHAMMED,** **KUNNUMMEL HOUSE, KANIYARAM,, MANANTHAVADY, WYNAD, (OWNER OF AUTORICKSHAW KL/12A 9147).** **3. THE NEW INDIA ASSURANCE CO.LTD., KALPETTA, POLICY NO.3176060484013.** **R3 BY ADV. SRI.PMM.NAJEEB KHAN** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 13-06-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **SKG** ## **C.T.RAVIKUMAR & ANIL K.NARENDRAN, JJ.** **-----------------------------------------------** M.A.C.A.No.1651 of 2006 **-----------------------------------------------** Dated this the 13[th] day of June, 2017 ## **J U D G M E N T** ## **ANIL K.NARENDRAN, J** . This appeal arises out of the award passed by the Motor Accidents Claims Tribunal, Wayanad, in O.P.(MV)No.174/2002, which was an application filed under Section 166 of the Motor Vehicles Act, 1988, claiming a total compensation of `5,00,000/on account of the death of one Stephen, husband of the 1[st] appellant and father of appellants 2 and 3, who met with a motor accident on 2.4.2002, who succumbed to injuries on the date of accident itself. While the deceased was walking along a public road, he was hit by an autorickshaw bearing registration No.KL12/A-9147 driven and owned by the 1[st] and 2[nd] respondents and insured with the 3[rd] respondent. 2. Before the Tribunal, Exts.A1 to A6 were got marked and PW1 was examined, on the side of the appellants. Respondents have not chosen to adduce any oral or documentary evidence. M.A.C.A.1651/06 :-2-: 3. After considering the materials on record, the Tribunal arrived at a conclusion that the accident occurred solely due to the rash and negligent driving of the autorickshaw by the 1[st] respondent, driver. Since the vehicle was covered by a valid insurance policy, the 3[rd] respondent insurer was held liable to indemnify the 2[nd] respondent owner. Under different heads, the Tribunal awarded a total compensation of `98,000/- and the 3[rd] respondent insurer was directed to deposit the said amount together with interest at the rate of 9% per annum from the date of petition till the payment is made and also the proportionate costs. Since the 1[st] respondent driver was not holding a valid driving licence, the 3[rd] respondent insurer was given the right to recover the amount of compensation paid to the appellants/ claimants from the 2[nd] respondent/owner. 4. Dissatisfied with the quantum of compensation awarded by the Tribunal under different heads, the appellants are before this Court in this appeal. 5. The pleadings and materials on record would show that at the time of accident, the deceased was aged 62 years. The appellants claimed that the deceased was earning a monthly M.A.C.A.1651/06 :-3-: income of `4,500/- as an agriculturist. However, no reliable materials were placed before the Tribunal to prove his monthly income. Therefore, the Tribunal notionally fixed the monthly income of the deceased as `1,500/- and awarded a compensation of `60,000/- under the head 'loss of life'. 6. The accident occurred in the year 2002 and at the time of accident, the deceased was aged 62 years. The fact that the deceased was maintaining a family, consisting of his wife and two children, is not in dispute. Therefore, considering the facts and circumstances of the case, we deem it appropriate to re-fix the monthly income of the deceased notionally at ` **2,500** /-. 7. Since the deceased was aged 62 years, the proper multiplier applicable is '7'. Since the deceased was maintaining a family consisting of wife and two children, 1/3[rd] of the notional income has to be deducted towards his personal expenses and the remaining 2/3[rd] alone can be reckoned for the purpose of dependency compensation. Taking the notional monthly income as `2,500/- and the multiplier as '7', the compensation to the appellants under the head 'loss of dependency' comes to `1,40,000/- (2,500x12x7x2/3). After deducting `60,000/- M.A.C.A.1651/06 :-4-: awarded by the Tribunal under the head 'loss of life', the appellants are entitled for an additional compensation of ` **80,000** /- under the head 'loss of dependency'. 8. Towards transportation to hospital and pain and suffering, the Tribunal awarded `1,000/- and `10,000/respectively. The compensation awarded by the Tribunal under the above heads represents just and reasonable compensation, which warrants no interference in this appeal. 9. Towards 'loss of love and affection', the Tribunal awarded a sum of `25,000/-. In **Rajesh v. Rajbir Singh [2013 (9) SCC 54]** , the Apex Court awarded a sum of `1,00,000/- as compensation towards the head 'loss of love and affection' to the children of the deceased who were minors. In the said case, the deceased was aged 39 years and the accident was of the year 2007. In instant case, the accident is of the year 2002 and the deceased was survived by two children aged 29 and 26 years respectively. Therefore, considering the facts and circumstances of the case, we deem it appropriate to re-fix the compensation under the head 'loss of love and affection' as `50,000/-, resulting an additional compensation of ` **25,000** /- M.A.C.A.1651/06 :-5-: payable to the 2[nd] and 3[rd] respondents. 10. The Tribunal awarded an amount of `2,000/- towards 'funeral expenses'. In **Rajesh's case (supra)** , the Apex Court awarded `25,000/- under the head 'funeral expenses'. In the said case, the accident was of the year 2007 and in the instant case, the accident is of the year 2002. Considering the facts and circumstances of the case, we deem it appropriate to re-fix the compensation under the head 'funeral expenses' at `15,000/-, resulting an additional compensation of ` **13,000** /-. 11. Towards 'loss of consortium', the Tribunal has not awarded any amount. In **Rajesh's case (supra)** , the Apex Court awarded a sum of `1,00,000/-. In the said case, the deceased was aged only 33 years and he was survived by his wife who was still young. In **Valsamma & anr. v. Binju Jose & ors. (2014(1) KLT 10)** , a Division Bench of this Court, after referring to the judgment of the Apex Court in Rajesh's case (supra), has held that the age of the widow and age of the deceased are relevant factors while considering the question of compensation to be awarded for 'loss of consortium'. In the instant case, at the time of the accident, the deceased was aged M.A.C.A.1651/06 :-6-: 62 years and his wife was at 55. Therefore, we deem it appropriate to grant a sum of `50,000/- as compensation towards 'loss of consortium'. In the result, the 1[st] appellant widow will be entitled for an amount of ` **50,000** /- as compensation under the head 'loss of consortium'. 12. In the result, the appellants will be entitled for an additional compensation of ` **1,68,000** /- (80,000+25,000+ 13,000+50,000) which will carry interest at the rate of 8% per annum from the date of petition till realisation, excluding the period of delay of 606 days in filing this appeal, which was condoned by order dated 31.5.2016, subject to the condition that in the event of the appellants being granted enhanced compensation in this appeal, such enhanced compensation will not carry any interest for the said period of 606 days. 13. Since the insurance coverage of the vehicle is not in dispute, the 3[rd] respondent insurer shall deposit the said amount together with interest before the Tribunal within a period of 2 months from the date of receipt of a certified copy of this judgment. However, in view of the finding of the Tribunal regarding violation of the policy condition, the 3[rd] respondent M.A.C.A.1651/06 :-7-: insurer will be entitled to recover the aforesaid amount paid to the appellants/claimants from the 2[nd] respondent/owner. No order as to costs. Sd/- **JUDGE** **C.T.RAVIKUMAR** Sd/- **JUDGE** **ANIL K.NARENDRAN** ami/19.6.17 //True copy// P.A.to Judge