High Court of KeralaSingle JudgeAppeal allowed; MACT award modified to grant ad...

MACA NO. 1212 OF 2016

Case / Petition Number:MACA NO. 1212 OF 2016

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • ZIYAD RAHMAN A.A.
Judgment Date
2023-12-22
Court Decision / Holding
Appeal allowed. The award dated 06.10.2015 in OP(MV) No.1223/2010 is modified by awarding an additional Rs. 7,62,500/-, with the insurer depositing the amount with interest at 8% per annum from the date of petition till realization, to be deposited within three months of receipt of this judgment. The enhanced figures include Rs. 7,42,500 for loss of dependency (based on Rs. 7,500 monthly income and 40% future prospects) plus Rs. 5,000 for funeral expenses and Rs. 15,000 for loss of estate.
Final Disposition
Appeal allowed; MACT award modified to grant additional compensation of Rs. 7,62,500 with interest; deposit within three months.

Parties to the Case

Appellants / Petitioners

  • BINITHA PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.
  • NANDU KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.
  • NANDANA KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.
  • NIKHIL KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.
  • PANKY PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.

Respondents

  • PRAVEEN LEKHAM VEEDU, SANATHANAM WARD, MULLACKAL, ALAPPUZHA -688 001
  • GEETHA DEVI LAKSHMI, SANATHANAM WARD, ALAPPUZHA -688 001
  • Royal Sundaram Alliance Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. George Varghese (Perumpallikkuttiyil)
  • • Sri A.R. Dileep
  • • Sri Manu Sebastian
  • • Sri P.J. Joe Paul

Counsels for Respondents

  • • Sri P. Jacob Mathew
  • • Sri Mathews Jacob Sr.

Case Synopsis & Summary

This Motor Accident Claims Appeal arises from an award of the Motor Accident Claims Tribunal, Alappuzha, in OP(MV) No.1223/2010, concerning the death of Nandanan in a road accident on 9 May 2010. The bicycle ridden by the deceased was struck by a car owned by the 2nd respondent and insured with the 3rd respondent; the 1st respondent driver was negligent. The appellants, as widow and children, challenged the quantum of compensation awarded by the Tribunal (Rs. 8,94,500 with interest at 9%). They argued that the Tribunal undervalued the deceased’s monthly income (claimed Rs. 6,000 but found Rs. 5,000), failed to apply future prospects, and did not sufficiently compensate for loss of dependency, funeral expenses and loss of estate. The 3rd respondent insurer contested policy conditions and quantum issues. The High Court, relying on jurisprudence from Ramachandrappa, Syed Sadiq, Minu Rout and Pranay Sethi, recalculated the monthly income for 2010 at Rs. 7,500 (with Rs. 500 increments per year) and applied a 40% addition for future prospects for a person under 40. The court also awarded Rs. 5,000 for funeral expenses and Rs. 15,000 for loss of estate, resulting in an additional Rs. 7,62,500. The amount already awarded by the Tribunal was Rs. 6,75,000. The appeal was allowed, with the award modified and the insurer directed to deposit the enhanced amount within three months at 8% interest.

Legal Doctrines & Maxims

  • 40% addition for future prospects (Pranay Sethi doctrine)
  • Method of computing monthly income based on Ramachandrappa v. Manager (2011) 13 SCC 236 and Syed Sadiq v. Divisional Manager, United India Insurance Company (2014) 2 SCC 735
  • Minu Rout v. Satya Pradyumna Mohapatra (2013) 10 SCC 695

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal undervalued the deceased's monthly income (claimed Rs. 6,000 but assessed Rs. 5,000) and did not account for future prospects. Relying on Minu Rout and the framework in Ramachandrappa and Syed Sadiq, they argue for a higher monthly income (Rs. 7,500 in 2010 with annual increments) and a 40% addition for future prospects per Pranay Sethi, so as to achieve just compensation.

Contentions of Respondents

The respondents contend that there was a violation of the policy conditions by the insured and that the quantum of compensation is disputed; they maintain the Tribunal’s calculations should stand unless convincingly proven otherwise.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Minu Rout v. Satya Pradyumna Mohapatra(2013) 10 SCC 695PositiveCourt relied on Minu Rout to justify adopting a higher income when necessary to ensure just compensation.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd(2011) 13 SCC 236PositiveUsed as the baseline framework for computing monthly income in motor accident cases.
Syed Sadiq v. Divisional Manager, United India Insurance Company(2014) 2 SCC 735PositiveCited for the monthly income methodology and increments over the years.
National Insurance Co. Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveAuthorizes 40% addition for future prospects in loss of dependency calculations.

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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 ZIYAD RAHMAN A.A. ``` ``` FRIDAY, THE 22[ND] DAY OF DECEMBER 2023 / 1ST POUSHA, 1945 ``` ## **`MACA NO. 1212 OF 2016`** ## **`AGAINST THE AWARD DATED 06.10.2015 IN OP(MV) NO.1223/2010 OF MOTOR`** ## **`ACCIDENT CLAIMS TRIBUNAL, ALAPPUZHA`** ## **`APPELLANTS/PETITIONERS:`** - `1 BINITHA PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.` - `2 NANDU KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.` - `3 NANDANA KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.` - `4 NIKHIL KRISHNA (MINOR) PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.` - `5 PANKY PUTHUVAL VEEDU, KAROOR MURI, AMBALAPUZHA P.O.` ``` BY ADVS. SRI.GEORGE VARGHESE(PERUMPALLIKUTTIYIL) SRI.A.R.DILEEP SRI.MANU SEBASTIAN SRI.P.J. JOE PAUL ``` ## **`RESPONDENTS/RESPONDENTS:`** - `1 PRAVEEN LEKHAM VEEDU, SANATHANAM WARD, MULLACKAL, ALAPPUZHA -688 001.` - `2 GEETHA DEVI LAKSHMI, SANATHANAM WARD, ALAPPUZHA -688 001.` ``` MACA NO. 1212 OF 2016 ``` ``` 2 ``` ``` 3ROYAL SUNDARAM ALLIANCE INSURANCE CO.LTD. D1, 2ND FLOOR, AMRITA NIVAS, KPCC JUNCTION, M.G.ROAD, COCHIN-1. ``` ``` BY ADVS. SRI.P.JACOB MATHEW SRI.MATHEWS JACOB SR. ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 22.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO. 1212 OF 2016 ``` ``` 3 ``` ## **`JUDGMENT`** The appellants are the petitioners in O.P.(M.V.) No.1223/2010 on the files of the Motor Accident Claims Tribunal, Alappuzha. The said claim petition was submitted by the appellants seeking compensation for the death of one Nandanan due to the injuries sustained in a motor accident that occurred on 09.05.2010. 2. According to the appellants, the accident occurred when the bicycle ridden by the deceased was hit by a car bearing Registration No.KL 4/N 4847 driven by the 1st respondent. The said vehicle was owned by the 2nd respondent and was insured with the 3rd respondent herein. The deceased was aged 37 years at the time of the accident and was a fisherman with a monthly income of Rs.6,000/-. The 1st appellant was the wife, the appellants 2 to 4 were the minor children of the deceased, and the 5th respondent was the mother of the deceased. The claim petition was submitted in such circumstances. 3. The respondents 1 and 2 did not contest the matter, and the 3rd respondent filed a written statement admitting the ``` MACA NO. 1212 OF 2016 ``` ``` 4 ``` coverage of the policy. However, they contended that there was a violation of the policy conditions on the part of the insured. The quantum of compensation was also disputed by them. 4. The evidence in this case consists of Exts.A1 to A7 from the side of the appellants and no evidence was adduced by the respondents. After the trial, the Tribunal came to the conclusion that the accident occurred due to negligence on the part of the 1st respondent, and being the insurer, the 3rd respondent was held liable to pay the compensation. The quantum of compensation was fixed as Rs.8,94,500/- and the said amount was directed to be deposited by the 3rd respondent with interest @ 9% per annum from the date of petition till realisation. This appeal is submitted in such circumstances seeking enhancement of compensation. 5. Heard Sri.P.J. Joe Paul, learned counsel appearing for the appellants and Sri.P. Jacob Mathew, learned counsel appearing for the 3[rd] respondent Insurance Company. 6. The main challenge in this case relates to the quantum of compensation under the head of loss of dependency. It was ``` MACA NO. 1212 OF 2016 ``` ``` 5 ``` contended that the monthly income taken by the Tribunal was on the lower side, and besides, the Tribunal did not make any addition towards future prospects. After considering the materials placed on record, I find force in both the said contentions. As regards the monthly income, even though the claim was for Rs.6,000/-, the Tribunal accepted only Rs.5,000/-. The learned counsel submits that even though the monthly income claimed was Rs.6,000/-, considering the facts and circumstances, a higher monthly income ought to have been taken by the Tribunal. He also places reliance upon **Minu Rout v. Satya Pradyumna Mohapatra** [(2013) 10 SCC 695] where the Honourable Supreme Court took the monthly income higher rate than claimed in the claim petition. The said contention has to be accepted. It is to be noted that, the usual method of computation of monthly income adopted by this Court is on the basis of the principles laid down by the Hon’ble Supreme Court in **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co.Ltd** [(2011) 13 SCC 236], and **Syed Sadiq v. Divisional Manager, United India Insurance Company** [(2014) 2 SCC 735] where the monthly ``` MACA NO. 1212 OF 2016 ``` ``` 6 ``` income is to be taken as Rs.4,500/- for an ordinary worker even without any evidence for the year 2004. For assessing the monthly income for the subsequent years, Rs.500/- is to be added per year. When that method of computation is adopted in this case, the monthly income can be fixed in this case as Rs.7,500/since the accident occurred in the year 2010. As rightly pointed out by the learned counsel for the appellants, in the light of the observations made by the Honourable Supreme Court in **Minu Rout** ’ case (supra), nothing would preclude this Court from taking a higher income than claimed, if this Court is convinced of the fact that adoption of such higher income is necessary to ensure “just compensation”. In this case, as already observed above, when adopting the method of computation that this Court usually follows, the monthly income could be Rs.7,500/- and therefore, I am inclined to accept the said amount as the monthly income. 7. The next aspect is relating to the addition to be made towards future prospects. Admittedly he was a person coming within the age group of below 40 years and therefore, an addition of 40% has to be made in the light of **National Insurance** ``` MACA NO. 1212 OF 2016 ``` ``` 7 ``` **Company Ltd. v. Pranay Sethi** [(2017) 16 SCC 680]. While reassessing the compensation in the light of the above aspects, the amount of compensation under the head of loss of dependency would come to Rs.14,17,500/- (7,500 + 40%) x 12 x 15 x ¾). The amount already awarded by the Tribunal is Rs.6,75,000/- and thus the additional compensation would come to Rs.7,42,500/-. Besides the same, a further sum of Rs.5,000/- is to be granted under funeral expenses as the amount awarded is Rs.10,000/- only. As per **Pranay Sethi, the proper amount is Rs.15,000/- and hence, the said amount is awarded as an** additional amount. No amount is seen awarded towards loss of estate, whereas the amount prescribed under the said head in **Pranay Sethi’s case,** is Rs.15,000/-. The said amount is also awarded. 8. Thus, the additional compensation receivable by the appellants is determined as Rs. 7,62,500/- (7,42,500 + 5,000, + 15,000). In the light of the aforesaid observations and findings this appeal is allowed. The award dated 06.10.2015 in O.P(M.V.) No. ``` MACA NO. 1212 OF 2016 ``` ``` 8 ``` 1223/2010 passed by the Motor Accident Claims Tribunal, Alappuzha is hereby modified by granting and additional compensation of Rs. 7,62,500/- (Rupees seven lakh and sixty two thousand Five hundred only) and the said amount shall be deposited by 3[rd] respondent Insurance Company with interest @ 8% per annum from the date of petition till realisation. The said deposit shall be made within a period of three months from the date of receipt of a copy of this judgment. ``` Sd/- ZIYAD RAHMAN A.A. JUDGE ``` scs