High Court of KeralaDivision BenchAppeal allowed; enhanced compensation with dist...

MACA No. 1265 of 2005

Case / Petition Number:MACA.No.1265 of 2005

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • T. R. Ramachandran Nair
  • K. P. Jyothindranath
Judgment Date
2015-06-17
Court Decision / Holding
The appeal is allowed. The court enhances the total compensation to Rs. 4,87,000 with 9% interest from the date of filing till realization. Additional appellants share Rs. 50,000 equally, with the balance to the first appellant. The Insurance Company is directed to deposit the enhanced amount, less any already-deposited sums, within three months, enabling the claimants to withdraw on deposit. There is no order as to costs in the appeal.
Final Disposition
Appeal allowed; enhanced compensation with distribution among appellants; no costs.

Parties to the Case

Appellants / Petitioners

  • REJI PHILIP
  • RETNAM. P. MENON
  • SUDHA, D/O. LATE RETNAM P. MENON
  • RATHY MENON, D/O. LATE RETNAM P. MENON

Respondents

  • YATHEENDRADAS, PANDAVANAPARAMBIL HOUSE BOLGATTY DESOM, MULAVUKAD VILLAGE
  • SUNIL KUMAR, AGED 34 YEARS, PARUTHIYEZHATHU HOUSE, EDAVANAKKAD VILLAGE VYPPIN KARA
  • THE UNITED INDIA INSURANCE COMPANY LIMITED, COCHIN-31

Legal Representation & Advocates

Counsels for Petitioners

  • • K.V. Jayachandran

Counsels for Respondents

  • • John Joseph Vettikad

Case Synopsis & Summary

This appeal, preferred by the claimants in O.P.(M.V.) No.2636/1996 before the Motor Accidents Claims Tribunal, Ernakulam, challenges the quantum of compensation. The Tribunal awarded Rs.1,64,000, despite the deceased being a 31-year-old Ph.D. holder in Photonics with training, international exposure, and a potential for foreign employment. The appellants argue that the high qualification and future prospects warrant a higher multiplier (16 rather than 12) and that the deceased’s income should be considered at Rs.3,000 per month (the research stipend of Rs.3,000, after proper deduction for personal expenses) rather than Rs.1,500. They rely on Sarla Varma v. Delhi Transport Corporation to justify a bigger multiplier and enhanced dependency. The Insurance Company counters that the deceased was not employed at the time of the accident and that the mother of the deceased was not a dependent; it further contends that the stipend cannot be treated as full income. Earlier, in MACA 497/2005 the court indicated that Rs.2,000 could be considered as multiplicand after deducting Rs.1,000 for personal expenses; acknowledging the deceased’s potential for employment, the court uses the Sarla Varma principle to set the multiplier at 16 and re-fix compensation as: Loss of dependency Rs.3,000 x 12 x 16 x 2/3 = Rs.3,84,000; other heads total Rs.1,03,000; overall Rs.4,87,000 with 9% interest; additional appellants share Rs.50,000; the Insurance Company is directed to deposit the enhanced amount within three months; appeal allowed.

Legal Doctrines & Maxims

  • Sarla Varma rule on multiplier (SC)
  • 1/3 deduction for personal expenses from income in computation of compensation

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the deceased, aged 31 with a Ph.D. in Photonics and substantial international exposure, qualifies for the higher multiplier of 16 under Sarla Varma. They submit that the deceased’s income should be treated as Rs.3,000 per month (the research stipend) and after a one-third deduction for personal expenses, the multiplicand would be Rs.2,000, leading to a larger compensation. They emphasize future employment prospects abroad and potential migration as substantial factors justifying enhanced compensation. They rely on the appellate observations in MACA 497/2005 recognizing the need to consider higher income and multiplier given qualifications and prospects.

Contentions of Respondents

Countering that the deceased was not employed at the time of the accident and that the mother was not a dependent, the respondents argue the Tribunal rightly treated the stipend as limited income. They assert that the multiplier should be based on actual employment status and existing dependencies, thereby resisting a substantial enhancement. They point to the earlier award and the need to avoid speculative exaggeration of future earnings.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sarla Varma v. Delhi Transport CorporationKLT 802 (SC) (2010)PositiveCited to apply the multiplier principle in calculating compensation, guiding the court to adopt a higher multiplier (16) given the deceased’s qualifications and prospects.

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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 T.R.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH** **WEDNESDAY, THE 17TH DAY OF JUNE 2015/27TH JYAISHTA, 1937** ## **MACA.No. 1265 of 2005 ( )** ## **-------------------------AGAINST THE AWARD IN OP(MV) 2636/1996 OF MOTOR ACCIDENTS CLAIMS TRIBUNAL,ERNAKULAM DATED 07-04-2004** ## **APPELLANTS/PETITIONERS::** **------------------------------------------------------------------------** **1. REJI PHILIP, S/O. PHILIP K. ANTONY AGED 40, PAINGOTTY HOUSE, CHENAPPADI P.O. KANJIRAPPALLY.** **2. RETNAM. P. MENON, AGED 60 YEARS, RETNA DEEPIKA, KADEKUZHI HOUSE, KUNDANNOOR MARADU P.O.[DIED]** ## **ADDITIONAL APPELLANTS 3 & 4 IMPLEADED:** ## **ADDL. APPELLANT NO.3:** **SUDHA, D/O. LATE RETNAM P. MENON, AGED 48 YEARS, 37/1510 BHATTATHIRIPAD ROAD, KALOOR POM, KOCHI 682 017** ## **ADDL. APPELLANT NO.4:** **RATHY MENON, D/O. LATE RETNAM P. MENON, AGED 50 YEARS RETNA DEEPIKA, KADEKUZHI HOUSE, KUNDANNOOR, MARADU P.O. KOCHI 682 304.** **ARE IMPLEADED AS ADDITIONAL APPELLANT 3 AND 4, BEING THE LRs OF THE DECEASED 2ND APPELLANT AS PER ORDER DATED 12.6.2015 IN I.A.NO.1911/2015.** ## **BY ADV. SRI.K.V.JAYACHANDRAN** ## **RESPONDENTS/RESPONDENTS:** ## **----------------------------** ## **1. YATHEENDRADAS, PANDAVANAPARAMBIL HOUSE BOLGATTY DESOM, MULAVUKAD VILLAGE.** ## **2. SUNIL KUMAR, AGED 34 YEARS, PARUTHIYEZHATHU HOUSE, EDAVANAKKAD VILLAGE VYPPIN KARA.** ## **MACA.No. 1265 of 2005 ( )** ## **3. THE UNITED INDIA INSURANCE COMPANY** ## **LIMITED, COCHIN-31.** ## **R3 BY ADV. SRI.JOHN JOSEPH VETTIKAD** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 17-06-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **shg/** ## **T.R. RAMACHANDRAN NAIR & K.P. JYOTHINDRANATH, JJ.** **- - - - - - - - - - - - - - - - - - - - - - - M.A.C.A. No.1265 of 2005** **- - - - - - - - - - - - - - - - - - - - - - - Dated this the 17[th] day of June, 2015** ## **J U D G M E N T** ## **K.P. Jyothindranath, J.** This appeal is preferred by the claimants in O.P.(M.V.) No.2636/1996 on the file of the Motor Accidents Claims Tribunal, Ernakulam challenging the quantum. When the appeal came up for hearing, the learned counsel for the appellants submitted before us that a young woman aged 31 years, who was holding Ph.D in Photonics, met with a motor vehicle accident on 4.12.1995 and succumbed to the injuries. The husband and mother of the deceased filed the compensation claim claiming a total compensation of Rs.10 lakhs. The Tribunal has awarded only a sum of Rs.1,64,000/-. Aggrieved by the same, this appeal preferred. 2. The case of the appellants is that even though she was aged 31 years, multiplier of 12 alone is considered by the Tribunal. Going by the decision of the Apex Court in **Sarla Varma v. Delhi Transport Corporation [2010 (2)** M.A.C.A. No.1265 of 2005 **-2-** **KLT 802 (SC)** the multiplier will be 16. It is also the submission that she was a Ph.D. holder in Photonics from Cochin University of Science and Technology. Thereafter she had undergone training in Quality Control of Seafoods from the Central Institute of Fisheries Technology. She also participated in so many other symposiums. Further submission is that her skill was assessed by the Department of Employment, Education and Training in Australia. It is an indication that she is entitled for employment and migration to Australia. It is also the submission that she was working in Germany during the period from 2.5.1994 to 20.9.1995 and at that point of time she was earning an income of Rs.40,000/- per month. It is also the submission that after return from abroad, she was awarded Research Associateship by the Council of Scientific and Industrial Research, New Delhi on a monthly stipend of Rs.3,000/-. While she was conducting this research, she met with the above accident. Even though at the time of accident, she was receiving a stipend of Rs.3,000/-, the Tribunal only took M.A.C.A. No.1265 of 2005 **-3-** a monthly income of Rs.1,500/- and used the multiplier of 12. 3. On the other hand the learned counsel for the Insurance Company vehemently submitted before us that there was no issues. Admittedly the first appellant remarried a woman in 2001. It is the further submission that the mother is aged 75 years now. It is also the submission that she was not a dependent of the deceased. She is having other male children. Considering all these aspects, the court used its discretion and took the multiplier of 12. It is an admitted case that deceased was not employed at that point of time. The case is that she was getting a research fellowship of Rs.3,000/- . When it is a research fellowship, the whole amount cannot be treated as income. Under such circumstances, the Tribunal took only Rs.1,500/- as income. 4. It is an admitted case that appeal preferred by the Insurance Company before this Court in respect of the same award is dismissed by order dated 23.6.2005 in M.A.C.A. No.1265 of 2005 **-4-** ## M.A.C.A.No.497/2005. While the said appeal was ## dismissed, this Court opined as follows: “But, we are of the opinion that the multiplicant is very low. Even, the stipend she was getting at the time of accident was Rs.3,000/- is also taken, after deducting 1/3[rd] for personal expenses, Rs.2,000/- could have taken as multiplicant instead of Rs.1000/-. Then the effective multiplier is only six. In fact, in view of her qualification, future prospects early employment in foreign country etc. a much better amount could have been taken as multiplicant. We are of opinion that the amount of compensation awarded is on the lower side.” What comes out is that this Court considered the aforesaid aspect. Surely it is a fact that even though there was high potential for the deceased, there was no employment at the time of accident. It is a fact that when research stipend is obtained a portion of the same is intended to be utilised for the research purposes. Considering the potential of the deceased as well as all other attending circumstances, including the view of this Court while disposing of the Insurance Company's appeal, we feel that an amount of Rs.3,000/- per month can be considered as income of the deceased for the purpose of calculating the compensation. In the light of the decision in Sarla Varma's case (supra) M.A.C.A. No.1265 of 2005 **-5-** the multiplier will be 16. After considering the admitted marriage of the first appellant claimant and the fact that the accident occurred in the year 1995, we re-fix the compensation as follows: |**Head of Claim**|**Amount awarded in**<br>**Rs.**| |---|---| |Loss of dependency|3000 x 12 x 16 x 2/3<br>384000| |Transportation|3000| |Funeral expenses|15000| |Pain and suffering|10000| |Loss of consortium|25000| |Loss of love and affection|50000| |Total|**487000**<br>**(Rupees four lakhs**<br>**eighty seven**<br>**thousand only)**| Accordingly, the total compensation is fixed as Rs.4,87,000/- (Rupees four lakhs eighty seven thousand only) at the rate of 9% interest per annum for the enhanced compensation from the date of filing of the petition till realisation. Out of the total enhanced compensation, the additional appellants are granted a total amount of Rs.50,000/- (Rupees fifty thousand only) along with interest M.A.C.A. No.1265 of 2005 **-6-** which shall be shared equally among them and the balance amount shall be entitled to the first appellant at the same rate of interest. There will be a direction to the Insurance Company to deposit the amount of compensation, less the amount already deposited, before the Tribunal within a period of three months and we permit the claimants to withdraw the amount when the amount is deposited by the Insurance Company. The appeal is accordingly allowed. There will be no order as to costs in the appeal. Sd/- **T.R. RAMACHANDRAN NAIR JUDGE** Sd/- ## **K.P. JYOTHINDRANATH** ## **JUDGE** //True copy// P.A. TO JUDGE shg/