High Court of KeralaDivision BenchPartly allowed: Appellants’ appeal allowed in p...

MACA No. 1304 of 2011 (Appellants: Sheela and others) vs Respondents: S.A. Jebin; Robinson John; The National Insurance Co. Ltd; K.V. Johnson; Sasi; The National Insurance Company Ltd; original claim OPMV.2879/2004 of the Motor Accident Claims Tribunal, Thrissur

Case / Petition Number:MACA No.1304 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • K. Surendra Mohan
Judgment Date
2011-09-06
Court Decision / Holding
i) This appeal is allowed in part. ii) In supersession of the Tribunal’s impugned award, the appellants are found entitled to Rs.4,89,000 as total compensation. iii) The entire amount shall carry interest at 7.5% per annum from the date of the claim to realisation, along with proportionate costs as indicated in Jeena v. Satheesh Babu (MACA No.946 of 2011). iv) All other directions of the Tribunal are upheld.
Final Disposition
Partly allowed: Appellants’ appeal allowed in part; total compensation fixed at Rs.4,89,000 with 7.5% interest from claim date to realisation and proportionate costs; Tribunal directions on liability and other aspects upheld.

Parties to the Case

Appellants / Petitioners

  • Sheela; Alosious (minor); Aleesha (minor); Joseph (minor); Venonica

Respondents

  • S.A. Jebin
  • Robinson John
  • The National Insurance Co. Ltd, Divisional Office, Thrissur
  • K.V. Johnson
  • Sasi
  • The National Insurance Company Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V. Binoy Ram

Counsels for Respondents

  • • Sri Mathews Jacob, Senior Advocate for R3 & 6
  • • Sri P. Jacob Mathew for R3 & 6
  • • Sri M.A. George

Case Synopsis & Summary

This Kerala High Court MACA concerns a claimants’ appeal against Motor Accident Claims Tribunal (Thrissur) award in OPMV.2879/2004, arising from a fatal motor-accident on 7 April 2004. The claimants—wife and four minor children (represented by their mother) and the mother of the deceased—sought just compensation for the death of a 34-year-old auto mechanic who allegedly earned Rs. 4,500 per month; Ext. A8 rent deed was the only supporting document. The Tribunal awarded Rs. 3,60,000 with 8% interest and made the insurer wholly liable. The appellants contended the award was cryptic, lacking a disclosed basis or joint statement showing agreement on quantum, and thus not a speaking award under Section 168 MV Act. The High Court agreed the award failed to disclose the process of reasoning and, applying Sarla Verma and other precedents on income estimation and deduction, recalculated the compensation. It fixed monthly income at Rs.3,000, applied a 16: multiplier for age 30–35, and deducted 1/4 for personal expenses, adding heads like loss of dependency, loss of consortium, love and affection, and loss of estate, along with funeral and transportation costs. The result is Rs.4,89,000 total compensation, with interest at 7.5% and proportional costs, while upholding other Tribunal directions.

Provisions of Law Cited

Motor Vehicles Act, 1988, Section 168Second Schedule to the MV Act, Clause 6(b)

Legal Doctrines & Maxims

  • Requirement of a speaking/ reasoned award under Section 168 MV Act
  • Sarla Verma v. Delhi Transport Corporation: multiplier principle (16 for age 30–35)
  • Presumption under Clause 6(b) of the Second Schedule to the MV Act for income estimation
  • Deduction of 1/4 of income towards personal expenses (Sarla Verma framework)
  • Consideration of loss of dependency, loss of consortium, love and affection, loss of estate; use of precedents (Lata Wadhwa, Laxmi Devi) for income estimation

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal did not apply its mind to quantum, failed to record any agreement or joint statement, and thus delivered a cryptic, non-speaking award. They contended Section 168 MV Act requires just compensation based on reasoned evidence and process, and that the matter should be remitted for a speaking award or adjudicated on merits using the available inputs (evidence like Ext.A8). They urged adoption of the Sarla Verma framework (16 multiplier for age 30–35) and, relying on Lata Wadhwa and Laxmi Devi, to estimate income at Rs.3,000 monthly, with 1/4 deduction for personal expenses, to compute loss of dependency and other heads, culminating in Rs.4,89,000. They also supported awarding 7.5% interest and costs as per Jeena v. Satheesh Babu’s standard.

Contentions of Respondents

The respondents (insurers) conceded liability to satisfy the award but opposed raising the quantum. They argued the Tribunal’s basis (para 11) shows Rs.3,60,000 was arrived at after discussion on documentary evidence, not via any agreement or joint statement, implying that the award reflected the evidence before it. They contended for maintaining the Tribunal's directions, maintaining that the insurer’s liability remains intact and the court should not substitute its own quantum absent a properly reasoned order.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveSupreme Court multiplier guideline (16) for age group 30–35; used to compute loss of dependency and to justify the 16 multiplier in this case.
Lata Wadhwa v. State of BiharAIR 2001 SC 3218PositiveCited to support the approach that a non-earning home maker or unskilled worker may have a calculable monthly income (used to influence Rs.3,000 monthly figure).
Laxmi Devi & Ors. v. Mohammad Tabbar & Anr.2008 ACJ 1488PositiveCited for income estimation principles guiding Rs.3,000 monthly income in the absence of stronger evidence.
Jeena v. Satheesh BabuMACA No.946 of 2011 (unreported) dated 12.08.2011PositiveCited for award of proportionate costs and established practice on awarding interest; used to justify Jeena-based costs framework.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against MACA No. 1304 of 2011 (Appellants: Sheela and others) vs Respondents: S.A. Jebin; Robinson John; The National Insurance Co. Ltd; K.V. Johnson; Sasi; The National Insurance Company Ltd; original claim OPMV.2879/2004 of the Motor Accident Claims Tribunal, Thrissur and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN TUESDAY, THE 6TH SEPTEMBER 2011 / 15TH BHADRA 1933 MACA.No. 1304 of 2011() ----------------------OPMV.2879/2004 of MOTOR ACCIDENT CLAIMS TRIBUNAL, THRISSUR .................... APPELLANTS : APPELLANT/PETITIONERS. ------------------------------------ 1. SHEELA,W/O.LATE LORENZ, KUNDUKULAM HOUSE PONGANAMKAD P.O.,THRISSUR. 2. ALOSIOUS (MINOR),S/O.LATE LORENZ, KUNDUKULAM HOUSE, PONGANAMKAD P.O.,THRISSUR, REP. BY GUARDIAN MOTHER SHEELA. 3. ALEESHA (MINOR), S/O.LATE LORENZ, KUNDUKULAM HOUSE, PONGANAMKAD P.O., THRISSUR, REPRESENTED BY GUARDIAN MOTHER SHEELA. 4. JOSEPH (MINOR), S/O.LATE LATE LORENZ, KUNDUKULAM HOUSE, PONGANAMKAD P.O., THRISSUR, REPRESENTED BY GUARDIAN MOTHER SHEELA. 5. VENONICA,W/O.LATE LONAPPAN, KUNDUKULAM HOUSE, PONGANAMKAD P.O., THRISSUR. BY ADV. SRI.V.BINOY RAM RESPONDENTS : RESPONDENTS - --------------- 1. S.A.JEBIN, SEVANKUZHI HOUSE, POTTUCHIRA P.O., KARUVANNUR,THRISSUR-680 711. 2. ROBINSON JOHN,S/O.JOHN VARGHESE, ARACKAL HOUE, CHUVANNAMANNU DESOM, PEECHI VILLAGE, THRISSUR DISTRICT, P.O.PECHI - 680 653. 3. THE NATIONAL INSURANCE CO. LTD, DIVISIONAL OFFICE, THRISUR – 680 001. 4. K.V.JOHNSON, KURUTHUKULANGARA HOUSE, - P.O.PARAPPUR, THRISSUR DISTRICT. MACA.No. 1304 of 2011 - 2 - 5. SASI, S/O.BALAN,THARAYIL HOUSE, KUTTANELLUR DESOM, MARATHAKKAR VILLAGE, THRISSUR-680 014. 6. THE NATIONAL INSURANCE COMPANY LTD, AMBIKA ARCADE, M.G.ROAD, THRISSUR-680 001. - ADV. SRI.MATHEWS JACOB, SENIOR ADVOCATE FOR R3 & 6 SRI.P.JACOB MATHEW FOR R3 & 6 SRI.M.A.GEORGE THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 06/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **R.BASANT & K.SURENDRA MOHAN, JJ. ************************* ## **M.A.C.A No.1304 of 2011** ## ********************************* Dated this the 6[th] day of September, 2011 ## **JUDGMENT** ## BASANT, J. The claimants are the appellants. They are the wife aged 30 years, three minor children, aged 6 years, 4 ½ years and 3 years and mother of the deceased person who suffered injuries in a motor accident, which took place on 7/4/2004. He succumbed to the injuries on his way to the hospital. He was allegedly running a workshop as an auto mechanic. He was aged between 30 and 35 years (34 to be exact). It was claimed that his monthly income was Rs.4,500/-. No better evidence was produced in support of that assertion except a rent deed to show that he had taken the premises for lease to run such business activity. Ext.A8 is the rent deed. 2. Exts.A1 to A10 were marked on the side of the claimants. No other evidence was adduced. 3. The Tribunal by the impugned award directed 2 **M.A.C.A No.1304 of 2011** payment of Rs.3,60,000/- as compensation. The said amount was directed to be paid along with interest at the rate of 8% per annum from the date of the claim to the date of payment/realisation. The insurance company was made entirely liable to satisfy the award. 4. We have heard the learned counsel for the appellants/claimants and the learned counsel for the 3[rd] respondent/insurance company. We repeat that the liability of the 3[rd] respondent to satisfy the award is not disputed. The challenge is raised only against the quantum of compensation. 5. Called upon to explain the challenge and be specific, the learned counsel for the appellants submits that the Tribunal had not applied its mind to the quantum of compensation payable. It is impossible to ascertain why the Tribunal has directed payment of an amount of Rs.3,60,000/-. The only basis/reason/rationale is available in para.11 of the impugned award which we extract below: “11. In the discussion held in the Tribunal, among the learned counsel for the petitioners and the 3[rd] respondent on the basis of the documentary evidence on record, Rs.3,60,000/- was arrived at as compensation 3 ## **M.A.C.A No.1304 of 2011** payable to the petitioners. Therefore, the petitioners are found entitled to get Rs.3,60,000/- as compensation from the respondents. Issue No.2 is answered accordingly.” 6. The learned counsel for the appellants submits that the appellants had not agreed to any amount of compensation. There was no agreement and no joint statement was filed by the parties. The Tribunal in para.11 only says that there were discussions on the quantum of compensation and an amount of Rs.3,60,000/- “was arrived at” as compensation payable. Who arrived at that figure? On what basis was the figure arrived at? We get no answers from the impugned award. The learned counsel for the appellants asserts that there was n agreement on the part of the claimants or their counsel and no joint statement was filed at all. No endorsement was made by their counsel also, submits counsel. 7. The responsibility of the Tribunal, in these circumstances, to pass a speaking award cannot be doubted or disputed. Under Section 168 of the Motor Vehicles Act, the law mandates that the Tribunal must award just compensation. Mind is to be applied to the facts to arrive at the just compensation. 4 **M.A.C.A No.1304 of 2011** The manner and process of reasoning - how mind happens to be applied to the facts, must be revealed in a reasoned judgment/award. The impugned award suffers precisely from that vice, namely, that the award does not speak. It is cryptic. If parties had agreed on the amount of compensation, the Tribunal should have insisted that the parties must file a joint statement. At least endorsements must have been insisted from counsel that there was an agreement on the quantum of compensation payable. The impugned award does not say so. The learned counsel for the appellants stoutly denies the suggestion that there was any such agreement on the quantum of compensation payable. 8. It is true that the Tribunals are hard pressed for time. There is a lot of pressure on them to turn out greater quantum of work. The long queue before the Tribunals acts as pressure on the conscientious presiding officer. But that pressure or demand cannot persuade the Tribunals to commit the indiscretion of passing awards like the instant one without proper application of mind. It is impossible for us sitting as an appellate court to ascertain the process of reasoning by which the Tribunal arrived at the figure of 3,60,000/-. The purpose of an appeal would be 5 **M.A.C.A No.1304 of 2011** defeated if there is no reasoned award passed by the Tribunal. We are, in these circumstances, satisfied that the challenge against the impugned award is justified. We do not expect the Tribunals to pass such awards. 9. Since there is no application of mind by the Tribunal, we thought that the matter may have to be sent back to the court below. The learned counsel for the appellants points out that the accident had taken place on 07.04.2004 and the appellants have been waiting in the queue for the past 7 years before the matter was ultimately disposed of. All the materials are available. Virtually there is no serious dispute on the relevant inputs. In these circumstances, this Court may not send the matter back to the Tribunal. The matter may be disposed of on merits on the available inputs, submits the learned counsel for the appellants. The learned counsel for the 3[rd] respondent/insurer also does not dispute the advantage of following such course. We are, in these circumstances, satisfied that this Court must try to put an end to the litigation by taking upon our shoulders the responsibility to ascertain the quantum of compensation payable. 10. There must certainly have been damage to clothing and personal property. We are satisfied, in the absence of any **M.A.C.A No.1304 of 2011** 6 better evidence, that an amount of Rs.1,000/- can be awarded under the head of damage to property. From the spot of the accident, the victim was taken to the hospital, where he was pronounced dead. The body necessarily had to be taken for funeral. We are satisfied that an amount of Rs.6,000/- can be fixed as the quantum of compensation payable under that head – of transportation and funeral expenses. 11. For pain and suffering endured by the deceased, the appellants are entitled to compensation and considering the nature of injuries and the short period of time between the accident and death, we are satisfied that an amount of Rs.10,000/- can be awarded under the head of pain and suffering. 12. The deceased was a person, aged 34 years – falling within the age group of 30-35 years. **Sarla Verma v. Delhi Transport Corporation** [(2009) 6 SCC 121] prescribes 16 to be the multiplier applicable to such persons. About the quantum of monthly income, there is serious dispute. The claimants assert that the deceased was earning an amount of Rs.4,500/- per mensem. The insurance company asserts that the amount of Rs.2,500/- taken by the Tribunal is sufficient. We have **M.A.C.A No.1304 of 2011** 7 considered this question. We take note of the presumption available under clause 6 (b) of the Second Schedule to the M.V Act, which enables the Court to assume that even a non earning person as early as in 1994 must have been able to earn a monthly income of Rs.1,250/-. The learned counsel for the appellants also relies on the precedents in **Lata Wadhwa V. State of Bihar** [AIR 2001 SC 3218] and **Laxmi Devi & Ors. V. Mohammad Tabbar & Anr.** [2008 ACJ 1488] under which the Supreme Court has opined that even for a non earning home maker or an unskilled manual worker, Rs.3,000/- can safely be assumed to be the monthly income. In the total absence of any better evidence other than Ext.A8, we are satisfied that the deceased in this case can also be assumed to earn a monthly income of Rs.3,000/-. We can certainly take note of the fact that the family consisting of 3 minors and the spouses were mainly and solely depending on such income in addition to the mother of the deceased (5[th] claimant). Out of the monthly income, ¼ is liable to be deducted towards the personal expenses of the deceased as the nuclear family consisted of 5 persons including the parents and minor children – not to speak of the 5[th] claimant, the mother. Following **Sarla Verma** (supra), it is evident that ¼ 8 **M.A.C.A No.1304 of 2011** of the total monthly earnings can be deducted towards the personal expenses of the deceased. 13. The deceased was aged about 34 years. The young wife aged 30 years is entitled to compensation for loss of consortium. We are satisfied, in any view of the matter, that Rs.20,000/- can be awarded under the head of loss of consortium. 14. All the claimants had been deprived of the love, affection, company, patronage and guidance of the deceased. We are satisfied that an amount of Rs.15,000/- can be awarded under the head of loss of love and affection. Under the conventional head of loss of estate, we are satisfied that an amount of Rs.5,000/- can be awarded as compensation taking into account the accretion to the estate which would have enured to the benefit of legal heirs if the deceased had continued to live and earn. 15. We are satisfied, in these circumstances, that the appellants are entitled for a total amount of Rs.4,89,000/- as per the details given below: i) Damage to property : Rs. 1,000.00 ii) Funeral and transportation expenses : Rs. 6,000.00 9 **M.A.C.A No.1304 of 2011** iii) Pain and suffering : Rs. 10,000.00 iv) Loss of dependency : Rs.4,32,000.00 [3000 X 12 X ¾ X 16] v) Loss of consortium : Rs. 20,000.00 vi) Loss of love and affection : Rs. 15,000.00 vii) Loss of estate : Rs. 5,000.00 ---------------------Total : Rs.4,89,000.00 ========= We are satisfied that amounts are not liable to be awarded under any other head. ## 16. In the result: i) This appeal is allowed in part; ii) In supersession of the directions in the impugned award, the appellants are found entitled to a total amount of Rs.4,89,000/- (Rupees Four lakhs eighty nine thousand only) as compensation; iii) We direct that the entire amount of compensation shall carry interest @ 7.5% per annum from the date of the claim to the date of realisation along with proportionate cost as indicated in the unreported judgment in **Jeena v. Satheesh Babu.K** in M.A.C.A No.946 of 2011 dated 12.08.2011 (certified for reporting; 10 ## **M.A.C.A No.1304 of 2011** iv) All other directions of the Tribunal are upheld. **(R.BASANT, JUDGE)** **(K.SURENDRA MOHAN, JUDGE)** rtr/