High Court of KeralaSingle JudgeMACA stands allowed accordingly. Enhanced compe...

MACA NO. 1703 OF 2017

Case / Petition Number:MACA NO. 1703 OF 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • MARY JOSEPH
Judgment Date
2023-10-27
Court Decision / Holding
MACA stands allowed accordingly. The High Court enhanced the deceased’s monthly income to Rs 11,000 and replaced the 50% future-prospects addition with 40%, recomputing the compensation. It determined the total additional compensation as Rs 10,53,600, with interest at 7.5% per annum from the date of filing until realisation, directing payment by the 3rd respondent within two months from certified copy of the judgment as per Circular No.03/2019 (2019).
Final Disposition
MACA stands allowed accordingly. Enhanced compensation computed and directed to be paid within two months with interest @ 7.5% p.a. from filing date until realisation; payment to be made under Circular No.03/2019 (2019).

Parties to the Case

Appellants / Petitioners

  • Savitha
  • ASWATHY
  • ASWABTGM
  • MUKUNDAN
  • SARADA

Respondents

  • The New India Assurance Co. Ltd., Calicut (PIN 673001)

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.ZUBAIR PULIKKOOL

Counsels for Respondents

  • • SHRI.LAL K.JOSEPH, SC
  • • LAL K JOSEPH
  • • SURESH SUKUMAR(K/634/1997)
  • • ANZIL SALIM(K/000447/2018)

Case Synopsis & Summary

This appeal under MACA No. 1703 of 2017 challenges the Motor Accidents Claims Tribunal, Vatakara award in O.P.(M.V) No.403 of 2014. The petitioners, Savitha, Aswathy, ASWABTGM, Mukundan and Sarada, represented by Adv. Zubair Pulikool, claimed compensation for the death of Shagesh, a skilled painter, in a road accident on a national highway when his motorcycle KL-19-AA-1151 was hit by lorry KL-57-H-1558 driven rashly. The Tribunal awarded compensation but the petitioners contend the quantum was inadequately determined: the deceased’s earnings were not credibly established, and the monthly income was fixed at Rs 5,000 on a notional basis; the Tribunal added 50% for future prospects, whereas the petitioners seek 40%. They challenge the conventional heads, contending that the award should reflect the principles laid down in Pranay Sethi (SC) for loss of estate, funeral expenses, and loss of consortium, and that the dependency calculation should reflect a larger income base given five dependants. The respondents contend that the accident resulted from the deceased’s negligence and dispute the higher income and heads claimed; they argue that the petitioners are not entitled to pain and suffering/love & affection beyond what was awarded. The High Court reevaluates evidence, enhances monthly income to Rs 11,000, reduces future prospects to 40%, and recalculates compensation, arriving at Rs 10,53,600 as total additional compensation with 7.5% interest. MACA is allowed accordingly, with payment within two months of copy of judgment under Circular No. 03/2019."

Legal Doctrines & Maxims

  • Pranay Sethi guidelines for compensation in motor accident claims (loss of estate, funeral expenses, loss of consortium, and future prospects)
  • Deduction of personal expenditure (¼th) in dependency calculations

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the MACT award under-compensated the dependants by fixing an unrealistically low monthly income of Rs 5,000 for the deceased, despite pleadings showing a skilled painter earning around Rs 30,000 per month. They urge re-fixation to Rs 11,000 per month and a 40% addition for future prospects, in line with Pranay Sethi guidelines. They criticize the Tribunal’s deduction for personal expenditure (¼th) and emphasise five dependants (spouse, two minors and parents) to compute dependency. They rely on Neeta Kadolkar (2015 KHC 4027) as persuasive authority and on Pranay Sethi for conventional heads such as loss of estate, funeral expenses and loss of consortium, contending that compensation for pain and suffering, and love and affection should be appropriately recognized or enhanced." ,

Contentions of Respondents

The respondents submit that the accident occurred due to negligence of the deceased riding the motorcycle, and the insurer’s policy remains valid. They object to the higher monthly income without direct proof and oppose 50% as the rate of future prospects, urging 40% as appropriate. They contend that the petitioners, as legal representatives, are not entitled to compensation for pain and suffering and love and affection beyond what the Tribunal awarded. They challenge the recalculation and argue to maintain the lower, original framework of the award. They emphasize the insurer’s liability under the policy and argue that the court should not award additional heads beyond those already provided, noting the lack of direct evidence of the deceased’s job and the evidence’s insufficiency to establish earnings."

Cited Precedents (2)

Case NameCitationTreatmentExplanation
National Insurance Co. Ltd. v. Pranay Sethi and Others2017 (4) KLT 662 (SC)PositiveUsed as the governing guideline for conventional heads (loss of estate, funeral expenses, loss of consortium) and for determining appropriate amounts and future-prospects in compensation, as recognised by the High Court in this judgment.
Neeta W/o Kallappa Kadolkar and Others Vs. Divisional Manager, MSRTC, Kolhapur2015 KHC 4027Mentioned OnlyCited by counsel to support higher income/dependency arguments but not adopted or followed by the court; used as persuasive authority only.

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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 MRS. JUSTICE MARY JOSEPH`** ## **`FRIDAY, THE 27[TH] DAY OF OCTOBER 2023 / 5TH KARTHIKA, 1945`** ## **`MACA NO. 1703 OF 2017`** ``` AGAINST THE AWARD DATED 20.12.2016 IN O.P(M.V) NO.403/2014 OF MOTOR ACCIDENTS ``` ## **`CLAIMS TRIBUNAL, VATAKARA`** ## **`APPELLANTS / PETITIONERS:`** ``` 1SAVITHA, AGED 33 YEARS W/O LATE SHAGESH, AGED 33 YEARS, VALLAMPRATH HOUSE,PUTHUPPANAM, SIDDHANDAPURAM,VATAKARA-673 105. 2ASWATHY, D/O.LATE SHAGESH,AGED 9 YEARS, MINOR,REP.BY IST PETITIONER MOTHER,VALLAMPRATH HOUSE,PUTHUPPANAM,SIDDHANDAPURAM,VATAKARA-673105. 3ASWABTGM S/O.LATE SHAGESH,AGED 4 YEARS, MINOR,REP.BY 1ST PETITIONER MOTHER,VALLAMPRATH HOUSE,PUTHUPPANAM,SIDDHANDAPURAM,VATAKARA-673105. 4MUKUNDAN F/O LATE SHAGESH,AGED 61 YEARS,VALLAMPRATH HOUSE,PUTHUPPANAM,SIDDHANDAPURAM,VATAKARA-673105. 5SARADA M/O LATE SHAGESH,AGED 51 YEARS,VALLAMPRATH HOUSE,PUTHUPPANAM,SIDDHANDAPURAM,VATAKARA-673105. BY ADV SRI.ZUBAIR PULIKKOOL ``` ## **`RESPONDENT/RESPONDENT:`** ``` THE NEW INDIA ASSURANCE CO. LTD., KANNOOR ROAD,CALICUT,PIN-673001. ``` ``` BY ADVS. SHRI.LAL K.JOSEPH, SC, NEW INDIA ASSURANCE COMPANY LTD. LAL K JOSEPH SURESH SUKUMAR(K/634/1997) ANZIL SALIM(K/000447/2018) ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 27.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO. 1703 OF 2017 ``` ``` 2 ``` ## JUDGMENT ## Dated this the 27[th] day of October 2023. The appeal on hand is directed against an award passed by the Motor Accidents Claims Tribunal, Vatakara (for short, 'the Tribunal') in O.P.(M.V) No.403 of 2014. 2. For the sake of convenience, the parties to this appeal will hereinafter be referred to as petitioners 1 to 5 and respondents 1 to 3 in accordance with their status in the Original Petition. 3. As per the averments in the Original Petition, one Mr.Shagesh aged 34 years while travelling in his Motorcycle bearing Registration No.KL-19-AA-1151 through Kalaripadi National Highway was hit by a Lorry bearing Registration No.KL-57-H-1558, which was driven by its driver in a rash and negligent manner. He sustained serious injuries and succumbed to those at the spot of accident itself. Alleging that the motor accident was occurred due to the rash and negligent ``` MACA NO. 1703 OF 2017 ``` ``` 3 ``` driving of the Lorry by its driver and claiming a total sum of `1,70,000/- as compensation, the above Original Petition was filed. 4. All respondents were served with notice but 2[nd] respondent remained absent and therefore was declared as ex parte. 1[st] and 3[rd] respondent filed written statement raising identical contentions which includes that the motor accident was occurred due to negligence of Mr.Shagesh himself and not due to negligence of the 2[nd] respondent. Compensation claimed is also disputed for its exorbitant nature. Issuance of a policy in respect of Lorry bearing Registration No.KL-57-H-1558, covering the date of accident was admitted. 5. The quantum of compensation stood awarded by the Tribunal is under challenge for the reasons mainly that adequate monthly income was not considered for the purpose of arriving at the compensation. Contention secondly raised was that though the petitioners are entitled to get compensation under the conventional heads as directed by the Apex Court in National Insurance Company Ltd. v. Pranay Sethi and ``` MACA NO. 1703 OF 2017 ``` ``` 4 ``` Others [2017 (4) KLT 662 (SC)] , the Tribunal failed to award those in favour of them. 6. The learned counsel for the 3[rd] respondent has raised a contention that 50% was added to the monthly income of the victim by the Tribunal in consideration of loss of future prospects in the place of 40%, the addition actually required. The learned counsel has also pointed out that the petitioners being legal representatives of the victim who died in the motor accident are not entitled to get compensation towards pain and suffering and loss of love and affection already stood awarded by the Tribunal. 7. In the backdrop of the rival contentions, this Court has gone into the evidence on record. It is found therefrom that evidence is not forthcoming to establish the job as well as monthly income of the deceased at the relevant time of the motor accident. As per the pleadings of the petitioners in the Original Petition, the victim of the motor accident was a skilled painter earning `30,000/- monthly. It is noticed from the ``` MACA NO. 1703 OF 2017 ``` ``` 5 ``` impugned award that the Tribunal has taken `5,000/- as the monthly income of the victim on a notional basis. It is contended by the learned counsel that the deceased was survived by five members including his wife, two minor children and parents. The surviving members being five in numbers, the Tribunal is totally unjustified in fixing the monthly income as `5,000/- and calculating compensation on its basis. He canvassed for re-fixation of the monthly income as `12,000/-. Neeta W/o Kallappa Kadolkar and Others Vs. Divisional Manager, MSRTC, Kolhapur [2015 KHC 4027] was also relied on by him to fortify his argument. 8. It is noticed by this Court that the deceased was survived by five members but no evidence was adduced to establish that the deceased was the only son of his parents and they were residing with him at the relevant time of the motor accident. Nevertheless, the monthly income fixed notionally appears to this Court too low, since it was considered with reference to the year 2014, the year in which the motor accident in question was occurred. Therefore, this Court is inclined to ``` MACA NO. 1703 OF 2017 ``` ``` 6 ``` enhance the monthly income to `11,000/- and do accordingly. As rightly pointed out by the learned counsel for the 3[rd] respondent, 50% added by the Tribunal in consideration of loss of future prospects being incorrect, is replaced by 40%. 9. The Constitution Bench of the Apex Court has held in National Insurance Company Ltd. v. Pranay Sethi and Others [2017 (4) KLT 662 (SC)] that the petitioners are entitled to get `16,500/- each as compensation towards loss of estate and funeral expenses and `44,000/- for loss of consortium to the surviving members who would come within the categories of spouse, children and parents. 10. This Court has already decided to enhance and re-fix the monthly income to `11,000/- and to add 40% to that in consideration of future prospects. Thus `15,400/- (`11,000/- + 40% of `11,000/-) is arrived at. 11. The deceased being survived by five members and therefore, ¼[th] needs to be deducted in consideration of personal expenditure liable to be met with by him, had he been alive. When compensation for loss of dependency is calculated ``` MACA NO. 1703 OF 2017 ``` ``` 7 ``` based on the modified factors as above, `22,17,600/(`15,400/- x 12 x 16 x ¾) is arrived at. `11,52,000/- stood awarded by the Tribunal when adjusted against, the petitioners will get `10,65,600/- (`22,17,600/- - `11,52,000/-) as additional compensation under that head. 12. In the case on hand, the surviving members includes the wife, two minor children and parents of the deceased. Therefore each of them are entitled to get `44,000/- as compensation towards loss of consortium and thus `2,20,000/- (`44,000/- x 5) is arrived at. `1,00,000/- stood awarded by the Tribunal when adjusted against the sum now arrived at, the petitioners will get `1,20,000/- (`2,20,000/- - `1,00,000/-) as additional compensation towards loss of consortium. 13. The Tribunal has awarded `25,000/- each as compensation towards funeral expenses and loss of estate, against the entitlement of the petitioners for `16,500/- each. Therefore, `8,500/- each stood awarded by the Tribunal in ``` MACA NO. 1703 OF 2017 ``` ``` 8 ``` excess need to be deducted from the total additional compensation arrived at as payable. 14. It is settled position that the petitioners, the legal representatives of the victim who died in the motor accident are not entitled to get compensation towards loss of love and affection and pain and suffering. Therefore, `1,15,000/(`1,00,000/- + `15,000/-) stood awarded by the Tribunal as compensation under the above heads is deducted from the total sum arrived at as additional compensation. 15. In the above manner of calculation of compensation afresh, the petitioners will get `10,53,600/- (Rupees Ten Lakh Fifty three thousand six hundred only) [(`10,65,600/- + `1,20,000/-) - (`8,500/- + `8,500/- + `1,15,000/-)] as total additional compensation. It will also carry interest at the rate of 7.5% per annum from the date of filing of the Original Petition till the date of realisation. The 3[rd] respondent shall pay the above amount within two months from the date of receipt of a certified copy of this judgment, in accordance with the ``` MACA NO. 1703 OF 2017 ``` ``` 9 ``` directions issued by this Court in Circular No.03/2019 dated 06.09.2019. M.A.C.A stands allowed accordingly. ``` Sd/- ``` MARY JOSEPH JUDGE JJ