High Court of KeralaSingle JudgeAppeal Allowed; enhanced compensation awarded; ...

MACA No. 2677 of 2009

Case / Petition Number:MACA No. 2677 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P.B.SURESH KUMAR
Judgment Date
2019-08-27
Court Decision / Holding
The appeal is allowed; the claimants are entitled to Rs.5,55,000/- by way of additional compensation with interest at 7.5% on the enhanced amount. All other directions in the impugned award remain in force, and the Tribunal may issue further directions regarding deposit and disbursal of the additional amount.
Final Disposition
Appeal Allowed; enhanced compensation awarded; matter remitted with directions to deposit/disburse the additional amount.

Parties to the Case

Appellants / Petitioners

  • SURESH (DIED)
  • SULAKSHANA (26 YEARS) D/O. SURESH, PADAYADI HOUSE, P.O.MARATHAKKARA, KOTHORE, THRISSUR-680320
  • SUBITHA (24 YEARS) D/O. SURESH DO-DO-
  • SUNEESH (22 YEARS) S/O. SURESH DO-DO-

Respondents

  • BENNY, S/O PAPPACHAN, KOONATHAN HOUSE, KALADY, ERNAKULAM
  • P.P.VARGHESE, OUTHUSSERY HOUSE, KALADY, ERNAKULAM
  • NATIONAL INSURANCE CO. LTD., 1ST FLOOR, MUNICIPAL SHOPPING COMPLEX, MAIN ROAD, N.PARAVOOR-683513. P.NO.571001/31/04/6307530 VALID FROM 21-9-04 TO 21-9-05

Legal Representation & Advocates

Counsels for Petitioners

  • • SHEJI P.ABRAHAM

Counsels for Respondents

  • • SMT.SARAH SALVY

Case Synopsis & Summary

The appellants, the legal heirs of Latha (42), who died in a motor accident on 15.04.2005, challenged the Motor Accidents Claims Tribunal’s quantum of compensation awarded in OP (MV) No.697/2005 (Rs 2,68,000 out of claimed Rs 6,00,000). The High Court revisited the matter, applying Supreme Court precedents on income estimation and compensation, notably Ramachandrappa (2011) for monthly earnings in the given period and Pranay Sethi’s framework for deductions, future prospects, and the multiplier. The court held that, given the 2005 accident, the deceased’s monthly income should be Rs 4,000 (not Rs 2,000). With four dependants, 1/4 of income was deducted for personal expenses, and 25% added for future prospects, applying a multiplier of 14 (age 42). This yielded a loss of dependency of Rs 6,30,000 (4,000 x 12 x 3/4 x 125/100 x 14). The Tribunal’s Rs 2,40,000 under this head was inadequate, entitling the claimants to Rs 3,90,000 more. Conventional compensation for pain and suffering was increased from Rs 5,000 to Rs 10,000; loss of consortium Rs 35,000; loss of estate and funeral Rs 12,500 each (total Rs 50,000); and loss of love and affection Rs 40,000 per child (enhanced). Following Magma General Insurance Co. v. Nanu Ram, the aggregate additional compensation is Rs 5,55,000 with 7.5% interest; all other Tribunal directions remain. The appeal is allowed on these terms.

Legal Doctrines & Maxims

  • Loss of dependency principle and multiplier method (as refined by Pranay Sethi)
  • Deduction for personal expenses (1/4) and addition for future prospects (25%)
  • Conventional compensation for pain and suffering
  • Loss of consortium, loss of estate, funeral expenses, and love/affection awards (per Pranay Sethi and Magma case)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Tribunal erred in not adopting Rs.4,000 as monthly income for the deceased (as claimed) in 2005, and in applying insufficient amounts under heads of loss of dependency, consortium, estate, funeral expenses, and love/affection. Relying on Ramachandrappa and Pranay Sethi, they argued for higher compensation including future prospects and appropriate multiplier for a 42-year-old, four dependants, and the correct division of income.

Contentions of Respondents

The respondents argued for maintaining the Tribunal’s quantum, citing lack of corroborative income evidence and the need to avoid speculative enhancement, seeking to uphold the award as just and in line with statutory guidelines.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveUsed to fix the deceased’s monthly income at Rs.4,000 for the 2005 accident context.
National Insurance Co. Ltd. v. Pranay Sethi(2017) 4 KLT 662 (SC)PositiveApplied Pranay Sethi framework for deductions, future prospects, and multiplier.
Magma General Insurance Co. Ltd. v. Nanu Ram and Others2018 ACJ 2782PositiveUsed to determine compensation for loss of love and affection; guided per-head awards.

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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 P.B.SURESH KUMAR** **TUESDAY, THE 27TH DAY OF AUGUST 2019 / 5TH BHADRA, 1941** ## **MACA.No.2677 OF 2009** **AGAINST THE AWARD IN OP (MV) NO.697/2005 DATED 09-02-2009 OF MOTOR ACCIDENTS CLAIMS TRIBUNAL, OTTAPPALAM** ## **APPELLANTS/PETITIONERS:** - **1 SURESH (DIED)** - **2 SULAKSHANA (26 YEARS), D/O. SURESH, PADAYADI HOUSE, P.O.MARATHAKKARA, KOTHORE, THRISSUR-680320.** - **3 SUBITHA (24 YEARS), D/O. SURESH DO-DO-.** - **4 SUNEESH (22 YEARS), S/O. SURESH DO-DO-** **BY ADV. SRI.SHEJI P.ABRAHAM** ## **RESPONDENTS/RESPONDENTS:** - **1 BENNY, S/O PAPPACHAN, KOONATHAN HOUSE, KALADY, ERNAKULAM.** - **2 P.P.VARGHESE, OUTHUSSERY HOUSE, KALADY, ERNAKULAM.** - **3 NATIONAL INSURANCE CO. LTD., 1ST FLOOR, MUNICIPAL SHOPPING COMPLEX, MAIN ROAD, N.PARAVOOR-683513. P.NO.571001/31/04/6307530 VALID FROM 21-9-04 TO 21-9-05** 2 ## M.A.C.A No.2677 of 2009 ## **R1 BY ADV. SMT.SARAH SALVY** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 27.08.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** M.A.C.A No.2677 of 2009 3 ## **M.A.C.A No.2677 of 2009** ## **---------------------------------------------** ## **J U D G M E N T** The claimants in a proceedings for compensation before the Motor Accidents Claims Tribunal have come up in this appeal challenging the inadequacy of the quantum of compensation granted by the Tribunal. 2. One Latha aged 42 years died in a motor accident took place on 15.04.2005. It is stated in the claim petition that she was an employee in a tile factory. Her husband and three children were the claimants in the proceedings. A sum of Rs.6,00,000/- was the claim made in the proceedings. As against the said claim, the Tribunal has granted to the claimants a sum of Rs.2,68,000/- by way of compensation. It is aggrieved by the inadequacy of the said compensation that the claimants have come up in this appeal. 3. Heard the learned counsel for the parties. 4. Though it is stated in the claim petition that the deceased was earning a sum of Rs.4,000/- per month, in the 4 ## M.A.C.A No.2677 of 2009 absence of supporting evidence, the Tribunal has reckoned the monthly income of the deceased only at Rs.2,000/- for the purpose of computing the compensation payable to the claimants for loss of dependency. 5. In the absence of any evidence in support of the plea as regards the income of the deceased, in the light of the decision of the Apex Court in **Ramachandrappa** v. **Manager, Royal Sundaram Alliance Insurance Company Limited** , [(2011) 13 SCC 236], where the Apex Court has reckoned the monthly income of a similarly placed person at Rs.4,500/- in the context of the accidents took place in the year 2004, I am of the view that the monthly income of the deceased in the instant case could have been certainly reckoned by the Tribunal at Rs.4,000/-, in the context of the accident took place in 2005, as claimed in the proceedings. In the light of the decision of the Apex Court in **National Insurance Company Ltd v. Pranay Sethi** [2017 (4) KLT 662 (SC)], as the M.A.C.A No.2677 of 2009 5 dependants of the deceased were four in number, one fourth of the income has to be deducted towards personal expenses, and as the deceased was aged above 40 and below 50, 25% of the income reckoned has to be added towards future prospects for arriving at the multiplicand while computing the compensation for loss of dependency. As the deceased was aged 42, the multiplier to be applied for the said purpose is '14'. If compensation for loss of dependency is arrived at on that basis, the same would come to Rs.6,30,000/(Rs.4000x12x3/4x125/100x14). As the Tribunal has granted only a sum of Rs.2,40,000/- towards compensation under that head, the claimants would be entitled to an additional compensation of Rs.3,90,000/-. 6. It is trite that a conventional amount has to be granted in all cases of death towards compensation for pain and suffering. The Tribunal has granted a sum of Rs.5,000/- under that head. Having regard to the facts and circumstances of the M.A.C.A No.2677 of 2009 6 case, according to me, Rs.10,000/- would have been the appropriate compensation payable to the claimants under that head. The claimants are, therefore, entitled to a sum of Rs.5,000/- by way of additional compensation. 7. In the light of the decision of the Apex Court in **Pranay Sethi** , and having regard to the fact that the accident in the instant case is one that took place in the year 2005, I am of the view that the Tribunal should have granted Rs.35,000/- to the husband of the deceased towards compensation for loss of consortium. Similarly, in the light of the said decision, the Tribunal should have granted to the claimants Rs.12,500/towards compensation for loss of estate and Rs.12,500/towards funeral expenses. The Tribunal has granted only a sum of Rs.10,000/- under those heads. The claimants are, therefore, entitled to a further sum of Rs.50,000/- under those heads. 8. Coming to the compensation for loss of love M.A.C.A No.2677 of 2009 7 and affection, in the light of the decision of the Apex Court in **Magma General Insurance Co. Ltd.** v. **Nanu Ram and others** (2018 ACJ 2782) and having regard to the fact that the accident in the instant case is one that took place in the year 2005, I am of the view that the children of the deceased are entitled to a sum of Rs.40,000/- each. As the claimants were granted only a sum of Rs.10,000/- under that head, they are entitled to a sum of Rs.1,10,000/- by way of additional compensation. 9. The compensation granted by the Tribunal under the remaining heads appear to be in order. 10. In short, the claimants are entitled to Rs.5,55,000/- by way of additional compensation. In the result, the appeal is allowed granting to the claimants a sum of Rs.5,55,000/- by way of additional compensation. Needless to say, the claimants will be entitled to interest for the additional compensation at the rate of 7.5%. M.A.C.A No.2677 of 2009 8 It is clarified that all other directions contained in the impugned award will stand. The parties will be at liberty to move the Tribunal for directions as regards deposit of the additional amount of compensation granted and for the disbursal thereof. **Sd/-** **P.B.SURESH KUMAR, JUDGE.** YKB