High Court of KeralaDivision BenchAppeal disposed of; enhanced compensation and r...

M.A.C.A. No. 30 of 2013

Case / Petition Number:M.A.C.A. No. 30 of 2013

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • B. Sudheendra Kumar
Judgment Date
2017-11-10
Court Decision / Holding
The appellants are entitled to an additional compensation of Rs. 3,68,000 with interest at 8% per annum from the date of petition till realization. The amount shall be deposited by the 2nd respondent within three months from receipt of a copy of the judgment, and apportioned among the appellants in the ratio 30:50:20. This appeal is disposed of as above.
Final Disposition
Appeal disposed of; enhanced compensation and related directions (deposit within three months; apportionment 30:50:20; no costs).

Parties to the Case

Appellants / Petitioners

  • Karunakaran
  • Vijayamma W/o. Karunakaran
  • Sreeja D/o. Karunakaran

Respondents

  • Sudhakaran
  • The Managing Director KSRTC

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Anchal C.Vijayan

Counsels for Respondents

  • • Smt. Bimala Baby, SC KSRTC
  • • Sri. M. Gopakrishnan Nambiar, SC KSRTC
  • • Sri. Babu Joseph Kuruvathazha, SC KSRTC

Case Synopsis & Summary

This appeal challenges a Motor Accidents Claims Tribunal Kollam award under Section 166A of the Motor Vehicles Act for the death of Sri Sreelal, who was riding a motorcycle. The tribunal awarded Rs 3,75,500 with 9 percent interest. The appellants, legal heirs of the deceased, contend that the tribunal erred in fixing the claimed monthly income and the multiplier used for calculating dependency. The petition alleged the deceased was a 23 year old commission agent of a furniture mart and had an earnings around Rs 6,000 per month; Ext A11 from Noushad Furniture was not properly considered. The tribunal fixed monthly income at Rs 5,000 and used an inappropriate multiplier, resulting in a lower overall dependency award. Relying on the Supreme Court decision in Sarla Verma v Delhi Transport Corporation, the appellants argue that the multiplier should be 18 for a 23 year old, and that 50 of income should be deducted toward personal and living expenses given his bachelor status. The court notes that a commission agent is not a salaried employee and that the evidence requires careful appraisal. After re evaluating the evidence, the High Court applies the Sarla Verma framework, upholds the dependency calculation with revised monthly income and multiplier, and then increases several heads of compensation including love and affection, funeral, estate and pain and suffering. The result is an additional award of Rs 3,68,000 with interest at 8 and deposit order within three months, and apportionment among claimants 30:50:20.

Provisions of Law Cited

Section 166A, Motor Vehicles Act

Legal Doctrines & Maxims

  • Multiplier principle based on age of the deceased as per Sarla Verma v. Delhi Transport Corporation
  • 50% deduction of income for personal and living expenses for a bachelor
  • Commission agent is not a salaried employee (principle derived from the factual discussion)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal erred in fixing the deceased's monthly income at Rs 5,000 and used an incorrect approach to determine loss of dependency. They rely on Ext. A11 showing earnings of Rs 6,000 per month and argue that the deceased, aged 23, was a commission agent rather than a salaried employee; thus the income cannot be assumed constant. They urge applying the Sarla Verma framework to use a multiplier of 18 and to deduct 50% of income for personal expenses since the deceased was a bachelor. They also seek re evaluation of other heads (love and affection, funeral, estate, pain and suffering) in light of the deceased's age and income, resulting in an overall enhancement of compensation by Rs 3,68,000 with 8% interest and deposit within three months, with a 30:50:20 apportionment among claimants.

Contentions of Respondents

The respondents contend that the Tribunal properly assessed compensation, including reliance on Ext. A11 and other evidence. They argue that the age based multiplier and the extent of dependency were correctly applied by the Tribunal and that the award should be maintained or modestly adjusted, not subjected to a substantial enhancement. They submit that the evidence does not justify a large increase and that the original calculation should stand, subject to any limited adjustments as warranted by law.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation2010(2) KLT 802 (SC)PositiveThe court relies on the Sarla Verma framework to determine the multiplier based on the deceased's age and the corresponding deduction for personal living expenses.

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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 C.T.RAVIKUMAR & THE HONOURABLE MR. JUSTICE B.SUDHEENDRA KUMAR FRIDAY, THE 10TH DAY OF NOVEMBER 2017/19TH KARTHIKA, 1939 MACA.No. 30 of 2013 () ----------------------OPMV 156/2009 of II ADDL.D.C. & ADDL.MACT,KOLLAM ## APPELLANTS/PETITIONERS: ------------------------------------------ ## 1. KARUNAKARAN SREEJU VILASAM @ SREEJA VILASAM, PINUKKANNOOR CHERRY, KOTTAMKARA VILLAGE, KOLLAM DISTRICT. 2. VIJAYAMMA W/O.KARUNAKARAN, SREEJA VILASAM, PINUKKANNOOR CHERRY, KOTTAMKARA VILLAGE, KOLLAM DISTRICT. 3. SREEJA D/O.KARUNAKARAN, SREEJA VILASAM, PINUKKANNOOR CHERRY, KOTTAMKARA VILLAGE, KOLLAM DISTRICT. ## BY ADV. SRI.ANCHAL C.VIJAYAN RESPONDENTS: ------------------------ ## 1. SUDHAKARAN S/O.JANARDHANAN, KUNNATHU THODIYIL VEEDU, EZHUKONE P.O., KOTTAMKARA VILLAGE, KOLLAM DISTRICT, PIN-691505. ## 2. THE MANAGING DIRECTOR KSRTC, THIRUVANANTHAPURAM, PIN-695023. R2 BY ADV. SMT.BIMALA BABY, SC, KSRTC R2 BY ADV. SRI.M.GOPIKRISHNAN NAMBIAR, SC, KSRTC R2 BY SRI.BABU JOSEPH KURUVATHAZHA,SC,KSRTC THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 10-11-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C.T.RAVIKUMAR & B.SUDHEENDRA KUMAR, JJ.** - - - - - - - - - - - - - - -- - - -- - - - - - - - - - -- - - - - - - - - M.A.C.A. No.30 of 2013 - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - Dated this the 10[th] day of November 2017 ## JUDGMENT ## **C.T.Ravikumar J.** , This appeal is filed against the judgment and award dated 27.8.2012 in O.P.(M.V.) No.156 of 2009 passed by the Motor Accidents Claims Tribunal, Kollam. The appellants herein were the petitioners in the said claim petition. It was filed under Section 166A of the Motor Vehicles Act seeking compensation of Rs.7,00,000/- by the legal heirs of the victim of the accident involved in that case. Deceased Sri.Sreelal was riding a motor cycle bearing Reg.No.KL-2/4-385 through Ezhukone - Puthur M.A.C.A. No.30 of 2013 2 public road. At the place of accident, the said vehicle was knocked down by a K.S.R.T.C. bus bearing Reg.No.KL 15/3513, driven by the first respondent. On the way to hospital, he succumbed to the injuries sustained. The claim petition was filed under the above said circumstances. As per the impugned award, the Tribunal had granted a total compensation of Rs.3,75,500/- with interest at the rate of 9% per annum from the date of petition till the date of realisation. It is seeking enhancement of the quantum of compensation awarded by the Tribunal that the captioned appeal has been filed. 2. Heard. 3. The main grievance of the appellant is that the Tribunal had erroneously fixed the monthly income as also the multiplier, for the purpose of calculating compensation 3 M.A.C.A. No.30 of 2013 for the loss of dependency. In the claim petition, it was specifically averred that the deceased was a Commission Agent of a Furniture Mart and at the time of accident, he was aged 23 years. Going by the averments he was earning Rs.6,000/- per month. The Tribunal had fixed the monthly income notionally as Rs.5,000/-. The contention is that the Tribunal had virtually ignored Ext.A11 certificate issued from Noushad Furniture, Perumpazha while fixing the monthly income. In this context, it is to be noted that even going by the claim petition, the deceased was only a commission agent of a furniture mart. In the strict sense in commerce, commission means the order by which any traffics or negotiates for another; also, and much more frequently, the percentage given to factors or agents for transacting the business of others. In that sense, a M.A.C.A. No.30 of 2013 4 commission agent can be treated as an agent employed by his principal to sell or otherwise to negotiate with another in the matter of sale of his goods. Hence, a commission agent cannot be said to be a salaried person and in fact his income would depend upon the business canvassed by him. In the said circumstances, we do not find any reason to hold that the Tribunal had erred in fixing the monthly income of the deceased, notionally without giving credence to Ext.A11. At the same time, taking note of the fact that the deceased was only 23 years at the time of the accident and the accident in question had occurred on 3.6.2008, we are of the view that it is only just and reasonable for us to fix the monthly income of the deceased notionally for purpose of calculating dependency compensation as Rs.6,000/-. We do so. As regards the grievance against the M.A.C.A. No.30 of 2013 5 adoption of the multiplier, there is substance in the contention. The contention is that the Tribunal went wrong in taking the average age of the parents for the purpose of identifying the multiplier. In the light of the decision of the Apex court in **Sarla Verma v. Delhi Transport Corporation** [2010(2) KLT 802 (SC)], in a claim for compensation for death, the multiplier has to be taken with reference to the age of the deceased. As noticed hereinbefore, the deceased was aged 23 years at the time of accidental death. Going by the schedule in **Sarla Verma (supra)** , the multiplier applicable in this case, taking into account of the age of the deceased, is '18'. Since the deceased was a bachelor, in the light of the above said decision, 50% of his income has to be deducted towards his personal and living expenses. Evidently, the Tribunal had M.A.C.A. No.30 of 2013 6 also effected 50% of the income of the deceased while calculating compensation for loss of dependency, without assigning any reason therefor. In short, the compensation payable towards loss of dependency has to be re-assessed by substituting the revised monthly income and also the proper multiplier viz., 18, on such re-assessment the amount payable under that head will be Rs.6,48,000/(6000x12x18x½) The Tribunal had already granted an amount of Rs.3,30,000/-. Hence, the appellants are entitled to get an amount of Rs.3,18,000/- additionally thereunder. Towards loss of love and affection, the Tribunal had granted Rs.25,000/- Taking into account of the fact that the claimants are the parents and the younger sister of the deceased, we are of the view that it is on the lower side and hence, we are inclined to grant Rs.25,000/- additionally M.A.C.A. No.30 of 2013 7 under that head. Towards loss of estate and funeral expenses, the Tribunal had granted only Rs.5,000/- each, certainly they are on the lower side. We are granting Rs.10,000/- each additionally under those heads. Towards pain and suffering, the Tribunal had granted an amount of Rs.5,000/-. True that the deceased had lost his life on the way to the hospital. But, at the same time, it is a fact that he had to suffer excruciating pain for sometime. Hence, we are inclined to grant Rs.5,000/- more towards pain and suffering. In the light of the enhancement made by us, the appellants are entitled to get an additional compensation of Rs.3,68,000/- (Rupees three lakh sixty eight thousand only). The said additional compensation will carry interest at the rate of 8% per annum from the date of petition till reaslisation. The 2[nd] respondent shall deposit the said M.A.C.A. No.30 of 2013 8 amount along with interest, within a period of three months from the date of receipt of a copy of this judgment. The amount shall be apportioned between the appellants in the ratio 30 : 50 : 20 respectively. This appeal is disposed of as above. There is no order as to costs.. sd ## **C.T.RAVIKUMAR, JUDGE** sd **B.SUDHEENDRA KUMAR, JUDGE** _dl/13.12.16_ _// True copy // PA to Judge_