High Court of KeralaSingle JudgeAppeal allowed in part; quantum revised and dir...

MACA NO. 3412 OF 2014

Case / Petition Number:MACA NO. 3412 OF 2014
Neutral Citation:2025:KER:26442

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. Pratheep Kumar
Judgment Date
2025-03-18
Court Decision / Holding
Appeal allowed in part; quantum enhanced. Notional income fixed at Rs 8,000 with 40% future prospects and multiplier 18; loss of consortium awarded with 10% annual escalation; loss of estate and funeral expenses adjusted; love and affection head disallowed in light of Somwati. Total compensation recalculated to Rs 13,94,700, with 8% interest from the date of petition till realization. 3rd respondent directed to deposit the amount within two months, after which the Tribunal shall disburse to the petitioners as per rules.
Final Disposition
Appeal allowed in part; quantum revised and directed deposit by insurer; distribution to petitioners as per Tribunal, with interest and costs as specified.

Parties to the Case

Appellants / Petitioners

  • P. Gouri W/o. Kunhiraman, Vadakkinnikurayil House, Chudala, POYIL Post (Mother of the deceased)
  • Kunhiraman, Vadakkkinipurayil House, Chudala, POYIL Post (Father of the deceased)

Respondents

  • Rajesh C.K. S/o. Mukundan, Kannadipparamba, AMSAM, Parappuram, PIN 674336
  • C.K. Sunil S/o. Malathi, Anitha Bhavan, Cheleri P.O., Kannur, PIN 674237
  • Oriental Insurance Company Ltd. Divisional Office, Fort Road, Kannur, PIN 674237

Legal Representation & Advocates

Counsels for Petitioners

  • • Tom Pious
  • • Pious Thomas (K/719/E-1994)

Counsels for Respondents

  • • Smt. K.Santhi

Case Synopsis & Summary

This High Court of Kerala, in MACA No. 3412 of 2014, heard an appeal from O.P.(M.V.) No. 656 of 2008 filed by the parents of Renjith, who died in a motor-vehicle accident on 15.04.2008. The Motor Accidents Claims Tribunal, Thalassery, held the driver negligent and awarded Rs 5,82,500 in total, directing the insurer to pay. The appellants challenged the quantum, contending that the deceased, a carpenter aged 24, earned about Rs 8,000 per month and that the tribunal erred in fixing only Rs 4,500 as notional income. The court relies on Ramachandrappa to fix notional income at Rs 8,000 and applies 40% future prospects (National Insurance Co. v. Pranay Sethi) and a multiplier of 18 (Sarla Verma) with a 1/2 deduction for personal living expenses. Loss of estate, funeral expenses and love/affection are recalculated, with loss of consortium recognized, accompanied by a 10% yearly escalation. The court also notes Somwati’s principle that once loss of consortium is awarded, love and affection cannot be granted. Resultantly, total compensation is revised to Rs 13,94,700, with interest at 8% from filing to realization, payable within two months, and then distributed to the petitioners as per tribunal rules. The appeal is allowed in part.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income concept (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.)
  • 40% future prospects (National Insurance Co. Ltd v Pranay Sethi)
  • Multiplier of 18 (Sarla Verma v Delhi Transport Corporation)
  • Deduction of 1/2 of income for personal and living expenses (Sarla Verma)
  • Loss of consortium vs. love and affection; Somwati (New India Assurance Co. Ltd. v Somwati) principle
  • Consolidated/enhanced compensation approach (Pranay Sethi)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the deceased was a carpenter earning around Rs.8,000 per month, and the Tribunal’s fixation of Rs.4,500 as notional income was too low. They urged applying the notional income framework from Ramachandrappa and the 40% future-prospects enhancement, with the correct multiplier and appropriate deduction for personal living expenses, leading to a higher dependency award. They pressed for enhanced heads for loss of estate, funeral expenses, and loss of consortium (with proper indexing).

Contentions of Respondents

The respondents argued that the Tribunal’s assessment of income and the awarded heads were reasonable and in accordance with law. The insurer contended that the negligence finding was disputed, and the quantum fixed by the Tribunal was just; the income and future-prospects should not be escalated beyond what is supported by the evidence and law. They relied on the insurer’s policy and policy terms to resist excess liability.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.2011 (13) SCC 236PositiveCourt adopts Ramachandrappa’s principle on determining notional income for the deceased.
National Insurance Co. Ltd v Pranay Sethi(2017) 16 SCC 680PositiveCourt applies 40% future prospects as laid down in Pranay Sethi.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveCourt uses the multiplier rule (18) and deduction for personal living expenses.
Pranay Sethi (supra)(2017) 16 SCC 680PositiveReferencing Pranay Sethi guidelines for compensation computation.
New India Assurance Co. Ltd. v. Somwati and Others(2020) 9 SCC 644PositivePrinciple that love and affection are not allowed when loss of consortium is awarded.

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Extracted Judgment Text

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``` 2025:KER:26442 ``` ``` MACA NO.3412 OF 2014 ``` ``` 1 ``` **==> picture [58 x 57] intentionally omitted <==** ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR. JUSTICE C.PRATHEEP KUMAR ``` ``` TUESDAY, THE 18[TH] DAY OF MARCH 2025 / 27TH PHALGUNA, 1946 ``` ``` MACA NO. 3412 OF 2014 ``` ``` AGAINST THE ORDER/JUDGMENT DATED 03.09.2013 IN OPMV NO.656 OF 2008 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , THALASSERY ``` ## **`APPELLANTS/PETITIONERS:`** - **`1 P. GOURI W/O.KUNHIRAMAN, VADAKKINIPURAYIL HOUSE, CHUDALA, POYIL POST, (MOTHER OF THE DECEASED).`** ``` 2KUNHIRAMAN VADAKKINIPURAYIL HOUSE, CHUDALA, POYIL POST (FATHER OF THE DECEASED). ``` ``` BY ADVS. TOM PIOUS PIOUS THOMAS(K/719/E-1994) ``` ## **`RESPONDENTS/RESPONDENTS:`** - **`1 RAJESH.C.K. S/O.MUKUNDAN, KANNADIPARAMBA, AMSAM, PARAPPURAM, PIN 674336.`** - **`2 C.K.SUNIL S/O.MALATHI, ANITHA BHAVAN, CHELERI P.O., KANNUR, PIN 674237.`** - **`3 ORIENTAL INSURANCE COMPANY LTD. DIVISIONAL OFFICE, FORT ROAD, KANNUR, PIN 674237.`** ``` 2025:KER:26442 ``` ``` 2 ``` **==> picture [58 x 57] intentionally omitted <==** ``` MACA NO.3412 OF 2014 ``` ## **`OTHER PRESENT:`** ## **`SMT.K.S.SANTHI`** ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 18.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO.3412 OF 2014 ``` ``` 3 ``` **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:26442 ``` ## **J U D G M E N T** The petitioners in O.P.(M.V.) No.656/ 2008 on the file of the Motor Accident Claims Tribunal, Thalassery, are the appellants herein. (For the purpose of convenience, the parties are hereafter referred to as per their rank before the Tribunal) 2. The O.P. was filed under under Section 166 of the Motor Vehicles Act, 1988, by the parents of the deceased by name Renjith, who died in a motor vehicle accident that occurred on 15.04.2008. According to them, on 15.04.2008, while the deceased was riding pillion on a motorcycle, a private bus bearing reg.no.KL-13Q/5589 driven by Respondent No.1 in a rash and negligent manner, knocked him down and as a result of which he fell down and sustained serious injuries and he succumbed to the injuries on the same day. 3. The 1[st] respondent is the driver, the 2[nd] respondent is the owner and 3[rd] respondent is the insurer of the offending vehicle. According to the petitioners, the accident occurred due to the negligence of the driver of the offending vehicle. The quantum of compensation claimed in the O.P. was Rs.7,00,000/-. **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:26442 ``` ``` MACA NO.3412 OF 2014 ``` ``` 4 ``` 4. The insurance company filed a written statement, admitting the accident as well as policy, but disputing the negligence on the part of the driver of the offending vehicle. 5. The evidence in the case consists of the oral testimony of PW1 and documentary evidence Exts.A1 to A7. No evidence was adduced by the respondents. 6. After evaluating the evidence on record, the Tribunal found negligence on the part of the driver of the offending vehicle, awarded a total compensation of Rs.5,82,500/- and directed the insurer to pay the same. 7. Aggrieved by the quantum of compensation awarded by the Tribunal, the petitioners preferred this appeal. 8. Now the point that arises for consideration is the following: _Whether the quantum of compensation awarded by the Tribunal is just and reasonable?_ 9. Heard Sri.Tom Pious, the learned Counsel appearing for the petitioners/appellants, and Smt. K. Santhi, the learned Standing Counsel for the 3[rd] respondent. 10. The Point: In this case the accident as well as valid policy of the offending vehicle are admitted. One of the contentions raised by the ``` 2025:KER:26442 ``` **==> picture [58 x 57] intentionally omitted <==** ``` MACA NO.3412 OF 2014 ``` ``` 5 ``` learned counsel for the petitioners is regarding the income of the deceased as fixed by the Tribunal. According to him, the deceased was working as a carpenter, earning Rs.8000/- per month, but the Tribunal fixed his monthly income at Rs.4500/-.The learned counsel for the insurer would argue that the income fixed by the tribunal is reasonable. 11. As per the dictum laid down by the Hon’ble Supreme Court in the decision in _**Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.**_ [2011 (13) SCC 236], the notional income of a coolie, during the year 2008 will come to Rs.6500/-. Therefore, considering the fact that the deceased was a carpenter by profession, his notional income is fixed at Rs.8000/-, for the purpose of computing the loss of dependency. 12. On the date of accident, the deceased was aged 24 years. Therefore, 40% of the monthly income is liable to be added towards future prospects, as held in the decision in **National Insurance Co.Ltd v Pranay Sethi** [(2017) 16 SCC 680] and the multiplier to be applied is 18, as held in **Sarla Verma v. Delhi Transport Corporation,** (2009) 6 SCC 121. Since the deceased was a bachelor who left behind 2 dependents, towards personal and living expense, 1/2 of the income is liable to be deducted, as held in **Sarla Verma** (supra). In the above circumstances, the loss of dependency will come ``` 6 ``` **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:26442 ``` ``` MACA NO.3412 OF 2014 ``` to Rs.12,09,600/-. 13. The Tribunal has awarded Rs.25000/- towards loss of estate, Rs.20000/- towards funeral expenses and Rs.40,000/- towards love and affection. No amount was awarded on the head ‘loss of consortium’. In the light of the decision in **Pranay Sethi** (supra), the appellants are entitled to get a consolidated sum of Rs.15,000/- towards loss of estate, Rs.15,000/- towards funeral expenses, and the dependents (parents, children and spouse) are entitled to get a sum of Rs.40,000/- each towards loss of consortium, with an increase of 10% in every three years. Therefore, towards loss of estate and funeral expense they are entitled to get a sum of Rs.18,150/- each. Towards loss of consortium, petitioners together are entitled to get a sum of Rs.96800/(48,400 x 2). 14. Since compensation for loss of consortium was given, further compensation for love and affection cannot be granted, in view of the decision in **New India Assurance Company Ltd. v. Somwati and Others,** (2020)9 SCC 644. Therefore, the compensation awarded towards love and affection is to be deducted. 15. No change is required, in the amounts awarded on other heads, as the compensation awarded on those heads appears to be just and ``` MACA NO.3412 OF 2014 ``` ``` 7 ``` **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:26442 ``` reasonable. 16. Therefore, the petitioners/appellants are entitled to get a total compensation of Rs.13,94,700/-, as modified and recalculated above and given in the table below, for easy reference: |Sl.<br>No<br>.|Head of Claim|Amount awarded by<br>Tribunal (in Rs.)|Amount Awarded<br>in Appeal (in Rs.)| |---|---|---|---| |1|Dependency<br>compensation|4,45,500|12,09,600| |2|Pain and suffering|50000|50000| |3|Loss of love and<br>affection|40000|-------------| |4|Loss of estate|25000|18150| |5|Funeral expenses|20000|18150| |6|Transportation/<br>Ambulance|2000|2000| |7|Loss of consortium|Nil|96800| ||**Total**|**582500**|**1394700**| ||Enhanced|**812200**|| 17. In the result, this Appeal is allowed in part, and the 3[rd] respondent is directed to deposit a total sum of Rs.13,94,700/- (Rupees Thirteen Lakhs Ninety Four Thousand Seven Hundred Only), less the amount already deposited, if any, along with interest @ 8% per annum, from the date ``` MACA NO.3412 OF 2014 ``` ``` 8 ``` **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:26442 ``` of the petition till realisation/deposit, excluding interest for a period of 349 days, the period of delay in filing the appeal, with proportionate costs, within a period of two months from today. On depositing the aforesaid amount, the Tribunal shall disburse the entire amount to the petitioners, in the ratio fixed by the Tribunal, excluding court fee payable, if any, without delay, as per rules. **Sd/C. PRATHEEP KUMAR, JUDGE** Pvv