High Court of KeralaDivision BenchAppeal partly allowed; enhanced compensation aw...

MACA No. 808 of 2010

Case / Petition Number:MACA No. 808 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. N. Ravindran
  • K. Ramakrishnan
Judgment Date
2016-02-17
Court Decision / Holding
Appeal partly allowed. The High Court enhanced several heads of compensation and directed the insurer to deposit the increased amount with interest at 9% per annum within three months. From the deposited sum, 25,000 (plus interest) was ordered to be released to claimants 2, 3, and 4 in equal shares, with the balance to the wife. The overall additional compensation awarded was ₹2,16,500 over the Tribunal’s award of ₹2,40,500, resulting in a total enhanced compensation of ₹4,57,000. No costs. The insurer bears liability to pay the enhanced amount as per the order.
Final Disposition
Appeal partly allowed; enhanced compensation awarded to appellants; insurer directed to deposit enhanced amount and distribute per order.

Parties to the Case

Appellants / Petitioners

  • SanthA
  • Shaji
  • Shanitha
  • Savitha

Respondents

  • Attasseri Sibil
  • Noufal Kozhithodi
  • The Oriental Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri P. Venugopal

Counsels for Respondents

  • • Sri George Cherian

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal under section 166 of the Motor Vehicles Act, 1988, challenging the Motor Accidents Claims Tribunal, Manjeri, award in O.P.(MV) No.1155/2006 for the death of Raghavan on 16.12.2005. The appellants, the widow and three children, sought ₹5,00,000 as compensation. The Tribunal held the accident due to the rash and negligent driving of the rider; the insurer’s plea that the driver lacked a valid driving licence was rejected. The Tribunal awarded ₹2,40,500 with interest at 7% and costs, allocating sums across heads including pain and suffering (unfavorable), loss of consortium, funeral expenses, and dependency. Aggrieved, the appellants contended under-compensation and demanded higher awards, relying on Supreme Court guidance. They argued for a higher pain-and-suffering award (₹10,000, as per judicial trend), and invoked Rajesh v. Rajbir Singh to demand ₹1,00,000 for loss of consortium and a minimum ₹25,000 for funeral expenses; they also urged inclusion of future prospects (15%), given the deceased’s age and unorganized-sector occupation, and a higher basis income for calculation. The High Court allowed the appeal in part, enhancing several heads: pain and suffering to ₹10,000; loss of consortium ₹95,000; funeral expenses ₹23,000; dependency ₹66,000; love and affection ₹20,000; estate ₹7,500. An additional ₹2,16,500 was awarded as compensation, to be deposited by the insurer with interest and distributed to claimants as directed, with no costs. The appeal was thus partly allowed, with increased relief to the claimants.

Provisions of Law Cited

Section 166, Motor Vehicles Act, 1988

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal gravely erred in under-compensating the claimants. They urged higher compensation for pain and suffering (₹10,000, citing consistent Supreme Court practice) and invoked Rajesh v. Rajbir Singh to secure ₹1,00,000 for loss of consortium and a minimum ₹25,000 for funeral expenses. They pressed for inclusion of future prospects (15%) in dependency calculations for a person aged over 50 in unorganized sectors, and adopted a higher monthly income (₹3,250) with a 11× multiplier and 2/3 deduction for personal expenses. They contended for enhanced amounts for love and affection and for loss to the estate, arguing that the Tribunal undervalued dependency and related heads, and failed to reflect the life of the family affected by the loss.

Contentions of Respondents

The respondents contended that the Tribunal correctly found negligence by the first respondent and covered insurance liability; the insurer admitted coverage but argued the driver’s license issue as a basis to limit liability. They asserted the Tribunal’s award was appropriate and that no cross-appeal was filed challenging the finding of insurer liability. They emphasized the need to avoid hyper-award inflation and argued the evidence did not justify the substantial enhancement urged by the appellants; the challenge centered on the extent of compensation rather than liability. The respondents also argued to maintain the Tribunal’s rate of compensation and the computed heads, noting that the insurer should not be exposed to liability beyond the statutory framework when credible evidence does not compel; with no challenge to liability, they urged adherence to the Tribunal’s framework.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Rajesh v. Rajbir Singh2013(3) KLT 89 (SC)PositiveCited to support higher awards for loss of consortium and funeral expenses and to justify incorporating future-prospects considerations in a death-injury award.

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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.N.RAVINDRAN & THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN THURSDAY, THE 18TH DAY OF FEBRUARY 2016/29TH MAGHA, 1937** **MACA.No. 808 of 2010 ( ) ------------------------AGAINST THE AWARD IN OPMV 1155/2006 of M.A.C.T., MANJERI, DATED 03-03-2010.** **APPELLANT(S)/PETITIONERS:** **--------------------------** **1. SANTHA, W/O.LATE RAGHAVAN, RESIDING AT ANIMANGALATH HOUSE, PULIKKAL, MALAPPURAM DISTRICT.** **2. SHAJI, S/O.LATE RAGHAVAN, RESIDING AT ANIMANGALATH HOUSE, PULIKKAL, MALAPPURAM DISTRICT.** **3. SHANITHA, D/O.LATE RAGHAVAN, RESIDING AT ANIMANGALATH HOUSE, PULIKKAL, MALAPPURAM DISTRICT.** **4. SAVITHA, D/O.LATE RAGHAVAN. RESIDING AT ANIMANGALATH HOUSE, PULIKKAL, MALAPPURAM DISTRICT.** **BY ADV. SRI.P.VENUGOPAL (1086/92)** **RESPONDENT(S):** **--------------** **1. ATTASSERI SIBIL, S/O.AHAMMEDKUTTY, MANNILPARAMBIL HOUSE, THAVANNUR-P.O., MUTHUVALLUR, MALAPPURAM DISTRICT.** **2. NOUFAL KOZHITHODI, KOZHIPARAMBA HOUSE, KUZHIMANA P.O., KIZHISSERI, MALAPPURAM.** **3. THE ORIENTAL INSURANCE COMPANY LTD., JASEELA COMPLEX, NILAMBUR ROAD, MANJERI, MALAPPURAM DISTRICT, REPRESENTED BY ITS MANAGER.** **R3 BY ADV. SRI.GEORGE CHERIAN (THIRUVALLA)** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 18-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ss ## **P.N.RAVINDRAN & K.RAMAKRISHNAN, JJ.** ------------------------------------------------------- ## **M.A.C.A. No.808 of 2010** -------------------------------------------------------------Dated this the 17[th] day of February, 2016 ## **JUDGMENT** ## **P.N.RAVINDRAN, J** The appellants are the claimants in O.P.(MV)No.1155 of 2006 on the file of the Motor Accidents Claims Tribunal, Manjeri, a petition filed by them under section 166 of the Motor Vehicles Act, 1988, claiming the sum of 5,00,000/- as compensation for the death₹ of late Raghavan, husband of the first appellant and father of the other appellants in a motor accident that took place on 16.12.2005. The first respondent is the driver of the motor bike involved in the accident, the second respondent is its owner and the third respondent its insurer. The claimants had in the claim petition averred that late Raghavan sustained injuries when the motor bike owned by the second respondent and driven by the first respondent in a rash and negligent manner hit late Raghavan who was a pedestrian on the KozhikodeKondotty public road and that he succumbed to the injuries sustained, on 17.12.2005, while undergoing treatment at Medical College _**M.A.C.A. No.808 of 2010**_ 2 Hospital, Kozhikode. It was contended that the accident took place solely on account of the rash and negligent driving of the motor bike by the first respondent. 2. Upon receipt of notice, the first respondent entered appearance but he did not file a written statement. The second respondent, the owner of the motor bike did not enter appearance. He was consequently set exparte. The third respondent, the insurer entered appearance and filed a written statement, admitting insurance coverage, but denying its liability to pay compensation on the ground that the first respondent did not possess a valid driving licence to drive the motor bike. Before the tribunal no oral evidence was adduced on either side. However by consent, Exts.A1 to A8 were marked on the side of the claimants and Exts.B1 and B2 were marked on the side of the third respondent insurer. The Motor Accidents Claims Tribunal considered the rival contentions and held relying on the police records that the accident took place on account of the negligence of the first respondent. The tribunal repelled the contention of the third respondent insurer that the first respondent did not possess a valid driving licence. The tribunal thereafter proceeded to award the sum of ₹2,40,500/- as compensation under various heads and directed the third respondent insurer to deposit the said amount with interest at _**M.A.C.A. No.808 of 2010**_ 3 7% per annum from the date of petition till realisation along with costs quantified at 1,000/-. The tribunal further directed that out of the₹ amount deposited the sum of 5,000/- awarded under the head loss of₹ consortium shall be given to the wife of the deceased and the balance amount shall be divided among the claimants equally. The claimants have, dissatisfied with the quantum of compensation awarded by the tribunal, filed this appeal. 3. We heard Sri.P.Venugopal, learned counsel appearing for the appellants and Smt.K.S.Santhi, learned counsel appearing for the third respondent. Notice to respondents 1 and 2 was dispensed with for the reason that the third respondent insurer has not filed an appeal challenging the finding entered by the tribunal that it is liable to indemnify them. The deceased was aged 54 years on the date of the accident. He was running a tea shop. He died on the very next day after the accident while undergoing treatment at Medical College Hospital, Kozhikode. The tribunal has awarded only the sum of ₹5,000/- as compensation under the head pain and suffering. Even in cases of instantaneous death, this court and the Apex Court has consistently been awarding the sum of 10,000/- as compensation for₹ pain and suffering. We accordingly enhance the compensation awarded under the head pain and suffering from 5,000/- to 10,000/-. The₹ ₹ _**M.A.C.A. No.808 of 2010**_ 4 Apex Court has in _**Rajesh v. Rajbir Singh**_ [2013(3) KLT 89 (SC)] held that the sum of ₹1,00,000/should invariably be awarded as compensation under the head loss of consortium to the surviving spouse and that in the absence of any evidence to the contrary regarding higher expenditure, a minimum amount of 25,000/- should₹ be awarded under the head funeral expenses. In the case on hand, the tribunal has awarded to a 47 year old widow only 5,000/- as₹ compensation under the head loss of consortium and 2,000/- towards₹ funeral expenses. In the light of the decision of the Apex Court in _**Rajesh v. Rajbir Singh**_ [2013(3) KLT 89 (SC)], we award an additional compensation of ₹95,000/- to the first appellant/first claimant under the head loss of consortium and the sum of 23,000/-₹ under the head funeral expenses. 4. The tribunal has awarded the sum of 2,20,000/- as₹ compensation under the head loss of dependency, taking the monthly income of the deceased as 2,000/- and the multiplier as 11. The₹ tribunal has also deducted 1/3[rd] of the income thus estimated by it towards personal expenses of the deceased, having regard to the fact that his wife alone was dependent on him. The tribunal has however not taken into account the future prospects of the deceased while computing the compensation payable under the head loss of _**M.A.C.A. No.808 of 2010**_ 5 dependency. It is now well settled by a series of decisions of the Apex Court including the decision in _**Rajesh v. Rajbir Singh**_ [2013(3) KLT 89 (SC)] that even in the case of persons working in the unorganized sector, if the victim was aged above 50 years, 15% increase in the income can be taken into consideration for future prospects. The deceased was running a tea shop. He was maintaining a family consisting of himself, his wife, son and two daughters. He had admittedly brought up three children and had also given them in marriage. He was also residing in his own house. The accident took place in the year 2005. In such circumstances, having regard to the ground realities, we are of the opinion that on a modest estimate this court can proceed to award compensation for loss of dependency on the basis that the deceased was earning a monthly income of ₹3,000/-. Considering the future prospects as well, this court will in our opinion be justified in taking 3,250/- as the multiplicand for the₹ purpose of computing the loss of dependency. Computed on that basis, the compensation payable to the appellants/claimants under the head loss of dependency would be 3,250 x 12 x 11 x 2/3 = 2,86,000/-.₹ ₹ After giving credit to the sum of 2,20,000/- awarded by the tribunal,₹ the claimants will be thus entitled to a further sum of 66,000/-. We₹ accordingly award an additional sum of 66,000/- as compensation to₹ _**M.A.C.A. No.808 of 2010**_ 6 the appellants/claimants under the head loss of dependency. 5. The tribunal has awarded only the sum of 5,000/-₹ as compensation under the head loss of love and affection to the three children of the deceased. Notwithstanding the fact that claimants 2 to 4 were not dependant on the deceased and had been given in marriage, we are of the opinion that, being the children of the deceased, they are entitled to be awarded compensation under the head loss of love and affection, which we fix at ₹25,000/-. Consequently, the appellants/claimants will be entitled to get an additional compensation of 20,000/- under the head loss of love and₹ affection. 6. The impugned award discloses that the tribunal has awarded only the sum of 2,500/- as compensation under the head₹ loss to the estate. Having regard to the fact that the deceased was running a tea shop and was maintaining a family consisting of himself, wife, son and two daughters, we are of the opinion that on a modest estimate the tribunal ought to have awarded the sum of 10,000/- as₹ compensation under the head loss to the estate. We accordingly award a further sum of 7,500/- as compensation under the head loss of₹ estate. We accordingly allow the appeal in part and award to the _**M.A.C.A. No.808 of 2010**_ 7 appellants/claimants an additional sum of ₹5,000 + 95,000 + 23,000 + 66,000 + 20,000 + 7,500 = 2,16,500/- as compensation₹ over and above the compensation awarded by the tribunal. The third respondent insurer shall deposit the said amount together with interest at 9% per annum from the date of petition till the date of deposit within three months from today. From the amount deposited, the sum of 25,000/- and the interest thereon shall be released to claimants 2,₹ 3 and 4 in equal shares and the balance amount shall be disbursed to the wife of the victim, namely the first claimant. No costs. _Sd/-_ **P.N.RAVINDRAN (JUDGE)** _Sd/-_ **K.RAMAKRISHNAN (JUDGE)** //True Copy// P.A. to Judge ss