High Court of KeralaSingle JudgeAppeal allowed in part; enhanced compensation a...

MACA NO. 926 OF 2014

Case / Petition Number:MACA NO. 926 OF 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sophy Thomas
Judgment Date
2024-05-21
Court Decision / Holding
The appeal is allowed to the extent described: enhanced compensation of Rs.10,93,332; 8% interest from petition date; deposit before MACT Kozhikode within two months; disbursement to appellants 1 and 2 in the 2:4 ratio after deductions; no costs.
Final Disposition
Appeal allowed in part; enhanced compensation awarded; insurer to deposit with interest; no costs.

Parties to the Case

Appellants / Petitioners

  • Nimju M.
  • Prasanna

Respondents

  • T.P. Veeran
  • Ashraf
  • Royal Sundaram Alliance Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • R. Sudhish
  • • Smt. M. Manju

Counsels for Respondents

  • • Mathews Jacob (Sr.), Standing Counsel
  • • P. Jacob Mathew, Standing Counsel

Case Synopsis & Summary

This Motor Accidents Claims Appeal challenges the Principal MACT, Kozhikode award dated 07.05.2013 in OP(MV) No.860 of 2012, on grounds of inadequacy of compensation. The accident occurred on 25.02.2012 at 9.30 a.m. when the deceased, a 28-year-old coolie earning about Rs.12,000 per month, was killed after a lorry (KL-10/AH-5343) driven rashly by the 2nd respondent. The Tribunal awarded Rs.6,37,000, which the appellants contend is deficient. The appellants rely on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited (AIR 2011 SC 2951) to argue that the notional income for a coolie in 2012 could be fixed at Rs.8,500 per month, with a 40% addition for future prospects, yielding a higher dependency loss (Rs.16,18,332). They also seek higher funeral expenses (Rs.15,000), enhanced loss of consortium (Rs.40,000 each; Rs.80,000 total) and loss of estate (Rs.15,000), based on Pranay Sethi. The Tribunal’s other heads are considered reasonable. The insurer admitted the policy; two respondents were ex parte. The High Court allowed the appeal to the extent noted, directing deposit of Rs.10,93,332 enhanced compensation with 8% interest, and distribution in the 2:4 ratio, within two months, with no costs.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the deceased’s notional income should be Rs.8,500 per month (instead of Rs.4,500) with a 40% future-prospects addition, yielding higher dependency and overall compensation. They rely on Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. to justify the uplift, and seek enhanced amounts for loss of dependency, funeral expenses (Rs.15,000), loss of consortium (Rs.80,000 total), and loss of estate (Rs.15,000) based on Pranay Sethi. They propose maintaining the Tribunal’s ratio of dependency award (2:4) for the enhanced sum.

Contentions of Respondents

The document records that two respondents were ex parte and the 3rd respondent-insurer admitted the policy; explicit counter-arguments from respondents are not detailed in the provided text. The insurer’s appearance confirms policy coverage, and the appeal centers on whether compensation should be enhanced under the heads identified by the appellants.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company LimitedAIR 2011 SC 2951PositiveCourt relied on Ramachandrappa to fix a higher notional income for a coolie in 2012, with related future-prospects considerations.
National Insurance Co. Ltd. v. Pranay Sethi and Others(2017) 16 SCC 680PositiveUsed to justify higher funeral expenses and other heads of compensation; applied for loss of consortium and loss of estate as well.

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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 SOPHY THOMAS TUESDAY, THE 21 [ ST ] DAY OF MAY 2024 / 31ST VAISAKHA, 1946 ``` ## **`MACA NO. 926 OF 2014`** ``` AGAINST THE AWARD DATED 07.05.2013 IN OP(MV) NO.860 OF 2012 OF PRINCIPAL MOTOR ACCIDENTS CLAIMS TRIBUNAL, KOZHIKODE ``` ## **`APPELLANTS/PETITIONERS:`** ``` 1 NIMJU M., AGED 22 YEARS, W/O. LATE SATHYAN, VASU BHAVAN, MATTUPURATH, POST FEROKE, KOZHIKODE. ``` ## **`2 PRASANNA,`** ``` AGED 52 YEARS, ``` ``` W/O. ASOKAN, VAZHAYUR, POST AZHINHILAM, MALAPPURAM. ``` ``` BY ADVS. SRI.R.SUDHISH SMT.M.MANJU ``` ## **`RESPONDENTS/RESPONDENTS:`** ## **`1 T.P.VEERAN,`** ``` S/O. MUHAMMED, THALEKKARA PANDAYIL HOUSE, UNNIYATHIPARAMBA, VALIYAPARAMBA POST, MALAPPURAM DISTRICT-673637. ``` ## **`2 ASHRAF,`** ``` S/O. BEERAN, VALAYAMKOTTIL HOUSE, PULPATTA POST, MALAPPURAM DISTRICT-676126. ``` MACA 926 of 2014 2 - **`3 ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LTD., M SONS ARCADE, 4TH FLOOR, CHEROOTTY ROAD, KOZHIKODE-673001.`** ``` R3 BY ADV.MATHEWS JACOB (SR.), STANDING COUNSEL ``` ``` R3 BY ADV.P.JACOB MATHEW, STANDING COUNSEL ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` MACA 926 of 2014 3 ## **J U D G M E N T** This appeal is filed by the claimants in OP(MV)No.860 of 2012 on the file of Principal Motor Accidents Claims Tribunal, Kozhikode, impugning the award on the ground of inadequacy of compensation. 2. Sri.Sathyan, the husband of the 1st appellant and son of the 2nd appellant, met with a road traffic accident on 25.02.2012, at 9.30 a.m., while he was riding a motorcycle through Bypass road near Bhavana bus stop. He was knocked down by KL-10/AH-5343 lorry, driven by the 2nd respondent, in a rash and negligent manner. He sustained serious injuries and died on the same day, due to the gravity of the injuries suffered by him. He was a 28 year old coolie, earning monthly income of Rs.12,000/-. His legal heirs approached the Tribunal claiming compensation of Rs.8,00,000/-, but the Tribunal awarded only Rs.6,37,000/-, and hence this appeal. 3. The 1st respondent was the owner of the offending vehicle, 2nd respondent was its driver and the 3rd respondent was its Insurer. Respondents 1 and 2 remained _ex parte_ . The MACA 926 of 2014 4 - 3rd respondent-Insurer entered appearance through counsel and admitted the Policy. 4. Now this Court is called upon to answer whether there is any illegality, irregularity or impropriety in the impugned award warranting interference by this Court. 5. Heard learned counsel for the appellants and learned counsel for the 3rd respondent-Insurer. 6. Learned counsel for the appellants would contend that though the deceased was a coolie earning monthly income of Rs.12,000/-, the Tribunal fixed his notional income @ Rs.4,500/-. Learned counsel would rely upon the decision **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [AIR 2011 SC 2951]** , to contend that in the year 2012, the notional . income of a coolie might have been fixed @ Rs.8,500/Relying on that decision, this Court is inclined to fix his notional income @ Rs.8,500/- per month. Moreover, since he was aged below 40, he was eligible to get 40% addition towards future MACA 926 of 2014 5 prospects. If so, his monthly income could have been fixed as Rs.11,900/- (8,500 + 40%). Since he was having two dependents ⅓ had to be deducted towards his personal expenses. So, the balance would come to Rs.7,933/-. The multiplier applicable is 17 as he was aged only 28. So, compensation for loss of dependency could have been assessed as Rs.16,18,332/(7,933x12x17). The Tribunal already awarded Rs.6,12,000/- under the head ‘loss of dependency’. After deducting that amount, the appellants are entitled to get Rs.10,06,332/- as enhanced compensation under the head ‘loss of dependency’. 7. Towards funeral expenses, learned Tribunal awarded only Rs.8,000/-. As per the decision **National Insurance Company Ltd. v. Pranay Sethi and Others, [(2017) 16 SCC 680]** , the appellants are entitled to get Rs.15,000/-. So, they are entitled to get the balance amount of Rs.7,000/under the head ‘funeral expenses’. 8. Towards loss of consortium, learned Tribunal awarded only Rs.10,000/-. Relying on **Pranay Sethi’s case** cited _supra_ , MACA 926 of 2014 6 they are eligible to get Rs.40,000/- each, amounting to Rs.80,000/- in total. After deducting Rs.10,000/- already awarded, they are entitled to get the balance amount of Rs.70,000/-. 9. Towards loss of estate, learned Tribunal awarded only Rs.5,000/-. Based on **Pranay Sethi’s case** cited _supra_ , they are eligible to get Rs.15,000/-. So, they are entitled to receive the balance Rs.10,000/- as enhancement under the head ‘loss of estate’. 10. The compensation awarded under all other heads seems to be reasonable and hence it needs no modification. |Head of claim|Amount<br>awarded by<br>the Tribunal|Amount<br>awarded in<br>appeal|Difference to be<br>drawn as<br>enhanced<br>compensation| |---|---|---|---| |Loss of<br>dependency|Rs.6,12,000/-|Rs.16,18,332/-|Rs.10,06,332/-| |Funeral expenses|Rs.8,000/-|Rs.15,000/-|Rs.7,000/-| |Loss of<br>consortium|Rs.10,000/-|Rs.80,000/-|Rs.70,000/-| |Loss of estate|Rs.5,000/-|Rs.15,000/-|Rs.10,000/-| |Total|||Rs.**10,93,332**/-| MACA 926 of 2014 7 11. In the result, the appellants are entitled to get Rs.10,93,332/-(10,06,332 + 7,000 + 70,000 + 10,000) as enhanced compensation. 12. Learned counsel for the appellants would submit that the 1st appellant, who was the wife of the deceased, is remarried. Even then, she is eligible to get compensation on the death of her husband. Learned Tribunal apportioned the compensation between the claimants in the ratio 2:4. Learned counsel for the appellants expressed no objection in retaining that ratio with respect to the enhanced compensation also. 13. Hence, the 3rd respondent-Insurer is directed to deposit the enhanced compensation of Rs.10,93,332/- (Rupees Ten Lakh Ninety Three Thousand Three Hundred and Thirty Two only) with 8% interest per annum, from the date of petition till the date of deposit (excluding 76 days of delay in filing the appeal) before the Principal Motor Accidents Claims Tribunal, Kozhikode, with in a period of two months, from the date of receipt of a copy of this judgment. Learned Tribunal shall disburse the compensation amount to appellants 1 and 2 in the MACA 926 of 2014 8 ratio 2:4, after deducting the liabilities, if any, of the appellants towards tax, balance court fee, legal benefit funds etc. The appeal is allowed to the extent as above, and no order is made as to costs. Sd/- **SOPHY THOMAS JUDGE** DSV/-