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

MACA No.1406/2012

Case / Petition Number:MACA No.1406/2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Ziyad Rahman A.A.
Judgment Date
2023-12-11
Court Decision / Holding
The appeal is allowed. The judgment modifies the MAC Tribunal’s award in OP(MV) No.2551/2007 by fixing the monthly income at Rs.7,000, adding 40% towards future prospects, yielding a revised compensation of Rs.14,11,200 for loss of dependency. Additional awards for funeral expenses and loss of estate (Rs.10,000 each) and for loss of consortium (Rs.1,10,000 after adjusting for loss of love and affection) are granted, resulting in a total enhanced amount of Rs.6,77,200 over the original award. The 3rd respondent/insurer is directed to deposit the enhanced sum with interest at the tribunal’s rate within three months from receipt of the judgment, with the further proviso that the period of delay of 264 days may be excluded while computing interest. The overall order clarifies the liability of the insurer and sets out the payment timeline and interest computation.
Final Disposition
Appeal allowed; enhanced compensation awarded; insurer directed to deposit the increased amount with interest within three months; delay in filing appeal to be excluded for interest purposes.

Parties to the Case

Appellants / Petitioners

  • Binumol
  • Sidharth (minor)
  • Suseela Sivaraman

Respondents

  • The Managing Partner, Kerala Transport Company, Kozhikode
  • K.O. Francis
  • The New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.K.S.Babu
  • • Sri.Antony Mathew
  • • Sri.Babu Shankar
  • • Smt.N.Sudha
  • • Sri.Vipin Viswan

Counsels for Respondents

  • • P. Jacob Mathew
  • • Mathews Jacob (Sr.)

Case Synopsis & Summary

This is a Motor Accident Claims Appeal (MACA) arising from OP(MV) No.2551/2007 before the Motor Accident Claims Tribunal, Ernakulam, seeking compensation for the death of T.S. Prasanth who died in a motor accident on 24 October 2007. The petition was filed by the wife (Binumol), the son (Sidharth, a minor), and the parents, who were later joined as legal heirs after the death of the 3rd claimant. The Tribunal held the third respondent-insurance company liable, assessing the compensation at Rs 13,33,498 with 8% interest and directed deposition by the insurer. The appellants challenged primarily the quantum, arguing that the monthly income ought to be higher than Rs 6,000; that future prospects (40%) were not added; and that heads such as funeral expenses, loss of estate, and loss of consortium/love and affection required adjustment in light of Pranay Sethi and Satinder Kaur judgments. The High Court, applying Ramachandrappa and Syed Sadiq for the baseline income and Pranay Sethi for future prospects, increased the monthly income to Rs 7,000, added 40% future prospects, and reworked several heads of compensation. It ultimately allowed the appeal, awarding an additional Rs 6,77,200 and directing deposit by the insurer within three months, with a provision to exclude 264 days of delay for interest purposes.

Legal Doctrines & Maxims

  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. (2011) 13 SCC 236 (monthly income benchmark for ordinary workers)
  • Syed Sadiq v. Divisional Manager, United India Insurance Co. (2014) 2 SCC 735 (income assessment standard)
  • National Insurance Co. Ltd. v. Pranay Sethi (2017) 4 KLT 662 (future prospects—40%)
  • Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) 18 SCC 130 (loss of consortium and love/affection considerations)
  • Satinder Kaur v. United India Insurance Co. Ltd. (2021) 11 SCC 780 (loss of consortium vs. love and affection)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the tribunal erred in accepting a meager monthly income of Rs.6,000 despite the deceased running an established business and having tax filings and bank evidence; they urged that future prospects at 40% be added, in line with Pranay Sethi, given the deceased’s age (32) and potential for growth. They pointed to Ext.A4 (partnership deed) and other documentary evidence indicating self-employment. They requested enhancement across heads—funeral expenses, loss of estate, and especially loss of consortium—while noting the Supreme Court guidance limiting extra awards for love and affection after loss of consortium. The aim was to secure a total award of Rs.14,11,200 (and beyond) as per updated computation, with the insurer responsible for the enhanced amount plus applicable interest and costs.

Contentions of Respondents

The respondents urged the Tribunal’s approach be upheld, arguing that the baseline income of Rs.6,000 reflects the standard for an ordinary worker in 2007, as supported by Ramachandrappa and Syed Sadiq. They contended there was insufficient evidence to establish the deceased’s actual earnings and that the tribunal correctly applied the applicable formula and head-wise calculations as per precedent. They objected to drastic increases in other heads and requested that the existing award stand or that any enhancement be modest and in accordance with the contractual obligation of insurance coverage.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveCited to justify the method for computing monthly income for an ordinary worker (baseline Rs.6,000) which the court used as a starting point and then adjusted based on evidence.
Syed Sadiq v. Divisional Manager, United India Insurance Company(2014) 2 SCC 735PositiveCited for the same baseline income principle for 2007, reinforcing the 6,000 benchmark used by the Tribunal.
National Insurance Co. Ltd. v. Pranay Sethi(2017) 4 KLT 662PositiveApplied for adding 40% future prospects given the age of the deceased (32 years) and standard practice established in Pranay Sethi.
Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram(2018) 18 SCC 130PositiveUsed to support compensation for loss of consortium and related head adjustments (loss of love and affection).
United India Insurance Co. Ltd. v. Satinder Kaur(2021) 11 SCC 780PositiveCited to justify the adjustment that no separate grant for loss of love and affection is needed once loss of consortium is awarded.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against MACA No.1406/2012 and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A. MONDAY, THE 11[TH] DAY OF DECEMBER 2023/20TH AGRAHAYANA, 1945 ``` ``` MACA NO. 1406 OF 2012 ``` ``` OPMV 2551/2007 OF MOTOR ACCIDENT CLAIMS ``` ## **`TRIBUNAL ,ERNAKULAM`** ## **`APPELLANTS/PETITIONERS:`** - `1 BINUMOL, AGED 32 YEARS, W/O.LATE PRASANTH, 'PRATHEEKSHA', KALAVATH ROAD, PALARIVATTOM P.O., KOCHI - 25, ERNAKULAM DISTRICT.` - `2 SIDHARTH, AGED 6 YEARS, (MINOR), S/O.LATE PRASANTH, REPRESENTED BY HIS MOTHER, BINUMOL, 'PRATHEEKSHA', KALAVATH ROAD, PALARIVATTOM P.O., KOCHI - 25, ERNAKULAM DISTRICT.` - `3 SUSEELA SIVARAMAN, AGED 63 YEARS, W/O.SIVARAMAN, 'PRATHEEKSHA', KALAVATH ROAD, PALARIVATTOM P.O., KOCHI - 25, ERNAKULAM DISTRICT.` ``` BY ADVS. SRI.K.S.BABU SRI.ANTONY MATHEW SRI.BABU SHANKAR SMT.N.SUDHA SRI.VIPIN VISWAN ``` ## **`RESPONDENTS/RESPONDENTS:`** ``` 1THE MANAGING PARTNER, KERALA TRANSPORT COMPANY, YMCA ROAD, KOZHIKODE - 673001. ``` - `2 K.O.FRANCIS, S/O.OUSEPH, KOOTHUR HOUSE, UDALAKAVU, ADAT VILLAGE, KOZHIKODE - 680 554.` - `3 THE NEW INDIA ASSURANCE CO.LTD. REPRESENTED BY ITS MANAGER, DIVISIONAL OFFICE, KOTTAKKAL, ARYAVYDYASALA BUILDING, M.G.ROAD, ERNAKULAM - 682 016.` ``` BY ADVS. P.JACOB MATHEW MATHEWS JACOB (SR.) ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 11.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` M.A.C.A. No.1406/2012 : 2 : ## JUDGMENT The appellants are the petitioners in OP(MV) No.2551/2007 on the files of the Motor Accident Claims Tribunal, Ernakulam. 2. The said claim petition was submitted by the appellants seeking compensation for the death of one T.S. Prasanth due to the injuries sustained in a motor accident that occurred on 24.10.2007. The first claimant was the wife, the second claimant was the son, and the 3[rd] and 4[th] claimants were the parents of the deceased. During the pendency of the claim petition, the 3[rd] claimant passed away and the other claimants were declared as the legal heirs of the deceased, 3[rd] claimant. 3. According to the appellants, the deceased was a selfemployed person as he was conducting a workshop along with another person under a partnership agreement with a monthly income of Rs.25,000/-. He was 32 years old at the time of the accident. The compensation was claimed in such circumstances. 4. The owner and driver of the vehicle, the 1[st] and 2[nd] respondents in the claim petition, respectively, did not contest the M.A.C.A. No.1406/2012 : 3 : matter. The 3[rd] respondent filed a written statement admitting the insurance coverage over the vehicle involved. But they disputed the liability on various grounds. It was contended that the accident occurred when the car driven by the deceased was hit by the lorry insured with the 3[rd] respondent and according to them, the accident was due to the negligence on the part of the deceased himself. 5. The evidence in this case consists of Exts.A1 to A11 from the side of the claimants and no evidence was adduced from the side of the appellants. 6. After the trial, the tribunal came to the conclusion that the accident occurred due to the negligence on the part of the driver of the lorry which was insured with the 3[rd] respondent and being the insurer, the 3[rd] respondent was held liable to pay the compensation. The quantum of compensation was fixed as Rs.13,33,498/- which was directed to be deposited by the 3[rd] respondent insurance company with interest at the rate of 8% per annum. This appeal is submitted in such circumstances by the appellants seeking enhancement of compensation. M.A.C.A. No.1406/2012 : 4 : 7. Heard Smt. N. Sudha, the learned counsel appearing for the appellants and Sri. Mathews Jacob, the learned senior counsel appearing for the 3[rd] respondent insurance company. 8. The main contest in this case is relating to the quantum of compensation, particularly under the head of loss of dependency. The learned counsel for the appellant pointed out that the tribunal committed an error in taking a lesser monthly income and also failed to make an addition towards future prospects. On perusal of the records, I find some force in the said contentions. It is seen from the records that, even though the monthly income of Rs.25,000/- was claimed, the tribunal accepted the same as Rs.6,000/-, which was based on the fact that, in respect of the assessment year 2006-07, the deceased declared income from business and profession as Rs.65,660/-. In addition to that, the income tax return indicated income by way of interest received from a fixed deposit, which was to the tune of Rs.15,695/-. It is to be noted that, as per the method of computation of monthly income evolved from the principles laid down by the Hon'ble Supreme Court in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co.Ltd [(2011) 13 M.A.C.A. No.1406/2012 : 5 : SCC 236] and Syed Sadiq v. Divisional Manager, United India Insurance Company [(2014) 2 SCC 735], the monthly income of an ordinary worker without any evidence can be assessed as Rs.6,000/- for the year 2007 which was the year on which the accident in question has occurred. Here in this case, there is some evidence to show that, the appellant was conducting an establishment of his own, as is evident from Ext.A4 partnership deed. Besides the same, he was an income tax assessee and was also receiving interest from the fixed deposit maintained by him. Therefore, these aspects would give some indication as to his financial situation and hence a slightly higher income than that is usually taken in respect of an ordinary worker can be accepted. In such circumstances, the monthly income is fixed as Rs.7,000/-. 9. As rightly pointed out by the learned counsel for the appellants, the tribunal did not make any addition towards future prospects as well. In the light of National Insurance Company Ltd. v. Pranay Sethi [ 2017(4) KLT 662], as the deceased was aged 32 years at the time of the accident, 40% of the monthly income ought to have been added while assessing the compensation. Thus, when the compensation is calculated with M.A.C.A. No.1406/2012 : 6 : the revised monthly income and with an addition of 40% towards future prospects, the amount would come to Rs.14,11,200/[(7000+40%)12x16x3/4]. The amount already awarded by the tribunal is Rs.8,64,000-/ and thus the addition under head of loss of dependency would come to Rs.5,47,200/-. 10. When moving to the other heads, it can be seen that the tribunal has awarded only Rs.5,000/- each under the head of funeral expenses as well as loss of estate which are on the lower side in the light of Pranay Sethi ’s case. Therefore, Rs.10,000/each is granted under those heads. Similarly, the amount awarded towards loss of consortium, which was Rs 25,000/-, was also on the lower side. As per the observations made in Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram [(2018) 18 SCC 130] and United India Insurance Company Ltd. v. Satinder Kaur @ Satwinder Kaur [(2021) 11 SCC 780], the claimants being the wife, child and the parents were entitled to compensation at the rate of Rs.40,000/- each, thereby making a total amount of Rs.1,60,000/-, which is to be granted. At this juncture, the learned counsel for the insurance company would point out that, besides the compensation of loss of consortium, a M.A.C.A. No.1406/2012 : 7 : further amount of Rs.25,000/- was granted by the tribunal towards loss of love and affection, which was not warranted at all. The said contention has to be accepted in the light of the observations made in Satinder Kaur (supra) where the Hon'ble Supreme Court observed that when compensation is awarded for loss of consortium, no further amount needs to be granted towards loss of love and affection. Therefore, the said amount is to be adjusted towards the additional amount granted by this Court towards the loss of consortium. Thus, the further amount payable under the head of loss of consortium is determined as Rs.1,10,000/- [160000-(25000+25000]. Accordingly, the total additional compensation receivable by the appellants is determined as Rs.6,77,200/- (547200+10000+10000+110000). In the light of the aforesaid observations and findings, this appeal is allowed. The award dated 13.06.2011 passed by the Motor Accident Claims Tribunal, Ernakulam in OP(MV) No.2551/2007 is hereby modified by granting an additional compensation of Rs.6,77,200/- (Rupees six lakhs seventy-seven thousand two hundred only) and the said amount shall be deposited by the 3[rd] respondent insurance company along with M.A.C.A. No.1406/2012 : 8 : interest at the rate as ordered by the tribunal and with proportionate costs within a period of three months from the date of receipt of a copy of this judgment. However, it is clarified that, as the appeal was filed with a petition to condone the delay of 264 days in filing the appeal, the 3rd respondent insurance company shall be entitled to exclude the said period of delay while computing the interest on the additional compensation. Sd/ZIYAD RAHMAN A.A. JUDGE ncd