High Court of KeralaSingle JudgeAppeals allowed in part

MACA No.1448/2010 and MACA No.1146/2010, High Court of Kerala at Ernakulam

Case / Petition Number:MACA.No.1448/2010; MACA.No.1146/2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. V. Kunhikrishnan
Judgment Date
2021-03-01
Court Decision / Holding
The two appeals are partly allowed. MACA 1146/2010: loss of dependency is refixed at Rs.6,33,408 with a 1/2 deduction for personal expenses. MACA 1448/2010: the claimant is entitled to an enhanced amount of Rs.7,28,408 with interest at 8% from the date of application. Additionally, Rs.40,000 each for filial consortium per Magma General Insurance Co. Ltd. v. Nanu Ram is recognized, along with Rs.15,000 for funeral expenses and Rs.10,000 for loss of estate, as per Pranay Sethi’s guidelines. Overall, the appeals are allowed in part.
Final Disposition
Appeals allowed in part

Parties to the Case

Appellants / Petitioners

  • E. Narayani Ammal
  • The Oriental Insurance Co. Ltd. (Kottayam/Thodupuzha)

Respondents

  • Thomas Mathew S/O Mathew
  • Jossy Cheriyan S/O Cheriyan Panachikkalayil
  • The Oriental Insurance Company Limited (Divisional Office No.1)
  • K.H. Shaji S/O Hassan Kunju Kavani Parambil
  • Abbas Rawuther S/O Saithu Muhammed Vadakkedathu
  • The Oriental Insurance Co. Ltd. Branch Office

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Anil S. Raj
  • • Sri Anila Peter
  • • Sri Beena Devassy
  • • Sri K.N. Rajani
  • • Sri Radhika Rajasekharan P.

Counsels for Respondents

  • • Smt. K.S. Santhi

Case Synopsis & Summary

These two Motor Accident Claims Appeals arise from the MACT, Ernakulam award dated 21.11.2009 in OP(MV)1267/2003, which awarded Rs.4,27,064 as compensation with 7.5% interest. The petitioners are parents of Sunil, who died in a motor accident on 05.02.2003. MACA 1448/2010 is filed by Narayani Ammal seeking enhancement of compensation; MACA 1146/2010 is filed by Oriental Insurance Co. Ltd. challenging the quantum, arguing that only 1/3 of the compensation was deducted for the deceased’s personal expenses, whereas Sarla Verma v. Delhi Transport Corporation prescribes a 50% deduction for personal expenses for a bachelor. The court notes Exts A1–A11 and examines whether the tribunal correctly computed dependency loss and whether future prospects should be added as per Pranay Sethi. The court accepts that the deceased was a bachelor and applies Sarla Verma’s principle to allow a greater personal expenses deduction (1/2). It also applies the Supreme Court’s Pranay Sethi guidelines to add 50% as future prospects, raising monthly income from Rs.4,399 to Rs.6,598. The multiplier is corrected to 16 (not 12). The court recalculates loss of dependency to Rs.6,33,408, and awards Rs.15,000 for funeral expenses, Rs.10,000 for loss of estate, and Rs.75,000 for filial consortium, totaling Rs.7,28,408 with 8% interest on the enhanced amount. The appeals are allowed in part, remanding for these recomputations and awards.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Sarla Verma & Otrs Vs. Delhi Transport Corporation – personal expenses deduction for a bachelor (50%)
  • National Insurance Co. Ltd v. Pranay Sethi – future prospects/addition to income (50%)
  • Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & others – filial consortium principle (Rs. 40,000 to each parent)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the tribunal undervalued compensation. For MACA 1448/2010, the claimant argues that the deceased’s last salary (Rs.4,399) should be taken as monthly income and that future prospects (50%) must be added per Pranay Sethi, given the deceased’s age (34). She asserts that the multiplier should be 16 and seeks enhancements for funeral expenses, loss of estate, and filial consortium.

Contentions of Respondents

The insurer contends that the tribunal erred in deducting personal expenses; it argues for a 1/2 deduction in line with Sarla Verma. It challenges the added future prospects and the multiplier applied, urging a more conservative computation.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Sarla Verma & Otrs Vs. Delhi Transport Corporation2010(2)KLT 802PositiveUsed to support the 50% personal expenses deduction (for bachelor) and to correct the tribunal’s 1/3 deduction.
National Insurance Co.Ltd v. Pranay Sethi2017(4)KLT 662PositiveApplied to add 50% as future prospects to the deceased’s income.
Magma General Insurance Co.Ltd. V. Nanu Ram@Chuhru Ram & others2018KHC 6697PositiveUsed to award filial consortium (Rs.40,000 to each parent).

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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.V.KUNHIKRISHNAN** **MONDAY, THE 01ST DAY OF MARCH 2021 / 10TH PHALGUNA, 1942** ## **MACA.No.1448 OF 2010** **AGAINST THE AWARD IN OPMV 1267/2003 DATED 21-11-2009 OF THE MOTOR ACCIDENT CLAIMS TRIBUNAL,EKM** ## **APPELLANT:** **E.NARAYANI AMMAL** **AGED 65 YEARS, WIFE OF LATE SRI.C.M.GULIKAN, RESIDING AT KARUVAKKAL HOUSE, ELOOR NORTH VILLAGE,, UDYOGAMANDAL P.O., ERNAKULAM DISTRICT.** **BY ADVS. SRI.ANIL S.RAJ SMT.ANILA PETER SMT.BEENA DEVASSY SMT.K.N.RAJANI SRI.RADHIKA RAJASEKHARAN P.** ## **RESPONDENTS:** - **1 THOMAS MATHEW S/O.MATHEW, KUMBALAMTHANATHU HOUSE, AYARKUNNAM P.O.,, KOTTAYAM.** - **2 JOSSY CHERIYAN SO.CHERIAN PANACHIKKALAYIL HOUSE, KIZHAKKUMBHAGHAM DESOM,, ETTUMANOOR, KOTTAYAM DISTRICT.** - **3 THE ORIENTAL INSURANCE COMPANY LIMITED DIVISIONAL OFFICE NO.1, MATTETHRA BUILDING,, 3RD FLOOR, BAKER JUNCTION, KOTTAYAM.** - **4 K.H.SHAJI SO.HASSAN KUNJU KAVANIPARAMBIL HOUSE, KAITHAKODE, THODUPUZHA,, IDUKKI DISTRICT.** - **5 ABBAS RAWUTHER SO.SAITHU MUHAMMED VADAKKEDATHU, MADAKKATHAZHAM, MUVATTUPUZHA,, ERNAKULAM DISTRICT.** - **6 THE ORIENTAL INSURANCE COMPANY LIMITED BRANCH OFFICE, P.B.NO.8, JYOTHI SUPER BAZAR,, THODUPUZHA.** MACA.1448/2010,MACA.1146/2010 2 ## **R1 BY ADV. SRI.GEORGE CHERIAN THIRUVALLA** ## **OTHER PRESENT:** ## **SMT.K.S.SANTHI FOR ORIENTAL INSURANCE CO.LTD.** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 26-02-2021, ALONG WITH MACA.1146/2010, THE COURT ON 01-032021 DELIVERED THE FOLLOWING:** MACA.1448/2010,MACA.1146/2010 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN** **MONDAY, THE 01ST DAY OF MARCH 2021 / 10TH PHALGUNA, 1942** ## **MACA.No.1146 OF 2010** **AGAINST THE AWARD IN OPMV 1267/2003 DATED 21-11-2009 OF THE MOTOR ACCIDENT CLAIMS TRIBUNAL, ERNAKULAM** ## **APPELLANTS:** **1 THE OPRIENTAL INSURANCE CO.LTD KOTTAYAM, REPRESENTED BY ITS ASSISTANT MANAGER,, REGIONAL OFFICE, ERNAKULAM NORTH, KOCHI-18. 2 THE ORIENTAL INSURANCE CO.LTD. THODUPUZHA, REPRESENTED BY ITS ASSISTANT MANAGER,, REGIONAL OFFICE, ERNAKULAM NORTH, KOCHI-18.** **BY ADV. SRI.GEORGE CHERIAN (SR.) : 1 C.M.GULIKAN (DIED) S/O.LATE MARAN, RESIDING AT KARUVAKKAL HOUSE, ELOOR NORTH VILLAGE,, UDYOGAMANDAL P.O., ERNAKULAM DISTRICT. 2 E.NARAYANI AMMAL W/O.C.M.GULIKAN RESIDING AT KARUVAKKAL HOUSE,, ELOOR NORTH VILLAGE, UDYOGAMANDAL P.O., ERNAKULAM DISTRICT. (THE SECOND RESPONDENT IS RECOREDED AS THE LEGAL HEIR OF THE DECEASED FIRST RESPONDENT AS PER ORDER DATED 20/10/2010 IN IA 2707/2010) R1 BY ADV. SRI.ANIL S.RAJ R1 BY ADV. SMT.ANILA PETER R1 BY ADV. SMT.K.N.RAJANI R1 BY ADV. SRI.RADHIKA RAJASEKHARAN P.** ## **RESPONDENTS:** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 26-02-2021, ALONG WITH MACA.1448/2010, THE COURT ON 01-032021 DELIVERED THE FOLLOWING:** MACA.1448/2010,MACA.1146/2010 4 ## **P.V.KUNHIKRISHNAN, J** -------------------------------- MACA.1448/2010 & MACA.1146/2010 ------------------------------- ## **JUDGMENT** Dated this the 1st day of March 2021 These two appeals are filed challenging the award dated 21.11.2009 in O.P (MV) No.1267 of 2003 on the file of the Additional Motor Accidents Claims Tribunal, Ernakulam. 2. The appellants in MACA No.1146/2010 are the 3[rd] and 6[th] respondents in OP(MV).No.1267/2003 and the appellant in MACA No.1448/2010 is the 2[nd] petitioner before the tribunal. As far the 1[st] petitioner in OP(MV).No.1267/2003 concerned, it is submitted that he is no more even before filing this appeal. 3. The MACA No.1448/2010 is filed challenging the quantum of award. MACA No.1146/2010 is filed by the insurance company with a grievance that instead of one half of the compensation, which is to be deducted from the compensation for personal expenses MACA.1448/2010,MACA.1146/2010 5 of the deceased only 1/3rd is deducted. (Hereinafter the parties are mentioned in accordance to their rank before the tribunal). 4. The petitioners filed the claim petition under Section 166 of the Motor Vehicles Act claiming compensation. The son of the petitioners, C.G Sunil died in a motor accident on 5/2/2003. According to the petitioners, the respondents are liable to pay the compensation to the petitioners. 5. To substantiate the case, the appellants had produced Exts.A1 to A11. 6. After going through the pleadings and documents, the Tribunal fixed a total compensation of Rs.4,27,064/- with interest @ 7.5% p.a from the date of petition till realisation. 7. Aggrieved by the quantum of compensation the 2[nd] petitioner filed MACA No.1448/2010. The 3[rd] and 6[th] respondents filed MACA.No.1146/2010. These two appeals are connected and therefore I am MACA.1448/2010,MACA.1146/2010 6 disposing these appeals by a common judgment. MACA.No.1146/2010. In this appeal the main grievance of the appellants who are respondents 3 and 6 is that only 1/3rd is deducted from the compensation fixed by the tribunal towards personal expenses of the deceased and in the light of the judgment of the **Sarla Verma & Otrs Vs. Delhi Transport Corporation [2010(2)KLT 802]** half of the amount ought to have been deducted from the income of a bachelor. Admittedly, the deceased was a bachelor. There is no dispute on this aspect to the petitioners also. Hence, the tribunal erred in deducting only 1/3rd of the compensation for the personal expense of the deceased while fixing loss of dependency. That is to be set-aside and it is to be refixed. ## MACA No.1448/2010 8. This is an appeal filed by the 2[nd] petitioner claiming enhancement of compensation. According to MACA.1448/2010,MACA.1146/2010 7 the claimant, Ext.A8 is the salary statement of the deceased- C.G Sunil who was working as a police constable. According to the counsel, the last pay drawn by the deceased was Rs.4,399/-. The tribunal ought to have taken this as his monthly income. The counsel submitted that the future prospects is not added to the monthly income and 50% is to be added in the light of the judgment of the apex court in **National Insurance Co.Ltd v. Pranay Sethi** **[2017(4)KLT 662].** The deceased was working as a police constable and he was aged only 34 at the time of accident. 9. There is force in the argument of the counsel for the appellant in MACA No.1448/2010. The tribunal ought to have added amount for future prospects. Hence, the monthly income of the deceased will be Rs.6,598/- after adding 50% for future prospects. Consequently, the compensation amount for loss of dependency is to be recalculated in the following MACA.1448/2010,MACA.1146/2010 8 manner after deducting one half towards the personal expenses of the deceased:- Rs.6,598X12X16X1/2= Rs.6,33,408/- 10. It is also pointed out by the counsel that multiplier used by the tribunal is 12 and it is actually 16. There is no dispute on this aspect. Hence, the multiplier used in the above calculation is 16. 11. As far as the funeral expenses is concerned the tribunal awarded only an amount of Rs.5,000/-. The petitioners are entitled an amount of Rs.15,000/as per the decision of the **Pranay Sethi's case** (supra). Therefore, an additional amount of Rs.10,000/- is entitled by the petitioners on that head. As far as loss of estate is concerned only Rs.5,000/- is awarded by the tribunal. The petitioners are entitled an additional amount of Rs.10,000/- on that head as per the decision in **Pranay Sethi's case** (supra). Similarly, loss of love and affection only Rs.5,000/- is awarded. The petitioners are the father and mother. MACA.1448/2010,MACA.1146/2010 9 In the light of the decisions of the apex court in **Magma General Insurance Co.Ltd. V. Nanu Ram@Chuhru Ram & others [2018KHC 6697],** the appellants are entitled an amount of Rs.40,000/- each towards the filial consortium. Hence, the appellants are entitled an enhanced compensation of Rs.75,000/on this head. Therefore, the enhanced compensation entitled by the appellant can be summarized like this:- Funeral expenses :- Rs. 10,000/Compensation for Loss of dependency:- Rs.6,33,408/- (modified) Loss of estate :- Rs.10,000/Filial consortium :- Rs.75,000/–----------------Total Rs.7,28,408/======== 12. The appellants are entitled 8% interest for the enhanced amount. Therefore, the above appeals are allowed in part:- (i) MACA 1146/2010 is allowed in part. The loss of MACA.1448/2010,MACA.1146/2010 10 dependency compensation awarded by the tribunal is set aside and it is refixed as Rs.6,33,408/-. Towards the personal expenses of the deceased half of the compensation is deducted. (ii) MACA No.1448/2010 is allowed in part. The appellant/petitioner No.2 is entitled an enhanced amount of Rs.7,28,408/- with interest @ 8% from the date of application till realisation. **Sd/-** **P.V.KUNHIKRISHNAN JUDGE** ska