High Court of KeralaSingle JudgeMACA 1839/2012: Dismissed; MACA 2316/2012: Allo...

MACA No.1839 of 2012 (B) and MACA No.2316 of 2012, High Court of Kerala

Case / Petition Number:MACA No.1839 of 2012 (B) and MACA No.2316 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. V. Kunhikrishnan
Judgment Date
2021-03-19
Court Decision / Holding
MACA 1839/2012: Dismissed. MACA 2316/2012: Allowed in part; enhanced compensation calculated as Rs.7,56,200 with 7.5% interest from the petition date; insurer directed to pay the enhanced amount.
Final Disposition
MACA 1839/2012: Dismissed; MACA 2316/2012: Allowed in part with enhanced compensation of Rs.7,56,200 plus 7.5% interest; insurer to pay.

Parties to the Case

Appellants / Petitioners

  • ICICI Lombard General Insurance Company Limited
  • Varghese
  • Rosily
  • Alexander
  • Soniya

Respondents

  • Varghese
  • Rosily
  • Alexander
  • Soniya
  • K. Bhaskaran
  • Soman
  • ICICI Lombard General Insurance Company Limited

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri K.B. Ramanand
  • • Sri R. Ajith Kumar
  • • Sri R. Ajith Kumar (128/84)

Counsels for Respondents

  • • Sri P.S. Appu
  • • Sri A.R. Nimod
  • • Smt. P.K. Priya
  • • Sri T.C. Suresh Menon
  • • Sri T.K. Vipindas
  • • Sri R. Ajith Kumar

Case Synopsis & Summary

These two connected Motor Accidents Claims Appeals arise from a 11.01.2007 road accident on Amballur–Palappilly Public Road that killed Charles, the rider of a motorcycle. The Motor Accidents Claims Tribunal, Irinjalakkuda, assessed compensation at Rs.3,47,000 with 7.5% interest. ICICI Lombard General Insurance Company Limited preferred MACA 1839/2012 (B) challenging the Tribunal’s multiplier for dependency calculation (contending it was excessive or incorrect). The petitioners (Varghese, Rosily, Alexander, and Soniya) filed MACA 2316/2012 seeking enhanced compensation, asserting the deceased’s monthly income was Rs.6,000 and invoking 40% future prospects under the decisions of Ramachandrappa and Pranay Sethi, while also urging higher awards for loss of love and affection, funeral expenses, and loss of estate in light of Magma General Insurance Co. Ltd. v. Nanu Ram. The High Court, in a common judgment by Justice P.V. Kunhikrishnan, held the Tribunal’s multiplier of 18 to be correct under Sarla Verma and then allowed the second appeal in part, recalculating compensation for the claimants with higher income and future prospects, resulting in an enhanced award of Rs.7,56,200 with 7.5% interest from the petition date. The insurer’s appeal was dismissed, and the petitioners’ appeal was allowed in part, with the insurer directed to pay the enhanced amount.

Legal Doctrines & Maxims

  • Multiplier principle for dependency (Sarla Verma & Others v. Delhi Transport Corporation)
  • Future prospects enhancement (40%/Pranay Sethi)
  • Income determination for dependents (Ramachandrappa v. The Manager, Royal Sundaram)
  • Loss of love and affection and related heads (Magma General Insurance Co. Ltd. v. Nanu Ram)

Submissions & Arguments

Contentions of Appellants / Petitioners

The insurer contends that the Tribunal correctly applied the 18-year multiplier for dependency as per the binding precedent in Sarla Verma, and, on this basis, the impugned award should not be disturbed.

Contentions of Respondents

The claimants contend for enhancement: deceased’s income should be Rs.6,000 per month with 40% future prospects per Ramachandrappa and Pranay Sethi; they seek higher awards for loss of love and affection, funeral expenses, and loss of estate, supported by Magma on heads of compensation and the evolving framework for motor-accident valuation.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Sarla Verma & Others v. Delhi Transport Corporation & another2010 (2) KLT 802PositiveCourt relies on the Sarla Verma framework to validate the multiplier (18) used for dependency in the award.
Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company LimitedAIR 2011 SC 2951PositiveCited for guidance on income and future prospects; supports raising monthly income and considering prospects in calculation.
National Insurance Co. Ltd. v. Pranay Sethi2017 (5) KHC 350 : 2017 (16) SCC 680PositiveUsed to justify 40% addition towards future prospects in dependency calculations.
Magma General Insurance Co. Ltd. v. Nanu Ram Alias Chuhru Ram & Others(2018) 18 SCC 130PositiveCited for awards on loss of love and affection, funeral expenses, and related heads in calculating enhanced compensation.

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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** **FRIDAY, THE 19TH DAY OF MARCH 2021 / 28TH PHALGUNA, 1942** ## **MACA.No.1839 OF 2012(B)** **AGAINST THE AWARD IN OPMV 1065/2007 DATED 09-05-2012 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , IRINJALAKUDA** ## **APPELLANT/S:** **ICICI LAMBARD GENERAL INSURANCE CO.LTD REGISTERED OFFICE, ICICI BANK TOWERS, BANDRA EAST,MUMBAI - 400051.** **BY ADVS. SRI.K.B.RAMANAND SRI.R.AJITH KUMAR (128/84)** ## **RESPONDENT/S:** |**1**|**VARGHESE**| |---|---| ||**S/O.CHAKKU, CHENGALUKARAN HOUSE, AYYANKODE**| ||**(P.O),MUTTHITHADI, KALLUR, THRISSUR DISTRICT 680003.**| |**2**|**ROSILY W/O.VARGHESE CHENGALUKARAN HOUSE AYYANKODE P.O**| ||**MUTTATHADI, KALLUR, THRISSUR DISTRICT 680003.**| |**3**|**ALEXANDER S/O.VARGHESE CHENGALUKARAN HOUSE AYYANKODE P.0**| ||**MUTTITHADI, KALLUR, THRISSUR DISTRICT 680003.**| |**4**|**MINOR SONIYA D/O.VARGHESE CHENGALUKARAN HOUSE AYYANKODE**| ||**(P.O), MUTTATHADI, KALLUR, THRISSUR DISTRICT 680003.**| ||**(REPRESENTED BY HER FATHER, VARGHESE)**| |**5**|**K.BHASKARAN S/O.KOCHAMMINI SNEHALAYA PUTHIYAVILA**| ||**KAYAMKULAM, ALAPPUZHA DISTRICT 690502.**| |**6**|**SOMAN SO.GOPALAN KARUGASSERY HOUSE KANNANPILLY DESOM**| ||**PATHIYUR, KAYAMKULAM, ALAPPUZHA DISTRICT 690502.**| ||**R1 BY ADV. SRI.P.S.APPU**| ||**R1 BY ADV. SRI.A.R.NIMOD**| ||**R1, R5 BY ADV. SMT.P.K.PRIYA**| ||**R1 BY ADV. SRI.T.C.SURESH MENON**| ||**R1 BY ADV. SRI.T.K.VIPINDAS**| **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 19.03.2021, ALONG WITH MACA.2316/2012(B), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **MACA.No.1839 OF 2012(B)** **2** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN** **FRIDAY, THE 19TH DAY OF MARCH 2021 / 28TH PHALGUNA, 1942** **MACA.No.2316 OF 2012** **AGAINST THE AWARD IN OPMV 1065/2007 DATED 09-05-2012 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , IRINJALAKUDA** ## **APPELLANT/S:** |**1**|**VARGHESE**| |---|---| ||**S/O. CHAKKU.**| |**2**|**ROSILY**| ||**W/O. VARGHESE**| |**3**|**ALEXANDER**| ||**S/O. VARGHESE**| |**4**|**SONIYA**| ||**D/O. VARGHESE ALL ARE RESIDING AT CHANGALUKARAN HOUSE,**| ||**AYYANKODE P.O, MUTTITHADI, KALLUR, THRISSUR DISTRICT.**| ||**BY ADVS.**| ||**SRI.T.C.SURESH MENON**| ||**SRI.P.S.APPU**| ||**SRI.K.A.ANAS**| ||**SRI.A.R.NIMOD**| |**RESPONDENT/S**<br>**:**|| |**1**|**K.BHASKARAN**| ||**S/O. KOCHAMMINI, RESIDING AT SNEHALAYA, PUTHIYAVILA,**| ||**KAYAMKULAM, ALAPPUZHA DISTRICT - 690 531.**| |**2**|**SOMAN**| ||**S/O. GOPALAN, RESIDING AT KARUGASSERY HOUSE, KANNAMPILLY**| ||**DESOM, PATHIYUR, KAYAMKULAM, ALAPPUZHA DISTRICT - 690**| ||**552.**| |**3**|**ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED**| ||**REGISTERED OFFICE, ICICI BANK TOWERS, BANDRA EAST,**| ||**MUMBAI - 400 051.**| ||**R1 BY ADV. SRI.R.AJITH KUMAR 12884**| ||**R1 BY ADV. SRI.K.B.RAMANAND**| ||**R3 BY ADV. SRI.R.AJITH KUMAR (128/84)**| |**THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON**|| |**19.03.2021, ALONG WITH MACA.1839/2012(B), THE COURT ON THE SAME DAY**|| |**DELIVERED THE**|**FOLLOWING:**| **MACA.No.1839 OF 2012(B)** **3** **P.V.KUNHIKRISHNAN, J ----------------------------------------------M.A.C.A. No.1839 & 2316 of 2012 -------------------------------------Dated this the 19[th] day of March, 2021** ## **JUDGMENT** These two appeals are connected and therefore, I am disposing of these appeals by a common judgment. The appellant in M.A.C.A. No. 1839/2012 is the 3[rd] respondent in O.P(M.V) No. 1065/2007 on the file of the Motor Accidents Claims Tribunal, Irinjalakkuda. The appellants in M.A.C.A No. 2316/2012 is the claimants/petitioners in the above claim petition. The Tribunal considered O.P(M.V). No. 1065/2007 along with O.P(M.V) No. 547/2007 which was filed by an injured, who sustained injuries in the same accident. 2. The Short facts are like this:- On 11.01.2007, at about 8 p.m., the deceased was travelling in a motor cycle bearing Registration No.KL-8/AC-4097 and the pillion rider was the petitioner in O.P(M.V) No. 547/2007. They were travelling through Amballur-Palappilly Public Road in the West to East **MACA.No.1839 OF 2012(B)** **4** direction keeping the northern side of the road and when they reached eastern side of the Kalakallu Junction, a tipper lorry bearing Registration No. KL-29/190 came through AmballurPalappilly Public Road from East to West direction driven by the 2[nd] respondent in a rash and negligent manner and hit against the motor cycle causing injuries to them. Both of them were taken to the hospital. The deceased was ‘Charles’ who was riding the motor cycle succumbed to the injuries. O.P(M.V) No.1065/2007, was filed by the parents and sister of the deceased ‘Charles’ claiming compensation from the respondents. Respondent No.1 is the RC Owner of the tipper lorry. The respondent No.3 is the insurer. Respondent No.2 is the driver of the offending vehicle. 3. To substantiate the case, Exhibits A1 to A24 were marked on the side of the petitioners. Two witnesses were examined on the side of the petitioners as PW1 and PW2. After going through the evidence and documents, the Tribunal awarded a total compensation of Rs.3,47,000/- (Rupees Three Lakhs Forty Seven Thousand Only) with interest at the rate of 7.5% p.a., from the date of petition till realisation. Aggrieved by **MACA.No.1839 OF 2012(B)** **5** the quantum of compensation, M.A.C.A No.2316/2012 is filed by the petitioners and the 3[rd] respondent filed M.A.C.A. No. 1839/2012 challenging the multiplier used by the Tribunal for calculating dependency. 4. Heard counsel for the appellants. 5. I will consider MACA No. 1839/2012 first. ## **MACA 1839/2012** 6. This appeal is filed by the 3[rd] respondent, who is ICICI Lombard General Insurance Company Limited. The main contention raised by the appellant is that the multiplier used by the Tribunal for assessing the dependency compensation is not correct. The multiplier used by the Tribunal is ’18’. In the light of the decision in **Sarla Verma & Others v. Delhi Transport Corporation & another** [2010 (2) KLT 802] **,** the multiplier used by the Tribunal is perfectly correct. Therefore, according to me, there is nothing to interfere with the impugned award based on an appeal filed by the Insurance Company. ## **MACA No. 2316/2012** 7. In this case, the petitioners want enhancement of compensation. The first point raised by the counsel for the **MACA.No.1839 OF 2012(B)** **6** petitioners is that the deceased was aged 21 and he was doing aluminum fabrication work. According to the counsel, the deceased was getting an amount of Rs.6,000/- per month. The accident was in 2007. The counsel relied the judgment of the Apex Court in **Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Limited** [AIR 2011 SC 2951] and contended that the Tribunal ought to have accepted Rs.6,000/- as monthly income in the facts and circumstances of this case. There is force in the argument of the counsel for the appellant. Admittedly, the deceased was a qualified person and he is having a certificate from CV Polytechnic College. According to the appellants, the deceased was an aluminum fabrication worker. The Apex Court in **Ramachandrappa’s** case (supra), observed that, even a coolie will get Rs.4,500/- and that case was decided in 2004. If that case is taken as a basis, this Court can safely fix the monthly income of the deceased as Rs.6,000/- because the accident in this case occurred in 2007. While assessing the monthly income, 40% is to be increased towards future prospects in the light of the judgment of the Apex Court in **National Insurance Co. Ltd.** **MACA.No.1839 OF 2012(B)** **7** **v. Pranay Sethi,** [2017 (5) KHC 350 : 2017 (16) SCC 680]. Then, the monthly income can be re-fixed as Rs.8,400/-. Consequently, the dependency compensation is to be re-calculated in the following manner. 8,400 x 12 x 18 x ½ = Rs. 9,07,200/- 8. From the above amount, the amount already granted is to be deducted. Then, the balance amount will be Rs.5,83,200/(9,07,200 – 3,24,000). 9. Then, the counsel submitted that, only an amount of Rs.2,000/- is awarded towards funeral expenses and the appellants are entitled altogether Rs.15,000/- towards funeral expenses. It is true that the appellants are entitled Rs.15,000/towards funeral expenses. Therefore, the appellants are entitled another amount of Rs.13,000/- towards funeral expenses. Towards loss of love and affection, only Rs.5,000/- is awarded. The claimants are the parents and younger siblings. They are entitled an amount of Rs.40,000/- each in the light of the decision of the Apex Court in **Magma General Insurance Co. Ltd. v. Nanu Ram Alias Chuhru Ram & Others** [(2018) 18 SCC 130]. Therefore, the appellants are entitled an amount of **MACA.No.1839 OF 2012(B)** **8** Rs.1,60,000/- (4 x 40,000). From the above amount, the amount already granted towards loss of love and affection is to be deducted. Then the balance amount will be Rs.1,55,000/(160,000 – 5000). Towards loss of estate, the Tribunal awarded only Rs.10,000/-. The appellants are entitled another Rs.5,000/in this head also. Therefore, the enhanced compensation entitled by the appellants can be summarized like this : |**Sl.No.**|**Head**|**Amount**| |---|---|---| |1|Compensation for loss of<br>dependency|Rs.5,83,200/-| |2|Loss of estate|Rs.5,000/-| |3|Loss of love and affection|Rs.1,55,000/-| |4|Funeral expenses|Rs.13,000/-| ||**Total**|**Rs.7,56,200/-**| 10. The appellants are entitled interest at the rate of 7.5% per annum from the date of petition till realization. Therefore, these two appeals are disposed of in the following manner : - 1) MACA 1839/2012 is dismissed - 2) MACA No.2316/2012 is allowed in part. The impugned award is modified. The appellants are entitled an enhanced **MACA.No.1839 OF 2012(B)** **9** amount of Rs.7,56,200/- with interest at the rate of 7.5 % per annum from the date of petition till realization. - 3) The 3[rd] respondent is directed to pay the enhanced compensation with interest. avs SKS **P.V.KUNHIKRISHNAN JUDGE**