High Court of KeralaSingle JudgeAppeal allowed; insurer liable; enhanced compen...

M.A.C.A No.2158 of 2011: USMAN v. K. RAJAN & Others

Case / Petition Number:M.A.C.A No.2158 of 2011
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Badharudheen
Judgment Date
2021-12-16
Court Decision / Holding
The appeal is allowed. The 6th respondent insurer is held liable to indemnify. The compensation is enhanced to Rs. 9,57,400, with Rs. 2,95,000 already awarded by the Tribunal and the balance Rs. 6,62,400 enhanced payable by respondents 4 to 6 jointly and severally, with interest at 6% per annum from the date of petition until realisation, excluding the period of 1673 days in filing this appeal. Additional court fee of Rs. 2,574 to be deposited. The insurer is directed to deposit the entire enhanced amount with interest, and the amount shall be released to the appellants as per Tribunal’s fixed proportion. The badge-based exoneration is set aside; the weight of the offending vehicle confirms insurer liability.
Final Disposition
Appeal allowed; insurer liable; enhanced compensation and deposit ordered; final disposal: enhanced award with liability on insurer; additional court fee ordered.

Parties to the Case

Appellants / Petitioners

  • Usman
  • Manzoor
  • Abdulla (minor)
  • Mammi
  • Aysha

Respondents

  • K. Rajan
  • P.P Aravindakshan
  • The Manager Oriental Insurance Company Ltd.
  • K. Muneer
  • The Manager United India Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Pratheesh P
  • • Sri K. Siju

Counsels for Respondents

  • • Sri Mathews Jacob (Sr.)
  • • Sri M.A. George
  • • Sri P. Jacob Mathew
  • • Sri VPK Panicker

Case Synopsis & Summary

This High Court of Kerala, in MACA No.2158 of 2011, arises from an appeal against the Motor Accident Claims Tribunal, Vadakara, in O.P.(MV) 857/2003. The petitioners (USMAN, Manzoor, Abdulla (minor), Mammi and Aysha) claimed compensation for the death of Rukhiya in a motor accident on 03.03.2003 involving a jeep KL-11L-6111 and a bus KL-7U-4689. The Tribunal held 5th respondent (driver of the jeep) liable, but exonerated the 6th respondent insurer on policy–condition grounds due to badge requirements, while 1st and 2nd respondents were set ex parte. The Tribunal awarded Rs. 2,95,000 with 6% interest and the insurer was kept out of liability. The appellants challenged both quantum and liability. The High Court, after analysis and reliance on established authorities, enhanced compensation to Rs. 9,57,400, maintaining Rs. 2,95,000 already granted, and directing payment of the balance by the respondents 4–6 jointly and severally, with interest at 6% from the petition date. The court held the vehicle’s weight (1225 kg) falls below 7500 kg; thus badge/weight-based exemption was not applicable, making the insurer liable. The appeal also directed additional court fees deposit. The decision explicitly references several landmark decisions relevant to income estimation, dependency, and heads of compensation.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Ramachandrappa principle for computing income of the deceased (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236)
  • Pranay Sethi doctrine for enhancement of compensation (Pranay Sethi v. National Insurance Co. Ltd., (2017) 16 SCC 680)
  • Loss of dependency enhancements by multiplier approach; use of 40% uplift (Pranay Sethi)
  • Badge/weight-related liability doctrine for transport vehicles (Mukund Dewangan v. Oriental Insurance Co. Ltd., 2017 (4) KHC 648)
  • Satinder Kaur/ Satwinder Kaur rationale on head of loss of love and affection (United India Insurance Co. Ltd v. Satinder Kaur, 2020 (3) KHC 760)
  • M.S. Bhati v. National Insurance Co. Ltd. (2019 KHC 4627) (followed Mukund Dewangan)
  • Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Others (2019 KHC 7367) (ratio doubted; pending larger bench)

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants argued that the Tribunal erred in quantum by fixing monthly income at Rs. 2,000 instead of Rs. 4,500 (evidence of tailoring work). Relying on Ramachandrappa, they urged Rs. 4,000 monthly income with a 40% addition per Pranay Sethi, giving a higher loss of dependency. They submitted conventional heads: loss of consortium, funeral expenses, and loss of estate, seeking higher awards per Pranay Sethi and Satwinder Kaur ratios. They contended the badge-based exoneration of the insurer was unwarranted since the vehicle’s unladen weight was 1225 kg (light vehicle) and falls outside the weight threshold; hence the insurer must indemnify. They urged a full deposit of enhanced amount with interest and payment to appellants.

Contentions of Respondents

Respondents contended Tribunal rightly assessed quantum with limited evidence; the insured’s liability hinged on policy conditions and badge requirement, which led to exoneration of the 6th respondent. They argued the weight of the jeep and policy terms justify insurer exoneration; the gains under conventional heads should be modest and the original award appropriate; maintaining the tribunal’s exoneration and compensation structure would be proper absent compelling evidence.

Cited Precedents (6)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.(2011) 13 SCC 236PositiveUsed to fix the deceased's income (Rs. 4,000/month) with 40% uplift for loss of dependency, following Ramachandrappa's ratio.
Pranay Sethi v. National Insurance Co. Ltd.(2017) 16 SCC 680PositiveApplied for 40% addition to salary for dependency loss; used to compute enhanced conventional heads.
United India Insurance Co. Ltd v. Satinder Kaur2020 (3) KHC 760PositiveUsed to reduce loss of love and affection head following ratio.
Mukund Dewangan v. Oriental Insurance Company Limited(2017) 4 KHC 648PositiveHeld for light motor vehicles (weight < 7500 kg) badge is not required; relevant to insurer liability.
Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Others2019 KHC 7367Partly Overruled / LimitedRatio doubted and referred to larger Bench; limited application in current context.
M.S. Bhati v. National Insurance Company Ltd2019 KHC 4627PositiveApex Court followed Mukund Dewangan’s principle in light-vehicle badge issue; supportive of current position.

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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 A. BADHARUDEEN** **THURSDAY, THE 16[TH] DAY OF DECEMBER 2021 / 25TH AGRAHAYANA, 1943 MACA NO. 2158 OF 2011** **AGAINST THE AWARD IN O.P(M.V) 857/2003 OF MOTOR ACCIDENT CLAIMS** ## **TRIBUNAL VADAKARA** ## **APPELLANTS/PETITIONERS:** 1 USMAN, S/O.KUNHABDULLA, P.O. VELAM, KALLUMMEL HOUSE, VADAKARA TALUK, KOZHIKODE. 2 MANZOOR, S/O.USMAN, P.O. VELAM, KALLUMMEL HOUSE, VADAKARA TALUK, KOZHIKODE. 3 ABDULLA (MINOR), AGED 11 YEARS S/O.USMAN P.O, VELAM, KALLUMMEL HOUSE, VADAKARA TALUK, KOZHIKODE. 4 MAMMI, S/O.SOOPY, OTTAKANDATHIL HOUSE, P.O.VELAM, VADAKARA TALUK. 5 AYSHA, W/O MAMMI., OTTAKANDATHIL HOUSE, P.O, VELAM, VADAKARA TALUK. BY ADVS. SRI.PRATHEESH.P SRI.K.SIJU ## **RESPONDENTS/RESPONDENTS:** 1 K.RAJAN, S/O.KUNHI ONAKKAN, KALLULATHIL HOUSE, P.O. EYYAMCODE, NADAPURAM- 673 504. (RC OWNER(KL-7U-4689/BUS). - 2 P.P ARAVINDAKSHAN, PARAYULLA PARAMBATH, P.O KAVILUMPPARA, VADKARA TALUK- 673 104. (DRIVER KL-7U-4689/BUS) 2 ## **M.A.C.A No.2158 of 2011** 3 THE MANAGER ORIENTENTAL INSURANCE COMAPNY LTD., SREE NIDHI BUILDING, P.B NO. 27, NARAYANA NAGAR, VADAKARA - 673 101. (INSURANCE KL- 7U-4689/BUS) 4 K.MUNEER, S/O.ABDULLA, KADAVATH HOUSE, P.O VELAM, KUTTIYADI, KOZHIKODE-673 508. DRIVER (KL-11-L-6111/JEEP) 5 THE MANAGER, UNITED INDIA INSURANCE COMPANY LTD., P.B. NO. 17, KALLINGAL BUILDING, MAIN ROAD, VADAKARA- 673 101. (INSURANCE KL-11-L6111/JEEP) BY ADVS. SRI.MATHEWS JACOB (SR.) SRI.M.A.GEORGE SRI.P.JACOB MATHEW SRI.VPK.PANICKER THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 16.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **M.A.C.A No.2158 of 2011** 3 ## **JUDGMENT** This appeal is at the instance of the petitioners in O.P.(M.V) No.857/2003 on the file of Motor Accident Claims Tribunal, Vadakara. Respondents herein are the respondents before the Tribunal. 2. The petition averments are as follows: One Rukhiya died as a result of a motor accident occurred on 03.03.2003 at 4:30 p.m., while she was travelling in a jeep bearing registration No.KL-11L-6111. The petitioners approached the Tribunal by filing application under Section 166 of the Motor Vehicles Act claiming compensation of Rs.7,00,000/-, alleging negligence against 2[nd] respondent and 5[th] respondent, who were the drivers of bus bearing registration No.KL-7U-4689 and jeep bearing registration No.KL-11L-6111. 3. According to the appellants, the ## **M.A.C.A No.2158 of 2011** **==> picture [7 x 9] intentionally omitted <==** accident was the outcome of negligence on the part of the 2[nd] and 5[th] respondents. 4. Respondents 1 and 2 were set ex-parte by the Tribunal. 5. The 3[rd] respondent filed written statement admitting the policy of bus bearing registration No.KL-7U-4689 but the negligence and quantum were disputed. Respondents 4 and 5 also filed written statement admitting their status as the owner and driver of the jeep bearing registration No.KL-11L-6111. The 6[th] respondent also filed written statement admitting the policy to the jeep bearing registration No.KL-11L-6111, while disputing negligence on the part of the 5[th] respondent and contended that there was violation of policy conditions. 6. The Tribunal tried this Original Petition along with other 9 connected cases and finally rendered verdict on 22.08.2006. The Tribunal found negligence on the part of the 5[th] ## **M.A.C.A No.2158 of 2011** 5 respondent and Rs.2,95,000/- as compensation with 6% interest per annum. As far as liability is concerned, the Tribunal exonerated the 6[th] respondent, the insurer on the finding that there was violation of policy conditions for want of badge to the 5[th] respondent, the driver of jeep bearing registration No.KL-11L-6111. 7. The petitioners, who are the appellants in this appeal disputed the quantum of compensation granted by the Tribunal as well as exoneration granted in favour of the 6[th] respondent, Insurance Company. 8. Heard both sides and perused the records. 9. As regards the quantum of compensation granted by the Tribunal, it is submitted by the learned counsel for the appellants that the Tribunal fixed Rs.2,000/- alone as the monthly income of the deceased though it has been specifically contended by the appellants before the Tribunal that Rukhiya was earning ## **M.A.C.A No.2158 of 2011** 6 Rs.4,500/- per month by doing the job of tailoring. 10. The learned counsel for the contesting respondents submitted that no convincing evidence adduced in this case to substantiate the income claimed and, therefore, the Tribunal is justified in fixing the income at Rs.2,000/per month. 11. In this context, the decision of the Honourable Apex Court in _**Ramachandrappa v.**_ _**Manager, Royal Sundaram Alliance Insurance**_ _**Company Ltd.**_ : **(2011) 13 SCC 236,** has significance, where the Apex Court fixed the income of a coolie at Rs.4,500/-, during the year 2004. Following the ratio, Rs.4,000/- per month can be fixed in this case since the accident is of the year 2003. (Though it is submitted by the learned counsel for the appellants that the accident is of the year 2001 by repeating the mistake in the appeal 7 ## **M.A.C.A No.2158 of 2011** memorandum, the award would go to show that the accident is of the year 2003. Therefore, the monthly income is fixed as Rs.4,000/- though the learned counsel for the appellant submitted the same at Rs.3,000/- treating the accident of the year 2001). That apart, 40% addition is also permissible following the ratio in ## _**National Insurance Company Ltd. v. Pranay Sethi**_ **: (2017) 16 SCC 680** . Therefore, the income for calculating 'loss of dependency' also to be refixed and is calculated as; 4,000+40% = 5,600x12x16x¾ = 8,06,400/- Out of which, Rs.2,72,000/- was granted by the Tribunal. Therefore, **Rs.5,34,400/-** more is entitled by the appellants. 12. The learned counsel for the appellants pressed for granting compensation under the conventional heads also. The Tribunal granted Rs.5,000/- under the head 'loss of consortium' though petitioners 1 to 3 together are entitled ## **M.A.C.A No.2158 of 2011** 8 to get Rs.1,20,000/@ Rs.40,000/- each, following the ratio in _**Pranay Sethi's**_ case (supra). Therefore, **Rs.1,15,000/-** more is granted under the head 'loss of consortium'. 13. Similarly, towards 'funeral expenses' **Rs.13,000/-** more is granted in addition to Rs.2,000/- granted by the Tribunal. No amount granted under the head 'loss of estate'. Therefore, **Rs.15,000/-** more is granted, following the ratio in _**Pranay Sethi's**_ case (supra). 14. The learned counsel for the Insurance Company submitted that Rs.15,000/- granted under the head 'loss of love and affection' liable to be reduced following the ratio in _**United India Insurance Co. Ltd v. Satinder Kaur**_ ## **@ Satwinder Kaur and others : 2020 (3) KHC 760** . Therefore, **Rs.15,000/-** granted under the head 'loss of love and affection' is reduced. 15. The next question to be decided in this ## **M.A.C.A No.2158 of 2011** **==> picture [7 x 9] intentionally omitted <==** case is whether the Tribunal is justified in exonerating the 6[th] respondent, insurer of the offending jeep from liability. 16. It is submitted by the learned counsel for the appellants that as per the decision reported in _**Mukund Dewangan v. Oriental Insurance Company Limited**_ **: 2017 (4) KHC 648** , badge is required to drive a transport vehicle, having unladen weight of 7500 Kg and above. It is true that in a subsequent decision reported in _**Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Others**_ **: 2019 KHC 7367** , the ratio in _**Mukund Dewangan's**_ case (supra) was doubted and the matter referred to a larger Bench and the said reference is still pending. Subsequently, in another decision reported in _**M.S.Bhati v. National Insurance Company Ltd**_ : **2019 KHC 4627** (decided on 29.03.2019) the Apex Court followed _**Mukund Dewangan's**_ case (supra) to assert the point that a transport vehicle ## **M.A.C.A No.2158 of 2011** ## 10 whose gross weight was less than 7500 Kg. which covers the definition of light motor vehicle under Section 2(21) of the Motor Vehicles Act, 1988, does not require a badge. So, the legal position settled in _**Mukund Dewangan's**_ case (supra) still holds the field. 17. Here Ext.B2 is the photocopy of the RC Book in relation to KL-11L-6111 Motor Cab in which the unladen weight is shown as 1225 Kg. Since the weight noted in Ext.B2 is not legible, the learned counsel for the appellants placed a legible copy downloaded from the internet. In the said document also, the unladen weight is shown as 1225 Kg. Thus the weight of the offending vehicle is less than 7500 Kg. This fact is not seriously opposed by the learned counsel for the Insurance Company. 18. Thus, it has to be held that in the case on hand, the Insurance Company is liable to indemnify the insured and, therefore, the ## **M.A.C.A No.2158 of 2011** 11 exoneration granted by the Tribunal is set aside. 19. In the result, the appeal is allowed. It is held that the appellants are entitled to get Rs.9,57,400/- as compensation out of which Rs.2,95,000/- was granted by the Tribunal and the balance amount of **Rs.6,62,400/-** (Rupees Six Lakh Sixty Two Thousand Four Hundred Only) is granted as enhanced compensation with the same rate of interest awarded by the Tribunal, payable by the respondents 4 to 6 jointly and severally. The 6[th] respondent, Insurance Company is directed to deposit the entire amount with interest at 6% per annum, from the date of petition till the date of deposit or realisation, excluding the period of 1673 days in filing this appeal as ordered in the order dated 05.03.2015 in C.M.Application No. 3187/2011. 20. The appellant valued the claim at Rs.7,00,000/-. In view of grant of ## **M.A.C.A No.2158 of 2011** 12 Rs.2,57,400/- in excess of the claim, the appellant is bound to deposit Rs.2,574/- as additional court fee. The Insurance Company is directed to deposit Rs.2,574/- as additional court fee by a separate cheque in favour of M.A.C.T., Vadakara and the remaining amount in the name of the appellants in the proportion fixed by the Tribunal within two months from today. On deposit, the appellants are entitled to release the same. Sd/- ## **A.BADHARUDEEN, JUDGE.** ww