High Court of KeralaDivision BenchAppeal allowed; enhanced compensation awarded; ...

MACA.No. 1413 of 2012

Case / Petition Number:MACA.No. 1413 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • T.R.Ramachandran Nair
  • B. Sudheendra Kumar
Judgment Date
2015-04-10
Court Decision / Holding
Appeal allowed. Insurance company ordered to deposit the entire amount of compensation and the enhanced amount with 9% interest per annum from the date of petition, deposited within three months. The parties bear their costs. The insurer remains liable for payment despite lack of a fitness certificate per Augustine V.M., and the enhanced compensation is calculated as Rs. 8,84,000 with a revised breakdown including Rs. 7,14,000 as loss of dependency, Rs. 1,00,000 for love and affection, Rs. 35,000 for loss of estate, Rs. 25,000 for funeral expenses and Rs. 10,000 for pain and suffering.
Final Disposition
Appeal allowed; enhanced compensation awarded; insurer liable to pay; 9% interest on enhanced amount; deposit within three months; costs allocated to the parties.

Parties to the Case

Appellants / Petitioners

  • C.P.VELAYUDHAN
  • JANAKI
  • SHEEBA
  • SHEEJA
  • SHEELA

Respondents

  • SHAJITHA W/o.SULAIMAN, KUNNATH VEEDU, CHUNANGAD OTTAPALAM TALUK-679511 (OWNER OF LORRY KL-04/Q 7596)
  • MADHUSUDHANAN, S/O.NARAYANANKUTTY, VENGATHODI VEEDU, NAGARIPURAM MANNUR, PALAKKAD PIN-678642 (DRIVER OF LORRY KL-04/Q 7596)
  • NATIONAL INSURANCE CO.LTD., ALUVA, ERNAKULAMPIN-683101 (INSURER OF LORRY KL-04/Q 7596)

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.SHABU SREEDHARAN

Counsels for Respondents

  • • SRI.A.R.GEORGE

Case Synopsis & Summary

This Motor Accident Claims Appeal (MACA) challenges a MACT award dated 9 December 2011 in OPMV 691/2007 from Palakkad. The claimants sought enhanced compensation for injuries suffered by the deceased Shaji in a road accident on 24 March 2007, involving a tipper lorry KL-04/Q 7596 owned by the first respondent and insured by the National Insurance Co. Ltd. The Tribunal awarded Rs. 3,47,000 with 7.5% interest from 2 July 2007, against a claim of approximately Rs. 18 lakhs. The appellants contended that the deceased, a welder running Ganapathy Engineering Works, would have earned more than the Tribunal’s notional monthly income of Rs. 5,000. They produced Annexure 1 alleging a net income of Rs. 10,000–15,000 per month, but the Court rejected it as inadequately evidenced. The High Court held that, given the lack of direct documentary income proof, income could be assessed by reasonable estimation and fixed Rs. 7,000 per month. It applied Sarla Verma (50% deduction for personal expenses) and, following Rajesh v. Rajbir Singh, increased loss of love and affection to Rs. 1,00,000 and funeral expenses to Rs. 25,000; loss of estate Rs. 35,000; total compensation revised to Rs. 8,84,000. The Court held the insurer liable despite lack of fitness certificate, citing Augustine V.M. v. Ayyappankutty. The appeal was allowed with enhanced compensation and 9% interest, to be deposited within three months, with costs against the insurer and owner’s lack of appeal not overriding the Court’s order.

Legal Doctrines & Maxims

  • Sarla Verma v. Delhi Transport Corporation (2010 (2) KLT 802-SC) — 50% deduction for personal living expenses and multiplier approach in dependency calculation
  • Rajesh v. Rajbir Singh (2013 (3) KLT 89 - SC) — guidance on awards for loss of love and affection and funeral expenses
  • Augustine V.M. v. Ayyappankutty @ Mani and another (2015 (2) KHC 219 - FB) — absence of fitness certificate does not bar insurer liability

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the deceased was a skilled welder running Ganapathy Engineering Works; Ext. A9 licence showed welding work; Annexure 1 suggested monthly income of Rs. 10,000–15,000, claimed as net income, which the Tribunal refused to accept for lack of documentary backing. In the absence of direct evidence, the Court could rely on reasonable estimation (guesswork) and fix a higher income; they argued for substantial compensation under heads of loss of dependency, love and affection, and estate; they urged that absence of a fitness certificate should not negate the insurer’s liability, following relevant jurisprudence; they pressed for higher compensation and the application of Sarla Verma’s method to determine deductions and multiplier.

Contentions of Respondents

The insurer’s counsel objected to accepting Annexure 1 as evidence; argued that the Tribunal’s notional income of Rs. 5,000/month was reasonable given the lack of documentary proof; maintained 50% deduction for personal and living expenses under Sarla Verma; opposed excessive enhancement of L&A and funeral expenses; emphasised that the decision to hold the insurer liable—despite the vehicle’s fitness certificate absence—should be guided by Augustine V.M. and related jurisprudence; noted there was no appeal by the vehicle owner, but the Court could still intervene for just compensation.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802-SCPositiveUsed as basis for 50% deduction for personal expenses and for the multiplier approach in dependency calculation.
Rajesh v.Rajbir Singh2013 (3) KLT 89 - SCPositiveUsed to justify higher awards for love and affection and funeral expenses; informs Rs. 1,00,000 and Rs. 25,000 figures.
Augustine V.M. v. Ayyappankutty @ Mani and another2015 (2) KHC 219 - FBPositiveSupports insurer liability despite absence of fitness certificate.

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. 1413 of 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 T.R.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.SUDHEENDRA KUMAR FRIDAY, THE 10TH DAY OF APRIL 2015/20TH CHAITHRA, 1937 MACA.No. 1413 of 2012 () ------------------------- AGAINST THE AWARD IN OPMV 691/2007 of M.A.C.T., PALAKKAD DATED 9.12.2011 APPELLANT(S)/PETITIONERS 1 TO 5: -------------------------------------------------------------- 1. C.P.VELAYUDHAN AGED 64 YEARS S/O.KUNJELAN, RESIDING AT CHAKRATHUPARAMBIL HOUSE MANNUR WEST POST, PALAKKAD, PIN-678642 2. JANAKI, AGED 59 YEARS W/O.C.P.VELAYUDHAN, RESIDING AT -DO-, PIN-678642 3. SHEEBA AGED 42 YEARS W/O.SUBRAMANIAN, KWA QUARTERS, MALAMPUZHA PALAKKAD, PIN-678651 4. SHEEJA, AGED 33 YEARS W/O.SASI, PANNIKODE HOUSE, KANNADI PALAKKAD, PIN-678701 5. SHEELA, AGED 28 YEARS D/O.C.P.VELAYUDHAN, CHAKRATHU PARAMBIL HOUSE, MANNUR PALAKKAD, PIN-678642 BY ADV. SRI.SHABU SREEDHARAN RESPONDENT(S)/RESPONDENTS 1 TO 3: ------------------------------------------------------------------ 1. SHAJITHA W/O.SULAIMAN, KUNNATH VEEDU, CHUNANGAD OTTAPALAM TALUK-679511 (OWNER OF LORRY KL-04/Q 7596) 2. MADHUSUDHANAN, S/O.NARAYANANKUTTY, VENGATHODI VEEDU, NAGARIPURAM MANNUR, PALAKKAD PIN-678642 (DRIVER OF LORRY KL-04/Q 7596) 3. NATIONAL INSURANCE CO.LTD., ALUVA, ERNAKULAMPIN-683101 (INSURER OF LORRY KL-04/Q 7596) R3 BY ADV. SRI.A.R.GEORGE THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 10-04-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **T.R. RAMACHANDRAN NAIR & B. SUDHEENDRA KUMAR, JJ.** **- - - - - - - - - - - - - - - - - - - - - - - - - M.A.C.A.No.1413 of 2012** **- - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 10[th] day of April, 2015** ## **JUDGMENT** ## **Ramachandran Nair, J.** This appeal is filed by the appellants who are claimants before the Tribunal. This is a case where one late Shaji had suffered injuries in an accident which took place on 24.3.2007 at 3.15 p.m. He was riding his motor cycle bearing Reg. No.KL-9U/6017 towards Pathirippala along with one Shri Ummer as a pillion rider. The offending vehicle is a tipper lorry bearing Reg.No.KL4 Q/7596 which was owned by the first respondent. The Tribunal found in favour of the claimants and awarded compensation to the tune of Rs.3,47,000/- with interest at the rate of 7.5% per annum from 2.7.2007. The total claim was for Rs.18 Lakhs. In this appeal the appellants are seeking enhancement in compensation on various grounds. 2. We heard learned counsel for the appellants and learned counsel for the insurance company. MACA 1413/2012 2 3. Learned counsel for the appellants submitted that the deceased was a welder and was running a welding workshop known as Ganapathy Engineering Works, Nagaripuram at Pathirappala. The monthly income claimed in the petition was Rs.10,000/-. For the reason that no documentary evidence has been produced to prove the income, the Tribunal adopted a notional income at Rs.5,000/- per month. 4. Before this Court the appellants have produced Annexure 1 along with I.A.No.1450/2015 which is a letter issued by one Shri K.Sreekumaran. According to him, he is now managing the welding workshop which was being conducted by the deceased and is getting an average net income of Rs.10,000/- to Rs.15,000/- per month after meeting all the expenses. According to the learned counsel for the appellants, the same can be safely accepted by this Court. 5. Learned counsel for the insurance company objected to the marking of the above document. We have perused the said letter. We will not be justified in assessing the income of the deceased based on a MACA 1413/2012 3 letter issued by the person who is conducting the workshop which was being run by the deceased. It does not reflect any details regarding the income the deceased was getting from the welding workshop. Therefore, we reject the petition, I.A. No.1450/2015 for accepting the said document. 6. Learned counsel for the appellants then submitted that this Court can fix a reasonable amount, since the claim at Rs.10,000/- is not exorbitant. It is submitted that the deceased was a welder and since he was a skilled worker, he would have been able to obtain a very good income. Learned counsel for the insurance company submitted that there should have been better evidence in the matter. We are of the view that for assessing compensation in a case like this where direct evidence by way of documents may not be there regarding the monthly income, the court or tribunal can reckon a proper income by guess work also. The accident in this case occurred in the year 2007. The deceased was aged 30 at the time of accident. That he was getting a very good income, is clear. His occupation stands proved by Ext.A9 MACA 1413/2012 4 licence to conduct welding works for the relevant period, i.e. from 13.11.2006 to 31.3.2007. Even though Rs.5,000/- was adopted by the Tribunal as the monthly income, being a skilled worker and in the light of the fact that the wage structure in the State may result in better income for the deceased, we find it proper to fix Rs.7,000/- as the monthly income. 7. The deceased was a bachelor and therefore 50% of the income will have to be set apart for personal and living expenses, in the light of the decision of the Apex Court in **Sarla Verma v. Delhi Transport Corporation** (2010 (2) KLT 802-SC). The learned counsel for the appellant raised a contention that in the light of the fact that the deceased was supporting the entire family it may be reckoned as 1/3rd of the total income. But the relaxation in such a matter is possible only if there is evidence to show that there were large number of members depending upon the deceased, which is absent in this case. Therefore, we feel it safe to adopt the method adopted in **Sarla Verma's case (supra)** to deduct 50% for personal expenses. For loss of love and MACA 1413/2012 5 affection the Tribunal has granted an amount of Rs.10,000/- and for loss of estate what is granted is only Rs.5,000/-. An amount of Rs.2,000/- has been granted for funeral expenses and no amount has been awarded towards pain and suffering. In the light of the decision of the Apex Court in **Rajesh v.Rajbir Singh** (2013 (3) KLT 89 - SC) a sum of Rs.1 Lakh can be granted for loss of love and affection and Rs.25000/- can be granted towards funeral expenses. Since the deceased was conducting a welding workshop who would have been earning a regular income, we find it proper to fix a reasonable amount for loss of estate, viz. Rs.35,000/-. The Tribunal has adopted the multiplier by relying upon the age of the mother. In the light of the schedule fixed in **Sarla Verma's case** (supra), the correct multiplier will be 17 and we adopt the same. Therefore, the compensation for loss of dependency will come to Rs.7,14,000/-. Accordingly, the total compensation will be refixed as follows: |**_Head of claim_**|**_Amount awarded by_**<br>**_the Tribunal_**|**_Modified award passed_**<br>**_by this Court_**| |---|---|---| |Loss of dependency|330000|714000| |Loss of love and affection|10000|100000| MACA 1413/2012 6 |**_Head of claim_**|**_Amount awarded by_**<br>**_the Tribunal_**|**_Modified award passed_**<br>**_by this Court_**| |---|---|---| |Loss of estate||35000| |Funeral expenses|2000|25000| |Pain and suffering||10000| |Total||884000| (Rupees Eight Lakhs and Eighty-four Thousand only) The Tribunal, after fixing compensation, has allowed to recover it from the owner by the insurer. This direction was issued in the light of the absence of fitness certificate for the vehicle. But in the light of the decision of this Court in **Augustine V.M. v. Ayyappankutty @ Mani and another** (2015 (2) KHC 219 - FB), absence of fitness certificate will not enable the insurance company to make a plea that the conditions of the policy have been violated. Even though learned counsel for the insurance company submitted that there is no appeal by the owner and hence this Court may not be justified in interfering with the said finding, since this Court will have to fix a just and fair compensation, we can consider the same even in the absence of appeal by the owner. Therefore, we hold that the insurance company is liable to satisfy the liability for payment of the award amount. MACA 1413/2012 7 Therefore, the appeal is allowed directing the insurance company to deposit the entire amount of compensation and the enhanced amount of compensation will carry interest at the rate of 9% per annum from the date of petition. There will be a further direction to the insurance company to deposit the amount within a period of three months. The parties will suffer their costs in the appeal. ## **(T.R. RAMACHANDRAN NAIR, JUDGE.)** **(B. SUDHEENDRA KUMAR, JUDGE.)** ## **kav/**