High Court of KeralaDivision BenchAppeal disposed of with modification; enhanced ...

MACA.No. 1782 of 2008 (A)

Case / Petition Number:MACA.No. 1782 of 2008 (A)
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Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • S. Siri Jagan
  • K. Ramakrishnan
Judgment Date
2013-08-13
Court Decision / Holding
Appeal disposed of with modification: dependency loss increased to Rs. 1,80,000 (notional income Rs. 24,000 p.a., multiplier 15), plus Rs. 5,000 for love and affection, Rs. 5,000 for loss of estate, Rs. 2,000 for funeral expenses; total enhanced compensation Rs. 32,000 over Tribunal award; 9% interest from date of petition; two months for deposit by insurer.
Final Disposition
Appeal disposed of with modification; enhanced compensation by Rs. 32,000; insurer to pay with 9% interest from petition date; two months to deposit.

Parties to the Case

Appellants / Petitioners

  • Dr. P.V. Hareeshkumar
  • Beena Hareesh
  • Meera Hareesh

Respondents

  • United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri V.K. Gopalakrishnan Pillai
  • • Sri Gopakumar G. (Aluva)

Counsels for Respondents

  • • Sri P. Sankaran Kutty Nair

Case Synopsis & Summary

The parents and a minor sister of Sarath Hareesh, who died at 15 in a motor-vehicle collision caused by the rash and negligent driving of a vehicle insured with United India Insurance Co. Ltd., challenged a Motor Accidents Claims Tribunal award of Rs. 1,95,750 for death. The appellants contended that compensation under several heads was undervalued and that the calculation of dependency loss for a minor must reflect future prospects (education and potential achievements) rather than a fixed notional figure. They relied on RK Malik v. Kiran Pal to support enhancing future prospects. The insurer argued that for non-earning minors, a notional income should be used (Rs. 15,000 per year) and, following prior rules, the multiplier should be 16. The High Court, however, found it appropriate to give weight to future prospects and to Sarla Verma v. Delhi Transport Corporation (SC), applying a multiplier of 15 for a child under 15 and increasing the notional income to Rs. 24,000 per year. Consequently, dependency loss rose to Rs. 1,80,000, and the court also added Rs. 5,000 for love and affection, Rs. 5,000 for loss of estate, and Rs. 2,000 for funeral expenses. Overall, an additional Rs. 32,000 was awarded, with 9% interest from the petition date and two months to deposit by the insurer, while other heads were left as assessed by the Tribunal. The appeal was disposed of with modification.

Provisions of Law Cited

Section 4(1) of the Land Acquisition Act

Legal Doctrines & Maxims

  • Multiplier principle for loss of dependency (Sarla Verma v. Delhi Transport Corporation)
  • Notional income approach for non-earning minors
  • Future prospects of minors to determine income (education and scholarship potential)

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants argued that for minors, fixing monthly income for dependency must account for future prospects, such as educational brilliance and scholarship prospects. They relied on RK Malik v. Kiran Pal to support enhanced future prospects. They contended that the Tribunal undervalued heads like loss of estate, love and affection, and funeral expenses, and that notional income of Rs. 15,000 per annum with a multiplier of 16 was improper. They urged enhancement on all heads and calculation of compensation with an overall increase of Rs. 32,000 over the Tribunal’s award, plus 9% interest from the petition date, with two months to deposit by the insurer.

Contentions of Respondents

Respondents submitted that for non-earning minors, only a notional income should be used (Rs. 15,000 per annum) and that the Tribunal’s approach should be retained; they argued the multiplier of 16 was in line with prior practice and that the overall Tribunal award was just and proper. They emphasized that future prospects and higher education should not unduly distort compensation and cautioned against excessive enhancement.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
R.K. Malik v. Kiran Pal2009 ACJ 1924Mentioned OnlyCited by appellants to support consideration of future prospects; court did not adopt its reasoning.
Sarla Verma v. Delhi Transport Corporation2009 ACJ 1298PositiveUsed to apply multiplier 15 for under-15 death and to guide notional income considerations.

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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 S.SIRI JAGAN & THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN** **TUESDAY, THE 13TH DAY OF AUGUST 2013/22ND SRAVANA, 1935** ## **MACA.No. 1782 of 2008 (A)** **-------------------------AGAINST THE AWARD IN OPMV 2156/2004 of M.A.C.T.,PERUMBAVOOR DATED 15-02-2008** **APPELLANT/PETITIONER IN OP (MV):-2156/04:** **-------------------------------------------------------------------** ## **1. DR.P.V. HAREESHKUMAR,** - **S/O P.VISWANATHAN AGED 43, GEETHAM, KOTHAKULANGARA ANGAMALLY P.O., ERNAKULAM DISTRICT.** **2. BEENA HAREESH, S/O DR. P.V. HAREESHKUMAR DO.....** ## **3. MEERA HAREESH, D/O DR. P.V. HAREESHKUMAR** **BY ADVS.SRI.V.K.GOPALAKRISHNA PILLAI SRI.GOPAKUMAR G. (ALUVA)** **RESPONDENT(S)/R3 IN O.P.(M.V). NO.2156/04:** **-----------------------------------------------------------------** **UNITED INDIA INSURANCE CO.LTD., BRANCH OFFICE, JOY'S BUILDING, M.G. ROAD COCHIN 682 035** ## **BY ADV. SRI.P.SANKARANKUTTY NAIR** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 13-08-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** S.SIRI JAGAN & K.RAMAKRISHNAN, JJ. ================== M.A.C.A.No. 1782 of 2008 **==> picture [198 x 4] intentionally omitted <==** Dated this the 13[th] day of August, 2013 J U D G M E N T ## K.Ramakrishnan, J.: The parents and minor sister of deceased Sarath Hareesh, a minor aged 15 years, who are the petitioners in O.P.(M.V).No. 2156/2004 on the file of the Motor Accidents Claims Tribunal, Perumbavoor, are the appellants herein. The appellants filed the application for compensation for the death of the minor son of appellants 1 and 2 and the brother of appellant No.3, who died in a motor accident, on account of the rash and negligent driving of a vehicle driven and owned by respondent Nos.1 and 2 respectively in the O.P.(M.V). and insured with the respondent herein. After considering the evidence on record, the Tribunal found that the accident occurred due to rash and negligent driving of the vehicle by the driver of the vehicle and awarded a total compensation of ` 1,95,750/- on various heads as follows: ||Head of claim|Amount<br>awarded<br>`|Amount<br>awarded<br>`|Amount<br>awarded<br>`|Amount<br>awarded<br>`| |---|---|---|---|---|---| |1|Loss of dependency||160,000.00||| |2|Transportation expenses|||2,500.00|| |3|Damage to clothings|||250.00|| |4|Pain and sufferings|||10,000.00|| |5|Loss of love and affection|||20,000.00|| ||||||| |6|Funeral expenses||||3,000.00| ||Total||195,750.00||| M.A.C.A.1782/08 - : 2 :- Dissatisfied with the quantum of compensation awarded by the Tribunal, the appellants have come before this Court with this appeal. 2. Heard the learned counsel for the appellants and the learned standing counsel for the insurance company. 3. The learned counsel for the appellants submitted that though it is difficult to fix the income of minor children, the future prospects of the minor children has to be taken note of for the purpose fixing the monthly income for awarding compensation under the head, loss of dependency. Further, the the learned counsel for the appellants has relied on the decision reported in **R.K.Malik v. Kiran Pal** , 2009 ACJ 1924, in support of this contention. Further, according to the learned counsel for the appellants, the amount awarded under the heads, love and affection, funeral expenses are also less. No amount was awarded under the head, loss of estate. So according to him, the appellants are entitled to get enhanced compensation on all the heads. 4. On the other hand, the learned counsel for the insurance company submitted that in the case of non-earning minor children, only a notional income can be taken. The M.A.C.A.1782/08 - : 3 :- Tribunal was perfectly justified in taking the notional income as ` 15,000/- per annum for awarding compensation under the head, loss of dependency. Further, the deceased is aged less than 15 years and as per the decision in **Sarla Verma v. Delhi Transport Corporation** , 2009 ACJ 1298 (SC), the multiplier ought to have taken as 15. But the Tribunal has taken 16 as the multiplier. The over all compensation awarded by the Tribunal is just and proper and no interference is called for at the hands of this Court is the contention of the counsel. 5. We have considered the rival contentions of both parties. 6. It is quite unfortunate that a bright student of 15 years studying in 10[th] standard had lost his life in the gruesome accident, thereby causing loss to parents and his minor sister. It is well settled law that in the case of minors, it is very difficult to fix the monthly income for the purpose of assessing loss of dependency. But in the decision relied on by the learned counsel for the appellants it has been observed that for the purpose of fixing the income of the deceased in such cases, the future prospects of the deceased also has to be taken note of considering his/her educational brilliance and other academic M.A.C.A.1782/08 - : 4 :- prospects. It is seen from the records that the parents of the deceased are well educated and well employed. Further, the documents produced show that the deceased had a brilliant academic career during his school days. He has even got rank in the scholarship examination conducted. So all these things would go to show that he was having better brilliant future prospects, if he had lived long. But for the accident, those prospects have been lost to the parents. Taking all these aspects, the notional income of ` 15,000/- fixed by the Tribunal appears to be on the lower side and we enhance the same to ` 24,000/-. In view of the decision in **Sarla Verma's** case (supra), the multiplier to be applied in the case of age group less than 15 years is 15 and not 16 as taken by the Tribunal. So considering these inputs, if the compensation is recalculated under the head, loss of dependency, the appellants will be entitled to get a compensation of ` 1,80,000/- (` 2000 x 12 x 15x ½) instead of ` 1,60,000/- awarded by the Tribunal. It is seen from the records that the deceased is the only son of his parents and other being female child. So loss of male child would cause greater impact on the life of the parents at their old age. They have lost the love and affection and support of their son. Minor sister also lost love M.A.C.A.1782/08 - : 5 :- and affection of her beloved brother. Considering these aspects, we are awarding ` 5,000/- more under the head, loss of love and affection, over and above the amount awarded by the Tribunal. No amount was awarded under the head, loss of estate. So we award ` 5,000/- under that head. We enhance the expenses for funeral expenses by ` 2,000/- more. On all other heads, the amount awarded by the Tribunal appears to be just and proper and we do not find any reason to interfere with the same. In all, the appellants will be entitled to get additional compensation of ` 32,000/- over and above the compensation awarded by the Tribunal, which the respondent-insurance company is liable to pay with 9% interest from the date of petition till payment. Two months' time is granted to the insurance company to deposit this amount as well. With the above modification of the impugned award of the Tribunal, this appeal is disposed of. Sd/- S.SIRI JAGAN, JUDGE Sd/- sdk+ K.RAMAKRISHNAN, JUDGE ///True copy/// P.A. To Judge. M.A.C.A.1782/08 - : 6 :- This appeal is filed by the State challenging the judgment of the II Additional Sub Court, Thiruvananthapuram, in L.A.R.No. 164/2006. Certain properties belonging to the respondent were acquired by the State as per a notification dated 6.1.2003 issued under Section 4(1) of the Land Acquisition Act. The land acquisition officer fixed land value at the rate of ` 11,712/- per are. On reference, the Sub Court enhanced the same to M.A.C.A.1782/08 - : 7 :- ` 1,50,000/- per are. Aggrieved by the land value fixed by the reference court, the State has filed this appeal.