High Court of KeralaSingle JudgeThe M.A.C.A. is disposed of accordingly. All th...

M.A.C.A.No.1503/2014 (Against the Award dated 24-05-2011 in O.P.(MV) No.1755/2010 of II Addl. MACT, Kozhikode)

Case / Petition Number:M.A.C.A.No.1503/2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Harilal
Judgment Date
2018-03-21
Court Decision / Holding
The MACA is disposed of accordingly. All other findings and directions of the Tribunal will stand undisturbed. The insurer is directed to deposit the additional compensation granted by this Court within three months. The first appellant is allowed to withdraw 50% of the additional compensation; the remaining 50% shall be deposited in the name of the 2nd appellant in a nationalized bank until he attains the age of 18, with interest to be withdrawn periodically. The 2nd appellant may withdraw the entire amount of compensation on turning 18. The total compensation payable is Rs.9,48,000, with interest as ordered by the Tribunal.
Final Disposition
The M.A.C.A. is disposed of accordingly. All the pending interlocutory applications will stand closed.

Parties to the Case

Appellants / Petitioners

  • Krishna Kumari, aged 36 years, W/o Late Sivadasan, Thiyyakandy Meethal House, Pallipoyil P.O, Palath, Kozhikode
  • Vyshnav (Minor), S/O Late Sivadasan, Thiyyakandy Meethal House, aged 3½ years, represented by his mother

Respondents

  • V.P. Surendran, S/O Raman, Veluthedathkandy House, P.O. GA College, Kozhikode 673 014
  • Santhosh Kumar.V.K, S/O Vasudevan Nair, Nandanath House, P.O. GA College, Kozhikode 673 014
  • The National Insurance Co. Ltd., Divisional Office, Noor Complex, Mavoor Road, Kozhikode 673032

Legal Representation & Advocates

Counsels for Petitioners

  • • SMT.K.V.RESHMI

Counsels for Respondents

  • • SRI.A.A.ZIYAD RAHMAN
  • • SRI.LAL K.JOSEPH
  • • SRI.V.S.SHIRAZ BAVA
  • • SRI.M.A.GEORGE

Case Synopsis & Summary

The Kerala High Court hears M.A.C.A.No.1503/2014 against an award dated 24-05-2011 in O.P.(MV) No.1755/2010 before the II Addl. Motor Accidents Claims Tribunal, Kozhikode, arising out of a death in a motor vehicle accident. The appellants, the legal representatives of Sivadasan, challenged the Tribunal’s award of Rs.4,28,000 as compensation, arguing the Tribunal erred in several heads of compensation (funeral expenses, love and affection, and loss of estate) and that nothing was awarded for love and affection. Sivadasan, aged 44, was a goods auto-rickshaw driver; the Tribunal adopted a monthly income of Rs.3,500, whereas the appellants contend a higher notional income is warranted. Relying on the Supreme Court’s Pranay Sethi decision, the court notes that the 2004 benchmark is obsolete and, given inflation and time elapsed, a higher income should be used and future prospects must be added. The court enhances the monthly income to Rs.6,000 and, applying a 25% future-prospects addition for a person aged 40–50, raises total monthly income to Rs.7,500, yielding greater dependency compensation (Rs.8,40,000). The appellants seek Rs.25,000 for love and affection, with revised amounts for funeral expenses, loss of consortium, and loss of estate after applying Pranay Sethi, totaling Rs.9,48,000. The insurer is directed to deposit the enhanced amount within three months, with portions to be appropriated for the minor. The respondents defend the Tribunal’s enhanced quantum as just and fair, urging no further interference.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Future prospects/addition to income as per Pranay Sethi doctrine (25% for self-employed/persons aged 40–50)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal’s quantum is inadequate under heads such as funeral expenses, love and affection, and loss of estate, and that nothing was awarded under the head of love and affection. The deceased Sivadasan was 44 and a goods auto-driver earning Rs.8,500 per month; the Tribunal adopted Rs.3,500 as monthly income. Relying on the Supreme Court’s Pranay Sethi decision, they contend that the 2004 benchmark is obsolete and that, given inflation and time elapsed, a higher notional income should be used; more importantly, future prospects must be added. The Court should compute a total monthly income of Rs.7,500 (after 25% future prospects), leading to higher dependency compensation of Rs.8,40,000. They also seek Rs.25,000 for love and affection, Rs.15,000 for funeral expenses, Rs.40,000 for loss of consortium, and Rs.15,000 for loss of estate, with the overall total of Rs.9,48,000. The Tribunal’s other findings should stand, subject to the enhancement, and the insurer should deposit the enhanced amount within three months. The respondents contend the Tribunal’s award was just and fair and resist enhancement.

Contentions of Respondents

The Insurance Company argues that the Tribunal’s quantum is just and fair; monthly income of Rs.3,500 is just; there is no scope for enhancement under any heads; relies on Pranay Sethi to support the Tribunal’s framework but contends delay/period may affect the exact figures.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
National Insurance Co. Ltd. v. Pranay Sethi & Others2017 (5) KHC 350PositiveCited as the controlling authority for the principle of assessing future prospects and enhanced monthly income in similar factual circumstances; Kerala High Court adopts the Pranay Sethi framework.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **THE HONOURABLE MR.JUSTICE K.HARILAL WEDNESDAY, THE 21ST DAY OF MARCH 2018 / 30TH PHALGUNA, 1939** ## **AGAINST THE AWARD DATED 24-05-2011 IN O.P.(MV) NO.1755/2010 of II ADDL. MACT, KOZHIKODE** **APPELLANTS/PETITIONERS:** **----------------------** - **1 KRISHNA KUMARI, AGED 36 YEARS, W/O LATE SIVASADAN, THIYYAKANDY MEETHAL HOUSE, PALLIPOYIL P.O, PALATH, KOZHIKODE.** - **2 VYSHNAV (MINOR),** - **S/O LATE SIVASADAN, THIYYAKANDY MEETHAL HOUSE, AGED 3½ YEARS, PALLIPOYIL, P.O. PALATH, KOZHIKODE ( 2ND APPELLANT IS A MINOR EVEN NOW AND HENCE REPRESENTED BEFORE THIS HON'BLE COURT BY HIS MOTHER IST APPELLANT HEREIN)** **BY ADV.SMT.K.V.RESHMI** ## **RESPONDENTS/RESPONDENTS:** **------------------------** **1. V.P. SURENDRAN, S/O RAMAN, VELUTHEDATHKANDY HOUSE, P.O. GA COLLEGE, KOZHIKODE 673 014** **2. SANTHOSH KUMAR.V.K, S/O VASUDEVAN NAIR, NANDANATH HOUSE, P.O. GA COLLEGE, KOZHIKODE 673 014** **3. THE NATIONAL INSURANCE CO. LTD., DIVISIONAL OFFICE, NOOR COMPLEX, MAVOOR ROAD, KOZHIKODE 673032** **R3 BY ADVS. SRI.A.A.ZIYAD RAHMAN** **SRI.LAL K.JOSEPH SRI.V.S.SHIRAZ BAVA SRI.M.A.GEORGE** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 21-03-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **K.Harilal,J.** ==================================== M.A.C.A.No.1503/2014 ==================================== Dated this the 21[st] day of March, 2018. ## **JUDGMENT** 1.The appellants are the petitioners in O.P. (MV)No.1755/2010 on the files of the 2[nd] Additional Motor Accidents Claims Tribunal, Kozhikode. The aforesaid original petition was filed under section 166 of the Motor Vehicles Act, claiming compensation for the loss caused by the death of Shri.Sivadasan and the appellants are the legal representatives of the said Sivadasan. They claimed an amount of Rs.8,00,000/-. But, the Tribunal passed the impugned award granting Rs.4,28,000/- as compensation. This appeal is filed, challenging the adequacy and correctness of the quantum of compensation determined under various heads of Maca1503/2014 ## -:2:- claim by the Tribunal. - 2.Heard the learned counsel for the appellants, the learned counsel for the party respondents and the learned standing counsel for the insurance company. - 3.Learned counsel for the appellants submits that the quantum of compensation granted under the heads, funeral expenses, loss of consortium and loss of estate, is inadequate and disproportionate with the actual sufferings and losses met by the appellants. No amount was granted under the head, loss of love and affection and the monthly income determined by the Tribunal is very low. So also it is contended that in view of the decision of the Apex Court in _**National Insurance Company v. Pranay Sethi & others**_ **[2017 (5) KHC 350]** , the Maca1503/2014 ## -:3:- Tribunal ought to have considered the future prospects of the deceased while determining the monthly income of the deceased. - 4.Per contra, the learned counsel for the insurance company advanced arguments, to justify the quantum of compensation determined under the various heads of claim. According to him, the monthly earnings determined by the Tribunal is just and fair and there is no scope for any interference under any of the heads of claim. In view of the arguments at the bar, the point to be considered is, whether the Tribunal is justified in determining the quantum of compensation under the aforesaid heads of claim. Is the compensation granted by the Tribunal just and fair? - 5.According to the appellants, the deceased Maca1503/2014 -:4:- Sivadasan was aged 44 years only at the time of accident and he was working as a goods autorickshaw driver and he was earning an average income of Rs.8,500/- per month. The Tribunal has taken Rs.3,500/- only as the monthly income. Going by the decision of the Supreme Court in _**Pranay Sethi** 's case (supra_ ), this Court finds that in the aforesaid decision the Supreme Court held that in the case of an accident occurred in the year 2004, Rs.3,500/to Rs.4,500/- can be taken as the monthly notional income. In the instant case, the accident occurred in the year 2010. Having regard to the long lapse of time after 2004, and consequential decrease in money value, this Court finds that the quantum of compensation determined as monthly income is too low and Maca1503/2014 ## -:5:- requires enhancement. Consequently, the quantum of the monthly income of the deceased would stand enhanced and modified to Rs.6,000/- per month. 6.As rightly pointed out by the learned counsel for the appellants, the loss of future prospects in the income of the deceased was not taken into account while determining the loss of dependency. In _**Pranay Sethi** 's case (supra_ ), the Supreme Court held that in cases where the deceased was self-employed or on a fixed salary, an addition of 25% can be made where the deceased was between the age of 40 to 50 years. In the instant case, it is not disputed that the deceased was aged 44 years at the time of accident. In the above view, the total monthly income of the deceased, including the Maca1503/2014 ## -:6:- future prospects at 25%, is Rs.7,500/- per month. Consequently, the compensation for loss of dependency would stand enhanced to Rs.8,40,000/- (7,500 x 12 x 14 x 2/3). - 7.As rightly pointed out by the learned counsel for the appellants, no amount was granted for loss of love and affection. Having regard to the age of the deceased and the age of the appellants, the Tribunal ought to have granted compensation under the head, loss of love and affection also. Hence, the appellants are given Rs.25,000/- towards loss of love and affection. As rightly submitted by the learned counsel for the appellants, Rs.3,000/- was granted for funeral expenses, Rs.10,000/- for loss of consortium and Rs.5,000/- for loss of estate. In view of the decision of the Supreme Court in Maca1503/2014 ## -:7:- _**Pranay Sethi** 's case (supra_ ), the quantum of compensation determined under the aforesaid heads is also inadequate and the same would stand enhanced to Rs.15,000/-, Rs.40,000/- and Rs.15,000/-, respectively. Thus, the total compensation payable to the appellants is Rs.9,48,000/- (2,000 + 1,000 + 15,000 + 40,000 + 15,000 + 10,000 + 8,40,000 + 25,000). 8.It is needless to say, the aforesaid total compensation would carry interest, as stipulated by the Tribunal. All other findings and directions of the Tribunal will stand undisturbed and operative. The third respondent insurance company is directed to deposit the additional compensation granted by this Court also within three months from today. The first appellant is allowed to withdraw 50% of the Maca1503/2014 -:8:- additional compensation granted in this appeal and the balance 50% of the additional compensation shall be deposited in the name of the 2[nd] appellant in any nationalized bank for a period till he attains the age of 18 years and he is also allowed to withdraw the interest for the said fixed deposit, periodically. The 2[nd] appellant is allowed to withdraw the entire amount of compensation, when he attains the age of 18 years. - 9.The M.A.C.A. is disposed of accordingly. All the pending interlocutory applications will stand closed. Sd/- ## **K.Harilal, Judge** sl. //True copy// P.S. To Judge