High Court of KeralaSingle JudgeAppeal partly allowed; negligence finding rever...

M.A.C.A.No.844 of 2011

Case / Petition Number:MACA No. 844 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2022-01-11
Court Decision / Holding
The appeal is partly allowed. The court held that the finding of negligence on the motorcycle rider is unsustainable under Sec.163A and, following Sunil Kumar, that negligence cannot be re-evaluated in such petitions. It held that respondents 2, 4, and 6 (the insurers of bus, motorcycle, and auto rickshaw) are jointly and severally liable to pay the compensation in equal shares. The court enhanced the compensation by Rs.1,56,000 and directed deposit of the total amount, including the impugned award, within 60 days, with disbursement to appellants in the ratio 30:30:20:20 as per law.
Final Disposition
Appeal partly allowed; negligence finding reversed; insurers held jointly and severally liable; enhanced compensation awarded; deposit within 60 days; disbursement ratio 30:30:20:20.

Parties to the Case

Appellants / Petitioners

  • MAMBI
  • SANTHA
  • SURESH
  • VINITHA

Respondents

  • T Narayan
  • The New India Insurance Co. Ltd.
  • Hamsa
  • The New India Insurance Co. Ltd.
  • Shajimon
  • The Oriental Insurance Co. Ltd.
  • Abdul Basheer

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. T. C. Suresh Menon

Counsels for Respondents

  • • Sri. V.P.K. Panicker
  • • Smt. T.C. Sowmiavathy

Case Synopsis & Summary

This appeal under Sec.163A of the Motor Vehicles Act, 1988 challenges a Motor Accidents Claims Tribunal (Ottapalam) award in three linked OP(MV) petitions arising from the death of Vijith, aged about 24, while he was pillion on a motorcycle on 17.12.2006. The Tribunal held the accident occurred due to the negligence of the motorcycle rider and directed the owner and insurer of the motorcycle to pay Rs.3,28,500 with interest and costs, while exonerating several insurers. The appellants contend that under Sec.163A, the court cannot re-enter questions of negligence; insurers should indemnify liability, especially since three vehicles were involved and each has valid insurance. They assert that the deceased’s income should be assessed per Ramachandrappa, notional income norms, and seek enhanced compensation. The contest also involves calculations under the Second Schedule with 7% interest, funeral and loss of estate, and a larger overall award. The High Court relies on United India Insurance Co. Ltd v. Sunil Kumar to hold that negligence cannot be re-evaluated in Sec.163A petitions and cites Khenyei for joint and several liability of insurers. It upholds liability on insurers 2, 4, and 6, reverses the Tribunal’s negligence finding against the motorcycle rider, and increases the compensation by Rs.1,56,000, directing deposits within 60 days and disbursement among four appellants in the 30:30:20:20 ratio.

Provisions of Law Cited

Sec.163A, Motor Vehicles Act, 1988Second Schedule to the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Negligence cannot be looked into in Sec.163A claims (Sunil Kumar)
  • Notional income principle under Ramachandrappa (2011) SCC 236
  • Joint and several liability of insurers (Khenyei, SCC 273)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that under Sec.163A the Tribunal cannot adjudicate negligence; the accident involved three insured vehicles, and the insurers should be liable in indemnity. They sought enhancement of compensation beyond the Tribunal’s Rs.3,28,500, contending the notional income for a 24-year-old deceased in 2006 should be Rs.40,000 annually, with Rs.4,84,500 total current compensation per the Second Schedule and an additional Rs.1,56,000 as enhanced compensation with 7% interest. They pressed for a 30:30:20:20 disbursement among four appellants.

Contentions of Respondents

The respondents contended the accident was due to the motorcycle rider’s negligence (as pleaded in the WS1-WS7) and urged exoneration of insurers from liability. They relied on the Sec.163A framework that confines the court to the petition’s averments and material on record, not re-appraising negligence. They argued for the Tribunal’s award and liability confined to the rider’s negligence, with insurers only liable if they are on the same risk array. They contested the enhanced compensation calculation and notional income figures.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
United India Insurance Co. Ltd v. Sunil Kumar2017 (4) KLT 1093(SC)PositiveSC held that negligence cannot be looked into in a Sec.163A claim; hence the Tribunal’s negligence finding was not permissible under Sec.163A.
Khenyei vs New India Assurance Co. Ltd(2015) 9 SCC 273PositiveUsed to justify joint and several liability of insurers where multiple insured vehicles are involved.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveAdopted for determining notional income of the deceased for calculation under the Second Schedule.

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Extracted Judgment Text

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1 M.A.C.A.No.844 of 2011 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE C.S.DIAS** **TUESDAY, THE 11[TH] DAY OF JANUARY 2022 / 21ST POUSHA, 1943** ## **MACA NO. 844 OF 2011** **AGAINST THE ORDER/JUDGMENT IN OPMV 328/2007 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, OTTAPPALAM** ## **APPELLANT/S:** |**1**|**MAMBI**| |---|---| |**2**|**SANTHA**| |**3**|**SURESH**| |**4**|**VINITHA (ALL APPELLANTS RESIDING AT NJAVANIPADATH HOUSE,, THARAKKAL,**| ||**EDAPPAL, MALAPPURAM DISTRICT).**| BY ADV SRI.T.C.SURESH MENON ## **RESPONDENT/S:** |**1**|**T.NARAYAN, S/O.KUMARAN,THALAKKATT HOUSE, EDAPPAL.P.O.,, MALAPPURAM**| |---|---| ||**DISTRICT.**| |**2**|**THE NEW INDIA INSURANCE CO. LTD.**| ||**BRANCH, K.H.BUILDINGS, THAZHEPALAM, TIRUR.**| |**3**|**HAMSA, S/O. SIDHIQUE, KOTTENTAKATH**| ||**HOUSE, VELYAMKODE.P.O., MALAPPURAM DISTRICT.**| |**4**|**THE NEW INDIA INSURANCE CO.LTD.**| ||**BRANCH, K.H.BUILDINGS, THAZHEPALAM, TIRUR.**| |**5**|**SHAJIMON, S/O. JANAKI AMMA**| ||**PALAKKOTTIL HOUSE, THALAKKASSERY, PALAKKAD, DISTRICT.**| |**6**|**THE ORIENTAL INSURANCE CO. LTD.**| ||**PRANAVAM BUILDING, MELE PATTAMBI,, PATTAMBI.**| |**7**|**ABDUL BASHEER , S/O. ABDULLA**| ||**PARAPARAMBIL HOUSE, ANAKKARA.P.O.**| ||BY ADVS.| ||SRI.VPK.PANICKER| ||SMT.T.C.SOWMIAVATHY| THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 11.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 M.A.C.A.No.844 of 2011 ## **C.S.DIAS, J.** ---------------------------------------- ## **M.A.C.A.No.844 of 2011** ## **---------------------------------------Dated this the 11[th] day of January, 2022.** ## **JUDGMENT** The appellants were the petitioners in OP(MV) No.328/2007 on the file of the Motor Accidents Claims Tribunal, Ottapalam. The respondents in the appeal were the respondents before the Tribunal. 2. The appellants had filed the claim petition under Sec.163A of the Motor Vehicles Act, 1988, claiming compensation on account of the death of Vijith (deceased), the son of the appellants 1 and 2 and brother of the appellants 3 and 4. It was their case that, on 17.12.2006, while the deceased was travelling pillion on a motor cycle bearing registration No.KL10/N 9225, driven by one Mahesh along the EdappalPonnani road, a bus bearing registration No.KL-10/M 3 ## M.A.C.A.No.844 of 2011 541, hit against an auto rickshaw bearing registration No.KL-9/D 5920 and in the impact the vehicles hit the motor cycle of the deceased. Although the deceased was taken to Edappal Hospital, he succumbed to his injuries. The first respondent was the owner and second respondent was the insurer of the bus, that the third respondent was the owner and the fourth respondent was the insurer of the motor cycle and that the fifth respondent was the owner, the sixth respondent was the insurer, and the seventh respondent was the insured of the auto rickshaw. The appellants had claimed that the deceased was a Mason by profession and was earning an annual income of Rs.40,000/-. Hence, the appellants claimed a compensation of Rs.4,89,500/- from the respondents. 3. The legal representatives of the deceased rider of the motor cycle and the other pillion rider filed 4 ## M.A.C.A.No.844 of 2011 OP(MV) Nos 490 and 330 of 2007, respectively, before the same Tribunal, seeking compensation from the respondents. 4. The respondents 2 and 4 had filed separate written statements denying the assertions in the claim petitions. It was their defence that, the accident occurred due to the negligence of the rider of the motor cycle. Hence, the respondents 2 and 3 prayed that they may be exonerated of their liability. 5. The respondents five and six had filed separate written statements in the claim petitions reiterating the very same allegations as that of the respondents 2 and 4. They also contended that the accident occurred due to the negligence of the deceased rider of the motor cycle. 6. The Tribunal consolidated and jointly tried the three claim petitions. 5 ## M.A.C.A.No.844 of 2011 7. The petitioners in the three claim petitions examined PWs 1 and 2 and marked Exts A1 to A19 in evidence. The respondents produced and marked Exts B1 and B2 in evidence. 8. The Tribunal, after analysing the pleadings and materials on record, allowed the captioned claim petition, in part, by permitting the appellants to recover from the respondents 3 and 4 an amount of Rs.3,28,500/- with interest and cost. 9. Aggrieved by the exoneration of respondents 2 and 6 - the insurers of the bus and auto rickshaw and dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioners are in the appeal. 10. Heard Sri.T.C Suresh Menon, the learned counsel appearing for the appellants/petitioners, Sri.V.P.K Panicker, the learned counsel appearing for the sixth respondent and Smt.T.C Sowmiavathy, the learned 6 ## M.A.C.A.No.844 of 2011 counsel appearing for the respondents 2 and 4. 11. The questions that arise for consideration in the appeal are: (i) whether the finding of negligence on the rider of the motor cycle owned by the third respondent is sustainable in law, and (ii) whether the quantum of compensation awarded by the Tribunal is reasonable and just. ## **Question No.(i)** 12. The specific case of the appellants in the claim petition was that while the deceased was riding pillion on the motor cycle, due to the collision between the motor cycle, bus and auto rickshaw, the deceased sustained fatal injuries and lost his life. 13. The Tribunal, on the basis of the materials on record, arrived at the conclusion that the accident occurred due to the negligence of the rider of the motor cycle. Accordingly, the Tribunal directed the respondents 3 and 4 – the owner and insurer of the 7 ## M.A.C.A.No.844 of 2011 motor cycle to pay the compensation amount, which was quantified at Rs.3,28,500/-. 14. In **United India Insurance Co.Ltd v. Sunil Kumar – [2017 (4) KLT 1093(SC)** ], the Hon'ble Supreme Court has categorically held that in a claim petition filed under Sec.163A of the Act, the question of negligence cannot be looked into. Therefore, what needs to be looked into in a claim petition filed under Sec.163A is only the averments in the claim petition and the materials on record. 15. As the case of the appellants was that the accident occurred due to the negligence of the drivers of the three vehicles and the respondents 2, 4 and 6, being the insurers of the bus, motor cycle and auto rickshaw, respectively, it is the above insurers who are to indemnify the liabilities of the owners of the above respective vehicles, and pay the compensation amount to the appellants. The Tribunal could not have gone 8 M.A.C.A.No.844 of 2011 into the question of negligence and attributed the same on the rider of the motorcycle in view of the law laid down in **Sunil Kumar** (supra). Hence, I set aside the finding of the Tribunal, that it is the rider of the motorcycle who was negligent and, therefore, the respondents 3 and 4 have to pay the compensation. In the light of the law laid down by the Hon'ble Supreme Court in **Khenyei vs New India Assurance Co. Ltd [(2015) 9 SCC 273]** and as the insurers of all the three vehicles are on the party array, and they have admitted that the three vehicles had valid insurance policies, I hold that the respondents 2,4 and 6 are jointly and severally liable to pay the compensation amount to the appellants in equal shares. Hence, I answer question No.(i) in favour of the appellants. ## **Question No.(ii)** 16. The appellants had averred that the deceased was a Mason by profession and earning an annual 9 ## M.A.C.A.No.844 of 2011 income of Rs.40,000/-. For the want of materials, the Tribunal fixed the notional annual income of the appellant at Rs.36,000/-. 17. The Hon'ble Supreme Court in **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited [(2011) 13** **SCC 236]** has fixed the notional income of a coolie worker in the year 2004 at Rs.4,500/- per month. 18. Following the yardstick in the aforecited decision and considering the fact that the accident occurred in the year 2006, I have no hesitation to fix the notional annual income of the deceased at Rs.40,000/as claimed in the claim petition. 19. It is on record that the deceased was aged 24 years at the time of the accident. 20. As per the Second Schedule to the Motor Vehicles Act, 1988, prior to the 2018 amendment, the total compensation payable to the dependents of the 10 ## M.A.C.A.No.844 of 2011 deceased in the age group of 20 to 25 years with an annual income of Rs.40,000/- is Rs.7,20,000/-. Out of the said amount, one-third of the compensation has to be deducted towards the personal living expenses of the deceased. Therefore, a consolidated compensation of Rs.4,80,000/- has to be paid to the appellants, as per the structured formula in the Second Schedule of the Act. Likewise, an amount of Rs.2,000/- has to be paid towards funeral expenses and Rs.2,500/- has to be paid towards loss of estate. Thus, the appellants are entitled to a total amount of Rs.4,84,500/- as per the Second Schedule of the Act. 21. In the above legal and factual matrix, I hold that the appellants are entitled to a further amount of **Rs.1,56,000/-** with interest at the rate of 7% per annum on the said amount from the date of claim petition till the date of realization with proportionate cost. 11 ## M.A.C.A.No.844 of 2011 22. As I have already found in question No.(i) that it is the respondents 2, 4 and 6 who are liable to pay the compensation amount, I direct them to pay the enhanced compensation as well as the compensation as per the impugned award in equal shares as per the principles in **Khenyei** (supra). The respondents 2, 4 and 6 are ordered to deposit the compensation as per the impugned award as well as the enhanced compensation with interest and cost as per this judgment before the Tribunal within a period of sixty days from the date of receipt of a certified copy of the judgment. Immediately on the compensation amount being deposited, the Tribunal shall disburse the same to the appellants in the ratio of 30:30:20:20 and in accordance with law. SD/- sks/10.1.2022. **C.S.DIAS, JUDGE**