High Court of KeralaSingle JudgeAppeal allowed; compensation enhanced; liabilit...

Mariyakutty and others v. P. Aysumma and others

Case / Petition Number:MACA NO. 2634 OF 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2022-02-24
Court Decision / Holding
The appeal is allowed. The compensation is enhanced to Rs. 9,00,000, with a further Rs. 4,45,500 added by this Court beyond the Tribunal’s award, reflecting 40% future prospects, 17 multiplier, and deductions for personal living expenses as per Sarla Varma and Pranay Sethi. Conventional heads (funeral expenses, loss of estate, loss of consortium) were increased in light of NJayasree and related decisions, with 10% escalation on these heads following Nagappa/Rajesh lines, and duplication of compensation avoided per New India Assurance Co. v. Somwati and Sarla Varma. The 3rd respondent is to deposit the enhanced amount before the Tribunal with interest and costs within 60 days; disbursement to appellants is to follow in the ratio 40:15:15:15:15 (as corrected by IA 1/2022 to reflect 40:15:15:15:15). The judgment also notes a post-judgment correction on apportionment dates. Bench: Single Judge (C. S. Dias, J.). Case disposed of in favor of the appellants with enhanced compensation and specific deposit/disbursement orders.
Final Disposition
Appeal allowed; compensation enhanced; liability confirmed against insurer; deposit and distribution ordered; apportionment corrected to 40:15:15:15:15 after post-judgment correction.

Parties to the Case

Appellants / Petitioners

  • Mariyakutty; Sirajudheen; Sihabudheen; Siyaz; Kunjumma

Respondents

  • P. Aysumma w/o K.B. Abdul Khader Kizhakkepeedikayil, Gandhi Seva Sadan (PO), Perur, Mankara, Palakkad District
  • V.V. Subramanian, So.V.Veemban, Valiakadu House, Kinavallur, Palakkad District
  • The United India Insurance Company Limited, Palakkad

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Binoy Vasudevan
  • • Smt. P.G. Babitha

Counsels for Respondents

  • • Smt. S. Jayasree

Case Synopsis & Summary

This is an appeal under MACA No. 2634 of 2009 from the Addl. Motor Accident Claims Tribunal, Palakkad, arising out of OP(MV) No. 249/2000. Siddique, the husband of the 1st appellant and father to the four minor petitioners, died in a road accident on 15.12.1999 when his motorcycle was struck by a lorry on the Palakkad–Coimbatore National Highway. The appellants sought compensation under Section 166 of the Motor Vehicles Act, 1988, asserting the deceased was a headload worker earning Rs.7,000 per month; they claimed Rs.7,54,500 from the owner (1st respondent) and insurer (3rd respondent). The Tribunal partially allowed the petition, awarding Rs.4,54,500 with interest. The 1st respondent became ex parte; the 2nd respondent did not contest; the 3rd respondent admitted insurance but contested the amount as excessive. The High Court, applying the principles in Sarla Verma and Pranay Sethi, enhanced the amount significantly, recalculated income (notional Rs.3,000/month), adopted a multiplier of 17, and deducted one-fourth for personal living expenses. It granted future prospects at 40%, and, drawing on subsequent Supreme Court rulings, awarded 10% escalation on conventional heads, increasing funeral expenses, loss of estate, and loss of consortium. The court disallowed duplicate awards for loss of love and affection and pain and suffering in instantaneous death, per New India Assurance v. Somwati and Sarla Varma. Overall, the appeal was allowed, and the compensation was enhanced. A ledgered table shows modified heads, culminating in a total Rs.9,00,000 with adjustments to quantum and apportionment, later corrected to 40:15:15:15:15 ratio by IA 1/2022.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Duplication of compensation not permitted (New India Assurance Co. v. Somwati)
  • Deduction of personal living expenses (one-fourth of notional income) (Sarla Varma v. Delhi Transport Corporation)
  • Future prospects of the deceased's income at 40% (Sarla Varma; Pranay Sethi)
  • 10% escalation on the conventional heads (N. Jayasree v. Cholamandalam M.S. General Insurance Co Ltd; Rasmita Biswal v. National Insurance Co.)
  • Multiplier rule (Sarla Varma v. DTC)
  • Enhanced compensation principles (Nagappa v. Gurudayal Singh; Rajesh v. Rajbir Singh)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal’s quantum of Rs. 4,54,500 failed to reflect the deceased’s actual income and family dependency. They pressed for a higher notional income, the application of a 17-year multiplier (per Sarla Varma), inclusion of 40% future prospects, and deduction of one-fourth for personal living expenses. They sought enhanced conventional heads (funeral expenses, loss of estate, loss of consortium) with proper escalation, and a fair apportionment among dependants. They asserted insurer liability and urged correction of the final apportionment.

Contentions of Respondents

The insurer argued the compensation was excessive; proceedings show the 1st respondent was ex parte and the 2nd respondent did not contest; 3rd respondent admitted liability but contested the quantum as not corroborated by evidence; no contrary evidence was produced to rebut Ext. A7 final report.

Cited Precedents (7)

Case NameCitationTreatmentExplanation
Sarla Varma v. Delhi Transport Corporation2010 (2) KLT 802PositiveAdopted multiplier 17 and general approach for calculating compensation.
National Insurance Co. Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveApplied for 40% future prospects and related principles.
New India Assurance Co. v. Somwati and others(2020) 9 SCC 644PositiveNo duplication of compensation; elimination of overlap in awards (loss of love and affection, pain and suffering).
N. Jayasree v. Cholamandalam M.S. General Insurance Co Ltd.2021 SCC Online SC 967Positive10% escalation on the conventional heads irrespective of accident date.
Rasmita Biswal and others v. The Divisional Manager, National Insurance Co., Ltd and another2021 SCC Online SC 1193Positive10% escalation on conventional heads.
Nagappa v. Gurudayal Singh2003 (1) KLT 115 (SC)PositiveSupports enhanced compensation beyond the petitioned amount.
Rajesh v. Rajbir Singh2013 (3) KLT 89 (SC)PositiveJudicial support for enhanced compensation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

MACA NO. 2634 OF 2009 1 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE C.S.DIAS** **THURSDAY, THE 24[TH] DAY OF FEBRUARY 2022 / 5TH PHALGUNA, 1943** ## **MACA NO. 2634 OF 2009** **AGAINST THE ORDER/JUDGMENT IN OPMV 249/2000 OF ADDL.MOTOR** ## **ACCIDENT CLAIMS TRIBUNAL , PALAKKAD** ## **APPELLANT/S:** 1 MARIYAKUTTY, W/O.LATE SIDDIQUE, AGED 32 YEARS, AMMANATHU HOUSE,, SOUTH KONDAZHI (PO), THRISSUR DISTRICT. 2 SIRAJUDHEEN MINOR AGED 13 YEARS, S/O.LATE SIDDIQUE,, AMMANATHU HOUSE, SOUTH KONDAZHI (PO),, THRISSUR DISTRICT. 3 SIHABUDHEEN MINOR AGED 11 YEARS, S/O.LATE SIDDIQUE,, AMMANATHU HOUSE, SOUTH KONDAZHI (PO),, THRISSUR DISTRICT. 4 SIYAZ MINOR AGED 9 YEARS, S/O.LATE SIDDIQUE,, AMMANATHU HOUSE, SOUTH KONDAZHI (PO),, THRISSUR DISTRICT. (MINOR PETITIONERS REPRESENTED, BY THEIR MOTHER, NEXT FRIEND AND GUARDIAN THE FIRST APPELLANT MARIYAKUTTY). 5 KUNJUMMA W/O.LATE KUNJU MOIDU AGED 83 YEARS, AMMANATHU HOUSE,, SOUTH KONDAZHI (PO), THRISSUR DISTRICT. BY ADVS. SRI.BINOY VASUDEVAN SMT.P.G.BABITHA ## **RESPONDENT/S:** 1 P. AYSUMMA W/O.K.B.ABDUL KHADER KIZHAKKEPEEDIKAYIL, GANDHI SEVA SADAN (PO), PERUR, MACA NO. 2634 OF 2009 **==> picture [7 x 9] intentionally omitted <==** MANKARA, PALAKKAD DISTRICT. 2 V.V.SUBRAMANIAN SO.V.VEEMBAN VALIAKADU HOUSE, KINAVALLUR,, PALAKKAD DISTRICT. 3 THE UNITED INDIA INSURANCE COMPANY LIMITED, BRANCH OFFICE, DOOR NO.10/290,, G.B.ROAD, PALAKKAD. BY ADV SMT.S.JAYASREE THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 24.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA NO. 2634 OF 2009 3 ## **JUDGMENT** The appellants were the petitioners in OP(MV) No.249/2000 on the file of the Addl. Motor Accidents Claims Tribunal, Palakkad. The respondents in the appeal were the respondents before the Tribunal. 2. The appellants had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988, claiming compensation on account of the death of Siddique (deceased) - husband of the 1[st] appellant, father of the appellants 2 to 4 and son of the 5[th] appellant. It was their case that, on 15.12.1999, while the deceased was riding his motor cycle bearing registration No.KEH/1382 with a pillion rider through the Palakkad – Coimbatore National Highway, a lorry bearing Registration No.KL-09/B 4894, driven by the 2[nd] respondent in a negligent manner, hit the motor cycle of the deceased. The deceased was thrown to the road and he lost his life instantaneously at the District Hospital, Palakkad. The lorry was owned by the 1[st] respondent and insured with the 3[rd] respondent. The deceased was a headload worker and he was earning a monthly income of Rs.7,000/-. The appellants were the dependents of the deceased. MACA NO. 2634 OF 2009 4 Hence, the appellants claimed a compensation of Rs.7,54,500/from the respondents. 3. The 1[st] respondent did not contest the proceeding and was set ex-parte. 4. The 2[nd] respondent, though entered appearance, did not contest the proceeding. 5. The 3[rd] respondent had filed a written statement stating that the compensation claimed was excessive. Nevertheless, the 3[rd] respondent admitted that the lorry had a valid insurance coverage. 6. The 1[st] appellant was examined as PW1 and Exts.A1 to A7 were marked through her in evidence. The respondents did not let in any evidence. 7. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition in part, by permitting the appellants to recover from the respondents an amount of Rs.4,54,500/- with interest. 8. Dissatisfied with the quantum of compensation awarded MACA NO. 2634 OF 2009 5 by the Tribunal, the petitioners are in appeal. 9. Heard; Sri.Binoy Vasudevan, the learned counsel appearing for the appellants/petitioners and Smt. S. Jayasree, the learned counsel appearing for the 3[rd] respondent/insurer. 10. The sole point that emanates for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just ? ## **Negligence and liability** 11. Ext.A7 final report filed by the Kasaba Police in Crime No.272/1999 proves that the accident occurred due to the negligence of the 2[nd] respondent. Indisputably, the 1[st] respondent was the owner and the 3[rd] respondent was the insurer of the lorry. The respondents have not let in any evidence to discredit Ext.A7 final report. The 3[rd] respondent has also not proved that the 1[st] respondent had violated the insurance policy conditions. Therefore, the 3[rd] respondent is to indemnify the liability of the 1[st] respondent arising out of the accident. MACA NO. 2634 OF 2009 6 ## **Income** 12. The appellants had claimed that the deceased was a headload worker and was earning a monthly income of Rs.7,000/-. For want of materials, the Tribunal has fixed the notional monthly income of the deceased at Rs.3,000/-. I find the fixation of the notional monthly income of the deceased at Rs.3,000/- is justifiable and correct. ## **Multiplier** 13. The deceased was aged 28 years at the time of the accident. 14. In the light of the law laid down in **Sarla Varma vs. Delhi Transport Corporation** [2010 (2) KLT 802], the relevant multiplier to be adopted is ‘17’. ## **Personal living expenses of the deceased** 15. The appellants were the wife, children and mother of the deceased. They are five in number. Following the principles laid down in **Sarla Verma** (supra) and **National Insurance Company Ltd. v. Pranay Sethi** [(2017) 16 SCC 680] **,** one MACA NO. 2634 OF 2009 7 fourth of the compensation has to be deducted towards the personal living expenses of the deceased. ## **Future Prospects** 16. In the light of the law laid down in **Sarla Verma and Pranay Sethi** (supra) and considering the fact that the deceased was aged 28 years at the time of the accident, the appellants are also entitled to future prospects at 40%. ## **Loss due to dependency** 17. Taking into account the above mentioned factors namely, the notional monthly income of the appellant at Rs.3,000/-, the multiplier at '17', future prospects at 40% and after deducting one fourth of the compensation towards the personal living expenses of the deceased, I award the appellants an amount of Rs.6,42,600/- towards ‘loss due to dependency', instead of Rs.4,32,000/- awarded by the Tribunal. ## **Conventional heads of compensation** 18. In paragraph 59.8 of **Pranay Sethi** (supra) it is held that the dependents of the deceased are entitled for compensation under the conventional heads viz., ‘funeral MACA NO. 2634 OF 2009 8 expenses’, ‘loss of estate’ and ‘loss of consortium’ at Rs.15,000/-, Rs.15,000/- and Rs.40,000/- per dependent, respectively. It is further held that the above amounts have to be enhanced by 10% every three years. 19. In **N.Jayasree vs. Cholamandalam M.S, General Insurance Co Ltd.** [2021 SCC Online SC 967] and **Rasmita Biswal and others vs. The Divisional Manager, National Insurance Co., Ltd and another** [2021 SCC Online SC 1193], the Hon'ble Supreme Court, for the accidents that happened in the years 2011 and 2013, respectively, has granted 10% escalation on the conventional heads, irrespective of the dates of the accident. Thus, it is to be construed and inferred that the 10 % escalation is to be granted every three years from the date of pronouncement of the judgment in **Pranay Sethi** (supra), which was rendered on 31.10.2017, and not for accidents that occur every three years after 31.10.2017. Thus, the dependents of the deceased are, after 31.10.2020, entitled to amounts of Rs.16,500/- each under the heads 'funeral expenses' and 'loss of estate', and Rs.44,000/- under the head 'loss of consortium'. 20. In the instant case, the Tribunal has awarded an MACA NO. 2634 OF 2009 9 amount of Rs.2,000/- towards ‘funeral expenses’, an amount of Rs.2,000/- towards 'loss of estate' and an amount of Rs.5,000/towards ‘loss of consortium’. 21. In the light of the law referred to above, I award the appellants a further amount of Rs.14,500/- each under the heads ‘funeral expenses' and 'loss of estate', and a further amount of Rs.2,22,000/- under the head 'loss of consortium' that is Rs.44,000/- each to the appellants. ## **Loss of love and affection & pain and sufferings** 22. The Tribunal has awarded an amount of Rs.10,000/under the head 'loss of love and affection' and Rs.2,000/- under the head 'pain and suffering'. ## 23. In **New India Assurance Co. v. Somwati and others** [(2020) 9 SCC 644], the Honourable Supreme Court has held that once compensation is awarded under the head 'loss of consortium', no amount shall be awarded under the head 'loss of love and affection', as it would amount to duplication of compensation. Therefore, I set aside the amount of Rs.10,000/awarded under the head 'loss of love and affection'. Similarly, in **Sarla Varma** , it is held that no amount shall be awarded MACA NO. 2634 OF 2009 10 towards 'pain and sufferings' in the case of instantaneous death. Hence, I set aside the amount of Rs.2,000/- awarded under the said head. 24. With respect to the compensation awarded under the heads 'transportation expenses and clothing', I find the same to be reasonable and just. 25. On a comprehensive re-appreciation of the pleadings and materials on record and the law laid down in the above cited decisions, I hold that the appellants/petitioners are entitled for enhancement of compensation as modified and recalculated above and given in the table below for easy reference: **==> picture [460 x 246] intentionally omitted <==** **----- Start of picture text -----**<br> Amount<br>Amount<br>Sl. modified and<br>awarded by<br>Head of claim recalculated<br>the Tribunal<br>No by this Court<br>(in rupees)<br>(in rupees)<br>Transport to<br>1,000 1,000<br>hospital<br>Clothing 500 500<br>Pain and suffering 2,000 0<br>Funeral expenses 2,000 16,500<br>**----- End of picture text -----**<br> MACA NO. 2634 OF 2009 11 **==> picture [460 x 217] intentionally omitted <==** **----- Start of picture text -----**<br> Loss of love and<br> 10,000 0<br>affection<br>Loss of estate 2,000 16,500<br>Loss of consortium 5,000 2,22,000<br>Loss due to<br>4,32,000 6,42,600<br>disability<br>8,99,100<br>Total 4,54,500 rounded off to<br>Rs.9,00,000/-<br>**----- End of picture text -----**<br> 26. Even though the appellants had claimed only an amount of Rs.7,50,000/- in the claim petition, in the light of the law in **Sarla Verma** and **Pranay Sethi** (supra), that the dependents of the deceased are entitled to future prospects and compensation under the conventional heads, I have awarded the appellants more compensation than what is claimed in the claim petition. The said course is permissible in view of the law laid down by the Honourable Supreme Court in **Nagappa v. Gurudayal Singh** [2003 (1) KLT 115 (SC)] and **Rajesh vs. Rajbir Sing** [2013 (3) KLT 89 (SC)]. In the result, the appeal is allowed, by enhancing the compensation by a further amount of **Rs.4,45,500/-** with interest at the rate of 6% per annum from the date of petition MACA NO. 2634 OF 2009 12 till the date of deposit, after deducting interest for a period of 31 days i.e., the period of delay in filing the appeal and as ordered by this Court on 17.11.2021 in C.M. Appln.1/2009, and proportionate cost. The 3[rd] respondent is ordered to deposit the enhanced compensation awarded in the appeal before the Tribunal with interest and cost within a period of 60 days from the date of receipt of a certified copy of this judgment. Immediately on the compensation amount being deposited, the shall be disbursed to the appellants in the ratio of 30:30:30:10 and in accordance with law. Sd/- ## **C.S.DIAS, JUDGE** rkc/24.02.22 The penultimate line of the judgment dated 24.02.2022 in MACA No.2634/2009 regarding apportionment of compensation is corrected as '40:15:15:15:15' instead of 30:30:30:10 as per order dated 27.05.2022 in IA No.1/2022 in MACA 2634/2009. sd/- Deputy Registrar