MFA.No. 134 of 2003 (C)
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- J.B. Koshy
- P.N. Ravindran
- Judgment Date
- 2008-07-01
- Court Decision / Holding
- The appeal is partly allowed. The Tribunal’s award is enhanced by Rs. 80,000, making the total compensation Rs. 1,30,000. The 1st respondent (bus owner) must deposit the additional amount with 7.5% interest from the date of the application until deposit. The appellant mother is permitted to withdraw the excess amount after deposit. The final disposition is a partial reversal of the MACT award in favor of the claimants.
- Final Disposition
- Partly allowed
Parties to the Case
Appellants / Petitioners
- Anthoniyamma, W/o Rajappan
- R.M.S.BUILDING, Puliyannoor P.O.
- Raju T.R., S/O Rajappan
- Jayarani, D/O Rajappan
- Jayakumar, S/O Rajappan
- Pushparani, D/O Rajappan
- Thomas, S/O Rajappan
- Vijayakumar, S/O Rajappan
Respondents
- The Managing Director, Kerala State Road Transport Corporation
- M.J. Thomas, S/O Devasia Joseph, Moozhayil House, Muthol y, Puliyanoor Village, Puliyanoor Kara
Legal Representation & Advocates
Counsels for Petitioners
- • Sri. P.C. Haridas
Case Synopsis & Summary
A seven-year-old child died in a motor vehicle accident and the parents approached the Motor Accidents Claims Tribunal, Pala, for compensation. The Tribunal found negligence by the driver and liability on the 1st respondent but awarded only Rs. 74,600 out of Rs. 3,20,000 claimed. The appellants contended that under Section 163-A, compensation in fatal accidents is fixed by the Second Schedule and need not prove negligence; consequently, the amount should be at least Rs. 2 lakhs. Relying on National Insurance Co. Ltd. v. Muneer (2003 (1) KLT 137), they argued that the quantum under Section 166 cannot be less than the 163-A guideline. They cited Lata Wadhwa and others v. State of Bihar and others and M.S. Grewal v. Deep Chand Sood to support the multiplier method and higher damages for children. The respondents argued that the 2nd schedule provides a guideline, not a hard floor, and that compensation under Section 166 requires a broader assessment of prospects, dependants, and actual loss. The High Court held that Section 163-A and Section 166 are independent; 2nd Schedule is a guideline and should be used in conjunction with Supreme Court principles. The appeal was partly allowed: the court increased the compensation, directing the 1st respondent to pay an additional Rs. 80,000 (total Rs. 1,30,000) with 7.5% interest from the date of application till deposit; the mother was allowed to withdraw the excess amount.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellants argued that under Section 163-A, compensation in fatal accidents can be fixed without proving negligence, and the Second Schedule should guide quantum, with notional income for a non-earning person and age-based multipliers as in the Second Schedule. They relied on Supreme Court and Kerala decisions (e.g., Lata Wadhwa, Muneer) to advocate a higher, structured compensation under Section 166.
Contentions of Respondents
The respondents contended that Section 166 requires a full consideration of prospects, dependants, and losses of the deceased; though the Second Schedule can guide, it does not set a floor, and compensation under Section 166 must reflect the Tribunal’s overall assessment rather than a rigid formula.
Cited Precedents (7)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| National Insurance Co. Ltd. v. Muneer | 2003 (1) KLT 137 | Distinguished | Judgment distinguishes this Division Bench decision, holding that 163-A should guide, not rigidly floor the Section 166 quantum; settled Supreme Court principles govern compensation. |
| Smt.Supe Dei and others v. M/s.National Insurance Company Ltd. and another | JT 2002 (Suppl.1) SC 451 | Positive | Held that the second schedule serves as a guideline for determining compensation under Section 166. |
| Abati Bezbaruah v. Dy.Director General, Geological Survey of India and another | (2003) 3 SCC 148 | Positive | Structured formula in the second schedule provides guidelines for determining compensation under Section 166. |
| A.P.S.R.T.C. v. M.Pentaiah Chary | (2007) AIR SCW 5689 | Positive | Held that, except in exceptional circumstances, the second schedule should be followed in awarding compensation. |
| Lata Wadhwa and others v. State of Bihar and others | (2001) 8 SCC 197 | Mentioned Only | Cited regarding child compensation framework; not binding in the present case but referenced for context. |
| M.S.Grewal and another v. Deep Chand Sood and others | (2001) 8 SCC 151 | Mentioned Only | Cited in discussion on multiplier method; used as contextual authority. |
| Deepal Girishbhai Soni and others v. United India Insurance Co. Ltd. | (2004) ACJ 934 | Positive | Notional income and guidelines from second schedule referenced to determine compensation. |
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