High Court of KeralaDivision BenchAppeal allowed in part; impugned award modified...

N. Chandran @ Chandraswami v. Mohammed Haneeha N.P. and others (MACA 1516 of 2005)

Case / Petition Number:MACA.No.1516 of 2005

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. N. Ravindran
  • K. Ramakrishnan
Judgment Date
2016-03-01
Court Decision / Holding
With the above modifications of the impugned award, the appeal is allowed in part and disposed of accordingly. The enhanced amounts under loss of dependency (via 15-year multiplier for minors), loss of love and affection, pain and suffering, and transport/funeral expenses are to be paid by the insurers with 9% interest from the date of petition, within three months. If deposited, the amount is to be shared equally by the parents.
Final Disposition
Appeal allowed in part; impugned award modified to enhance compensation for heads including loss of dependency (via 15-year multiplier for minor), loss of love and affection, pain and suffering, and transport/funeral expenses; payment with 9% interest within three months.

Parties to the Case

Appellants / Petitioners

  • N. Chandran @ Chandraswami
  • P. Valsala
  • Sunila P.

Respondents

  • Mohammed Haneeha N.P.
  • K. Mohammed Kunhi
  • The Oriental Insurance Company Ltd.
  • R. Sasikumar
  • United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V. Ramkumar Nambiar

Counsels for Respondents

  • • Sri. VPK. Panicker
  • • Sri. R. Rema

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No.1516 of 2005) decided by a Division Bench of the Kerala High Court on 1 March 2016, arising from an MACT award in OPMV 1909/1999 at Thalassery. The claimants, parents and elder sister of seven-year-old Suchila.P, who died in a collision between a tempo van (KL-7/H-9244) and a bus (KL-14/B-1440), sought enhancement of compensation. The MACT apportioned negligence to the bus driver, awarded Rs.90,300 (rounded to Rs.90,500) under multiple heads, with 9% interest and costs, and the claimants challenged the quantum. The third respondent (bus insurer) accepted insurance but denied driver negligence; the fifth respondent (tempo insurer) admitted insurance but denied tempo negligence. The High Court, while acknowledging the difficulty of valuing loss in respect of a tender-age victim and recognizing the non-earning status of the child, applied the Second Schedule (Rs.15,000 p.a.) and doctrines from Sarla Verma, Reshma Kumari and Amrit Bhanu Shali to re-evaluate compensation. The Court increased awards for loss of love and affection, pain and suffering, and transport/funeral expenses, and enhanced the loss of dependency using a 15-year multiplier for minors, ultimately allowing the appeal in part and directing payment of the enhanced amount with interest within three months. The decision clarifies compensation standards for minors in motor vehicle accidents and reaffirms multiplier and head-based assessment principles.

Provisions of Law Cited

Motor Vehicles Act, Second Schedule

Legal Doctrines & Maxims

  • Multiplier for minors up to 15 years (as per Reshma Kumari)
  • 50% deduction for personal expenses (as per Sarla Verma)
  • Appropriate heads for compensation including loss of love and affection, pain and suffering, transport and funeral expenses

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that, despite the deceased being seven years old, the Second Schedule fixes Rs.15,000 per annum for a non-earning member. Relying on Sarla Verma (2009) and Reshma Kumari (2009), they argued that for deaths of children up to 15 years, a multiplier of 15 must be applied. They calculated loss of dependency as Rs.15,000 x 15 x 50% = Rs.1,12,500 and, after deducting the tribunal’s Rs.64,800, sought an additional Rs.47,700. They urged enhanced awards under loss of love and affection (Rs.1,00,000 for both parents), pain and suffering (Rs.10,000), and transport/funeral expenses (Rs.10,000), per Amrit Bhanu Shali’s guidance, totaling an augmentation of Rs.1,42,700 beyond the tribunal’s award. They requested payment with interest and equitable distribution to the parents.

Contentions of Respondents

The respondents argued that the tribunal’s award was just and proper given the minor’s age and lack of income, and that the evidence does not justify a substantial uplift. They maintained the applicability of the Second Schedule and the need to avoid windfall gains, asserting the award already reflects reasonable compensation after considering the tender-age death and the lack of a fixed dependency yardstick.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Sarla Verma (Smt) and others v. Delhi Transport Corporation and another2009(6)SCC121PositiveCited for the rule of 50% deduction for personal expenses and for the general approach to multiplier and compensation on the death of a minor as clarified in this line of authority.
Reshma Kumari & others v. Madan Mohan & another2009(13)SCC422PositiveCited to justify applying a 15-year multiplier for deaths of children up to 15 years.
Amrit Bhanu Shali & Others v. National Insurance Company Ltd. & Others2012(11)SCC738PositiveCited to support enhanced compensation for loss of love and affection where the deceased is a child.

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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 P.N.RAVINDRAN & THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN** **TUESDAY, THE 1ST DAY OF MARCH 2016/11TH PHALGUNA, 1937** **MACA.No. 1516 of 2005 ( ) --------------------------** **AGAINST THE AWARD IN OPMV 1909/1999 of ADDL.MACT,THALASSERY DATED 20-01-2005** **APPELLANTS/PETITIONERS::** **------------------------** **1. N. CHANDRAN @ CHANDRASWAMI, S/O. NARAYANAN, AGED 36 YEARS, RESIDING AT NEKKOTH HOUSE, KADOOR P.O., CHERUPAZHASSI KANNUR-670 001.** **2. P. VALSALA, W/O. N.CHANDRAN @ CHANDRASWAMI, AGED 31 YEARS RESIDING AT NEKKOTH HOUSE, KADOOR P.O., CHERUPAZHASSI KANNUR-670 601.** **3. SUNILA P., D/O. N.CHANDRAN @ CHANDRASWAMI, AGED 13 YEARS, (MINOR) REPRESENTED BY FATHER N.CHANDRAN @, CHANDRASWAMI RESIDING AT -DO-.** **BY ADV. SRI.V.RAMKUMAR NAMBIAR** **RESPONDENTS/RESPONDENTS::** **-----------------------** **1. MOHAMMED HANEEFA N.P., S/O.C.K.AHAMMED, AGED 26 YEARS, NALUPURAPPATTU, PLACHIKKARA P.O. KASARGODE (DRIVER OF THE BUS NO.KL-14/B-1440 D.L.NO.1510/92/KH-2856/96/M2/BKH).** **2. K. MOHAMMED KUNHI, S/O. YOUSUF HAJI, SAFURA MANZIL, BENGALAM P.O. NILESHWAR. (R.C.OWNER OF THE BUS NO.KL-14/B-1440).** **3. THE ORIENTAL INSURANCE COMPANY LTD., BRANCH OFFICE, CITY POINT BUILDING PRESS CLUB JUNCTION, KASARGODE. (INSURER OF THE BUS NO.KL-14/B-1440 - POLICY NO.1902/2000).** ## **4. R. SASIKUMAR, SWATHI NEAR MUTHUKAD TEMPLE, MUPPATHADAM, ALUVA ERNAKULAM. (R.C.OWNER OF THE TEMPO, NO.KL-7/H-9244).** ## **5. UNITED INDIA INSURANCE COMPANY LTD.,** **CITY BRANCH OFFICE, KANNANKARI ESTATE, SHANMUGHAM ROAD ERNAKULAM, KOCHI-682 031. (POLICY NO.03874/98)(INSURER OF THE TEMPO NO.KL-7/H-9244).** **R3 BY ADV. SRI.VPK.PANICKER R5 BY ADV. SMT.R.REMA** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 01-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **P.N. RAVINDRAN & K. RAMAKRISHNAN, JJ.** .................................................. M.A.C.A.No.1516 of 2005 ....................................................... Dated this the 1[st] day of March, 2016. ## **JUDGMENT** ## **K. RAMAKRISHNAN, J:** The claimants in O.P.(M.V)No.1909 of 1999 on the file of the Additional Motor Accidents Claims Tribunal, Thalassery are the appellants herein. The appellants are parents and elder sister of deceased Suchila.P, aged 7 years, filed the application for compensation for the death of their child and sister respectively in a motor vehicle accident involving a tempo van with registration No.KL.7/H-9244, owned by the 4[th] respondent and insured with the 5[th] respondent, which collided with a bus bearing registration No.KL.14/B-1440, driven by the first respondent, owned by the second respondent and insured with the third respondent. 2.According to them, the accident occurred due to the negligence of both the drivers. The deceased along with his family members were travelling in the tempo van. While they were on the way to Mookambika, it collied with the bus and the child sustained severe injuries and she died on account of the injuries sustained in the accident. They claimed a total compensation of Rs.2,50,000/- on various heads. 3. The third respondent entered appearance and filed a statement admitting the insurance of the bus bearing registration 2 M.A.C.A.No.1516 of 2005 No.KL-14/B-14040 but denied the allegation of negligence on the part of the driver of the bus. According to them, the accident occurred due to the negligence of the tempo van. They denied the quantum of compensation claimed and according to them, it is exorbitant. They prayed for dismissal of the application. 4. The fifth respondent filed a statement admitting the insurance of the tempo van bearing registration No.KL-7/H-9244 but they denied negligence on the part of the tempo van. According to them, they are not liable to pay any compensation. The compensation has to be paid by the third respondent. They prayed for dismissal of the application. Other respondents remained absent. 5. The first petitioner was examined as PW1 and Exts.A1 to A5 were marked on the side of the petitioners. After considering the evidence on record, the tribunal found that the accident occurred due to the negligence of the first respondent and directed respondents 1 to 3 to pay compensation jointly and severally and assessed a total compensation of Rs.90,300/-, which is rounded to 90,500/- on various heads as follows: Compensation for loss of dependency : Rs.64,800/Transportation charges : Rs.5,000/Pain and sufferings : Rs.5,000/Loss of love and affection : Rs.15,000/Compensation of injuries : Rs.500/------------------Total :Rs.90,300/- M.A.C.A.No.1516 of 2005 3 and directed the third respondent to pay the amount with 9% interest from the date of petition till payment with proportionate costs. Dissatisfied with the quantum of compensation awarded, the present appeal has been preferred by the appellants/the claimants before the tribunal. 6. Heard Sri.V.Ramkumar Nambiar, learned counsel appearing for the appellants, Sri. V.P.K. Panicker, learned counsel appearing for the third respondent and Smt. R. Rema, learned counsel appearing for the fifth respondent. 7. Learned counsel for the appellants submitted that even if the child was aged only 7 years, as per the second schedule, a non earning member will be entitled to get Rs.15,000/- per annum as income and in _**Sarla Verma (Smt) and others v. Delhi Transport Corporation and another** (2009(6)SCC 121)_ which was approved in _**Reshma Kumari & others v. Madan Mohan & another (2009 (13) SCC**_ _**422)**_ and it has been held that where in the case of death of children up to 15 years, the multiplier of 15 will have to be taken for assessing compensation. Even as per _**Sarla Verma's case**_ (supra), 50% is deducted for personal expenses, the compensation awarded is very less. The amount awarded under the heads loss of love and affection, pain and sufferings and funeral expenses is on the lower 4 M.A.C.A.No.1516 of 2005 side. So, according to the learned counsel, the amount awarded is less and they are entitled to get enhancement. 8. On the other hand, learned counsel for the insurance company submitted that the amount awarded is just and proper considering the age of the deceased. 9. It is an admitted fact that the deceased was aged only 7 years at the time when she lost her breath. It is very difficult to assess compensation in the case of death of tender age children as they will be without any income and no yardstick can be fixed for loss of dependency. But, at the same time, the law does not say that parents who lost the child of tender age should not be adequately compensated as well. Now the second schedule to Motor Vehicles Act had fixed Rs.15,000/- as the annual income of a non earning member for assessing compensation under the head permanent disability or loss of dependency. Further, in _**Sarla Verma's case**_ (supra) it has been held that in the case of parents the dependency will have to be reduced by 50% for taking the multiplicand namely the monthly income of the deceased. But there was no guideline given as to what would be the multiplier will be taken in such circumstances. But that was explained in _**Reshma Kumari's case**_ (supra) _,_ where it has been held that up to the age of 15 years, multiplier will have to be taken M.A.C.A.No.1516 of 2005 5 as 15. If a calculation is made on that basis, the claimant will be entitled to get an amount of Rs.1,12,500/- =(15000x15x50%) under the head loss of dependency. But, in this case, it can be taken as loss of expectancy on account of the death of the young child to the parents. Deducting Rs.64,800/- awarded by the tribunal, they will be entitled to get an additional amount of Rs.47,700/- under that head. 10. In _**Amrit Bhanu Shali & Others v. National Insurance Company Ltd. & Others (2012 (11) SCC 738),**_ the Supreme Court has held that in the case where bachelor or youngster died in the accident, the parents must be adequately compensated for the loss of love and affection and awarded Rs.50,000/- each for each parents under the head loss of love and affection. In this case, the tribunal had awarded only Rs.15,000/- under that head, which appears to be on the lower side. So we award Rs.1,00,000/- under that head for both the parents together, thereby they will be entitled to get an additional amount of Rs.85,000/- under the head loss of love and affection due to the loss of their young child. The tribunal had awarded Rs.5,000/- under the head pain and sufferings, which appears to be on the lower side. We enhance the same to Rs.10,000/-, thereby they will be entitled to get an additional amount of Rs.5,000/- under the head pain and sufferings suffered by the M.A.C.A.No.1516 of 2005 6 deceased. The tribunal has awarded only Rs.5,000/- under the head transport to hospital and funeral expenses. Considering the tender age of the child, we think that, that amount can be enhanced to Rs.10,000/-, thereby the appellants will be entitled to another Rs.5,000/- under that head. On all other heads, the tribunal has awarded just and fair compensation. So the appellants will be entitled to an additional compensation of Rs.1,42,700/- over and above the compensation awarded by the tribunal, which the third respondent insurance company is liable to pay with 9% interest from the date of petition till payment. Three months time is granted to the insurance company to pay the amount. If amount is deposited, the parents are directed to share the amount equally and they were permitted to withdraw the amount as well. With the above modifications of the impugned award of the tribunal, the appeal is allowed in part and disposed of accordingly. ## **Sd/-** ## **P.N. RAVINDRAN, JUDGE.** Sd/- **K. RAMAKRISHNAN, JUDGE.** cl /true copy/ P.S to Judge M.A.C.A.No.1516 of 2005 7