High Court of KeralaDivision BenchAppeal disposed of; enhanced compensation award...

Narayanan, Sarada and Shree Mol (minor) through her Grand Father Narayanan v. Mohammed Basheer, Rajagopalan and The New India Assurance Co. Ltd.

Case / Petition Number:MACA No. 589 of 2011

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • K. P. Jyothindranath
Judgment Date
2016-12-08
Court Decision / Holding
The appeal is disposed of; enhanced compensation of ₹2,34,000 over the Tribunal award. The monthly income is fixed at ₹5,000 and the multiplier is set at 15 for loss of dependency, with 1/3rd deduction for personal expenses. An additional sum is awarded for funeral expenses and for loss of love and affection, leading to the total increment of ₹2,34,000. The enhanced amount carries 8% interest from the date of petition till realization, and the insurance company is instructed to pay within two months from receipt of a copy of the judgment. On deposit, the Tribunal shall realize the enhanced court fee payable by the appellants. A lumpsum of ₹25,000 to each of the parents and deposit of the balance for the minor in a nationalised bank with benefits until majority are ordered. The enhanced compensation will not carry interest for 372 days due to prior delay in moving the appeal.
Final Disposition
Appeal disposed of; enhanced compensation awarded along with related directions.

Parties to the Case

Appellants / Petitioners

  • Narayanan
  • Sarada
  • Shree Mol (minor) through her Grand Father Narayanan

Respondents

  • Mohammed Basheer
  • Rajagopalan
  • The New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • V. S. Chandrasekharan
  • • D. Mini Rajan

Counsels for Respondents

  • • Smt. P. K. Santhamma

Case Synopsis & Summary

This is a Motor Accident Claims Appeal filed by the legal heirs of a deceased driver challenging the quantum of compensation awarded by the Principal Motor Accidents Claims Tribunal at Kozhikode in O.P.(MV).No.730/2008. The accident occurred on 18 August 2007, and the deceased, a driver, was earning around ₹8,000 per month, though the tribunal fixed an income of ₹3,500 for calculation and awarded ₹4,78,000 in total. The appellants are the deceased’s aged parents and his minor child, represented by the grandfather. The wife of the deceased was not a party to the claim petition, and a Family Court order had dissolved their marriage. The insurance company opposed enhancement, arguing lack of evidence regarding occupation and income. The appellants contended for higher compensation, invoking Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. (2011) 13 SCC 236, to justify a higher monthly income, and Sarla Verma v. Delhi Transport Corporation to support a higher multiplier. The Court agrees that the Tribunal’s income is low and, applying Ramachandrappa, increases it to ₹5,000 per month and uses the multiplier of 15 (per Sarla Verma) instead of 16, resulting in a significantly higher loss of dependency. Additional sums for funeral expenses and love/affection heads are augmented. The enhanced compensation carries 8% interest from the petition date, with payment within two months and deposit arrangements for the minor. The appeal is disposed of accordingly, with no costs awarded.

Legal Doctrines & Maxims

  • Multiplier principle as laid down in Sarla Verma v. Delhi Transport Corporation
  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. (2011) 13 SCC 236 (income estimation in cases of unknown occupation)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal erred in assessing the deceased’s income and occupation, and that the income should be increased beyond ₹3,500 per month in line with Ramachandrappa (2011) to ₹5,000 per month, given the 2007 accident year. They urged that the multiplier should be 15 (as per Sarla Verma) rather than 16, and that the heads of compensation — including loss of dependency, funeral expenses, and love and affection — be enhanced. They pointed to the minor child’s entitlement and requested deposit arrangements for the minor’s future needs, along with an interim payment. Respondents argued the appellants failed to establish the actual occupation and income of the deceased and that the Tribunal’s assessment was just and proper; no interference was warranted, especially since the wife was not a party to the petition.

Contentions of Respondents

The respondents contended there was no material on record to prove the deceased’s occupation and earnings. They emphasized that the wife’s absence from the petition and the dissolution order undermine the claim. They maintained that the Tribunal’s award was just and proper and should not be disturbed, and that the claimants could not derive enhanced benefits from supposed higher income absent concrete evidence. They also argued that any enhancement should be bound by the statutory heads and the existing legal framework governing compensation calculations.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.(2011) 13 SCC 236PositiveUsed to justify increasing monthly income from ₹3,500 to ₹5,000 for the 2007 accident, aligning with Supreme Court guidance in similar contexts.
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802 (SC)PositiveCited for the correct multiplier, adopting 15 as per the principle laid down in Sarla Verma.

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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 C.T.RAVIKUMAR & THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH THURSDAY, THE 8TH DAY OF DECEMBER 2016/17TH AGRAHAYANA, 1938 MACA.No. 589 of 2011 ( ) ------------------------AGAINST THE AWARD IN OPMV 730/2008 of PRINCIPAL M.A.C.T.,KOZHIKODE DATED 14-12-2009 APPELLANT(S)/PETITIONERS: ------------------------ 1. NARAYANAN, AGED 76 YEARS, 2. SARADA, W/O.NARAYANAN, AGED 64 YEARS, 3. SHREE MOL (MINOR), AGED 7 YEARS, D/B 7.12.2002, REPRESENTED BY HER GRAND FATHER, NARAYANAN. (ALL ARE RESIDING AT KARUTHEDATH (H), P.O.PANTHEERANKAVU, KOZHIKODE) BY ADVS.SRI.V.S.CHANDRASEKHARAN KUM.D.MINI RAJAN RESPONDENT(S)/RESPONDENTS: -------------------------- 1. MOHAMMED BASHEER, S/O.ABOOBACKER, AGE NOT KNOWN, PATHAYAPURAKKAL (H), P.O.KODUR, MALAPPURAM-678010. 2. RAJAGOPALAN, S/O.THEYYAN, AGED 41 YEARS, MELEPURAKKAL (H), P.O.PONMALA, MALAPPURAM-678 005. 3. THE NEW INDIA ASSURANCE CO. LTD., MALIYEKKAL BUILDING, 1ST FLOOR, MANJERY UP HILL, MALAPPURAM-678008. ## R3 BY ADV. SMT.P.K.SANTHAMMA THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 08-12-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C.T. RAVIKUMAR** ## **& K.P.JYOTHINDRANATH, JJ.** **========================== M.A.C.A. No.589 OF 2011 ==========================** Dated this the 8[th] day of December, 2016 ## **JUDGMENT** ## _Jyothindranath, J._ This appeal is preferred by the claimants in O.P.(MV).No.730 of 2008 on the files of the Principal Motor Accidents Claims Tribunal, Kozhikode. The challenge is against the quantum of compensation awarded by the Tribunal. 2.When this appeal came up for admission, the learned counsel for the appellants submitted before us that, here is a case where the accident occurred on 18.08.2007 and in that accident, one Prasanth succumbed to the injuries. The legal heirs who are the parents and minor child of the deceased are the petitioners/appellants. The case is **M.A.C.A.589/2011** 2 that the deceased was a driver by profession and was earning `8,000/per month. Considering a monthly income of `3,500/-, against a claim of `6,00,000/-, the Tribunal awarded a total compensation of `4,78,000/-. In this case, the wife of the deceased is not a party. She was not a party to the claim petition also. The learned counsel for the appellant provided copy of the order in O.P.No.79 of 2005 on the files of the Family Court, Kozhikode which would reveal that their relationship was dissolved by the said order. The said order was made available on query by the Bench as the wife of the deceased was not a party to the claim petition. 3.The learned counsel, Smt.P.K.Santhamma, appearing for the insurance company, submitted before us that the legal heirs are the aged parents and the minor child. No materials produced either to show how the accident occurred or the actual occupation of the deceased. Under such circumstances, the compensation awarded is a just compensation and an interference is not required. **M.A.C.A.589/2011** 3 4.In this case, the accident occurred on 18.08.2007. Surely, no positive evidence was adduced by the appellants to show the actual occupation of the deceased. But at the very same time, the income considered by the Tribunal for assessment purpose is on a lower side. In an accident occurred in 2004, that also in the case of a coolie, the Apex Court considered a monthly income of `4,500/- for calculation purpose [ **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.** [ **(2011) 13 SCC 236]** . Thus, it will be only just and proper to consider `5,000/- as the monthly income for assessment purpose as the accident in question occurred in the year 2007. In this case, the age of the deceased is shown as 38 years. On perusal of the award, the multiplier used is seen as 16. As per the dictum laid down in **Sarla Verma v. Delhi Transport Corporation [2010 (2) KLT 802 (SC)],** it can be seen that appropriate multiplier will be 15. Thus, re-assessing the compensation by taking the monthly income as `5,000/- and multiplier as 15 and also deducting **M.A.C.A.589/2011** 4 1/3 of the income towards personal expenses, the amount available towards loss of dependency will be `6,00,000/-. Additional compensation entitled on this head after considering the amount already awarded will be `1,52,000/- (5000x12x15x2/3-448000). On two other heads also, the compensation awarded is seen on a lower side. Towards funeral expenses only `3,000/- is seen awarded. The appellants will be entitled for at least `25,000/- towards the said head. In this case, no evidence adduced to show that a higher amount was actually expended by appellants for future expenses. In such circumstances, an additional sum of `22,000/- awarded towards funeral expenses. Towards loss of love and affection, only a sum of `10,000/- is seen awarded. In this case, one of the petitioners/appellants is the minor child of the deceased and was aged only 5 years at the time of the accident. Thus, she will be entitled for a sum of `50,000/- and if `10,000/- each is considered for the parents, the appellants will be entitled for a total sum of `70,000/-. In this case, the Tribunal awarded only `10,000/- on this head. Thus, **M.A.C.A.589/2011** 5 deducting the amount already awarded, the appellants will be entitled for an additional sum of `60,000/- towards loss of love and affection. Thus, on the above three heads, the appellants will be entitled to an additional compensation of `2,34,000/-. The compensation awarded on other heads are only just and proper. Thus, the appeal is disposed of awarding an additional compensation of `2,34,000/-. The additional compensation will bear 8% interest from the date of the petition till realisation. The insurance company shall pay the amount within two months from the date of receipt of a copy of this judgment. On deposit, the Tribunal shall realise additional court fee payable by the appellants. From the additional compensation, a lumpsum amount of `25,000/- each shall be paid to appellants 1 and 2 who are the parents of the deceased. The balance amount shall be paid to the minor which shall be deposited in a nationalised bank with maximum benefits till she attains majority. As per order dated 11.11.2016 in C.M.Appln.No.992 of 2011, it was held by this Court that the enhanced compensation will not carry interest for a period of 372 days **M.A.C.A.589/2011** 6 of delay caused in moving the appeal. It is made clear that the said period shall not bear any interest. No order as to costs. **Sd/C.T. RAVIKUMAR (JUDGE)** **Sd/-** **K.P.JYOTHINDRANATH (JUDGE)** **spc/** //true copy// P.A.to Judge **M.A.C.A.589/2011** 7 **C.T. RAVIKUMAR, J.** **JUDGMENT September, 2010** # **M.A.C.A.589/2011** 8