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

Omanakkunjamma and Others v. Jose P Simon and Others

Case / Petition Number:M.A.C.A No.2742 of 2021
Neutral Citation:2025 KHC 228

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Easwaran S.
Judgment Date
2025-03-07
Court Decision / Holding
Appeal allowed. The Tribunal’s award is modified on key points: (a) Fixation of dependency income to Rs. 35,802 per month (including 50% future prospects on Rs. 23,883); (b) Compensation for loss of dependency recalculated as Rs. 4,63,692; (c) Funeral expenses increased to Rs. 3,000; (d) Loss of consortium to wife and child Rs. 16,000; (e) Loss of consortium to mother Rs. 48,000; (f) Loss of estate Rs. 3,000; Total enhanced compensation Rs. 5,33,692 with 8% interest from 23.06.2018 until realization, with proportionate costs. The insurance company is to deposit the enhanced amount within two months, and the Tribunal must issue notice to the claimants before releasing the amounts. The court also notes the wife and minor child were not party to the proceedings and thus rejects further enhancement on their behalf, while ensuring the mother and siblings’ entitlement within the clarified framework.
Final Disposition
Appeal allowed; enhanced compensation awarded; proportionate cost and deposit directions; notices to claimants to be issued by the Tribunal before release of amounts.

Parties to the Case

Appellants / Petitioners

  • Omanakkunjamma
  • Nisha T.C.
  • Harikrishnan T.C.

Respondents

  • Jose P Simon
  • Mankombu Granites represented by its Managing Partner
  • The Manager The Oriental Insurance Co. Ltd.
  • Akhila

Legal Representation & Advocates

Counsels for Petitioners

  • • Thomas Abraham (Nilackappillil)
  • • Abraham Thomas

Counsels for Respondents

  • • George Cherian (Sr.)
  • • Alexy Augustine
  • • George A.Cherian

Case Synopsis & Summary

This is a Motor Accident Claims Appeals (MACA) case before the Kerala High Court, arising from two linked petitioners for compensation following the death of Vishnu, a clerk in Union Bank of India. The wife and minor child filed O.P (MV) 593 of 2018, while Vishnu’s mother and siblings filed OP(MV) 761/2018; both petitions were heard together before the Motor Accidents Claims Tribunal (MACT), Pala. The tribunal assessed compensation on the basis of Ext. A4 salary slip showing a monthly income of Rs. 23,883 and fixed the annual income after deductions at Rs. 2,59,140, applying 2% income tax and Rs. 3,000 professional tax. It awarded substantial sums for various heads, including loss of dependency, funeral expenses, loss of love and affection, and loss of estate. The High Court, upon revision, found the primary error in the deduction of income tax and professional tax from the dependency calculation and held that the victim’s actual income should not be reduced by tax concerns not reflected in Ext. A4. The court also found that the Tribunal erred by awarding only 40% future prospects instead of 50% as per Sarla Verma, and it relied on Reliance General Insurance v. Bindu to guide income fixation. The appeal ultimately granted enhancement of compensation, reinstated the 50% future prospects, and recalculated the sums under several heads, including loss of dependency, loss of consortium, and loss of estate, while noting the non-joinder of the wife and minor child and limiting relief accordingly.

Legal Doctrines & Maxims

  • 50% future prospects as per Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that Vishnu’s actual monthly salary was Rs. 23,883 as evidenced by Ext. A4. The tribunal wrongly deducted 2% tax and Rs. 3,000 towards professional tax while calculating loss of dependency, which is impermissible where the salary slip itself reflects the earnings. They urged adoption of 50% future prospects in line with Sarla Verma, contending that Vishnu’s status as a permanent employee warrants higher expectations. They pressed for recognition of loss of consortium to wife, mother, and child and inclusion of loss of estate. They also argued for enhancement across heads including funeral expenses and medical costs, insisting the tribunal’s award undervalued the family’s loss and care support obligations.

Contentions of Respondents

The respondents contended that the Tribunal’s findings should stand, arguing the need to reflect the premium payable under the policy and the evidence presented. They defended deductions for taxes as reflective of the employee’s compensation, sought consistency with precedent, and opposed elevating future prospects beyond the established Sarla Verma framework. They opposed broadening the liability beyond the widow and minor child, citing the need for proper apportionment of liability among claimants and caution against over-extension of compensation beyond the tribunal’s initial assessment.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Reliance General Insurance, Kochi v. Bindu2025 KHC 228PositiveCourt uses the decision to lay down principles for fixation of income in dependency calculations.
Sarla Verma v. Delhi Transport Corporation & Another(2009) 6 SCC 121PositiveCourt applies the 50% future prospects principle from Sarla Verma for computing dependency.
National Insurance Co. Ltd. v. Pranay Sethi(2017) (5) KHC 350 (SC)PositiveCourt relies on Pranay Sethi guidelines on future prospects and overall compensation calculation.
Magma General Insurance Co. Ltd. v. Manu Ram—PositiveCited in connection with loss of consortium/other heads for compensation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

``` 2025:KER:22961 ``` **==> picture [57 x 57] intentionally omitted <==** ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE EASWARAN S. ``` ``` FRIDAY, THE 7[TH] DAY OF MARCH 2025/16[TH ]PHALGUNA, 1946 ``` ``` MACA NO.2742 OF 2021 ``` ``` AGAINST THE ORDER/JUDGMENT DATED IN OPMV NO.761 OF 2018 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, PALA ``` ## **`APPELLANTS/PETITIONERS`** - **`1 OMANAKUNJAMMA, AGED 59 YEARS,`** ``` W/O. CHELLAPPAN, THANDARAPPALLIL HOUSE, THALAYOLAPARAMBU P.O., VADAYAR VILLAGE, VAIKOM, KOTTAYAM DISTRICT-686 605. ``` - **`2 NISHA T.C., AGED 35 YEARS,`** - **`D/O. CHELLAPPAN, THANDARAPPALLIL HOUSE, THALAYOLAPARAMBU P.O., VADAYAR VILLAGE, VAIKOM, KOTTAYAM DISTRICT-686 605.`** - **`3 HARIKRISHNAN T.C., AGED 27 YEARS,`** - **`S/O. CHELLAPPAN, THANDARAPPALLIL HOUSE, THALAYOLAPARAMBU P.O., VADAYAR VILLAGE, VAIKOM, KOTTAYAM DISTRICT-686 605.`** ``` BY ADVS. THOMAS ABRAHAM (NILACKAPPILLIL) ABRAHAM THOMAS ``` ## **`RESPONDENTS/RESPONDENTS`** - **`1 JOSE P SIMON, AGED 48 YEARS,`** ``` S/O. P.M. SIMON, PULLATTUKALAYIL HOUSE, KAIPUZHA P.O., KOTTAYAM DISTRICT-686 602. ``` ``` 2025:KER:22961 ``` ``` M.A.C.A No.2742 of 2021 ``` ``` 2 ``` **==> picture [57 x 57] intentionally omitted <==** ``` 2MANKOMBU GRANITES, REPRESENTED BY ITS MANAGING PARTNER, WARD NO.IV, 194, MOONNILAVU, VALLARA P.O., KOTTAYAM DISTRICT-686 586. ``` - **`3 THE MANAGER THE ORIENTAL INSURANCE CO. LTD., KANJIRAPPALLY P.O., KOTTAYAM DISTRICT-686 507.`** ``` 4AKHILA, W/O. VISHNU, DWARKA HOUSE, VADAKARA KARA, VELLOOR VILLAGE, KOTTAYAM DISTRICT-686 605. ``` ``` BY ADVS. GEORGE CHERIAN (SR.) ALEXY AUGUSTINE GEORGE A.CHERIAN ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 07.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` 2025:KER:22961 ``` ``` M.A.C.A No.2742 of 2021 ``` ``` 3 ``` **==> picture [57 x 57] intentionally omitted <==** ## **JUDGMENT** The mother and siblings of the deceased Vishnu has come up with the present appeal for seeking enhancement of the compensation. The facts presented before this court is quite amusing in the sense that two different claim petitions were preferred for a claim of compensation on account of the death of Vishnu, who was working as a clerk in the Union Bank of India. At one hand, the wife and the minor child of the Vishnu preferred O.P (MV) No.593 of 2018 whereas the mother and two siblings of late Vishnu preferred O.P(MV) 761 of 2018. Both were tried jointly. Ext. A1 to A21 documents were marked in common and the statement of accounts from the Sub Treasury Office, Vaikom were marked as Ext.B1 from the side of the Insurance company. The claimants contended that the deceased Vishnu was working as clerk in the Union Bank of India and the salary slip was produced and marked as Ext.A4, as evidence to show that the deceased Vishnu was drawing a monthly income of ``` 2025:KER:22961 ``` **==> picture [57 x 57] intentionally omitted <==** ## `M.A.C.A No.2742 of 2021` ``` 4 ``` Rs.23,883/-. The Tribunal on appreciation of Ext.A4 salary slip proceeded to fix the annual income of deceased Vishnu at Rs.2,59,140/- after deducting 2% of income tax and professional tax. Thus, the claimants were found to be entitled for compensation and was granted the following compensation: |Sl.<br>No|Head of claim|Amount<br>claimed<br>(Rs)|Amount<br>awarded<br>(Rs.)|Basic-vital<br>details in nut<br>shell| |---|---|---|---|---| |1|Loss of earning|......|.....|| |2|Transport to hospital|10,000|4,000|| |3|Medical expense|.....|........|| |4|Extra nourishment|2,000||| |5|Damage to clothing|3,000|1,000|| |6|Pain and sufferings|50,000|15,000|On a reasonable<br>evaluation| |7|Funeral expenses|50,000|15,000|National<br>Insurance<br>v.Pranay Sethi -<br>2017(5)KHC<br>350(SC)| |8|Loss of consortium to<br>the petitioners||40,000<br>40,000|(Magma General<br>Insurance<br>Co.Ltd.Vs. Manu<br>Ram @Chuhru<br>Ram)| |9|Compensation<br>for<br>loss of love and<br>affection|2,00,000|Not allowed|......| |10|Compensation<br>for<br>loss of dependency|75,00,00<br>0|44,05,380|| |11|Compensation<br>for<br>loss<br>of<br>future|2,00,000|.........|| ``` 2025:KER:22961 ``` **==> picture [57 x 57] intentionally omitted <==** |`2025:KER:22961`|`2025:KER:22961`|`2025:KER:22961`|`2025:KER:22961`|`2025:KER:22961`| |---|---|---|---|---| |`M.A.C.A No.2742 of 2021`<br>`5`||||| ||prospectus of the<br>deceased in career|||| |12|Compensation<br>for<br>loss of care and<br>support<br>to<br>the<br>petitioners|2,00,000||| |13|Loss of estate|2,00,000|15,000|National<br>Insurance<br>v.Pranay Sethi-<br>2017 (5) KHC<br>350 (SC)| ||Total Claim limited to|80 lakhs|Rs.45,35,380|| 2. In the present appeal this court is concerned about the claim of the mother and the siblings alone. Pertinently, it must be noticed that at the instance of the appellant when this court admitted the appeal on 20.10.2021 notice to respondents 1, 2 and 4 were dispensed with thereby meaning that notice to the wife of the deceased was dispensed with. The minor child is not made a party to the proceedings. However that by itself need not deter this court from considering the sufficiency of the compensation because if this Court is of the ultimate view that the compensation on account of death of late Vishnu has to be enhanced the same will enure to the benefit of his **==> picture [57 x 57] intentionally omitted <==** ``` 2025:KER:22961 ``` ``` M.A.C.A No.2742 of 2021 ``` ``` 6 ``` wife and minor child. For this back drop, this Court proceed to consider the appeal on merits. 3. Heard Sri. Thomas Abraham learned Counsel appearing for the appellant and Sri. George A Cherian learned Counsel appearing for the Insurance company. 4. On a consideration of the rival submissions raised across the Bar, this Court finds that the appellants are entitled to succeed on the limited ground of fixation of the dependency compensation. It is beyond dispute that the deceased Vishnu was drawing a monthly income of Rs.23,883/- as evident from Ext.A4 salary slip. Rs.15/- was deducted for each month towards TDS. The Tribunal on contrary proceeded to deduct 2% towards the income tax and Rs.3,000/- towards professional tax. The aforesaid procedure cannot be subscribed by this Court in the light of the decision in _**Reliance General Insurance, Kochi Vs Bindu**_ **==> picture [57 x 57] intentionally omitted <==** ``` 2025:KER:22961 ``` ``` M.A.C.A No.2742 of 2021 ``` ``` 7 ``` _**[2025 KHC 228]**_ wherein this Court laid down the principles by which the Tribunals are to be guided in the matter of fixation of income. The liability of the victim to pay tax on receipt of the salary cannot be deducted by the Tribunal while calculating the compensation towards loss of dependency. Viewed in the above perspective, this court cannot sustain the findings of the Tribunal in deducting the amount towards income tax and professional tax which is not covered under Ext.A4 salary slip. 5. A further perusal of the salary slip shows an amount of Rs.23,883/- as the amount received by late Vishnu deducting Rs.15, the amount will come to 23,868/-. Since the deceased was permanently employed the Tribunal erred egregiously in granting only 40% of future prospects whereas the same ought to have been at 50% going by the table fixed by the Supreme Court in _**Sarla**_ ## _**Verma v. Delhi Transport Corporation & Another**_ ``` 2025:KER:22961 ``` **==> picture [57 x 57] intentionally omitted <==** `M.A.C.A No.2742 of 2021` _**[(2009) 6 SCC 121].**_ ``` 8 ``` 6. Insofar as the first appellant here is concerned it is seen that no compensation was granted under the head loss of consortium. To that extend also the appellant is entitled to succeed. 7. In the result, the appeal is allowed. The award passed by the Tribunal in O.P M V No.761/2018 and O.P M V No.593/2018 is modified as follows: a. Adding 50% future prospects, the income of the deceased comes to an amount of Rs.35,802/- (23,868+(23,868 x 50/100)) b. The appellant is entitled for a compensation of Rs.4,63,692/- (35,802 x 12 x 17 x 2/3 - 44,05,380) towards loss of dependency. c. The appellant is entitled to have a compensation of Rs.3,000/- (18,000-15,000) under the head funeral expense. d. The appellant is entitled to have a **==> picture [57 x 57] intentionally omitted <==** ``` 2025:KER:22961 ``` ``` M.A.C.A No.2742 of 2021 ``` `9` compensation of Rs.16,000/- (48,000 x 2-(40,000 + 40,000) under the head Loss of consortium to wife and child. e. The appellant is entitled to have a compensation of Rs.48,000/-under the head loss of consortium to mother. f. The appellant is entitled to have a compensation of Rs.3,000/-(18,000-15,000) under the head loss of estate. Thus a total of Rs.5,33,692/-(Rupees five lakhs thirty three thousand six hundred and ninety two only) is awarded as the enhanced compensation together with interest at 8% per annum from 23.06.2018 till realization with proportionate cost. Since the appellant has not taken notice to the wife and the minor child who has not been made a party, this Court has no other alternative but to reject the request of the appellant for enhancement in respect **==> picture [57 x 57] intentionally omitted <==** ``` 2025:KER:22961 ``` ## `M.A.C.A No.2742 of 2021` `10` of proportion under which the amount of compensation has to be shared. Therefore this Court confirms the rate at which the amount has to be apportioned as fixed by the Tribunal. While calculating the appellants proportion towards the enhanced compensation, the compensation granted by this Court under the head loss of consortium shall not be taken into consideration. The insurance company shall deposit the amount within two months from the date of receipt of a copy of this judgment. The Tribunal shall issue notice to the claimants in O.P(MV) No.761/2018 before releasing the amounts. Cak Sd/- **EASWARAN S. JUDGE**