High Court of KeralaSingle JudgeAppeal allowed; modified the MACT award: Rs.1,9...

Periyaswamy and others v. A.T. Varghese and New India Assurance Co. Ltd.

Case / Petition Number:MACA NO. 3117 OF 2015

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Devan Ramachandran
Judgment Date
2023-03-21
Court Decision / Holding
Appeal allowed. The notional income is enhanced to Rs.6,500 per month, with no future prospects due to the deceased’s age; 50% deduction from personal expenses applied. Loss of Dependency enhanced to Rs.1,95,000; Loss of Consortium Rs.1,60,000 (Rs.40,000 per appellant); Funeral Expenses reduced to Rs.15,000; an additional Rs.15,000 awarded under Loss of Estate; Pain and Suffering and Love & Affection heads deleted. The decree directs the Insurance Company to deposit the enhanced amount within two months, with 9% interest from the date of claim, and to pay proportionate costs; the appellant is entitled to recover the enhanced amount with interest from the insurer. Final disposition reflects the modified MACT award with terms for implementation and costs.
Final Disposition
Appeal allowed; modified the MACT award: Rs.1,95,000 for loss of dependency; Rs.1,60,000 for loss of consortium (Rs.40,000 per appellant); Funeral Expenses Rs.15,000; Loss of Estate Rs.15,000; deletion of pain and suffering and love & affection; interest at 9% from the date of claim; deposit within two months; insurer to pay enhanced amounts; costs as per Tribunal; liberty to recover enhanced amounts.

Parties to the Case

Appellants / Petitioners

  • Periyaswamy
  • Jayakoodi
  • Gouri
  • Shanthi

Respondents

  • A.T.Vargheese
  • New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.T.K.Sajeev

Counsels for Respondents

  • • Sri.P.G.Ganappan

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA) arising from an award of the Motor Accidents Claims Tribunal, Perumbavoor, in OP(MV) No.1592/2011, challenging the death of Raman in a road accident on 23 September 2011. The appellants, legal heirs of Raman, contend that the Tribunal undervalued the deceased’s notional income and erred in denying certain heads of compensation, including loss of consortium. The appellants argue Raman, though 70, was an able-bodied worker; therefore his notional income should be higher than the Tribunal’s Rs.3,500 per month, citing Ramachandrappa to support a higher figure (Rs.8,000 or more). They also press for parental consortium damages of Rs.40,000 per child and inclusion of Loss of Estate; they challenge awards under pain and suffering and love & affection as impermissible. The respondents, represented by the Insurance Company, defend the Tribunal’s award as fair for 2011 standards and contend that some heads (pain and suffering, love and affection) should not be enhanced, citing United India Insurance Co. v. Satinder Kaur for this principle. The learned Judge admits the appeal with consent and reconsiders the evidence, holding that the deceased’s income should be Rs.6,500 per month (no future prospects due to age), applies 50% deduction for personal expenses, and recalibrates heads of compensation. Ultimately, the appeal is allowed with a revised award: increased dependency, added Loss of Estate and Loss of Consortium, reduced Funeral Expenses, and deletion of certain heads, with directions regarding deposit and recovery.

Legal Doctrines & Maxims

  • Notional income for a working deceased (Ramachandrappa v. Manager, Royal Sundaram Insurance Company Ltd.)
  • 50% deduction towards personal expenses (Sarla Verma v. Delhi Transport Corporation)
  • Funeral expenses and Loss of Estate under Pranay Sethi (supra)
  • Loss of Estate and Loss of Consortium as recognised heads in MACT deliberations (Pranay Sethi; National Insurance Co. Ltd. v. Pranay Sethi)
  • Deletion of pain and suffering and love and affection heads (United India Insurance Co. Ltd. v. Satinder Kaur)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal erred in computing the deceased Raman’s income. At 70 years, Raman could still be employed as a ‘coolie’ and thus command a higher notional income than the Tribunal’s Rs.3,500/month. They relied on Ramachandrappa to press for a higher baseline income (Rs.8,000/month). They also contended that parental consortium should be recognized at Rs.40,000 per child (as per Pranay Sethi and related guidance) and urged inclusion of Loss of Estate. They challenged the Tribunal’s awards under pain and suffering and love & affection as unsustainable, and sought conversion of the loss of consortium into a substantive head with appropriate damages.

Contentions of Respondents

The insurer’s counsel contended that the Tribunal’s award was just given the 2011 context and that certain heads such as pain and suffering and love & affection should not be enhanced. They argued the Tribunal had correctly assessed funeral expenses and other heads and urged dismissal of the appeal, albeit with some reductions in certain categories as permissible.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Insurance Company Ltd.(2011) 13 SCC 236PositiveUsed to justify a higher notional income for an elderly but able-bodied deceased, aligning with the principle that a notional income can be adjusted for age and work capacity.
Sarla Verma v. Delhi Transport Corporation(2010) (2) KLT 802 (SC)PositiveApplied formula for personal expenses deduction, leading to 50% deduction of personal expenses from earnings.
National Insurance Company Ltd. v. Pranay Sethi(2017) (4) KLT 662 (SC)PositiveSupport for parental consortium damages; Rs.40,000 per claimant recognized as appropriate in particular contexts.
United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur(2021) 11 SCC 780PositiveAffirms that certain heads like pain and suffering and love and affection may be impermissible, guiding exclusion in this case.
Pranay Sethi v. National Insurance Co. Ltd. (Supra)SupraPositiveUsed to justify funeral expenses and loss of estate allocations under the MACT framework.

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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 DEVAN RAMACHANDRAN TUESDAY, THE 21[ST] DAY OF MARCH 2023 / 30TH PHALGUNA, 1944** **MACA NO. 3117 OF 2015** **AGAINST THE AWARD IN OPMV 1592/2011 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,PERUMBAVOOR** ## **APPELLANTS/PETITIONERS:** 1 PERIYASWAMY, AGED 46 YEARS, S/O.RAMAN, MULAYIVADI P.O., SEEPER COLONY, GANGAAMMEN SWAMY STREET, ATHUR TALUK, SELAM. 2 JAYAKOODI, AGED 43 YEARS, W/O.IYYAKANNU, DOOR NO.64, PERUMAL GOVIL THIRUVA, NARASIMGAPURAM P.O., ATHUR TALUK, SELAM. 3 GOURI, AGED 41 YEARS, W/O.MURUGASAN, MELBHARI STREET-30, ATHUR TALUK, SELAM. 4 SHANTHI, AGED 38 YEARS, W/O.PONNUSWAMY, DOOR NO.13/10, POYAR STREET, CHINNA SELAM P.O., VILLUPURAM DISTRICT. BY ADV SRI.T.K.SAJEEV ## **RESPONDENTS/RESPONDENTS:** 1 A.T.VARGHESE, S/O.TOMY, ARACKAL HOUSE, ALUVA EAST VILLAGE, ASHOKAPURAM KARA, PALLIKKUNNU BHAGOM, ALUVA, ERNAKULAM DISTRICT, PIN-683101. 2 NEW INDIA ASSURANCE CO.LTD. BRANCH OFFICE, ALUVA, PIN-683101. BY ADV SRI.P.G.GANAPPAN THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 21.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA NO. 3117 OF 2015 2 ## **JUDGMENT** This matter is of the year 2015 and has not been admitted. However, both sides are _ad idem_ that it can be disposed of, after being formally admitted, based on the undisputed evidence on record, handed over by them across the Bar. 2. I, therefore, admit this appeal and proceed to dispose it of finally, with the consent of both sides. 3. The legal heirs of late Raman - who unfortunately died in a road accident on 23.09.2011, when the offending vehicle hit him while he was walking on a road - have approached this Court impugning the Award of the Motor Accidents Claims Tribunal, Perumbavoor, in OP(MV) No.1592/2011, asserting that the compensation awarded thereunder is inadequate. 4. Sri.T.K.Sajeev - learned counsel for the appellants, argued that the main reason why the compensation awarded by the Tribunal is inadequate is because it has taken the notional income of late Raman to be a mere Rs.3,500/-, when his clients had claimed Rs.6,500/-, asserting that he was MACA NO. 3117 OF 2015 3 working as a “coolie”. He argued that merely because the deceased was 70 years old, it does not mean that he was incapable of working, especially since it is discernible that he was without requirement for any assistance and was very able-bodied. He then argued that the denial of compensation under the head 'loss of consortium' to the children of the deceased is unfair because, in **National Insurance Company Ltd. v. Pranay Sethi** [2017 (4) KLT 662 (SC)], it has been authorised that an amount of Rs.40,000/- each will be eligible to them towards parental consortium. He thus prayed that this appeal be allowed. 5. In response, Sri.P.G.Ganappan – learned standing counsel for the Insurance Company, submitted that the compensation awarded by the Tribunal is just and fair because the accident happened in 2011 and the fiscal standards of today could not have been applied. He then argued that, in fact, more amounts have been awarded by the Tribunal under the head 'funeral expenses'; while impermissible sums have been awarded under the heads 'pain and suffering' and 'love and affection'. He thus prayed that this appeal be dismissed; however, deleting the afore MACA NO. 3117 OF 2015 4 amounts. 6. I have considered the afore rival submissions on the touchstone of the evidence on record - copies of which have been handed over across the Bar by the learned counsel for the parties with the express consent that it can be acted upon by this Court without dispute. 7. The first issue that I propose to consider is the adequacy or otherwise of the notional income of the deceased adopted by the Tribunal. It is uncontested that the deceased was 70 years old at the time of the accident and that he was able-bodied. The appellants claimed that he was earning Rs.6,500/- which, I am of the view, should have been reckoned by the learned Tribunal, since, in ## **Ramachandrappa v. Manager, Royal Sundaram Alliance** **Insurance Company Ltd.** [(2011) 13 SCC 236], even in the case of a person whose income is otherwise unascertainable or who was working as a “coolie” in 2011, the minimum figure to be reckoned as the notional income is Rs.8,000/-. I, therefore, see no reason why the learned Tribunal did not accept the figure claimed by the appellants, in the absence of any evidence to show that he was laid up or incapable of MACA NO. 3117 OF 2015 5 working. 8. That said, since the deceased was 70 years at the time of the accident and his unfortunate death, no future prospects can be added; but since all the appellants are selfsupporting and cannot be seen to be financially dependent upon him, the percentile of reduction towards his personal expenses will have to be adopted as being 50%, as if he was a bachelor, going by **Sarla Verma v. Delhi Transport Corporation** [2010 (2) KLT 802 (SC)]. 9. Coming to the question of 'funeral expenses', no doubt that **Pranay Sethi** (supra) authorises only Rs.15,000/-; and obviously, the amount now granted by the Tribunal will have to be reduced. 10. But it has been borne in mind that the learned Tribunal has not awarded any sum under the head 'Loss of Estate', which is sanctioned by **Pranay Sethi** (supra) to a sum of Rs.15,000/-. 11. Further, the compensation awarded by the Tribunal under the heads 'pain and suffering' and 'loss of love and affection' is impermissible, as rightly argued by MACA NO. 3117 OF 2015 6 Sri.P.G.Ganappan, since **United India Insurance Company Ltd. v. Satinder Kaur @ Satwinder Kaur** [(2021) 11 SCC 780] settles the legal issue in this regard affirmatively. 12. Finally, on the question of consortium, certainly, each of the appellants is entitled to Rs.40,000/- each, since the deceased was their father. 13. In the afore circumstances, this appeal is allowed in the following manner: (a) The compensation under the head 'loss of dependency' is enhanced to Rs.1,95,000/-, reckoning the notional income of the deceased to be Rs.6,500/- per month and deducting ½ of the same towards his personal expenses. (b) The compensation under the head 'loss of consortium' is granted for a sum of Rs.1,60,000/-, reckoning Rs.40,000/- each in favour of the appellants. (c) The compensation under the head 'Funeral Expenses' is reduced to Rs.15,000/-, from Rs.25,000/- as awarded by the Tribunal, in terms of **Pranay Sethi** (supra). (d) An additional amount of Rs.15,000/- is awarded MACA NO. 3117 OF 2015 7 under the head 'Loss of Estate', in terms of **Pranay Sethi** (supra). (e) The compensation under the heads 'pain and suffering' and 'love and affection' as now awarded by the Tribunal is deleted. In all other respects, the Award of the Tribunal will stand intact. Needless to say, the appellant will be at full liberty to recover the compensation, as enhanced by this Court, from the Insurance Company, along with interest at the rate of 9% as awarded by the Tribunal, from the date of claim until it is recovered. He will also be entitled to proportionate costs on the enhanced amount as ordered by the Tribunal. In view of the afore, the amount as fixed above shall be deposited by the Insurance Company before the learned Tribunal, within a period of two months from the date of receipt of a copy of this judgment. ## **Sd/- DEVAN RAMACHANDRAN** ## **JUDGE** stu ## M.A.C.A.No.3117 of 2015 This Court doth order and decree that the 2nd respondent herein/2nd respondent~`''do P/ay the appellants herein/petitioners a sum of { 2,048/-(Ru\pees,Two thousand and forty eight only) being their proportionate costs in this appeal. ## Memo of costs for the aDDellant Court Fee paid : I 1®®/- `.,' Stamp on Vakalath : I 1®/- u~ Senior Advocate's Fee : I 7,375/- (Certified) ¢ Cost incurred in getting L.C judgment and decree : i 2®/-, Petition Fee : I 1®/-,, Process Fee : I 8/Total I 7,523/- Proportionate cost for the appellants in M.A.C.A.No.3117 of 2015 : I 2,®48/- (Rupees Two thousand and forty eight Only) 6,