Rajan M.K. & Ponnamma v. Remanan & ors

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: R. Basant
M.C. Hari Rani
Judgment Date: 2011-08-24
Court Decision / Holding: This appeal is allowed in part. The appellants are entitled to a total compensation of Rs. 4,12,500 under Section 163A of the MV Act, superseding the tribunal’s earlier computation. Interest shall be payable on the entire amount at the tribunal’s rate and for the period specified. All other directions of the Tribunal are upheld.
Final Disposition: Appeal partly allowed

Parties to the Case

Appellants / Petitioners

Rajan M.K., s/o Kochukunju
Ponnamma, w/o M.K. Rajan

Respondents

Remanan, s/o Narayanan, Remya Bhavan, Peerumedu Village, Peerumedu Kara
The Regional Manager, Kerala State Civil Supplies Corpn Ltd, Kottayam
The Kerala State Insurance Department, Rep. by the District Insurance Officer, Kottayam

Legal Representation & Advocates

Counsels for Petitioners

• Adv. Abraham Mathew (Vettoor)

Case Synopsis & Summary

Rajan M.K. and Ponnamma, the parents of a 26-year-old motorcyclist who died in a road collision on 08/08/2006, appeal a motor accident claims award under Section 163A of the MV Act. The Kerala High Court had upheld the tribunal’s quantum, which treated the deceased’s annual income as Rs. 36,000 and used a dependency-based multiplier to calculate compensation totaling Rs. 2,68,500. The appellants challenge this method, arguing that in death cases under 163A the fixed schedule in the second schedule governs quantum, not the multiplier/multiplicand approach. They rely on National Insurance Co. Ltd. v. P.C. Chacko (DB), a Kerala High Court decision, which was followed in a later decision (P.C. Chacko Supra). The bench agrees, stating that for death under Section 163A the second schedule applies and the multiplier is irrelevant. The court recalculates compensation: the deceased was aged 25–30, income Rs. 36,000; the chart fixes Rs. 6,12,000 as the basic figure, from which a 1/3 reduction yields Rs. 4,08,000. Add Rs. 2,000 funeral expenses and Rs. 2,500 loss of estate, totaling Rs. 4,12,500. The court holds that the applicants are entitled to Rs. 4,12,500 under Section 163A, with interest on the full amount; other tribunal directions remain intact. Respondents had no appearance.

Provisions of Law Cited

Section 163A of the Motor Vehicles ActSecond Schedule, Clause 1Second Schedule, Clause 3

Legal Doctrines & Maxims

In death under Section 163A, multiplier/multiplicand method is not applicable; compensation to be determined under Second Schedule
Actual dependency is not considered in 163A death cases
Court follows the dictum in P.C. Chacko (Supra) for computation under 163A death claims

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants submit that the tribunal erred in applying the multiplier/multiplicand method for death under Section 163A and should instead apply the Second Schedule with guidance from P.C. Chacko (Supra). They contend the quantum should be recomputed under the Second Schedule, resulting in Rs. 4,12,500 including funeral and loss of estate, rather than the tribunal’s Rs. 2,68,500.

Contentions of Respondents

Respondents did not appear; no arguments were advanced on their side.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
National Insurance Co. Ltd. v. P.C. Chacko & Others	2011(3) KHC 438 (DB)	Positive	Court follows the dictum in P.C. Chacko (Supra) and applies the Second Schedule approach for death claims under 163A.

Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MRS. JUSTICE M.C.HARI RANI WEDNESDAY, THE 24TH AUGUST 2011 / 2ND BHADRA 1933 MACA.No. 2243 of 2009() ----------------------OPMV.148/2007 of MOTOR ACCIDENT CLAIMS TRIBUNAL, PALA .................... ## APPELLANTS/PETITIONERS ------------------------- 1. RAJAN.M.K, S/O.KOCHUKUNJU,VANIYAPURACKAL OLD PAMBANAR, PEERUMEDU VILLAGE, NOW RESIDING AT PULICKAL HOUSE, KOOTTICKAL VILLAGE, PLAPPALLIL KARA, THALUNKAL PO. 2. SMT.P.K,PONNAMMA, W/O.M.K.RAJAN, VANIYAPURACKAL, OLD PAMBANAR, PEERUMEDU VILLAGE, NOW RESIDING AT PULICKAL HOUSE, KOOTTIKAL VILLAGE PLAPPALLIL KARA, THALUNKAL PO. BY ADV. SRI.ABRAHAM MATHEW (VETTOOR) ## RESPONDENTS/RESPONDENTS -------------------------- 1. REMANAN, S/O.NARAYANAN, REMYA BHAVAN, PEERUMEDU VILLAGE, PEERUMEDU KARA. 2. THE REGIONAL MANAGER, KERALA STATE CIVIL SUPPLIES CORPN,LTD,KOTTAYAM. 3. THE KERALA STATE INSURANCE DEPARTMENT, REP.BY THE DISTRICT INSURANCE OFFICER, KOTTAYAM. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 24/08/2011, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ## **R.BASANT & M.C.HARI RANI, JJ. * * * * * * * * * * * * *** M.A.C.A.No.2243 of 2009 ---------------------------------------Dated this the 24[th] day of August 2011 ## **J U D G M E N T** ## **R.BASANT,J** Respondents have been served. There is no appearance for them. Heard the learned counsel for the appellants. 2. Claimants are the appellants. They are the parents of the deceased, a young man aged about 26 years who succumbed to injuries suffered by him in a motor accident which occurred on 08/08/2006. The deceased was riding a motor cycle. That vehicle was involved in an accident with the vehicle of which respondents 1 to 3 are the driver, owner and insurer. The claimants/parents are aged 53 and 48 years. They claimed compensation under Section 163A of the M.V.Act. 3. The tribunal, by the impugned award, came to the conclusion that the deceased was earning an income of Rs36,000/- per annum. The tribunal proceeded to ascertain the quantum of compensation payable under Section 163A of the M.V.Act by taking into consideration the age of the claimants. 11 was hence adopted as the multiplier and a total amount of 2 M.A.C.A.No.2243 of 2009 Rs.2,68,500/- has been awarded as the compensation as per the details given in paragraph 8 of the impugned award which we extract below. Rs. Funeral expenses 2,000/Loss of estate 2,500/Loss of dependency 2,64,000/(Rs.3,000/- x 12 x 2/3 x 11) ---------------- **Total 2,68,500/=======** 4. The learned counsel for the claimants argues that the method adopted by the tribunal to ascertain the quantum of compensation payable under Section 163A is incorrect and improper. The learned counsel places reliance on the decision of this Court in **National Insurance Co.Ltd. v. P.C.Chacko & Others [2011(3) KHC 438 (DB)]** 5. The question has been dealt with in detail in **P.C.Chacko** (Supra). In a claim under Section 163A of the M.V.Act, in respect of death the tribunals are not expected to resort to the multiplier multiplicand method to ascertain the quantum of compensation payable. In case of death, 3 M.A.C.A.No.2243 of 2009 compensation to be paid is specified in “Rupees in thousands” in the table/chart given under clause 1 of the second schedule to the Motor Vehicles Act. Multiplier given in the table under clause 1 of the second schedule has no relevance while ascertaining the quantum of compensation payable in case of death. That has relevance only while ascertaining the quantum of compensation payable for disability in non-fatal accidents. We completely follow the dictum in **P.C.Chacko** (Supra) and it is not hence necessary to advert to the question in any greater detail. 6. The compensation has now got to be reworked in compliance with the second schedule. Table given under clause 1 has to be examined and the correct X and Y axes will have to be ascertained. The deceased was a person aged between 25 and 30 years - his date of birth being 25/12/1980 and the accident/death having taken place on 08/08/2006. The 4[th] horizontal column relating to persons aged above 25 years but not exceeding 30 years, is the correct X-axis. 7. The deceased was earning an income of Rs.3,000/- per mensum as found by the tribunal. His annual income is hence Rs.36,000/-. The 12[th] vertical column relating to persons of 4 M.A.C.A.No.2243 of 2009 annual income upto Rs.36,000/- is the correct Y-axis. The two meet at and at that point Rs.6,12,000/- is specified to be the compensation payable. From this, following the note under the table/chart in clause 1 of the 2[nd] schedule, 1/3 of the amount has to be reduced. This means that Rs.4,08,000/- (Rs.6,12,000/- x 2/3) is the compensation amount payable. In addition to this, the relevant amounts payable under clause 3 of the second schedule will also have to be paid. We accordingly find that the claimants are entitled to an amount of Rs.4,12,500/- as per the details given below. i) Fatal accident compensation Rs.4,08,000/(Clause 1 of the second schedule) (Rs.6,12,000/- x 2/3) ii) Funeral expenses (under clause 3(i) of second Rs.2,000/schedule) iii) Loss of estate under clause 3(iii) Rs.2,500/-------------------- **Total Rs.4,12,500/-** ======== 8. In a claim under Section 163A of the M.V.Act, actual dependency or loss suffered is of no consequence. This is already noted and explained in **P.C.Chacko** (Supra). We therefore hold that the claimants are entitled to the said amount 5 M.A.C.A.No.2243 of 2009 of Rs.4,12,500/- as per the second schedule to the M.V.Act. 9. No other contentions are raised. Respondents have not chosen to enter appearance in this appeal. 10. In the result, - a) This appeal is allowed in part. b) In supersession of the directions issued by the tribunal, appellants are found entitled to a total amount of Rs.4,12,500/- (Rupees four lakhs twelve thousand five hundred only) as compensation under Section 163A of the M.V.Act. c) We make it clear that interest shall be payable on the entire amount of compensation at the rate and for the period specified by the tribunal. - d) All other directions of the Tribunal are upheld. ## **(R.BASANT, JUDGE)** ## **(M.C.HARI RANI, JUDGE)** jsr // True Copy// PA to Judge M.A.C.A.No.2243 of 2009 6 7 M.A.C.A.No.2243 of 2009 ## **K.M.JOSEPH & M.C.HARI RANI, JJ.** .No. of 200 ORDER/JUDGMENT 30/082010