High Court of KeralaDivision BenchAppeal allowed; compensation enhanced and final...

Rajappan and Rajamma v. K.V. Sebastian and others

Case / Petition Number:MACA.No. 2680 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. R. Ramachandra Menon
  • K. Harilal
Judgment Date
2015-10-06
Court Decision / Holding
Appeal allowed. Notional income raised to Rs 3,000; multiplier increased to 17 (per Sarla Verma and Reshma Kumari); total calculated compensation Rs 4,08,000; credit of Rs 1,60,000 leaves Rs 2,48,000; enhancement of loss of love and affection to Rs 50,000 and funeral expenses to Rs 7,000; total final compensation Rs 2,90,000 with 9% interest from 25/4/03 until satisfaction by the insurers; payment to be made within one month; appeal disposed of accordingly.
Final Disposition
Appeal allowed; compensation enhanced and final order issued with interest and timelines.

Parties to the Case

Appellants / Petitioners

  • Rajappan
  • Rajamma

Respondents

  • K.V. Sebastian
  • K.V. Thomas
  • United India Insurance Co. Ltd.
  • Thirumala Rao
  • The Oriental Insurance Co. Ltd.
  • V.S. Jagadeesh
  • Indrajith P.
  • United India Insurance Co. Ltd. (Divisional Manager)

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. A.T. Anilkumar
  • • Smt. V. Shylaja

Counsels for Respondents

  • • Adv. Sri. VPK Panicker
  • • Adv. Sri. Rajan P. Kaliyath

Case Synopsis & Summary

This Motor Accident Claims Appeals (MACA) concerns the death of a 26-year-old youth who was a pillion rider on a motorcycle when a lorry collided with it on 17 February 2002. The claim petition OP No. 227/03 was tried with OP No. 245/03, culminating in a common verdict on 8 March 2010. The Tribunal held negligence in the ratio 75:25 between the lorry driver and the motorcycle rider and initially calculated compensation by notional monthly income of Rs 2,000, deducting one-third for personal expenses, yielding Rs 1,60,000, with a multiplier of 10 and additional amounts for love and affection (Rs 15,000), pain and suffering (Rs 10,000), ambulance charges (Rs 2,000) and funeral expenses (Rs 3,000), totaling Rs 1,90,000, to be paid by the insurers in the 75:25 ratio. The appellants contended the deceased’s actual income (Rs 6,000 per month) supported a higher figure and urged adoption of the Supreme Court standard multiplier. The High Court raised notional income to Rs 3,000 and, applying the multiplier of 17 as per Sarla Verma and its affirmation in Reshma Kumari, computed Rs 4,08,000, deducting Rs 1,60,000 already awarded to arrive at Rs 2,48,000. It further enhanced loss of love and affection to Rs 50,000 and funeral expenses to Rs 7,000, making total compensation Rs 2,90,000 with 9% interest from 25/4/03 until payment. The appeal was disposed of accordingly.

Legal Doctrines & Maxims

  • Multiplier method for calculating compensation in motor vehicle accident claims (Sarla Verma v. Delhi Transport Corporation)
  • Affirmation of the Sarla Verma principle by Reshma Kumari v. Madan Mohan (SC)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the deceased was actually employed in a coir factory with a monthly income of Rs 6,000 (Ext. A8). The Tribunal rejected this evidence, adopting a notional income of Rs 2,000 and a 10-multiplier, resulting in insufficient compensation. They urged that the Supreme Court’s standard for compensation, as laid down in Sarla Verma and affirmed in Reshma Kumari, be applied, with a higher multiplier and notional income; they sought enhancement of damages for love and affection and funeral expenses, and proper interest.

Contentions of Respondents

The respondents supported the Tribunal’s findings on negligence (75:25) and the overall compensation framework, maintaining that the Tribunal’s assessment was consistent with the evidence and legal principles; they contested any substantial deviation from the established notional income and multiplier unless justified by admissible evidence.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802 (SC)PositiveUsed to justify higher multiplier and standard of compensation; principle recognized by the High Court and affirmed by subsequent SC decision.
Reshma Kumari v. Madan Mohan2013 (2) KLT 304 (SC)PositiveSC three-judge affirmation of Sarla Verma, supporting the higher multiplier applied by the High Court.

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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.R.RAMACHANDRA MENON & THE HONOURABLE MR.JUSTICE K.HARILAL** **TUESDAY, THE 6TH DAY OF OCTOBER 2015/14TH ASWINA, 1937** **MACA.No. 2680 of 2010** **----------------------** **AGAINST THE AWARD IN OPMV 227/2003 of MACT ALAPPUZHA DATED 08-03-2010** **APPELLANT(S)/PETITIONERS:** **-------------------------** **1. RAJAPPAN, AGED 63 YEARS, S/O.RAMANKUTTY, DEVASAMCHIRA HOUSE, KALAVOOR P.O. M.S.P.WARD VI, ALAPPUZHA.** **2. RAJAMMA, AGED 57 YEARS, W/O.RAJAPPAN, DEVASAMCHIRA HOUSE, KALAVOOR P.O. M.S.P.WARD VI, ALAPPUZHA.** **BY ADVS.SRI.A.T.ANILKUMAR SMT.V.SHYLAJA** **RESPONDENT(S)/RESPONDENTS:** **-------------------------** **1. K.V.SEBASTIAN, S/O.VARGHESE K.D., KIDANGUEL HOUSE, KOOVAPADY (P), WARD-14 KUNNATHUNADU(T), ERNAKULAM.** **2. K.V.THOMAS, S/O.KUNJU VAREED, KANNAPPALLY HOUSE, MATTOOR, KALADY PANCHAYATH, WARD-12, KALADY.** **3. UNITED INDIA INSURANCE CO. LTD., REP. BY ITS BRANCH MANAGER, CULLAN ROAD, ALAPPUZHA POLICY NO.101103/31/021/11/03741/2001 AND CERTIFICATE NO.680181, POLICY ISSUED FROM PERUMBAVOOR BRANCH.** **.....2** **-2-** ## **ADDITIONAL RESPONDENTS:** **4.THIRUMALA RAO, S/O.M.SREENIVASA SHENAI, SREYAM HOUSE, (VELIMPARAMBU) THIRUMALA BHAGOM, THURAVOOR P.O., CHERTHALA TALUK, ALAPPUZHA DISTRICT-588 532, (OWNER-CUM-RIDER OF KINETIC HONDA SCHOOTER BEARING REG.NO.KL-04/A-305).** **5. THE ORIENTAL INSURANCE CO. LTD., REP. BY ITS BRANCH MANAGER, CULLEN ROAD, ALAPPUZHA-688 001, (POLICY ISSUED FROM KOCHIN BRANCH, POLICY NO. 440102/2002 VALID FROM 20/12/2001 TO 19/12/2002) (INSURER OF KINETIC HONDA SCOOTER NO. KL-04/A-30** **6. V.S.JAGADEESH, VELIYIL THEYIL HOUSE, KALAVOOR P.O., ALAPPUZHA-688 522.** **7. INDRAJITH P., S/O.PURUSHOTHAMAN, CHELAMTHARA HOUSE, KALAVOOR P.O., M.S.P.WARD VI ALAPPUZHA-688 522.** **8. UNITED INDIA INSURANCE CO. LTD., REP. BY ITS DIVISIONAL MANAGER, DIVISIONAL OFFICE MULLAKKAL, ALAPPUZHA-688 522 (POLICY ISSUED FROM ALAPPUZHA BRANCH, POLICY NO.101500/31/010/16, 33187/2001 VALID, FROM 26/10/2001 TO 25/10/2002, PACKAGE COMPREHENSIVE 'B' POLICY) (INSURER OF MOOR CYCLE BEARING REG. NO.KL-04/D8449).** **R-5 BY ADV. SRI.VPK.PANICKER R3,8 BY ADV. SRI.RAJAN P.KALIYATH** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 06-10-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **P.R. RAMACHANDRA MENON & K. HARILAL, JJ.** **--------------------------------------------------------M.A.C.A. No.2680 of 2010 ---------------------------------------------------------Dated this the 6[th] day of October, 2015** ## **JUDGMENT** ## **Ramachandra Menon, J.** Inadequacy of the compensation awarded by the Tribunal in respect of the death of a youth of 26 years is sought to be challenged by the parents/ claimants by way of this appeal. 2. On the fateful day i.e., on 17/2/2002, the deceased was travelling as a pillion rider on the motorcycle bearing Registration No.KL-04/B-8449 and by about 3.45 p.m. a lorry bearing Registration No.KCE-6325 which was coming from the opposite side dashed against the motorcycle causing fatal injuries leading to the death of the deceased. This ## **M.A.C.A. No.2680 of 2010** -: 2 :- was sought to be compensated by filing the claim petition, preferred against the parties of both the vehicles. The said Claim Petition numbered as O.P.No.227/03 was tried along with O.P.No.245/03 preferred by the claimant in the connected case and a common verdict was passed on 8/3/2010. The evidence adduced before the Tribunal consists of the deposition given by P.W.1, who happens to be the claimant in O.P.No.245/03. The documentary evidence consists of Exts.A1 to A16 and Ext.B1 - which is a copy of the award in O.P.No.1050/02. On culmination of the trial, the Tribunal fixed the negligence in the ratio of 75:25 between the driver of the lorry and the rider of the motorcycle and sought to proceed with further steps for granting the compensation accordingly. 3. The claim of the appellants before the Tribunal was that the deceased was actually working in a coir factory with a monthly income of `6,000/-. A certificate stated as issued by the concerned employer was **M.A.C.A. No.2680 of 2010** -: 3 :- produced as Ext.A8 in this regard; but the same was not sought to be substantiated by producing any other material in spite of the fact that the appellants could have caused to production of the wage register, contribution to the Coir Workers Welfare fund or such other evidence. Nobody was sought to be examined in this regard as well. It was in the said circumstance, that the Tribunal chose to reckon the notional monthly income as `2,000/- and after deducting 1/3[rd] towards personal expenses, awarded an amount of `1,60,000/-, adopting the multiplier of '10' based on the average age of the claimants. Awarding a further sum of `15,000/- towards loss of love and affection and `10,000/- towards pain and suffering and `2,000/towards ambulance charges and a sum of `3,000/towards funeral expenses, the Tribunal granted a total compensation of `1,90,000/- which was directed to be satisfied with interest at the rate of 7.5% p.a. from the date of the petition by the Insurance Companies of ## **M.A.C.A. No.2680 of 2010** -: 4 :- both the vehicles in the proportion of 75:25 (based on negligence already fixed and this in turn is sought to be enhanced by filing this appeal). 4. Heard the learned counsel for the appellants as well as the learned counsel appearing for the Insurance Company. 5. After hearing both the sides and after considering the materials on record, we find it appropriate to raise the notional income by 50% so as to make it `3,000/- and to work out the compensation accordingly. Similarly, the multiplier adopted by the Tribunal as '10' is much on the lower side in view of the law declared by the Apex Court in Sarla Verma v. Delhi Transport Corporation [2010 (2) KLT 802 ( **SC)]** which was affirmed by the three Bench decision of the Supreme Court in Reshma Kumari v. Madan Mohan [2013 (2) KLT 304 (SC)]. On re-working the compensation adopted by the multiplier '17' in such circumstance, it comes to 3000 x 12 x 17 x 2/3 = ## **M.A.C.A. No.2680 of 2010** -: 5 :- `4,08,000/-. After giving credit to the sum of `1,60,000/- awarded by the Tribunal, the balance payable comes to `2,48,000/-. 6. We find that the amount awarded by the Tribunal towards the loss of love and affection requires to be enhanced and we award a further sum of `35,000/- under this head so as to make it a total of `50,000/-. We award an additional amount of `7,000/- in respect of funeral expenses as well. Thus, the total balance compensation payable comes to `2,90,000/- (Rupees Two lakhs and ninety thousand only). This shall be satisfied with interest at the rate of 9% per annum from the date of petition i.e., 25/4/03 till satisfaction by the 3[rd] and 8[th] respondents/Insurance Companies (same company in respect of both the vehicles, though the policies have been issued from different Branches). Since the policy is admitted, the said amount shall be satisfied with **M.A.C.A. No.2680 of 2010** -: 6 :- interest at the rate of 9% per annum within a period of one month from the date of receipt of a copy of this judgment. This appeal is disposed of accordingly. Sd/- **(P.R. RAMACHANDRA MENON, JUDGE)** Sd/- **(K. HARILAL, JUDGE)** **Nan/** //true copy// P.S. to Judge