High Court of KeralaDivision BenchAppeal partly allowed; enhanced compensation of...

RUKHIYABI K.P. and others v. SADANANDAN and THE NEW INDIA ASSURANCE CO. LTD.

Case / Petition Number:MACA.No.2716 of 2008

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • R. Basant
  • M. C. Hari Rani
Judgment Date
2011-10-25
Court Decision / Holding
This appeal is allowed in part. The appellants are entitled to a further amount of ₹1,59,000 in addition to the amount already awarded by the Tribunal. The entire amount of compensation shall carry interest at the rate and for the period specified by the Tribunal in the impugned award. Proportionate costs in the proceedings before the court below on the entire amount of compensation shall be paid. All other directions of the Tribunal are upheld.
Final Disposition
Appeal partly allowed; enhanced compensation of ₹1,59,000; interest and proportionate costs as directed; other Tribunal directions upheld.

Parties to the Case

Appellants / Petitioners

  • RUKHIYABI K.P.
  • RUBEENS K.P.
  • SABEER K.P.
  • KADEESAI

Respondents

  • SADANANDAN
  • THE NEW INDIA ASSURANCE CO. LTD.

Legal Representation & Advocates

Counsels for Petitioners

  • • Smt. T.V. Neema

Counsels for Respondents

  • • Sri. Viju Thomas
  • • Smt. M. Meena John

Case Synopsis & Summary

The deceased Marakar suffered injuries in a motor accident on 10/12/2003 and died the same day. His wife (32), daughter (18), minor son (16) and mother (65) approached the Motor Accident Claims Tribunal seeking compensation of Rs. 6,00,000 on the ground that the accident, caused by the negligence of the first respondent (Sadanandan) and insured by the second respondent (New India Assurance Co. Ltd.), left them deprived of the deceased’s support. The Tribunal awarded Rs. 2,60,000 after deducting various heads. The appellants contended the quantum was meagre and urged a higher monthly income for the deceased (from Rs. 2,000 to around Rs. 3,000–3,250 based on precedents such as Lata Wadhwa and Laxmi Devi) and a multiplier of 14 (per Sarla Verma). They also claimed enhanced sums for loss of consortium (20,000), loss of love and affection (15,000), pain and suffering (10,000) and loss of estate (5,000). The court found the Tribunal erred in assuming a low income and misapplying the multiplier; it adopted Rs. 3,250 as monthly earnings and a 14 multiplier, and awarded additional amounts totaling Rs. 1,59,000 for these heads. The appeal was allowed in part; interest and proportionate costs were retained per the Tribunal’s direction. All other Tribunal directions were upheld.

Provisions of Law Cited

Clause (6) of the Second Schedule to the Motor Vehicles Act

Legal Doctrines & Maxims

  • Presumption of prudence under Clause (6) of the Second Schedule to the Motor Vehicles Act
  • Multiplier method for dependency calculation as laid down in Sarla Verma v. Delhi Transport Corporation
  • Future prospects in earnings (as recognized in Sarla Verma)
  • Income assessment for homemaker/unskilled worker influenced by Lata Wadhwa and Laxmi Devi decisions

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants submit that the Tribunal committed substantial error by fixing the deceased’s monthly income at Rs. 2,000 despite evidence suggesting higher earnings for a Khalasi and by not applying the presumptions favoured by precedents such as Lata Wadhwa and Laxmi Devi. They rely on Sarla Verma for the correct multiplier and for considering future prospects, arguing that even a non-earning homemaker or an unskilled worker could reasonably earn about Rs. 3,000 monthly. They urge an increased monthly income to Rs. 3,250 for dependency calculations and seek higher awards for loss of consortium (₹20,000), loss of love and affection (₹15,000), pain and suffering (₹10,000) and loss of estate (₹5,000). With a multiplier of 14 (per Sarla Verma) the dependency amount should rise to Rs. 3,64,000, resulting in a total enhanced compensation of ₹1,59,000 over the Tribunal’s award, plus interest and proportionate costs.

Contentions of Respondents

Respondents contend that the Tribunal’s award was grounded in the evidence on record and that the higher income and multiplier modifications were not justified without credible evidence. They accept that the multiplier should align with Sarla Verma (14 rather than 15) per the insurer’s argument, but oppose substantial increases in other heads beyond what the evidence supports. The insurer emphasizes that the evidence for higher earnings was not established and that the Tribunal’s other directions should stand, with the insurer remaining liable only for the assessed amount (plus prescribed interest) as per the impugned award, unless the enhanced quantum is strictly supported by credible proof.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Lata Wadhwa v. State of BiharAIR 2001 SC 3218PositiveCited to justify higher income assumptions for a non-earning homemaker or unskilled worker.
Laxmi Devi v. Mohammad Tabbar2008 ACJ 1488PositiveUsed to support the view that a modest monthly income can be assumed for certain non-earning categories.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveAdopted multiplier of 14 and consideration of future prospects as per the Sarla Verma framework.
Jeena v. Satheesh Babu.K.2011 (3) KLT 943PositiveCited for the principle of proportionate costs in respect of the entire compensation amount.

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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 R.BASANT & THE HONOURABLE MRS. JUSTICE M.C.HARI RANI TUESDAY, THE 25TH OCTOBER 2011 / 3RD KARTHIKA 1933 MACA.No. 2716 of 2008() ----------------------OPMV.1808/2004 of PRINCIPAL MOTOR ACCIDENT CLAIMS TRIBUNAL, KOZHIKODE .................... APPELLANT(S): -------------- 1. RUKHIYABI K.P., AGED 32 YEARS, W/O. LATE MARAKKAR. 2. RUBEENS K.P. AGED 18 YEARS, D/O. LATE MARAKKAR. 3. SABEER K.P., AGED 16 YEARS, S/O. LATE MARAKKAR (MINOR), REP. BY MOTHER, 1ST PETITIONER, 4. KADEESAI, AGED 65 YEARS, M/O. LATE MARAKKAR, ALL RESIDING AT KAYINGAYILPARAMBA, FEORKE P.O., NALLUR, KALLITHODI, KOZHIKODE DIST. BY ADV. SMT.T.V.NEEMA RESPONDENT(S): RESPONDENTS:- ---------------------------- 1. SADANANDAN, S/O. APPU, VADAKKAPARAMBIL HOUSE, P.O. NANMINDA, KOZHIKODE DIST. 2. THE NEW INDIA ASSURANCE CO. LT., POOTHERI BUILDING, FEROKE, KOZHIKODE DISTRICT. ADV. SRI.VIJU THOMAS FOR R2 SMT.M.MEENA JOHN FOR R2 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 25/10/2011, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ## **R. BASANT & M.C. HARI RANI, JJ.** **------------------------------------------------M.A.C.A. No.2716 of 2008 ------------------------------------------------Dated this the 25[th] day of October, 2011** ## **JUDGMENT** ## **Basant,J.** Claimants are the appellants. They are the wife aged 32 years, daughter aged 18 years, son aged 16 years and mother aged 65 years of deceased Marakar who suffered injuries in a motor accident which took place on 10/12/2003. He was rushed to the hospital. He succumbed to the injuries on the same day while undergoing treatment. Against a claim of Rs.6,00,000/-, the tribunal awarded a total amount of Rs.2,60,000/- as per the details given in paragraph 8 of the impugned award which we extract below: |Dependency|:|2,40,000/-| |---|---|---| |(2,000 x 12 x 2/3 x 15)||| |Consortium|:|10,000/-| |Pain and suffering|:|5,000/-| |Medical expenses|:|1,000/-| |(No bill)||| ## **M.A.C.A. No.2716 of 2008** -: 2 :- Transportation : 1,500/Funeral expenses : 2,500/-------------Total : **2,60,000/-** ====== 2. Insurance company has been made entirely liable to satisfy the award. We have heard the learned counsel for the appellants and the learned counsel for the insurance company. The impugned award is assailed on the short ground that the quantum of compensation awarded is too meagre. 3. Called upon to explain and be specific, the learned counsel for the appellants first of all contends that the monthly income of the deceased reckoned by the tribunal at Rs.2,000/- is unrealistically low. The deceased was employed as a Khalasi. It was claimed that the monthly income was Rs.6,000/-. Satisfactory evidence in support of the same has not been produced. The learned counsel for the appellants submits that, at any rate, the tribunal, even in the absence of better evidence, should not have shirked its responsibility to come to reasonable and fair conclusions. 4. The Tribunal ought to have noted that the wife and two children of the deceased, in addition to him, were, at any rate, depending solely on the income of the deceased. The Tribunal should have realistically taken note of the presumption of **M.A.C.A. No.2716 of 2008** -: 3 :- prudence available under Clause (6) of the Second Schedule to the Motor Vehicles Act from 1994. The Tribunal should have also taken note of the precedents of the Supreme Court in **Lata Wadhwa v. State of Bihar** (AIR 2001 SC 3218) and **Laxmi Devi v. Mohammad Tabbar** (2008 ACJ 1488) wherunder the Supreme Court had held that it would be reasonable to assume that even a non-earning home maker and an unskilled manual worker would be getting a monthly income of `3,000/-. The learned counsel for the appellants further submits that appropriate provision for future improvement in the earnings should also have been provided as held in **Sarla Verma v. Delhi** **Transport Corporation** [(2009) 6 SCC 121]. Taking all the relevant circumstances into account, we find that the challenge raised by the appellants deserves to be accepted. We are satisfied that `3,250/- can safely be reckoned as the monthly income while ascertaining the quantum of compensation payable for loss of dependency. The learned counsel for the insurance company points out that following **Sarla Verma v. Delhi Transport Corporation** [(2009) 6 SCC 121] 14 and not 15 should have been reckoned as the multiplier. We accept that submission of the learned counsel for the insurance company. 5. For loss of consortium, only an amount of `10,000/- has ## **M.A.C.A. No.2716 of 2008** -: 4 :- been paid. Deceased was aged about 41 years and the 1[st] claimant was aged 32 years. We are satisfied that an amount of `20,000/ can safely be fixed as compensation payable for loss of consortium. 6. For loss of love and affection, no amount has been awarded as compensation for the claimants. We are satisfied that an amount of `15,000/- can safely be fixed as the quantum of compensation payable for loss of love and affection. 7. Serious injuries were suffered by the deceased who succumbed to such injuries after a lapse of some time at the hospital. Only an amount of `5,000/- has been awarded as compensation for pain and suffering. We agree that `10,000/can be awarded as compensation under this head. 8. For loss of estate, no amount has been awarded as compensation. We are satisfied that an amount of `5,000/- can globally be fixed as the quantum of compensation payable under that head. 9. We are not persuaded to agree that the amount awarded under any other head deserves or warrants modification/ enhancement. 10. On the basis of the above discussions, we come to the conclusion that the claimants are entitled to a further amount of `1,59,000/- (Rupees one lakh and fifty nine thousand only) as ## **M.A.C.A. No.2716 of 2008** -: 5 :- compensation as shown below in addition to the amount already awarded by the Tribunal: 1. Pain and suffering - (`10,000/- minus `5,000/-) `5,000/- 2. Loss of consortium - (`20,000/- minus `10,000/-) `10,000/- 3. Loss of love and affection (no amount awarded by the - Tribunal) `15,000/- 4. Loss of estate (no amount awarded by - the Tribunal) `5,000/- 5. Loss of dependency (`3,250/- x 12 x 2/3 x 14 = - `3,64,000/- minus `2,40,000/-) `1,24,000/--------------- - Total `1,59,000/======= 11. The Tribunal awarded only an amount of `2,000/- as costs. The learned counsel for the appellants argues and we agree that proportionate cost in the proceedings before the Tribunal for the entire amount of compensation awarded is liable to be paid as held in **Jeena v. Satheesh Babu.K.** (2011 (3) KLT 943). ## 12. **In the result:** (a) This appeal is allowed in part. (b) The appellants are found entitled to a further amount of `1,59,000/- (Rupees one lakh and fifty nine thousand only) in ## **M.A.C.A. No.2716 of 2008** -: 6 :- addition to the amount already awarded by the Tribunal. (c) We make it clear that the entire amount of compensation shall carry interest at the rate and for the period as specified by the Tribunal in the impugned award. (d) We direct that proportionate cost be paid in the proceedings before the court below on the entire amount of compensation as held in **Jeena v. Satheesh Babu.K.** (2011 (3) KLT 943). - (e) All other directions of the Tribunal are upheld. Sd/- **R. BASANT (Judge)** **Sd/-** **M.C. HARI RANI (Judge)** ## **Nan/** **//true copy// P.S. to Judge** # **M.A.C.A. No.2716 of 2008** -: 7 :-