High Court of KeralaSingle JudgeAppeal allowed in part to the extent stated abo...

Sakulhameed and others v. Davis P.L. and Jayaprakash and Oriental Insurance Co. Ltd.

Case / Petition Number:M.A.C.A.No.1191 of 2015 (F)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Harilal
Judgment Date
2018-02-21
Court Decision / Holding
This Motor Accident Claims Appeal is allowed accordingly to the above extent.
Final Disposition
Appeal allowed in part to the extent stated above (modifications to heads of compensation; Tribunal findings otherwise stand)

Parties to the Case

Appellants / Petitioners

  • Sakulhameed
  • Kunjuma
  • Doulathnish S.

Respondents

  • Davis P.L.
  • Jayaprakash
  • The Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri Bino VASUDEVAN
  • • Smt. P.G. Babitha

Counsels for Respondents

  • • Adv. Sri Ranjith Xavier
  • • Adv. Sri V.P.K. Panicker
  • • Smt. K.S. Santhi

Case Synopsis & Summary

The appellants were petitioners in O.P.(MV) No.1410 of 2011 before the Motor Accidents Claims Tribunal, Palakkad, seeking compensation under Section 166 of the Motor Vehicles Act, 1988 for the death of Sahabudeen, aged 21, who was a B.Com. student. The accident occurred on 31.07.2011 due to the rash and negligent driving of the insured vehicle. The Tribunal awarded Rs 5,05,000 as compensation, against which the Insurance Company defended the quantum. The High Court scrutinized the Tribunal’s assessment, noting that the Tribunal did not consider the deceased’s future prospects, given his age and educational status, and therefore failed to correctly determine the ‘loss of dependency’ using a proper multiplier and added prospects. The High Court relied on the Supreme Court’s Sarla Verma principle to determine 25% additional future prospects and to apply a multiplier of 18 (as the deceased was 21 years old). It computed notional monthly income at Rs 6,250 and, after applying 18 as multiplier and a 50% deduction for personal living expenses, arrived at Rs 6,75,000 as loss of dependency. Pain and suffering, loss of estate and funeral expenses were reassessed following Pranay Sethi guidelines, increasing loss of estate to Rs 15,000 and decreasing funeral expenses to Rs 15,000, with total compensation scaled to Rs 7,40,000 and 9% interest from the petition date. The appeal was partly allowed, with other Tribunal findings standing.

Provisions of Law Cited

Motor Vehicles Act, 1988 – Section 166

Legal Doctrines & Maxims

  • Future prospects doctrine (Sarla Verma & Ors. v. Delhi Transport Corp. & Anr., (2009) 6 SCC 121)
  • Multiplier principle (18) for a 21-year-old (Sarla Verma)
  • Pranay Sethi guidelines on compensation heads (funeral expenses, loss of estate) for death claims

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal erred in the quantum, particularly by undervaluing the deceased’s income and neglecting future prospects for a young, educated person. They submit that 25% addition for future prospects should be included and the correct multiplier for a 21-year-old is 18, following Sarla Verma. They urge that the notional monthly income of Rs.6,250 must be augmented accordingly, with a 50% deduction for personal living expenses only if the deceased were alive. They argue that ‘loss of dependency’ should be Rs.6,75,000 (6,250 x 12 x 18 x 50%) and that damages under pain and suffering, loss of estate, and funeral expenses should reflect Pranay Sethi guidelines, increasing the estate head and adjusting funeral expenses. They seek total compensation of Rs.7,40,000 along with 9% interest.

Contentions of Respondents

Respondents contended that the Tribunal’s quantum was just and fair, supported by evidence; no interference was warranted with the heads of compensation; the Insurance Company argued that the award was appropriate and that any enhancements were unwarranted, except as may be directed by precedent on points like funeral expenses.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Sarla Verma & Ors. v. Delhi Transport Corp. & Anr.(2009) 6 SCC 121PositiveUsed to justify the 18 multiplier and 25% future prospects for a 21-year-old, impacting loss of dependency.
National Insurance Company Limited v. Pranay Sethi and Others2017(5) KHC 350 (SC)PositiveApplied Pranay Sethi guidelines to adjust heads of compensation, notably funeral expenses and loss of estate.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Sakulhameed and others v. Davis P.L. and Jayaprakash and Oriental Insurance Co. Ltd. and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **THE HONOURABLE MR.JUSTICE K.HARILAL** **WEDNESDAY, THE 21ST DAY OF FEBRUARY 2018 / 2ND PHALGUNA, 1939** **AGAINST THE AWARD IN OP(MV) NO. 1410/2011 of M.A.C.T., PALAKKAD** ## **APPELLANTS/PETITIONERS:** **-----------------------** **1 SAKULHAMEED, AGED 44 YEARS, S/O. PICHAI ROWTHER, VADAMADHURAI, KURUDAMPALAM, COVAI NORTH (TK), COIMBATORE DISTRICT, TAMIL NADU.** - **2 KUNJUMA, AGED 42 YEARS,** - **W/O. SHAKULHAMEED, VADAMDHURAI, KURUDAMPALAM, COVAI NORTH (TK), COIMBATORE DISTRICT, TAMIL NADU.** **3 DOULATHNISH S., AGED 20 YEARS, D/O. SHAKULHAMEED, VADAMDHURAI, KURUDAMPALAM, COVAI NORTH (TK), COIMBATORE DISTRICT, TAMIL NADU.** **BY ADVS.SRI.BINOY VASUDEVAN** **SMT.P.G.BABITHA** ## **RESPONDENTS/RESPONDENTS :** **-------------------------** **1. DAVIS P.L., AGE AND FATHER'S NAME NOT KNOWN, POOZHIKKAL, OLLUR,** - **G.P.ANCHERY POST, THRISSUR DISTRICT, KERALA-680 006.** **2. JAYAPRAKASH, AGED 47 YEARS,** **S/O. AYYAPPAN, MUTHUPPALLY VEEDU, PATTIKKAD POST, THRISSUR DISTRICT-680 652.** **3. THE ORIENTAL INSURANCE CO. LTD., KPN SHOPPING COMPLEX, NEAR THIRUVAMBADI TEMPLE, SHORANUR ROAD, THRISSUR- 680651.** **R3 BY ADV. SRI.VPK.PANICKER** **R1 BY ADV. SRI.RANJITH XAVIER** **R3 BY SMT.K.S.SANTHI** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 21-02-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **DST** ## **K. HARILAL, J.** **= = = = = = = = = = = = = = = = =** **M.A.C.A.No.1191 of 2015(F)** **- - - - - - - - - - - - - - - - - - - - - -** _Dated this the 21[st] day of February, 2018_ ## **J U D G M E N T** The appellants are the petitioners in O.P.(MV) No.1410 of 2011 on the files of the Motor Accidents Claims Tribunal, _(hereinafter referred to as 'the Tribunal')_ , Palakkad and the above Original Petition was filed under Section 166 of the Motor Vehicles Act, 1988, claiming compensation for the death of one 'Sahabudeen', the son of the 1[st] and 2[nd] petitioners. The 3[rd] petitioner is the sister of the said deceased Sahabudeen. 2. According to them, he met with an accident on 31.07.2011 and the accident was caused by the rash and negligent driving of the offending vehicle owned by the 1[st] respondent, driven by the 2[nd] respondent and insured with the 3[rd] respondent. 3. The Insurance Company opposed the said **M.A.C.A.No.1191 of 2015 (F)** ## **-: 2 :-** application, disputing the quantum of compensation claimed under various heads and cause of accident; but admitted the insurance coverage of the vehicle under the policy issued by them to the 1[st] respondent. After considering the evidence on record, the Tribunal passed impugned award granting `5,05,000/-, as compensation to the petitioners. The inadequacy of the quantum of compensation determined under various heads of claim are challenged in this appeal. 4. Heard the learned counsel for the appellants and the learned Standing Counsel for the 3[rd] respondent Insurance Company. 5. It is contended that the monthly income of the deceased determined by the Tribunal is very low and the Tribunal failed to consider the 'future prospects' of the deceased, since he was aged 21 years only at the time of accident. So also, it is **M.A.C.A.No.1191 of 2015 (F)** ## **-: 3 :-** contended that the monthly notional income determined by the Tribunal is very low. Further, it is contended that the Tribunal went wrong by taking '15' as multiplier, instead of '18', when the deceased was aged 21 years only at the time of accident. The quantum of compensation granted under the heads 'loss of estate', 'loss of love and affection' are also inadequate. 6. Per contra, the learned Standing Counsel for the 3[rd] respondent Insurance Company advanced arguments to justify the quantum of compensation determined by the Tribunal. According to the learned Standing Counsel, the quantum of compensation determined under various heads of claim is just and fair, warranting no interference in appeal. 7. In view of the arguments at the Bar, the point to be considered is, whether the quantum of compensation determined under various heads of claim **M.A.C.A.No.1191 of 2015 (F)** ## **-: 4 :-** are just and fair. 8. It is not disputed that the deceased was aged 21 years only at the time of his death and he was a 2[nd] year B.Com. student. In the absence of any evidence to prove the exact income of the deceased at the time of accident, the Tribunal is justified in taking monthly notional income for computing the 'loss of dependency'. But, at the same time, this Court finds that the Tribunal has omitted to consider 'future prospects' of the deceased, as he was aged 21 years only at the time of his death. Having regard to the long future prospects of the deceased, particularly, when he was a B.Com. degree student at the time of accident, this Court is of the view that 25% of the monthly income can be added to the monthly notional income to compute the 'loss of dependency'. 9. As rightly submitted by the learned counsel **M.A.C.A.No.1191 of 2015 (F)** ## **-: 5 :-** for the appellants, the deceased was aged 21 years at the time of accident. Therefore, the Tribunal ought to have taken '18' as multiplier, in view of the decision of the Supreme Court in _**Sarla Verma & Ors. v. Delhi Transport Corp. & Anr.**_ [(2009) 6 SCC 121]. In the above view, `6,250/- is taken as monthly income, including the 'future prospects' and '18' is taken as multiplier applicable for computing 'loss of dependency'. But, 50% of the said monthly income has to be deducted for his personal living expense, if he was alive. In the above view, the appellants are given `6,75,000/-(6,250 x 12 x 18 x 50/100) under the head 'loss of dependency'. 10. As rightly pointed out by the learned counsel for the appellants, no amount has been granted under the head 'pain and sufferings'. It is true that the deceased Sahabudeen died on the date of accident itself. But, his death occurred on the **M.A.C.A.No.1191 of 2015 (F)** ## **-: 6 :-** way to hospital. Even though after the accident he was alive for a short span of time, certainly, some amount has to be given for 'pain and sufferings' also. In the above view, `10,000/- was granted under the head 'pain and sufferings'. 11. The learned counsel for the appellants contended that `5,000/- was given for 'loss of estate' and Tribunal ought to have granted `15,000/under the head 'loss of estate', in view of the decision reported in _**National Insurance Company Limited v. Pranay Sethi and Others**_ [2017(5) KHC 350 (SC)]. 12. On the other hand, the learned Standing Counsel for the 3[rd] respondent Insurance Company pointed out that the Tribunal went wrong by granting `25,000/- towards 'funeral expenses' instead of `15,000/-, in view of the decision of the Supreme Court in _**Pranay Sethi**_ 's case (supra). **M.A.C.A.No.1191 of 2015 (F)** ## **-: 7 :-** 13. Having regard to the above submissions raised by both counsel, the amount granted under the head 'loss of estate' would stand enhanced to `15,000/- and the amount granted under the head 'funeral expenses' will stand reduced to `15,000/-. Thus, the total compensation payable to the appellants is `7,40,000/- (10,000 + 25,000 + 15,000 + 6,75,000 + 15,000). The additional compensation also will carry 9% interest from the date of petition till the date of realisation. All other findings of the Tribunal will stand undisturbed and operative. This Motor Accident Claims Appeal is allowed accordingly to the above extent. Sd/- **K. HARILAL** **JUDGE** DST //True copy// P.A. To Judge