High Court of KeralaSingle JudgeAppeal allowed; compensation enhanced; deposit ...

SANTHA and others v. KERALA STATE ROAD TRANSPORT CORPORATION

Case / Petition Number:MACA NO. 1215 OF 2010
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S.Dias
Judgment Date
2021-07-16
Court Decision / Holding
The Court allowed the appeal in part, recalculating and enhancing the total compensation to Rs.6,40,200, with interest at 7.5% per annum from the date of petition to realization and proportionate costs. It directed deposit of the enhanced amount before the Tribunal within three months of receipt of a certified copy of the judgment, and to disburse the enhanced compensation in accordance with law.
Final Disposition
Appeal allowed; compensation enhanced; deposit to Tribunal within three months; enhanced amount to be disbursed as per law.

Parties to the Case

Appellants / Petitioners

  • SANTHA, W/O. K. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM
  • BINU, S/O. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM
  • BINDHU, D/O. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM
  • K.BABU, H/O. SANTHA, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM

Respondents

  • MANAGING DIRECTOR, KERALA STATE ROAD TRANSPORT CORPORATION, THIRUVANANTHAPURAM
  • SAIDU KAMARUDHEEN SAHIB, S/O.SAIDU DADA SAHIB, THENGUMVILAYIL VEEDU, KADAPPA MURI, MYNAGAPPALLY, KOLLAM

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.C.RAJENDRAN

Counsels for Respondents

  • • SRI.P.C.CHACKO(PARATHANAM)
  • • SMT.AMBIKA RADHAKRISHNAN
  • • SRI.SAJEEV KUMAR K.GOPAL
  • • SRI.JOY GEORGE

Case Synopsis & Summary

The appellants, four family members (SANTHA, BINU, BINDHU and K. BABU), filed OP(MV) No.290 of 2005 under Section 166 of the Motor Vehicles Act, 1988, claiming compensation for the death of Biju, aged 21, who was riding pillion on a bicycle when a Kerala State Road Transport Corporation stage carriage bus (Reg. No. KL-15/1555) allegedly negligent ly struck the bicycle. The Tribunal Kollam awarded Rs. 2,90,000 with 7.5% interest from the petition date and costs, which the appellants challenged. The 2nd respondent driver was ex parte. The court re-examines the quantum in light of Supreme Court jurisprudence on ‘just compensation’ (Pranay Sethi framework), notional income (Ramachandrappa), and standard heads of damages. The judge fixes the notional income at Rs. 3,500 per month (instead of Rs. 3,000), adopts a multiplier of 18 (instead of 15) for a 21-year-old, and applies 40% future prospects with a 50% deduction for personal living expenses. Conventional heads are adjusted (funeral Rs.15,000; loss of estate Rs.15,000; loss of consortium Rs.80,000; love and affection and pain & sufferings removed as duplicative). The result is a total enhanced compensation of Rs. 6,40,200, with interest at 7.5% and costs; deposit within three months, with disbursement by the Tribunal. The appeal is allowed to the extent of enhancing compensation.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988Section 168 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Just compensation under the Motor Vehicles Act must be fair, reasonable and equitable (Pranay Sethi)
  • Notional income concept for the deceased (Ramachandrappa)
  • Multiplier and age-based computation (Sarla Verma)
  • Future prospects for dependents (Sarala Verma; Pranay Sethi)
  • Deduction towards personal living expenses (50%) (Sarala Verma; Pranay Sethi)
  • No duplication of awards for loss of consortium and love & affection (Kunjandy L. v. Rajendran)
  • No restriction on awarding more than claimed if justified by the court’s assessment (Nagappa v. Gurudwara Singh; E. Rajesh v. Rajbir Singh)
  • Precedents reinforcing the just and reasonable compensation standard (Pranay Sethi; Nagappa; E. Rajesh)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that compensation prayed for in the claim petition (Rs.5,00,000) was a reasonable and fair quantum for the death of the young deceased, who was a mason earning Rs.3,500 per month. They argued that the Tribunal erred in lowering income to Rs.3,000 and in applying an insufficient multiplier. They urged adoption of modern principles of just compensation (Pranay Sethi) including future prospects and deductions as per Sarala Verma. They pressed for appropriate heads of conventional damages and argued for full loss of dependency considering the dependent family’s needs.

Contentions of Respondents

The respondents contended that the claim was excessive and that the accident arose primarily due to the cyclist’s act of crossing the road leading to the collision. They submitted that the vehicle owner should not be held fully liable given contributory negligence, and that compensation should be restricted to reasonable amounts under conventional heads. They urged not to apply excessive future prospects; they questioned the notional income and the multiplier chosen by the Tribunal. They also argued for limiting the dogmatic application of recent precedents without considering the facts of the case.

Cited Precedents (8)

Case NameCitationTreatmentExplanation
National Insurance Company Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveEstablishes the modern framework for just compensation under MV Act, guiding the court’s approach to fairness and reasonableness.
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.(2011 (13) SCC 236PositiveAdopts notional income approach for loss of dependency assessments.
Sarala Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveGuides multiplier selection (18 for age 21) and future prospects/deduction framework.
Pranay Sethi (National Insurance Co. Ltd. v. Pranay Sethi)(2017) 16 SCC 680PositiveArticulates comprehensive just compensation standard and non-violation of equity.
Kunjandy L. and others v. Rajendran(2020 (2) KLT 315PositiveKerala HC ruling on duplication prohibition between loss of consortium and love & affection.
United India Insurance Ltd. v. Company Sachindar Kaur @ Satindar Kaur and others(2020 (3) KHC 760)PositiveTreats pain and suffering as not compensable in respect of dependents under certain circumstances.
Nagappa v. Gurudwara Singh(2003 1 KLT 115 (SC))PositiveSupports liberal approach to compensation not restricted to petitioned amounts.
E. Rajesh v. Rajbir Singh(2013 (3) KLT 89 SC)PositiveReiterates principles underlying enhanced compensation calculation.

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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 C.S.DIAS** **FRIDAY, THE 16[TH] DAY OF JULY 2021 / 25TH ASHADHA, 1943** ## **MACA NO. 1215 OF 2010** **AGAINST THE ORDER/JUDGMENT IN OP(MV) 290/2005 ON THE FILE OF MOTOR** ## **ACCIDENTS CLAIMS TRIBUNAL,KOLLAM** ## **APPELLANTS/PETITIONERS:** 1 SANTHA, W/O. K. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM. 2 BINU, S/O. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM. 3 BINDHU, D/O. BABU, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM. 4 K.BABU, H/O. SANTHA, VELITHEKKETHARAYIL, PADA SOUTH, KARUNAGAPPALLY, KOLLAM. BY ADV SRI.C.RAJENDRAN ## **RESPONDENTS/RESPONDENTS:** 1 MANAGING DIRECTOR, KERALA STATE ROAD TRANSPORT CORPORATION, THIRUVANANTHAPURAM. 2 SAIDU KAMARUDHEEN SAHIB, S/O.SAIDU DADA SAHIB, THENGUMVILAYIL VEEDU,, KADAPPA MURI, MYNAGAPPALLY, KOLLAM. ## **MACA NO. 1215 OF 2010 2** BY ADVS. SRI.P.C.CHACKO(PARATHANAM) SMT.AMBIKA RADHAKRISHNAN SRI.SAJEEV KUMAR K.GOPAL SRI.JOY GEORGE, SC, K.S.R.T.C. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 16.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **MACA NO. 1215 OF 2010 3** ## **JUDGMENT** The appellants were the petitioners in OP(MV) No.290 of 2005 on the file of the Motor Accidents Claims Tribunal, Kollam. The respondents in the appeal were the respondents before the Tribunal. 2. The appellants had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 claiming compensation on account of the death of Biju (deceased), aged 21 years, who was the son of the appellants 1 and 4 and brother of the appellants 2 and 3. The appellants had averred in the claim petition that on 16.3.2005 while the deceased was traveling pillion on a bicycle along the Lalaji Mukku – Panickar Kadavu road, a stage carriage bus bearing Reg.No.KL-15/1555 (TA 515) (offending vehicle) driven by the 2[nd] respondent in a rash and negligent manner hit the bicycle. The bus belonged ## **MACA NO. 1215 OF 2010 4** to the 1[st] respondent. The deceased was a mason by profession and earning a monthly income of Rs.3,500/-. The accident occurred solely on account of the negligence on the part of the 2[nd] respondent. Therefore, the appellants were entitled for compensation from the respondents, which they quantified at Rs.5,00,000/-. 3. The 1[st] respondent filed a written statement disputing the age, occupation and income of the deceased. It was contended that the accident occurred on account of the negligence on the part of the rider of the bicycle, who cut across the road which resulted in the accident. The 2[nd] respondent had driven the offending vehicle with ample care and caution. Nevertheless, the compensation claimed under the different heads were excessive and exorbitant. 4. The 2[nd] respondent did not contest the proceedings and was set ex parte. **MACA NO. 1215 OF 2010 5** 5. The appellants produced and marked Exts.A1 to A10 in evidence. 6. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition in part, by permitting the appellants to recover an amount of Rs.2,90,000/- with interest @ 7.5 % per annum from the date of petition till the date of realization along with proportionate costs from the 1[st] respondent. 7. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioners/appellants are in appeal. 8. Heard, the learned counsel appearing for the appellants/petitioners and the learned Standing Counsel appearing for the 1[st] respondent Corporation. 9. The sole question that arises for consideration in this appeal is whether the quantum of compensation awarded by the Tribunal is reasonable and just. **MACA NO. 1215 OF 2010 6** 10. A constitution Bench of the Hon'ble Supreme Court in _**National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680)**_ , has held that Section 168 of the Motor Vehicles Act, 1988, deals with the concept of 'just compensation' and the same has to be determined on the foundation of fairness, reasonableness and equitability on acceptable legal standards. The conception of 'just compensation' has to be viewed through the prism of fairness, reasonableness and nonviolation of the principle of equitability. 11. Ext.A4 final report filed by the Karunagappally Police in Crime No.240 of 2005 clearly proves that the accident occurred solely on account of the negligence of the 2[nd] respondent, who drew the offending vehicle in a negligent manner. As the 1[st] respondent is the owner of the offending vehicle, the 1[st] respondent is vicariously liable to pay compensation to the appellants. ## **MACA NO. 1215 OF 2010 7** 12. The appellants had claimed that the deceased was a mason by profession and earning a monthly income of Rs.3,500/-. However, the Tribunal fixed the notional income of the deceased at Rs.3,000/- per month. ## **Notional Income** 13. The Hon'ble Supreme Court in _**Ramachandrappa vs. Manager, Royal Sundaram Alliance Insurance Company Ltd., (2011 (13) SCC 236),**_ has fixed the notional income of a Coolie Worker in the year 2004 at Rs.4,500/- per month. 14. Following the ratio in the aforecited decision and considering the fact that the accident occurred in the year 2005, I am of the opinion that the notional monthly income of the deceased has to be refixed at Rs.3,500/-, as claimed in the claim petition. ## **Multiplier** 15. The Tribunal fixed the multiplier at '15'. The **MACA NO. 1215 OF 2010 8** deceased was aged 21 years at the time of accident. In _**Sarala Verma v. Delhi Transport Corporation**_ _**(2009) 6 SCC 121)**_ the Hon'ble Supreme Court has held that the relevant multiplier for a person aged 21 years is '18'. Hence, I fix the multiplier at '18'. ## **Personal Living Expenses of the deceased** 16. Undisputedly, the deceased was a bachelor. In light of the law laid down in _**Sara Verma**_ and _**Pranay Sethi**_ (supra) 50% of the total compensation for loss of dependency has to be deducted towards the personal living expenses of the deceased, while I do. ## **Future Prospects** 17. In _**Sarala Verma**_ and _**Pranay Sethi**_ (supra), the Hon'ble Supreme Court has held that the dependents of the deceased are also entitled for future prospects on the total compensation for loss of dependency. As the deceased was aged 21 years and was self employed, 40% **MACA NO. 1215 OF 2010 9** of the total compensation on loss of dependency has to be added towards future prospects. ## **Loss due to dependency** 18. Taking into account the above factors, namely; the notional income at 3,500/-, the multiplier at '18', future prospects at 40% and deducting 50% towards the personal living expenses of the deceased, I refix the compensation under the head loss of dependency at Rs.5,29,200/-, instead of Rs.2,70,000/- awarded by the tribunal. ## **Conventional heads of compensation** 19. In Clause (viii) of paragraph 61 of _**Pranay Sethi**_ (supra), the Hon'ble Supreme Court has held that the dependents of the deceased are entitled for compensation under the conventional heads namely; funeral expenses, loss of estate and loss of consortium at Rs. 15,000/-, 15,000/- and 40,000/- respectively. ## **MACA NO. 1215 OF 2010 10** 20. In light of the ratio in the aforecited decision, I enhance the compensation under the head funeral expenses by a further amount of Rs.10,000/-, i.e., a total amount of Rs.15,000/-. Similarly, I award an amount of Rs.15,000/- under the head 'loss of estate'. ## **Loss of consortium** 21. Undisputedly, the appellants 1 and 4 are the parents of the deceased, who were in their early 40's at the time of death of the deceased. The appellants 2 and 3 were siblings of the deceased, who were minor children at the time of the accident, and were under the protection of the appellants 1 and 4. Therefore, I am of the definite opinion that only the appellants 1 and 4 are entitled for compensation under the head loss of filial consortium. Therefore, I fix the compensation under the head 'loss of consortium' at Rs.80,000/-. 22. The Tribunal awarded an amount of Rs.10,000/- **MACA NO. 1215 OF 2010 11** under the head loss of love and affection. This Court in _**Kunjandy.L and others v. Rajendran (2020(2) KLT 315)**_ has held that once compensation is awarded under the head 'loss of consortium', no compensation can be awarded under the head loss of love and affection, as it would be a duplication of compensation. In view of the above ratio, I set aside the amount of compensation of Rs.10,000/- awarded under the head loss of love and affection. Similarly, the Tribunal has awarded an amount of Rs.5,000/- under the head pain and sufferings. In _**United India Insurance Ltd. v. Company Sachindar Kaur @ Satindar Kaur and others (2020 (3) KHC 760)**_ has held that the dependents of the deceased are not entitled for compensation under the head 'pain and sufferings'. Therefore, I set aside the amount of compensation awarded under the said head. 23. Although the appellants had only claimed an **MACA NO. 1215 OF 2010 12** amount of Rs.5,00,000/- in the claim petition, following the ratio in Pranay Sethi and Sarala Verma (supra), the appellants are now entitled for an amount of Rs, 6,40,200/-. It is trite law, has held by _**Nagappa v. Gurudwara Singh (2003 1 KLT 115 (SC),**_ that there no restriction in the Courts awarding more compensation than what is claimed in the claim petition as the courts are bound to award just and reasonable compensation. The said view has been re-iterated in _**E.Rajesh v. Rajbir**_ . _**Singh (2013 (3) KLT 89 SC)**_ 24. On an over all re-appreciation of the pleadings and materials on record, the law laid down in the aforecited decisions, I am of the definite opinion that the appellants/petitioners are entitled for enhancement of compensation as modified and recalculated above and given in the table below for easy reference. ## **MACA NO. 1215 OF 2010 13** |Head of claim|Amount<br>Awarded by<br>the<br>Tribunal (in<br>Rs.)|Amounts<br>modified and<br>recalculated<br>by this Court| |---|---|---| |Transportation<br>expenses|-|1,000/-| |Funeral expenses|5,000/-|15,000/-| |Pain and sufferings|5,000/-|-| |Love and affection|10,000/-|-| |Loss of estate|-|15,000/-| |Loss of consortium|-|80,000/-| |Loss<br>of<br>dependency|2,70,000/-|5,29,200/-| |Total|2,90,000/-|6,40,200/-| In the result, the appeal is allowed, by enhancing the compensation by a further amount of Rs.3,50,200/with interest at the rate of Rs.7.5% per annum on the compensation from the date of petition till the date of **MACA NO. 1215 OF 2010 14** realisation and proportionate costs. The 1[st] respondent shall deposit the enhanced compensation along with interest and proportionate costs before the Tribunal within a period of three months from the date of receipt of a certified copy of this judgment. The Tribunal shall disburse the enhanced compensation to the appellants/petitioners in accordance with law. Sd/- **C.S.DIAS, JUDGE** pm