High Court of KeralaSingle JudgePartly allowed; modified compensation as stated...

Saralamma and Arya Mol A.S. v Abdul Salam, Aneesh, and The Branch Manager, Oriental Insurance Co. Ltd.

Case / Petition Number:MACA NO. 1527 OF 2015

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Devan Ramachandran
Judgment Date
2023-03-31
Court Decision / Holding
The appeal is partly allowed. (a) Loss of Dependency is enhanced to Rs.3,60,000 (Rs.30,000 p.a. notional income, deducting one-third for personal expenses). (b) Loss of Estate enhanced to Rs.15,000. (c) Funeral Expenses reduced to Rs.15,000. (d) Loss of Consortium awarded an additional Rs.40,000 to the first appellant. (e) Loss of Love and Affection and Future Prospects deleted. (f) Other heads remain intact. The appellants will recover the enhanced amounts with interest at 9% from the date of claim and are entitled to proportionate costs on the enhanced amount. The insurance company is to deposit the modified amounts before the Tribunal within two months from receipt of a copy of this judgment.
Final Disposition
Partly allowed; modified compensation as stated above; insurer to deposit enhanced amounts within two months, and award 9% interest from date of claim.

Parties to the Case

Appellants / Petitioners

  • Saralamma
  • Arya Mol A.S.

Respondents

  • Abdul Salam
  • Aneesh
  • The Branch Manager, Oriental Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • S.Santhosh Kumar
  • • P. Lissy Jose

Counsels for Respondents

  • • P.V. Jyothi Prasad
  • • Latha Susan Cherian

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No. 1527 of 2015) before a single judge of the Kerala High Court arising from an award of the Motor Accidents Claims Tribunal, Kollam, in OP(MV) No.1229/2011 for the death of Athira in a road accident on 13 January 2011, when her motorcycle pillion was struck by a bus driven rashly. The appellants, being the mother (Saralamma) and sister (Arya Mol A.S.) of the deceased, challenge the Tribunal’s compensation on several heads and contend the award undervalued the loss suffered. They assert that the deceased, a bright 16-year-old student with no earnings, warrants a higher notional income and greater compensation for Loss of Estate and Loss of Consortium. The respondents’ counsel counters that, at 16 years, the notional income of Rs. 15,000 per annum is correct and that certain heads—such as Loss of Love and Affection and Future Prospects—should be limited, while funeral expenses ought to reflect statutory caps. The court admits the appeal on undisputed evidence and proceeds to adjudicate. It relies on prior jurisprudence including Vinod and Others v. Suresh Kumar and Others, Kurvan Ansari Alias Kurvan Ali v. Shyam Kishore Murmu, R.K. Malik v. Kiran Pal, Rajendra Singh v. National Insurance Co. Ltd., Kishan Gopal v. Lala, Pranay Sethi, and Satinder Kaur to calibrate notional income and head-amounts. Ultimately, the court partly allows the appeal, modifying several heads and deleting others, with an order for 9% interest and deposit of enhanced amounts by the insurer within two months.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants’ counsel submitted that the deceased, being 16 years old and a bright student, had no earnings; therefore, the Tribunal’s notional income of Rs.15,000 per annum was inadequate, and the compensation under Loss of Estate was too low. They argued for higher compensation under Loss of Dependency by recognizing the deceased’s potential earnings and for inclusion of Loss of Consortium at a higher rate. They contended that the Tribunal erred in not awarding Loss of Love and Affection and Future Prospects, which the Pranay Sethi framework would permit. They urged the court to enhance the heads of damages in favor of the mother and sister and to allow the appeal in full or, at least, in substantial measure.

Contentions of Respondents

The respondents’ counsel argued that since Athira was only 16 and had no earnings, the Tribunal’s notional income of Rs.15,000 per annum was in line with settled law and the factual matrix. They conceded that some heads such as Funeral Expenses required correction (capped at Rs.15,000 under Pranay Sethi) but maintained that the losses for Love and Affection and Future Prospects should not be awarded. They urged dismissal of the appeal with appropriate adjustments to the disputed heads, maintaining the risk profile remained consistent with the evidence and jurisprudence.

Cited Precedents (7)

Case NameCitationTreatmentExplanation
Vinod and Others v. Suresh Kumar and Others2023 (2) KLT 389PositiveUsed to support a higher notional income for a child who is a student or without earnings (Rs.30,000 p.a.), guiding the court’s approach to notional income in a young claimant case.
Kurvan Ansari Alias Kurvan Ali v. Shyam Kishore Murmu(2022) 1 SCC 317PositiveCited as part of the Supreme Court precedents justifying the notional income framework for a minor student claimant.
R.K. Malik v. Kiran Pal & Ors(2009) 14 SCC 1PositiveIncluded in the line of authorities supporting notional income norms for minors.
Rajendra Singh & Ors. v. National Insurance Company Ltd. & Ors.(2020) 7 SCC 256PositivePart of the jurisprudence reinforcing the notional income and compensation calculations in MCA matters.
Kishan Gopal and Another v. Lala and Others(2014) 1 SCC 244PositiveParticipates in the reasoning for notional income and component heads in compensation.
Pranay Sethi (National Insurance Co. Ltd. v.)(2017) 16 SCC 680 / 2017 (4) KLT 662PositiveGuides caps on Funeral Expenses and exclusions/losses on Love and Affection and Future Prospects under certain headings.
United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur(2021) 11 SCC 780PositiveUsed to restrict awards under 'Future Prospects' and 'Loss of Love and Affection' in line with the principle there.

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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 DEVAN RAMACHANDRAN FRIDAY, THE 31[ST] DAY OF MARCH 2023 / 10TH CHAITHRA, 1945 ``` ``` MACA NO. 1527 OF 2015 ``` ``` [AGAINST THE AWARD DATED 24.10.2014 IN OP(MV)NO.1229/2011 ON THE FILE OF THE MOTOR ACCIDENTS CLAIMS TRIBUNAL, KOLLAM] ``` ## `APPELLANTS/CLAIMANTS 1 & 2:` - `1 SARALAMMA, AGED 45 YEARS, W/O. LATE SASIDHARAN, AATTUPURATH VEEDU, KOTHAPURAM CHERRY, WEST KALLADA VILLAGE, KUNNATHOOR TALUK, KOLLAM.` ``` 2ARYA MOL A.S., AGED 22 YRS, D/O.LATE SASIDHARAN RESIDING AT THE ABOVE ADDRESS. ``` ``` BY ADVS.SRI.S.SANTHOSH KUMAR SMT.P.LISSY JOSE. ``` ## `RESPONDENTS/RESPONDENTS:` - `1 ABDUL SALAM, S/O. MUHAMMAD KUNJU, PARANKIAZHIKATHU, THEVALAKKARA, KARUNAGAPLLY - 690 518.` - `2 ANEESH, S/O. SHAMSUDHEEN KUNJU, MANALVETTATHU THEKKATHIL, PALAKKAD MURI, THEVALAKKAR, KARUNAGAPPALLY, KOLLAM - 690 518.` ``` 3THE BRANCH MANAGER, ORIENTAL INSURANCE CO. LTD., AMARJYOTHI COMPLEX, KADAPPAKKADA, KOLLAM- 691008. ``` ``` BY ADVS.SRI.P.V.JYOTHI PRASAD SMT. LATHA SUSAN CHERIAN, SC ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 31.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA NO. 1527 OF 2015 ``` ``` -2- ``` ## `JUDGMENT` ``` This matter is of the year 2015 and has not been admitted. However, both sides are ad idem that it can be disposed of, after being formally ``` ``` admitted, based on the undisputed evidence on record, handed over by them across the Bar. I, therefore, admit this Appeal and proceed to dispose it of finally, with the consent of both sides. ``` ``` 2.The mother and sister of Athira, who was ``` ``` unfortunately killed in a road accident on ``` ``` 13.01.2011 - when the motor cycle she was riding ``` ``` pillion was collided with the offending bus, driven in a rash and negligent manner – have filed this Appeal, impugning the compensation ``` ``` awarded by the Motor Accidents Claims Tribunal, Kollam,(hereinafter referred to as ‘the Tribunal’ for short), in OP(MV)No.1229/2011, as ``` ``` being inadequate. ``` ``` MACA NO. 1527 OF 2015 ``` ``` -3- ``` ``` 3.Smt.Baby Sujatha - learned counsel for the appellants, argued that the income adopted by the Tribunal in favour of her client is inadequate because, the deceased was only 16 ``` ``` years old and a very bright student, at the time of the accident and her unfortunate death. She further argued that the compensation under the head “Loss of Estate” is too low; while the compensationfor “Loss of Consortium”has unfairly been denied. She thus prayed that this Appeal be allowed. ``` ``` 4.In response, Smt.Latha Susan Cherian – learned Standing Counsel for the Insurance Company, argued that, since the deceasedwas only 16 years in age and had no earnings at the time of the accident, the learned Tribunal was without error in having adopted her notional income to be Rs.15,000/- per annum. She asserted that this is in terms of the settled principles ``` ``` MACA NO. 1527 OF 2015 ``` ``` -4- ``` ``` of law, as declared by this Court and the ``` ``` Hon’ble Supreme Court. She, however, pointed out that certain impermissible amounts have been ``` ``` granted under the head “Loss of Love and Affection” and compensation for “Future Prospects”; while Rs.25,000/- has been awarded under the head “Funeral Expenses”, though not more than Rs.15,000/- could have been ganted as perNational Insurance Company Ltd. v. Pranay Sethi [2017 (4) KLT 662)]. She thus prayed that this Appeal be dismissed, however, correcting the afore heads. ``` ``` 5.I have considered the afore rival ``` ``` submissions on the touchstone of the evidence on record – copies of which have been handed over across the Bar by the learned counsel for the parties with the express consent that it can be acted upon by this Court without dispute. ``` ``` 6.I will first answer the contention ``` ``` MACA NO. 1527 OF 2015 ``` ``` -5- ``` ``` relating to the adequacy of the notional income adopted by the Tribunal in favour of the deceased. This court has already taken a view, in Vinod and Others v. Suresh Kumar and Others ``` ``` [2023 (2) KLT 389], that in the case of a child, who is either a student or without earnings, the minimum notional incometo be taken is ``` ``` Rs.30,000/- per annum. This decision was taken being guided by the judgments of the Hon’ble Supreme Court in Kurvan Ansari Alias Kurvan Ali ``` ``` v. Shyam Kishore Murmu[(2022) 1 SCC 317], ``` ``` R.K.Malik& Anotherv. KiranPal&Ors [(2009) ``` ``` 14 SCC 1],Rajendra Singh & Ors. v. National Insurance Company Ltd. & Ors. [(2020) 7 SCC 256] and Kishan Gopal and Another v. Lala and Others [(2014) 1 SCC 244]. I see no reason to deny this to the appellants herein, particularly when the deceased was a young girl, who was very bright in her studies. ``` ``` MACA NO. 1527 OF 2015 ``` ``` -6- ``` ``` 7.That being said, there is great force in the submissions of Smt.Baby Sujatha that an amount of Rs.15,000/- ought to have been granted under the head “Loss of Estate”; while a minimum of Rs.40,000/- was eligible to the 1st appellant ``` ``` under the head “Loss of Consortium”, as per Pranay Sethi (supra). ``` ``` 8.However, the learned Tribunal appears to have erred in having granted Rs.25,000/- under the head “Funeral Expenses”, because not more than Rs.15,000/- could have been granted as per ``` ``` Pranay Sethi(supra); while no amounts could ``` ``` have been granted under the heads “Future ``` ``` Prospects” and “Loss of Love and Affection” as ``` ``` perUnited India Insurance Company Ltd. v. ``` ``` Satinder Kaur @ Satwinder Kaur[(2021) 11 SCC ``` ``` 780]. ``` ``` 9.That said, an amount of Rs.40,000/- is ``` ``` certainly eligible to the 1st appellant under the ``` ``` MACA NO. 1527 OF 2015 ``` ``` -7- ``` ``` head “Loss of Consortium”, since she is the mother of the deceased. ``` ``` Resultantly, this Appeal is partly allowed in the following manner: ``` ``` (a)The compensation under the head “Loss of Dependency” is enhanced to Rs.3,60,000/- (Rupees ``` ``` three lakhs sixty thousand only), from ``` ``` Rs.1,80,000/-, reckoning the notional income of ``` ``` the deceased to be Rs.30,000/- per annum and ``` ``` deducting one third from it, towards his ``` ``` personal expenses. ``` ``` (b)The compensation under the head “Loss of Estate”is enhanced to Rs.15,000/- (Rupees fifteen thousand only), from Rs.5,000/- awarded by the Tribunal, as per Pranay Sethi (supra). ``` ``` (c)The compensation awarded by the Tribunal under the head “Funeral Expenses” is reduced to Rs.15,000/- (Rupees fifteen thousand only), from Rs.25,000/- awarded by the Tribunal, as per ``` ``` MACA NO. 1527 OF 2015 ``` ``` -8- ``` ``` Pranay Sethi (supra). ``` ``` (d)An additional amount of Rs.40,000/- ``` ``` (Rupees forty thousand only) is awarded under ``` ``` the head “Loss of Consortium” in favour of the ``` ``` first appellant, in terms ofPranay Sethi ``` ``` (supra). ``` ``` (e) Axiomatically, the compensation awarded ``` ``` by the tribunal under the head “loss of love and affection”and “Future Prospects” are both deleted. ``` ``` (f)In all other heads, the compensation ``` ``` granted by the Tribunal will remain intact. ``` ``` Consequently, the appellants will be at full ``` ``` liberty to recover the compensation, as modified ``` ``` by this Court, from the Insurance Company, along with interest at the rate of 9%, as awarded by the Tribunal, from the date of claim until it is recovered.They will also be entitled to proportionate costs on the enhanced amount as ``` ``` MACA NO. 1527 OF 2015 ``` **==> picture [22 x 9] intentionally omitted <==** ``` ordered by the Tribunal. ``` ``` In view of the afore, the amount as fixed above shall be deposited by the Insurance Company before the Tribunal, within a period of two months from the date of receipt of a copy this judgment. ``` ``` Sd/- ``` ``` DEVAN RAMACHANDRAN ``` ``` JUDGE ``` ``` akv ```