High Court of KeralaSingle JudgeAppeal allowed; compensation enhanced as per sc...

Shailaja and others v. Aaron S/o. Raphel; Natarajan P.; The United India Insurance Co. Ltd.

Case / Petition Number:MACA 3386/2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. Jayachandran
Judgment Date
2022-07-18
Court Decision / Holding
The MACA is allowed. The court reworked compensation: monthly income fixed at Rs.15,000; loss of consortium raised to Rs.2,00,000 for five claimants; loss of estate to Rs.15,000; clothing to Rs.1,000; funeral expenses to Rs.15,000; deduction for personal expenses set at 1/4; future prospects at 25%. Total enhanced compensation: Rs.2,431,250. Interest payable at 5% on enhanced amounts from the petition date, with set-off for any amounts already paid; payment by NEFT/RTGS within one month of certified copy, subject to bank details being provided. The appeal is allowed as indicated, with directions for payment and compliance within the stated timeline.
Final Disposition
Appeal allowed; compensation enhanced as per schedule; directions for payment, interest, and NEFT/RTGS transfer.

Parties to the Case

Appellants / Petitioners

  • Shailaja
  • Shafeena
  • Shahina
  • Shameenamol P.M.
  • Hajara Beevi

Respondents

  • Aaron S/o. Raphel
  • Natarajan P.
  • The United India Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.CYRIAC KURIAN
  • • SRI.JOJO JOSEPH
  • • SRI.SUJITH MATHEW JOSE

Counsels for Respondents

  • • SRI.P.JACOB MATHEW
  • • SRI.MATHEWS JACOB
  • • SRI.JOHN JOSEPH VETTIKKAD

Case Synopsis & Summary

This appeal (MACA 3386 of 2017) arises from an award of the Motor Accidents Claims Tribunal, Pala, in OP(MV) No.1029/2014, for a death in a road accident on 10.12.2013. The appellants, legal heirs of Mohammed Basheer, challenged the compensation awarded and sought enhancement under several heads. The Tribunal fixed the decedent’s monthly income at Rs.12,000, despite the claim that he ran a grocery shop; evidence included a shop licence and a rent agreement. The Insurance Company contended there was no proof of income, citing Ramachandrappa, which prescribes a notional baseline (Rs.9,000). The High Court held that the income must be enhanced given the business evidence, distinguishing Ramachandrappa and determining Rs.15,000 as reasonable. On other heads, the court restructured compensation: it increased the loss of consortium to Rs.2,00,000 for five claimants (by eliminating double counting of love and affection); raised loss of estate to Rs.15,000; raised clothing to Rs.1,000; lowered funeral expenses to Rs.15,000; and applied a 1/4 deduction for personal expenses instead of 1/5. Future prospects were fixed at 25% (not 30%). The total enhanced compensation became Rs.2,431,250 from Rs.2,183,880. Interest at 5% on enhanced amounts from the petition date, NEFT/RTGS transfer, and directions for account details were outlined. The appeal was allowed in part and the award augmented accordingly.

Legal Doctrines & Maxims

  • Notional income principle (Ramachandrappa)
  • Future prospects at 25% (Pranay Sethi)
  • Deduction of personal expenses at 1/4 (Sarala Verma)
  • Funeral expenses cap guidance (Pranay Sethi)
  • Consortium entitlement as per Pranay Sethi

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants contended that the deceased Mohammed Basheer ran a grocery business and produced a shop licence and a rent agreement, which justify a higher monthly income than the Tribunal’s Rs.12,000. They urged fixation at Rs.15,000 (or more) rather than the notional Rs.9,000 baseline from Ramachandrappa, and pressed for enhanced awards under loss of consortium, love and affection, loss of estate, clothing and funeral expenses, following Pranay Sethi and related jurisprudence. They also urged correct application of 1/4 personal expenses deduction and 25% future prospects where appropriate, arguing that the evidence warrants a generous compensation, reflecting actual dependency and business involvement.

Contentions of Respondents

Respondents argued that there was no reliable proof of income, and that the Tribunal’s Rs.12,000 should stand, applying the Ramachandrappa baseline where applicable. They urged maintaining the 1/5 deduction and resisting inflated awards in light of Pranay Sethi’s guidance; they contested the scale of love and affection and funeral costs as excessive and asked for restrained compensation within the framework of Supreme Court precedents.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Ltd.[(2011) 13 SCC 236]DistinguishedCourt distinguishes this case from Ramachandrappa, noting evidence of grocery business justifies a higher notional income than the baseline; Ramachandrappa’s figures do not bind the present facts.
National Insurance Co. Ltd. v. Pranay Sethi2017 (4) KLT 662 (SC)PositiveUsed for multiple heads (consortium, future prospects, funeral expenses) and overall framework for calculating enhanced compensation.
Pranay Sethi v. National Insurance Co. Ltd.(2017) 16 SCC 680 (SC)PositiveGuides the assessment of future prospects and head of consortium consistent with the decision cited as Pranay Sethi.
Sarala Verma v. Delhi Transport Corporation[2010 (2) KLT 802 (SC)]PositiveUsed to justify the 1/4 deduction for personal expenses from income.

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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. JAYACHANDRAN** **MONDAY, THE 18[TH] DAY OF JULY 2022 / 27TH ASHADHA, 1944** **MACA NO. 3386 OF 2017** **AGAINST THE AWARD PASSED BY THE MOTOR ACCIDENT CLAIMS TRIBUNAL, PALA DATED 22.08.2016 IN O.P.(MV) NO.1029/2014.** **APPELLANTS/CLAIMANTS:** |**1**|**SHAILAJA,**| |---|---| ||**W/O. LATE MUHAMMED BASHEER,**| ||**POOVATHINAL HOUSE,**| ||**PERUVANTHANAM P.O., IDUKKI DISTRICT.**| |**2**|**SHAFEENA,**| ||**D/O. LATE MUHAMMED BASHEER,**| ||**POOVATHINAL HOUSE,**| ||**PERUVANTHANAM P.O., IDUKKI DISTRICT.**| |**3**|**SHAHINA,**| ||**D/O. LATE MUHAMMED BASHEER,**| ||**POOVATHINAL HOUSE,**| ||**PERUVANTHANAM P.O., IDUKKI DISTRICT.**| |**4**|**SHAMEENAMOL P.M.,**| ||**D/O. LATE MUHAMMED BASHEER,**| ||**POOVATHINAL HOUSE,**| ||**PERUVANTHANAM P.O., IDUKKI DISTRICT.**| |**5**|**HAJARA BEEVI,**| ||**W/O.SHAHUL HAMEED,**| ||**POOVATHINAL HOUSE,**| ||**PERUVANTHANAM P.O., IDUKKI DISTRICT.**| ||**BY ADVS.**| ||**SRI.CYRIAC KURIAN**| ||**SRI.JOJO JOSEPH**| ||**SRI.SUJITH MATHEW JOSE**| ## **RESPONDENTS/RESPONDENTS:** **1 AARON, S/O. RAPHEL, ARUNACHALAPURAM, ARRYANKEPURAM, SOUTH THERU,ARUNACHALAPURAM, SANKARANKOVIL TALUK, THIRUNEVELI(DT.), TAMILNADU.** MACA 3386/2017 2 **2 NATARAJAN P., S/O. PALANISWAMY, NO.54, SASTRINAGAR EXT., KOLATHUR, CHENNAI-600 099, TAMILNADU.** **3 THE UNITED INDIA INSURANCE CO. LTD. REPRESENTED BY ITS BRANCH MANAGER, DAIVASAHAYAM BUILDINGS, MAIN ROAD, PONKUNNAM, KOTTAYAM DISTRICT-686 506.** **BY ADVS.SRI.P.JACOB MATHEW SRI.MATHEWS JACOB SR. SRI.JOHN JOSEPH VETTIKKAD** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 18.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA 3386/2017 3 C.JAYACHANDRAN, J. -----------------------------------MACA No.3386 of 2017 ------------------------------------Dated this the 18[th] day of July, 2022 ## J U D G M E N T 1. The legal heirs of one Mohammed Basheer, who succumbed to an accident on 10.12.2013 are the appellants herein. They were the claimants in OP(MV) No.1029/2014 of the Motor Accidents Claims Tribunal, Pala. In the same accident, another person also died, who preferred a separate Original Petition, which was also considered along with the instant Original Petition, resulting in a common award. This appeal is directed essentially on the question of enhancement of compensation granted under various heads. 2 . Learned counsel for the appellants submitted that the deceased, Muhammed Basheer, was the owner of a grocery shop and the appellants claimed monthly income of Rs.30,000/-, as against which Rs.12,000/- alone was reckoned by the Tribunal. Learned counsel pointed out that the appellants/claimants produced evidence to show MACA 3386/2017 4 that the deceased had licence to conduct grocery shop, apart from a rent agreement in respect of a shop to conduct the business. This contention was opposed seriously by the learned counsel for the insurance company by pointing out that no proof of income, as such, is produced by the appellants/claimants. In such cases, even though the judgment of the Honourable Supreme Court in Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Ltd. [(2011) 13 SCC 236] would indicate a notional income @ Rs.9,000/-, the Tribunal had reckoned Rs.12,000/-, which is more than sufficient, warranting no further enhancement, submits the learned counsel for the respondent. 3. Having heard the learned counsel appearing on both sides, this Court is of the view that monthly income of the deceased has to be enhanced minimally. The instant case cannot be equated with the index available in Ramachandrappa (supra), since the appellants had produced the licence to conduct the grocery shop, which was in the name of the deceased. They also produced a rent agreement evidencing occupation of a shop room for the purpose of business in grocery. The accident was of the year 2013. Even going by Ramachandrappa (Supra) , MACA 3386/2017 5 the notional income to be reckoned is Rs.9,000/-, wherefore, in a case where there exists evidence to show that the deceased was conducting business in grocery, the notional income of Rs.12,000/- appears to be on the lower side. On the other hand, as contended for by the learned counsel for the insurance company, in the absence of any proof of income, the amount claimed by the appellants/claimants also cannot be reckoned. In such circumstances, this Court is of the opinion that the monthly income can be fixed at Rs.15,000/-, which would be fair and reasonable, having regard to the attendant facts and circumstances. 4. The second point is with respect to loss of consortium, which was granted only at Rs.1,00,000/-, whereas going by the judgment in National Insurance Co. Ltd. v. Pranay Sethi [2017 (4) KLT 662 (SC)] , all the legal heirs are entitled to consortium @ Rs.40,000/each. As against this contention, learned counsel for the insurance company pointed out that a sum of Rs.1,00,000/- has been given as consortium and a sum of Rs.1,00,000/- was given towards love and affection. So that, even if the contention of the learned counsel for the appellants is accepted, that may not make any MACA 3386/2017 6 difference in the total amount to be paid towards compensation under the head consortium. Even if the submission made by the learned counsel for the insurance company is correct, for the sake of correctness and legality, this Court will do away with the compensation under the head love and affection and enhance the compensation under the head consortium to Rs.2,00,000/- in respect of five claimants reckoned @ Rs.40,000/- each. As against loss of estate, what is seen given is Rs.5,000/-, where the appellants are entitled to Rs.15,000/-, going by the judgment in Pranay Sethi (Supra). 5. As pointed out by the learned counsel for the appellant, loss on account of clothing is liable to be enhanced to Rs.1,000/-, as against Rs.500/- taken by the Tribunal. It is so done. 6. Learned counsel for the insurance company pointed out that under the head funeral expenses, Rs.25,000/was granted by the Tribunal, whereas going by the decision in Pranay Sethi (supra), funeral expenses is to be limited to Rs.15,000/-. This contention is also accepted. MACA 3386/2017 7 7. Learned counsel for the insurance company also pointed out that, the number of dependents being in the range of 4-6, 1/4[th] alone can be deducted from the income, as against 1/5[th] deducted by the Tribunal, which course is not legal. This contention is liable to be accepted and the deduction should be confined to 1/4[th] going by the judgment in Sarala Verma v. Delhi Transport Corporation [2010 (2) KLT 802 (SC)] . 8. Another aspect pointed out by the learned counsel for the insurance company is with respect to reckoning of future prospects @ 30%, which again is impermissible for a person not having any fixed income. Future prospects has only to be reckoned @ 25%, going by the judgment in Pranay Sethi (Supra). This contention is also accepted. 9. In the result, the MACA is allowed and the compensation amount payable to the appellants is reworked as shown in the schedule herein below: MACA 3386/2017 8 |Sl.<br>No.|Head of Claim|Amount<br>awarded by<br>the Tribunal<br>(Rs.)|Total amount<br>after<br>enhancement<br>in appeal<br>(Rs.)| |---|---|---|---| |1|Transportation expenses|1500|1500| |2|Damage to clothing|500|1000| |3|Pain and suffering|5000|5000| |4|Loss of love and affection|100000|Nil| |5|Loss of estate|5000|15000| |6|Funeral expenses|25000|15000| |7|Loss of dependancy|1946880|2193750| |8|Loss of consortium|100000|200000| ||Total|2183880|2431250| ||Amount enhanced =Rs.2,47,370/-(2431250-2183880)<br>||| *[15000+25% (future prospects)-1/4 (personal expenses)x13x12] 10 . The Insurance Company shall pay interest for the amounts awarded by the Tribunal at the rate directed in the impugned award and for the enhanced amounts at the rate of 5% from the date of petition. If any amounts have already been paid, the same shall be granted set off. Since there was a delay of 327 days in filing the appeal, the interest for the enhanced quantum shall not run for the said period as directed in order dated 6.11.2017 in C.M.Appl.No.3863/2017. The claimant/s shall produce the details of the Bank account before the Insurance Company/Tribunal within one month from the date of receipt of a certified copy of this MACA 3386/2017 9 judgment and amount shall be transferred to the Bank account directly through NEFT/RTGS mode, within a period of one month thereafter. If the Bank account is not furnished within the time stipulated, it is made clear that no interest shall run on the enhanced amount after the period stipulated by this Court. However, if the Insurance Company fails to deposit the amount as directed, interest on enhanced amount shall also run at the rate ordered by the Tribunal from the date of petition. 11 . The appeal is allowed as indicated above. Sd/C.JAYACHANDRAN JUDGE jg