High Court of KeralaSingle JudgeMACA disposed of as above. The enhanced award w...

Sobha and Others v. P. Muhammed, Antony and National Insurance Company Limited, MACA No. 2518 of 2010

Case / Petition Number:MACA No. 2518 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. D. Rajan
Judgment Date
2018-03-15
Court Decision / Holding
The insurer is directed to satisfy the enhanced award within 30 days from receipt of a copy of the judgment, failing which interest at 12% per annum shall be payable from the date of default. The enhanced quantum is Rs.7,00,000 in addition to the original Rs.3,35,500 awarded by the Tribunal, with 7.5% interest and proportionate costs.
Final Disposition
MACA disposed of as above. The enhanced award with total compensation calculated as Rs.10,35,500 (Rs.3,35,500 original + Rs.7,00,000 enhancement) plus 7.5% interest and costs; insurer directed to pay within 30 days; 12% interest on default.

Parties to the Case

Appellants / Petitioners

  • Sobha, W/o Late Vijayakumar
  • Vipin, S/o Late Vijayakumar
  • Anoop, S/o Late Vijayakumar
  • Vishnu, aged 17 years, S/o Late Vijayakumar (minor, represented by Sobha)

Respondents

  • P. Muhammed, S/o Moideen Koya
  • Antony, S/o Mani
  • National Insurance Company Limited

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri P. Ramakrishnan

Counsels for Respondents

  • • Sri C.A. Chacko (for R1 & R2)
  • • Sri E.M. Joseph (for R3)

Case Synopsis & Summary

This Motor Accidents Claims Appeal challenges the award of Rs.3,35,500 granted by the Motor Accidents Claims Tribunal, Kalpetta, in favour of the dependants of Vijayakumar who died following a motor accident dated 08-10-2006 while undergoing treatment. The vehicle KL-12/A-540 was insured by the National Insurance Company Limited, with the driver and owner ex parte in the lower court. The appellants contend that Vijayakumar was an agriculturalist earning Rs.6,000 per month; the Tribunal, however, assessed Rs.2,500/month. They argue for revising income to Rs.6,000/month and applying the multiplier method, as developed in Susamma Thomas and subsequent authorities, including New India Assurance Co. v. Charlie and Sarla Verma, to determine compensation more fairly. They rely on Dixit Kumar v. Om Prakash Goel (2017 ACJ 2057) to reject income reduction in the absence of evidence. They also invoke National Insurance Co. v. Pranay Sethi (SC) to reflect modern jurisprudence: future prospects, tax adjustments, and appropriate conventional heads (loss of estate, loss of consortium, funeral expenses) with revised figures. The Respondents contend on factual evidence, but the High Court, applying Pranay Sethi, increases the appellants’ compensation and directs payment of the enhanced amount along with interest and costs within 30 days, failing which 12% interest would accrue. The appeal is disposed of accordingly, with enhanced quantum.

Legal Doctrines & Maxims

  • Multiplier method for computing compensation (Susamma Thomas)
  • Future prospects/addition to income (Sarla Verma; Pranay Sethi modifications)
  • Addition for income for self-employed or fixed salary (as per Pranay Sethi)
  • Conventional heads: loss of estate, loss of consortium, funeral expenses (with escalation)
  • Income to be treated as claimed in absence of contrary evidence (Dixit Kumar v. Om Prakash Goel)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that Vijayakumar was an agriculturist earning Rs.6,000 per month; the Tribunal wrongly reduced to Rs.2,500. They urged applying the Sarla Verma framework for compensation, with the multiplier method, and incorporating future prospects as allowed by Pranay Sethi and related precedents. They contended that Dixit Kumar prohibits reducing income in the absence of evidence, and that the income should be Rs.6,000 with appropriate increments for age and dependency, along with enhanced conventional heads.

Contentions of Respondents

The respondents contended that the Tribunal’s income assessment reflected available evidence and that the insurer should bear the appropriate compensation; they relied on existing statutory framework and jurisprudence to support the lower award, urging that the evidence did not warrant a drastic upward revision. (The record shows no detailed counter-narrative beyond contesting the lower Tribunal’s assessment.)

Cited Precedents (8)

Case NameCitationTreatmentExplanation
General Manager, Kerala State Road Transport Corporation v. Susamma Thomas1994 (1) KLT 67 (SC)PositiveUsed as the benchmark for the multiplier method in calculating compensation.
New India Assurance Co. Ltd. v. Charlie2005 (3) KLT 227 (SC)PositiveSupportive authority for the multiplier approach and related calculation framework.
Sarla Verma v. Delhi Transport Corporation2010 (2) KLT 802 (SC)PositiveUnderpins the use of the multiplier method and the framework for determining income and allowances.
Dixit Kumar and Ors. v. Om Prakash Goel2017 ACJ 2057PositiveHolds that reduction of income in absence of evidence is unsustainable; supports considering claimed income.
National Insurance Company v. Pranay Sethi2017 (4) KLT 622 (SC)PositiveModifies compensation calculations; mandates future prospects addition and revised conventional heads.
Santhosh Devi v. National Insurance Co. LtdN/AMentioned OnlyCited in discussion regarding sufficiency of precedent and need for larger Bench reference; not treated as binding authority.
Rajesh v. Rajesh? (referenced in text)N/AMentioned OnlyCited to illustrate conflicts among precedents; not treated as binding.
Reshma Kumari v. Annie? (referenced in text)N/AMentioned OnlyCited to contextualize the precedential landscape; not treated as binding.

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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 P.D.RAJAN THURSDAY, THE 15TH DAY OF MARCH 2018 / 24TH PHALGUNA, 1939** **MACA.NO. 2518 OF 2010** **AGAINST THE AWARD IN O.P.(M.V.) NO.167/2007 OF THE MOTOR ACCIDENTS CLAIMS TRIBUNAL, KALPETTA DATED 29-07-2010 --------------------------** ## **APPELLANTS/(PETITIONERS):** **------------------------** **1 SOBHA, W/O LATE VIJAYAKUMAR, VALIYANGATEE VEEDU, CHEENAPPULLE P.O., NARIKUNDE, THOMATTUCHAL VILLAGE, BATHERY TALUK, WAYANAD DISTRICT.** **2 VIPIN, S/O.LATE VIJAYAKUMAR, VILIYANGATTE VEEDU, CHEENAPPULLE P.O., NARIKUNDE,THOMATTUCHAL VILLAGE,, BATHERY TALUK, WAYAND DIST.(REPRESENTED BY POWER OF ATTORNEY HOLDER SOBHA, W/O.LATE VIJAYAKUMAR, VALIYANGATTE VEEDU, CHEENAPPULLE P.O., NARIKUNDE, THOMATTUCHAL VILLAGE, BATHERY TALUK, WAYANAD DISTRICT).** **3 ANOOP,S/O.LATE VIJAYAKUMAR,VALIYANGATTE VEEDU, CHEENAPPULLE P.O., NARIKUNDE, THOMATTUCHAL VILLAGE, BATHERY TALUK, WAYAND DISTRICT, (REPRESENTED BY POWER OF ATTORNEY HOLDER SOBHA, W/O.LATE VIJAYAKUMAR, VALIYANGATTE VEEDU, CHEENAPPULLE P.O., NARIKUND, THOMATTUCHAL VILLAGE, BATHERY TALUK, WAYANAD DISTRICT).** **4 VISHNU, AGED 17 YEARS,S/O.LATE VIJAYAKUMAR VALIYANGATTE VEEDU, CHEENAPPULLE P.O., NARIKUNDE, THOMATTUCHAL VILLAGE, BATHERY TALUK, WAYANAD DISTRICT, (MINOR, REPRESENTED BY MOTHER AND NATURAL GUARDIAN SOBHA THE 1[ST] APPELLANT)** **BY ADV.SRI.P.RAMAKRISHNAN** ## **RESPONDENTS (RESPONDENTS):** ## **-------------------------** **1. P.MUHAMMED, S/O MOIDEEN KOYA, POOLAKKAPARAMBIL HOUSE, NARIKUNDU P.O., AMBALAWAYAL, THAMATTUCHAL VILLAGEM, BATHERY TALUK, WAYANAD DISTRICT (DRIVER OF JEEP KL-12/A 540-DL, NO.1552/88/W)** **2. ANTONY, S/O.MANI, CHEENADUL HOUSE, NARIKUNDU P.O., AMBALAWAYAL, THAMATTUCHAL VILLAGEM, BATHERY TALUK, WAYANAD DISTRICT, (OWNER OF JEEP KL-12/A 540)** **MACA.NO. 2518 OF 2010 -2-** **3. NATIONAL INSURANCE COMPANY LIMITED, MAIN ROAD, P.O.KALPETTA (INSURER OF JEEP, KL-12/A540) R1 & R2 BY ADV. SRI.C.A.CHACKO R3 BY ADV. SRI.E.M.JOSEPH** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 15-03-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **NS** ## **P.D. RAJAN, J.** ## **-----------------------M.A.C.A. No.2518 of 2010 --------------------------------Dated this the 15[th] day of March, 2018** ## **J U D G M E N T** This appeal is preferred against the award in O.P.(M.V.) No.167 of 2007 of the Motor Accidents claims Tribunal, Kalpetta. One Vijayakumar sustained injuries in a motor accident on 08.10.2006 while undergoing treatment he succumbed to the injuries and the learned Tribunal awarded an amount of Rs.3,35,500/- (Rupees Three Lakh Thirty Five Thousand Five Hundred only) with interest and cost as compensation. Being dissatisfied with the award amount, the dependants of the deceased preferred this appeal. 2. There is no dispute with regard to the accident. The insurer admitted the insurance of the vehicle KL-12/A-540, in which the deceased was travelling. The driver and owner of the vehicle were set exparte in the lower court. Appellants examined PW1 and Exts.A1 to A8 were marked from their side. 3. Learned counsel appearing for the appellants ## M.A.C.A. No.2518 of 2010 2 contended that the deceased was an agriculturalist and was getting an amount of Rs.6,000/- per month, but the learned tribunal considered Rs.2,500/- as his monthly income hence he is entitled to get just amount as compensation in view of the decision of the Apex Court in **Sarla Verma** v. **Delhi Transport Corporation 2010 (2)KLT 802(SC).** 4. It is true that the deceased was an agriculturist but no documents were produced in the lower court to prove his income. Apex Court in **Dixit Kumar and Ors.** v. **Om Prakash Goel (2017 ACJ 2057)** held that the reduction of income by the tribunal in the absence of evidence is unsustainable. Hence, in the absence of any contra evidence or any dispute by the insurer or other respondents, the tribunal has no right to reduce the income. In view of the above decision, the income stated by the claimants has to be considered and Rs.6,000/- is taken as his monthly income. Now a days, an agriculturist is entitled to get just amount as M.A.C.A. No.2518 of 2010 3 compensation. The principle of multiplier method was adopted in **General Manager, Kerala State Road Transport Corporation** v. **Susamma Thomas [1994 (1) KLT 67 (SC)** and in **New India Assurance Co. Ltd.** v. **Charlie 2005 (3) KLT 227 (SC).** It was subsequently considered in **Sarla Verma** v. **Delhi Transport Corporation 2010 (2) KLT 802 (SC)** . 5. In this context, I may refer the decision of the Apex Court in **National Insurance Company** V. **Pranay Sethi** [ **2017 (4) KLT 622 (SC)],** certain modification was made for calculating compensation, in which the Apex Court held as follows: 61. In view of the aforesaid analysis, we proceed to record our conclusions:- (i) The two-Judge Bench in Santhosh Devi should have been well advised to refer the matter to a larger Bench as it was taking a different view than what has been stated in Sarla Verma, a judgment by a coordinate Bench. It is because a coordinate Bench of the same strength cannot take a contrary view than what has been held by another coordinate Bench. (ii) As Rajesh has not taken note of the decision in Reshma Kumari, which was delivered at earlier point of time, the ## M.A.C.A. No.2518 of 2010 4 decision in Rajesh is not a binding precedent. (iii) While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax. (iv) In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component. (v) For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paragraphs 30 to 32 of Sarla Verma which we have reproduced herein before. (vi) The selection of multiplier shall be as indicated in the Table in Sarla Verma read with paragraph 42 of that judgment. (vii) The age of the deceased should be the basis for applying the multiplier. (viii) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs.15,000/-, Rs.40,000/- and Rs.15,000/- M.A.C.A. No.2518 of 2010 5 respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years. 6. However, in view of the decision in **National Insurance Company** V. **Pranay Sethi** [ **2017 (4) KLT 622 (SC) ]** it is pertinent to note that if the deceased was between the age of 40 to 50 years, additional 25% (6000x25%) has to be added along with the income. Hence, the income comes to Rs.7,500/- (6000+1500). There are four dependants, hence ¼[th] has to be deducted. The total dependency comes to Rs.9,45,000/(7500x12x14x3/4). The learned tribunal awarded an amount of Rs.3,00,000/- for Loss of dependency. The balance is Rs.6,45,000/-. As per the decision of the Apex Court in **Pranay Sethi** (Supra) reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs.15,000/-, Rs.40,000/- and Rs.15,000/- respectively. In this case, the learned tribunal awarded an amount of Rs.10,000/- for Loss of Consortium and Rs.5,000/- for Funeral Expenses and no amount was awarded for Loss of Estate. Hence, an M.A.C.A. No.2518 of 2010 6 additional amount of Rs.55,000/- is awarded for Loss of Estate, Loss of Consortium and Funeral Expenses. Accordingly, the appellants are entitled to get Rs.7,00,000/(Rupees Seven Lakhs only) (6,45,000+55,000) with 7.5% interest and proportionate cost in addition to Rs.3,35,500/- (Rupees Three Lakh Thirty Five Thousand Five Hundred only) awarded by the learned tribunal. The insurer is directed to satisfy the award within thirty days from the date of receipt of a copy of this judgment, failing which it will carry 12% interest from the date of default. This M.A.C.A is disposed of as above. Sd/- **P.D. RAJAN, JUDGE** /True Copy / P.A. To Judge NS