High Court of KeralaSingle JudgeAppeal allowed; computation of compensation rev...

Sreenivasan P.K. and Sheeja Sreenivasan v United India Insurance Co. Ltd; Kiran Kumar and Raveendran (Impleaded as per order in I.A. No.1/21 in MACA No.1369/2014)

Case / Petition Number:MACA No. 1369 of 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Mary Joseph
Judgment Date
2023-03-28
Court Decision / Holding
MACA stands allowed; the award of the Tribunal is re-assessed. The Court re-fixates the deceased’s annual income at Rs.25,000, applies a multiplier of 15 with a 2/3 deduction, resulting in Rs.2,50,000 for loss of dependency. Additional sums are awarded: Rs.70,000 for loss of dependency (as adjusted), Rs.88,000 for loss of consortium, and Rs.16,500 each for funeral expenses and loss of estate (with prior awards of Rs.5,000 for loss of estate and Rs.2,500 for funeral expenses adjusted to give Rs.11,500 and Rs.14,000 respectively as additional compensation). The total additional compensation is Rs.1,63,500, with interest at 7.5% per annum from the date of the Original Petition till realization, excluding 559 days for delay. The insurer’s liability is retained and to be recovered from respondents 1 and 2 jointly and severally. Directions issued to deposit within two months from receipt of a certified copy of this judgment.
Final Disposition
Appeal allowed; computation of compensation revised and enhanced as per Pranay Sethi guidelines; insurer to recover amount from other respondents; MACA allowed.

Parties to the Case

Appellants / Petitioners

  • Sreenivasan P.K., S/O.Kumar a n, Puthenpurackal House, Madukka Kara, Erumeli Village
  • Sheeja Sreenivasan W/O Sreenivasan P.K., Do Do by Adv Sri.V.K.Sunil

Respondents

  • The United India Insurance Co. Ltd., Ponkunnam, represented by its Divisional Manager, Kottayam 686 506
  • Kiran Kumar, S/O.Raveendran, age not known, Sivanadaily House, Pottankulam Bhagom, Erumeli Village, Kottayam District – 686 509
  • Raveendran, S/O.Kesavan, 683/14, Sivanadaily House, Mundakkayam P.O., Mundakkayam – 686 513 (Impleaded)

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V.K. Sunil

Counsels for Respondents

  • • Smt. S. Jayasree
  • • Sri. Aby J Augustine
  • • Sri. Mathew John (K)

Case Synopsis & Summary

MACA No. 1369 of 2014 is a Motor Accidents Claims Appeal before the Kerala High Court, arising from an award of the Motor Accidents Claims Tribunal, Palai, in OP MV 558 of 2010. The petitioners, legal representatives of Kum. Sruthy Sreenivas @ Sreekutty, a 14-year-old who died in a road accident on 01.11.2009, challenged the quantum of compensation. The Tribunal held the jeep driver liable, awarding Rs 2,12,000 with 7.5% interest and costs. The appellant contended that the compensation was inadequately computed, notably in the computation of dependency loss and in failing to apply Pranay Sethi guidelines for funeral expenses, loss of estate, and loss of consortium. The High Court re-examined the evidence, re-fixating annual income at Rs 25,000 (from Rs 18,000) and applying a multiplier of 15 with a 2/3 deduction for personal expenses, arriving at Rs 2,50,000 for loss of dependency. After aggregating additional heads, it awarded Rs 70,000 for loss of dependency (on re-calculation), Rs 88,000 for loss of consortium, and Rs 16,500 each for funeral expenses and loss of estate, with adjustments resulting in a total additional compensation of Rs 1,63,500 plus interest at 7.5% from the petition date, excluding 559 days of delay. The insurer’s liability was retained and directed to recover the amount from the other two respondents jointly and severally. MACA stands allowed accordingly.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the Tribunal undervalued the claim for death of the minor girl. They pressed for a higher dependency loss by fixing a higher monthly/annual income and by adopting the Pranay Sethi framework for missing heads of compensation, including Rs.16,500 for loss of estate and funeral expenses and Rs.44,000 per head for loss of consortium. They also pointed out the Tribunal fixed Rs.1,500 as monthly income; sought re-fixation at Rs.25,000 annual income, a multiplier of 15 and a 2/3 deduction, leading to enhanced compensation, and sought to ignore the delay in filing and get the interest on the enhanced amount.

Contentions of Respondents

The respondents contended that the Tribunal’s computation used a monthly income of Rs.1,500, appropriate multiplier (15) and a 1/3 deduction for personal expenses; they argued the petitioners were not entitled to separate awards for loss of love and affection and pain and suffering and that the interest should not be extended for the 559-day delay. They argued the insurer’s liability and its right to recover from the drivers/owners, especially since the driver allegedly did not possess a license and that the amount should be kept within the framework already determined by the Tribunal.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
National Insurance Co.Ltd. v. Pranay Sethi and others2017 (4) KLT 662(SC)PositiveCited and applied by the High Court to fix amounts for loss of estate, funeral expenses, and loss of consortium consistent with Pranay Sethi guidelines.

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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 MRS. JUSTICE MARY JOSEPH ``` ``` TUESDAY, THE 28[TH] DAY OF MARCH 2023 / 7TH CHAITHRA, 1945 ``` ## **`MACA NO. 1369 OF 2014`** ``` AGAINST THE AWARD IN OPMV 558/2010 OF MOTOR ACCIDENT CLAIMS ``` ``` TRIBUNAL, PALA DATED 27.08.2012 ``` ## **`APPELLANTS/PETITIONERS:`** - `1 SREENIVASAN P.K., S/O.KUMARAN,PUTHENPURACKAL HOUSE,MADUKKA KARA, ERUMERLI VILLAGE` - `2 SHEEJA SREENIVASAN W/O.SREENIVASAN P.K., DO DO BY ADV SRI.V.K.SUNIL` ## **`RESPONDENTS/RESPONDENTS:`** - `1 THE UNITED INDIA INS.CO.LTD PONKUNNAM,REPRESENTED BY ITS DIVISIONAL MANAGER,KOTTAYAM 686 506` - `*2 KIRAN KUMAR, S/O.RAVEENDRAN, AGE NOT KNOWN, SIVANADAYIL HOUSE, POTTANKULAM BHAGOM, MADUKKA KARA, ERUMELI VILLAGE, KOTTAYAL DISTRICT – 686 509. SOUGHT TO BE IMPLEADED` - `*3 RAVEENDRAN, S/O.KESAVAN, 683/14, SIVANADAYIL HOUSE, MUNDAKKAYAM P.O., MUNDAKKAYAM – 686 513. SOUGHT TO BE IMPLEADED` - `(*ADDL. RESPONDENTS 2 AND 3 ARE IMPLEADED AS PER ORDER DATED 28/03/2023 IN I.A. No.1/21 IN MACA No.1369/2014) BY ADVS.SMT.S.JAYASREE` ``` SRI.ABY J AUGUSTINE SRI.MATHEW JOHN (K) ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 28.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` MACA No.1369 of 2014 -:2:- ## **JUDGMENT** Dated this the 28[th] day of March, 2023 The appeal on hand is directed against an award passed by Motor Accidents Claims Tribunal, Pala (for short ‘the Tribunal’) on 27.08.2012 in O.P.(MV) No.558 of 2010. 2. For the sake of convenience, the parties to this appeal will hereinafter be referred to as petitioners and respondents 1 to 3 in accordance with their status in the Original Petition. 3. Appellants are the petitioners before the Tribunal who are none other than the legal representatives of Kum.Sruthy Sreenivas @ Sreekutty, aged 14 years who died in a motor accident. On 01.11.2009, while she was walking along the side of a public road at Madukka, a jeep bearing registration No.KL-13/B 6301 hit her down and due to the serious injuries sustained, she died on the same day at 11 p.m. while undergoing treatment. MACA No.1369 of 2014 -:3:- The driver of the Jeep was alleged as responsible for the motor accident by his rash and negligent driving and a sum of `5,00,000/- was claimed as compensation. The driver, the owner and the insurer of the jeep bearing registration No.KL-13/B 6301 were arrayed as respondents 1 to 3 in the Original Petition. Respondents 1 and 2 though served with notice from the Tribunal, failed to contest the Original Petition. 4. 3[rd] respondent filed written statement admitting issuance of a valid policy for the Jeep covering the date of the motor accident, but, contended that 1[st] respondent had driven the Jeep at the relevant time without holding a driving licence. Compensation claimed was also contended as excessive and without any basis. 5. Before the Tribunal, Exts.A1 to A6 and Ext.B1 were marked in evidence respectively by the petitioners as well as the respondent. On the basis of the evidence adduced as above, the Tribunal found the 2[nd] respondent MACA No.1369 of 2014 -:4:- liable for causing the motor accident by driving the Jeep bearing registration No.KL-13/B 6301 in a rash and negligent manner. The Tribunal also found that the petitioners are entitled to get compensation for the death of the minor girl in the motor accident. A sum of `2,12,000/- was arrived at as the compensation payable. Interest at the rate of 7.5% per annum from the date of filing of the Original Petition till the date of realisation and proportionate costs were also awarded. Aggrieved by the quantum of compensation stood awarded by the Tribunal, the appeal on hand is filed by the petitioners. 6. Sri.V.K. Sunil, the learned counsel for the petitioners advanced argument mainly on the inadequacy of the compensation stood awarded by the Tribunal in favour of the petitioners. According to him, the motor accident being related to the year 2009, the Tribunal ought to have taken a higher sum as the monthly income for calculation of compensation for loss MACA No.1369 of 2014 -:5:- of dependency. The learned counsel urged furthermore that the Tribunal failed to award `16,500/- as compensation, being the sum directed by the Constitution Bench of the Apex Court in **National Insurance Co.Ltd. v. Pranay Sethi and others** [2017 (4) KLT 662(SC)] towards loss of estate and funeral expenses and `44,000/- per head, towards loss of consortium. 7. The learned counsel for the 3[rd] respondent contended on the contrary that calculation of compensation for loss of dependency having been done on the basis of the monthly income fixed as `1,500/-, interference is unwarranted. The learned counsel contended furthermore that ‘15’ adopted as multiplier and 1/3[rd] deduction considered towards personal expenditure of the deceased being correct, interference is uncalled for. Petitioners are disentitled to get compensation towards loss of love and affection and MACA No.1369 of 2014 -:6:- pain and suffering and therefore, `10,000/- each stood awarded by the Tribunal under those heads are also sought to be deducted from the total additional compensation arrived at. The appeal on hand being filed with a delay of 559 days, the 3[rd] respondent also canvassed for absolving it from liability to pay interest for that period. 8. As stated earlier, `1,500/- was fixed by the Tribunal as the monthly income for arriving at the compensation payable for loss of dependency in favour of the petitioners who are legal representatives of a minor girl aged only 14 years at the relevant time of her death due to the injuries sustained in the motor accident in question. The Tribunal has considered the annual income of the victim of the motor accident as `18,000/for calculation of compensation. It being a meagre sum when viewed in the backdrop of the year in which the motor accident was occurred, this Court re-fixes it as MACA No.1369 of 2014 -:7:- `25,000/-. 15 being the correct multiplier, is adopted and 1/3[rd] deduction is also considered. When compensation for loss of dependency is assessed afresh with the factors modified as above and the factors maintained, `2,50,000/- [(`25,000/- x 15 x 2/3)] is arrived at. `1,80,000/- stood awarded by the Tribunal when adjusted against, petitioners will get `70,000/(`2,50,000/- - `1,80,000/-) as additional compensation towards loss of dependency. As compensation towards loss of consortium, a total sum of `88,000/- (`44,000/- x 2) is arrived at. Petitioners are also entitled to get `16,500/- each as compensation towards funeral expenses and loss of estate. `5,000/- and `2,500/respectively stood awarded by the Tribunal towards loss of estate and funeral expenses when adjusted against the sum arrived at now as payable, petitioners will get `11,500/- and `14,000/- respectively as additional compensation under those heads. MACA No.1369 of 2014 -:8:- 9. In the above manner of assessment of compensation afresh, `1,83,500/- (`70,000/-+ `11,500/-+ `14,000/-+ `88,000/-) is arrived at. Petitioners are not entitled to get `10,000/- each stood awarded by the Tribunal as compensation towards loss of love and affection and pain and sufferings. Those when deducted from the sum arrived at, petitioners will get only `1,63,500/- (Rupees One lakh sixty three thousand five hundred only) (`1,83,500/- - `20,000/-) as total additional compensation, which amount will also carry interest at the rate of 7.5% per annum from the date of filing of the Original Petition till the date of realization, excluding 559 days, being the period of delay occurred in filing the appeal. 3[rd] respondent shall pay the additional compensation alongwith interest accrued on it at the rate fixed and proportionate costs, within two months from the date on which a certified copy of this Judgment is received in accordance with the MACA No.1369 of 2014 -:9:- directions issued by this Court in Circular No.3/2019 dated 06.09.2019. 10. The Tribunal on having been convinced from the evidence on record that the Jeep involved in the motor accident was driven by the 1[st] respondent without a driving licence, permitted the 3[rd] respondent to have the compensation amount recovered from 1[st] and 2[nd] respondents after it being deposited in favour of the petitioners. Challenge being not raised against, the right of recovery of the compensation amount stood granted in favour of the insurer is maintained. The 3[rd] respondent shall pay the additional compensation with interest in favour of the petitioners and shall recover it from respondents 1 and 2 jointly and severally. MACA stands allowed accordingly. Sd/- **MARY JOSEPH JUDGE** ttb