High Court of KeralaSingle JudgeThe appeal is allowed; enhanced compensation an...

Suma Kunnumpuram and others v Ravikumar Madathil Parambil and others

Case / Petition Number:MACA 2508/2008

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. Jayachandran
Judgment Date
2022-07-21
Court Decision / Holding
The appeal is allowed. The compensation is enhanced to Rs 6,98,000, computed as Rs 5,60,000 for loss of dependency, after applying 40% future prospects to Rs 40,000 established income, with a 15-year multiplier and 2/3 deduction; Rs 2,500 transportation, Rs 500 clothing, Rs 15,000 funeral expenses, Rs 1,20,000 for loss of consortium, and no award for love and affection or pain and suffering. The tribunal’s erroneous multiplier (17) is corrected to 15 in line with Sarla Verma. Interest on the enhanced amount is payable at 5% from the date of petition; set-off for any previously paid amounts; the insurer must deposit the enhanced amount via NEFT/RTGS after the claimant provides bank details within one month; if bank details are not provided, no interest accrues on the enhanced amount beyond the time-limit. The judgment directs compliance by the insurance company accordingly.
Final Disposition
The appeal is allowed; enhanced compensation and directions issued to the insurer.

Parties to the Case

Appellants / Petitioners

  • Suma Kunnumpuram
  • Chellamma Kunnumpuram
  • Vipin (minor)

Respondents

  • Ravikumar Madathil Parambil
  • Sheela Varghese
  • National Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • S. Mohanan
  • • R. Reji
  • • M. V. Thamban

Counsels for Respondents

  • • Smt. Sarah Salvy

Case Synopsis & Summary

This MACA arises from a Motor Accidents Claims Tribunal award in OP(MV) No.180/1999, challenging the compensation awarded to the legal heirs of Viswambharan, who died in a road accident on 13 December 1998. The appellants contend that the tribunal undervalued the decedent’s income and failed to properly account for future prospects, loss of consortium, and funeral expenses, while also misapplying the multiplier. The Tribunal had fixed the deceased’s annual income at Rs 30,000 despite Ext. A9 showing he ran a tailoring business; the High Court recognizes that the deceased was a skilled tailor and redefines annual income at Rs 40,000 after a one-third deduction for personal expenses. On future prospects, the court, applying the Supreme Court’s Pranay Sethi framework, holds that for a self-employed person under 40, future prospects should be 40% of established income, yielding Rs 56,000 per year when added to the established income (less tax). The court applies a 15-year multiplier (correcting a 17 multiplier used by the tribunal via Sarla Verma) and adjusts non-economic heads: loss of consortium increased to Rs 1.20 lakh for three dependents, and love and affection/pain and suffering are adjusted (pain and suffering removed; love and affection heads not awarded). Funeral expenses are raised to Rs 15,000. The calculations culminate in a total enhanced award of Rs 6,98,000, with interest at 5% on the enhanced sum from the petition date and NEFT/RTGS deposit directions. The appeal is allowed in part and the insurer directed to comply with the enhanced order.

Legal Doctrines & Maxims

  • Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121 (multiplier methodology)
  • National Insurance Co. Ltd. v. Pranay Sethi, (2017) (4) KLT 662 (SC) (future prospects)
  • Established income means the income minus the tax component

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the decedent’s annual income ought to be higher than the tribunal’s Rs 30,000. Ext. A9 shows the deceased ran a tailoring business; the court should consider Rs 40,000 as established income with a one-third deduction for personal expenses. On future prospects, they rely on Pranay Sethi to adopt a 40% addition since the deceased was self-employed and aged 35. Loss of consortium should be Rs 40,000 per dependent head, and with three dependents, Rs 1,20,000; they urge removal of the Rs 25,000 awarded for consortium/love and affection and Rs 15,000 for pain and suffering, aligning with Pranay Sethi and Sarla Verma. They insist on the correct multiplier of 15 (not 17) and a total enhanced award of Rs 6,98,000, with appropriate interest and deposit directions.

Contentions of Respondents

The insurance company counters that future prospects for a person without permanent income should be 25% (per Pranay Sethi) and not 40%, and disputes the self-employed calculation. It argues for a lower enhancement and disputes the 15-year multiplier, suggesting the tribunal’s method was correct or, at minimum, that the court should carefully assess the income and prospects. It also challenges the extent of non-economic head recalculations and the application of Sarla Verma’s multiplier, contending that the original award should stand or require only limited modification.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
National Insurance Co. Ltd. v. Pranay Sethi2017 (4) KLT 662 (SC)PositiveThe court applies the Pranay Sethi framework for future prospects to self-employed individuals under 40.
Sarla Verma v. Delhi Transport Corporation(2009) 6 SCC 121PositiveThe court adopts the 15-year multiplier as per Sarla Verma, correcting the tribunal's 17.

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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** **THURSDAY, THE 21[ST] DAY OF JULY 2022 / 30TH ASHADHA, 1944 MACA NO. 2508 OF 2008** **AGAINST THE ORDER/JUDGMENT DATED 29.02.2008 IN OP(MV) 180/1999 OF ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL ,** ## **MAVELIKKARA** ## **APPELLANTS/PETITIONERS:** 1 SUMA KUNNUMPURAM,PULLIKKANAKKU.P.O. 2 CHELLAMMA, KUNNUMPURAM,PULLIKKANAKKU.P.O. 3 VIPIN, AGED 15 YEARS (MINOR,REPRESENTED BY HIS MOTHER SUMA AS GUARDIAN AND NEXT FRIEND OF -DO- -DO-) BY ADVS. SRI.S.MOHANAN SRI.R.REJI SRI.M.V.THAMBAN ## **RESPONDENTS/RESPONDENTS:** 1 RAVIKUMAR MADATHIL PARAMBIL,MANJADITHARA MURI, PALLICKAL.P.O. 2 SHEELA VARGHESE, KANNAMPALLIL HOUSE, PERINGALA.P.O, KAYAMKULAM. 3 NATIONAL INSURANCE CO.LTD, REP.BY ITS DIVISIONAL MANAGER, KOLLAM. BY ADV SMT.SARAH SALVY FOR R3 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 21.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: MACA 2508/2008 2 C.JAYACHANDRAN, J. -----------------------------------M.A.C.A No.2508 of 2008 ------------------------------------Dated this the 21[st] day of July, 2022 ## J U D G M E N T 1. The legal heirs of Sri.Viswambharan, who met with an accident on 13.12.1998 and who succumbed to the injuries, are the appellants before this Court. They preferred O.P(M.V) No.180/1999 before the Additional Motor Accidents Claims Tribunal, Mavelikkara. Seeking enhancement of compensation granted under various heads, the instant appeal is filed. 2. Heard Sri.R.Raji, learned counsel for the appellants and Smt.Sara Salvy, learned counsel for the third respondent/insurance company. 3. Learned counsel for the appellants first submitted that his annual income was Rs.45,450/- as he was conducting a tailoring shop at the time of the accident. His income has been certified by the Village Officer vide Annexure-A9 certificate. However, the MACA 2508/2008 3 Tribunal took only Rs.30,000 as the notional income. This Court takes note of the fact that the deceased was doing a skilled job of tailoring at the time of the accident. Prima facie proof is available by virtue of Ext.A9 certificate, although the same cannot be taken as conclusive. In such facts and circumstances, this Court is inclined to fix the annual income at Rs.40,000/-, of which 1/3[rd ] has to be deducted towards personal expenses. 4. The second contention is with respect to compensation on account of future prospects, which was not taken at all by the Tribunal. According to the learned counsel for the appellants, future prospects is to be reckoned at 40%, as per the judgment of the Hon'ble Supreme Court in National Insurance Co. Ltd. v. Pranay Sethi [2017 (4) KLT 662 (SC)] . This was opposed by the learned counsel for the Insurance Company pointing out that for a person, who does not have permanent income, future prospects can be reckoned only at 25%. 5. To resolve the above controversy, this Court will MACA 2508/2008 4 straight away refer to conclusion nos.(iii) and (iv) in Pranay Sethi (supra), which are extracted herein below: “(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.” A perusal of the above would indicate that clause (iii) deals with persons having salaried job, whereas clause (iv) deals with persons, who are either self employed or on a fixed salary. In the case of clause MACA 2508/2008 5 (iv), reckoning a definite percentage of the established income for the purpose of future prospects, is completely dependent upon the age and the same should be 40% of the established income, in cases where the deceased was below the age of 40 years. In the instant case, there is no controversy that the deceased was 35 years at the time of his death as found in paragraph no.7 of the impugned award. That being so, the contention of the learned counsel for the Insurance Company that only 25% of the income is liable to be reckoned for future prospects is only to be repelled. 40% of the income is to be reckoned for the purpose of future prospects. 6. The third contention is with respect to compensation on account of loss of consortium and love and affection. The Tribunal has granted only Rs.10,000/-towards loss on account of consortium and Rs.15,000/- towards loss of love and affection. Going by the judgment in Pranay Sethi (supra), loss of consortium is to be granted at the rate of Rs.40,000/per head for each of the legal heirs. This contention is only to be recognised and the appellants are MACA 2508/2008 6 entitled to a sum of Rs.1,20,000/- towards consortium, since the deceased is survived by three dependent legal heirs. Simultaneous with that, the amount of Rs.25,000/- granted by the Tribunal towards compensation on account of consortium and love and affection has to be excluded. 7. Similarly, the amount of Rs.15,000/- granted under the head pain and suffering is also liable to be deleted, going by the judgment in Pranay Sethi (supra). Rs.3,000/- alone was reckoned for funeral expenses, under which head, the appellants are entitled to Rs.15,000/- as per the judgment in Pranay Sethi (supra). It was pointed out by the learned counsel for the Insurance Company that the Tribunal had adopted a wrong multiplier of 17, instead of the correct multiplier of 15, the age of the deceased being 35 at the time of the accident. As per the judgment of the Hon’ble Supreme Court in Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121] , this contention is also liable to be accepted. MACA 2508/2008 7 8. In the result, this appeal is allowed and the amount of compensation payable to the appellants is reworked as indicated in the tabular statement shown hereinbelow: |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|Loss of dependency and<br>estate|340000|560000| |2|Transportation to<br>hospital|2500|2500| |3|Damage to clothing|500|500| |4|Funeral expenses|3000|15000| |5|Pain and suffering|15000|-| |6|Loss of consortium|10000|120000| |7|Los of love and<br>affection|15000|-| |||3,86,000|6,98,000| ||Amount enhanced =Rs.3,12,000/-(6,98,000 - 3,86,000)||| *[40000x(140/100)x15x(2/3)] 9. 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 33 days in filing the appeal, the interest for the enhanced MACA 2508/2008 8 quantum shall not run for the said period as directed in order dated 28.10.2021 in C.M.Appl.No.1/2008. 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 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. ## 10. The appeal is allowed as indicated above. Sd/C.JAYACHANDRAN JUDGE jg