High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation; insurer ...

Unneekutty and others v. Ahamedkutty and Balakrishnan K. S. and The Oriental Insurance Company Limited

Case / Petition Number:MACA No. 989 of 2013

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. S. Dias
Judgment Date
2021-11-01
Court Decision / Holding
The appeal is allowed; enhanced compensation of Rs. 9,21,800 over the Tribunal’s amount, with interest at 8% p.a. from petition date to realisation and proportionate costs. The insurer is directed to deposit the enhanced sum before the Tribunal within 60 days of receiving a certified copy of the judgment. The Tribunal shall disburse the enhanced amount in the ratio 35:35:10:10:10 to appellants 1, 2, 5, 6, 7, respectively, and in accordance with law.
Final Disposition
Appeal allowed; enhanced compensation; insurer to deposit; Tribunal to disburse in specified ratio.

Parties to the Case

Appellants / Petitioners

  • UNNEEKUTTY
  • ASIYA
  • KUHAMMED KOYA
  • AYISHAKUTTY
  • KHADEEJA
  • TABSEERA
  • FATHIMA FIDHA

Respondents

  • AHAMMEDKUTTY
  • BALAKRISHNAN K. S.
  • THE ORIENTAL INSURANCE COMPANY LIMITED

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. SRI.K.VIDYASAGAR

Counsels for Respondents

  • • Adv. SRI.TITUS MANI

Case Synopsis & Summary

This appeal arises from MACA 989 of 2013 challenging a MACT award in OP(MV) 717/2009, Manjeri. The appellants, petitioners, are the dependants of Abdul Ali M., who died on 28.07.2008 when his motorcycle was struck by a bus owned by the first respondent and insured with the third respondent. The petition under section 166 of the Motor Vehicles Act, 1988 sought compensation for loss of dependency and other heads. The Motor Accidents Claims Tribunal, Manjeri, partly allowed the petition, awarding Rs. 3,44,214 with interest at 9% per annum from the petition date. The respondents did not contest except insurer's plea that the accident occurred due to the deceased’s negligence and the claim was on the higher side. On appeal, the Kerala High Court reconsiders quantum, relying on established precedents. The court fixed the deceased’s notional income at Rs.6,500 per month (overruling Ext.A1), with a multiplier of 18 since the deceased was 21 years old, and allowed future prospects at 40%. After deductions for the deceased’s personal living expenses (50%), the loss of dependency was computed at Rs.9,82,800. Conventional heads were enhanced: loss of estate Rs.15,000, funeral expenses Rs.15,000, and loss of consortium Rs.2,00,000 (loss of love and affection and other heads adjusted per Somwati). Total enhanced compensation becomes Rs.12,66,014. The appeal is allowed; the insurer must deposit the enhanced amount with interest and costs within 60 days, and the Tribunal disburses per ratio 35:35:10:10:10 to appellants.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Sarla Verma v. Delhi Transport Corporation and others – multiplier and age-based assessment (growth in dependency and future prospects)
  • Pranay Sethi (National Insurance Co. Ltd. v. Pranay Sethi) – conventional heads and loss of love/consortium considerations, duplication rule
  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited – notional income standard
  • Nagappa v. Gurudayal Singh – permissible enhancement framework for compensation
  • Rajesh v. Rajbir Singh – corroborative authority for enhancement under MACT awards
  • New India Assurance Company Ltd. v. Somwati & Ors. – removal/avoidance of duplication between loss of consortium and loss of love and affection

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Tribunal’s quantum was inadequate. They produced Ext.A1 (salary certificate) showing Rs.7,000 monthly salary but the Tribunal rejected it for lack of corroboration. The appellants urged higher notional income, adopted 6,500 per month as the deceased’s earnings in 2008, applied the 18-year multiplier (deceased aged 21), and allowed future prospects at 40%. They argued for increased compensation under conventional heads (loss of estate, funeral expenses, and loss of consortium). They asserted dependency loss should be calculated by standard formula, with 50% deduction for personal living expenses. They supported enhancement using established SC precedents (Sarla Verma; Pranay Sethi) and later Nagappa and Rajesh decisions. They pressed for allocation in the 35:35:10:10:10 ratio. The aim was to ensure fair compensation for the dependants, especially the minors and parents.

Contentions of Respondents

The insurer and owner defended that the accident was caused by the deceased’s negligence, with liability contested and compensation claimed as excessive. They admitted valid insurance but argued there was no liability under the policy due to contributory negligence. They relied on the lower damage award by the Tribunal and contended Ext.A1’s reliability, urging modest quantum and urging adherence to statutory limits. The respondents disputed the application of future prospects and the enhancement of matrimonial/love and affection heads, emphasizing not to overstate dependency and damages beyond the actual loss suffered.

Cited Precedents (6)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveUsed as authority for determining notional income of the deceased (notional income of a worker, later applied to set Rs.6,500).
Sarla Verma and others v. Delhi Transport Corporation and others(2010) 2 KLT 802 (SC)PositiveApplied for the multiplier 18 appropriate to the age of the deceased.
National Insurance Company Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveGuided loss of dependency, future prospects, and non-duplication of head losses; standard for conventional heads.
Nagappa v. Gurudayal Singh(2003) (1) KLT 115 SCPositiveCited for permissibility of enhanced compensation under the given facts.
Rajesh v. Rajbir Singh(2013) (3) KLT 89 SCPositiveUsed to support the principle of enhancement in MACT awards.
New India Assurance Company Ltd. v. Somwati & Ors.(2020) (9) SCC 644PositiveApplied to strike down duplication of compensation under loss of love and affection after loss of consortium.

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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.S.DIAS** **MONDAY, THE 1[ST] DAY OF NOVEMBER 2021 / 10TH KARTHIKA, 1943** **MACA NO. 989 OF 2013** **AGAINST THE AWARD DATED 16.02.2013 IN OP(MV)NO.717/2009 OF MOTOR ACCIDENT CLAIMS TRIBUNAL , MANJERI, MALAPPURAM** ## **APPELLANTS/ PETITIONERS:** - **1 UNNEEKUTTY, AGED 49 YEARS, S/O. UNNIPOKKU HAJI.** - **2 ASIYA, AGED 47 YEARS, W/O. UNNENKUTTY** - **3 KUHAMMED KOYA, AGED 29 YEARS, S/O. UNNEENKUTTY** - **4 AYISHAKUTTY, AGED 27 YEARS, D/O. UNNEENKUTTY** - **5 KHADEEJA, AGED 15 YEARS, MINOR.** - **6 TABSEERA AGED 13 YEARS, MINOR.** - **7 FATHIMA FIDHA AGED 3 YEARS, MINOR.** **(MINOR PETITIONERS ARE REPRESENTED BY THEIR FATHER AND LEGAL GUARDIAN UNNEENKUTY AND ALL ARE RESIDING AT PEEDIKAKANDY HOUSE, P.O. MUNDAKKAL, CHERUVAYOOR VIA, MALAPPURAM DISTRICT - 673 645.** ## **BY ADV SRI.K.VIDYASAGAR** ## **RESPONDENTS/ RESPONDENTS:** - **1 AHAMMEDKUTTY, S/O. UNNIMAMMED, MANGATTUPARAMBIL,** M.A.C.A.No.989/2013 -:2:- **PUTHUKUDI, P.O. OMANUR, CHERUVAYOOR, MALAPPURAM DISTRICT - 673 645.** **2 BALAKRISHNAN K. S/O. BICHIKKANDAN, KAYATHIMMAL HOUSE, P.O. OMANUR, MALAPPURAM DISTRICT - 673 645.** **3 THE ORIENTAL INSURANCE COMPANY LIMITED, BRANCH OFFICE, MANJERI, JASEELA COMPLEX, BYE PASS JUNCTION, NILAMBUR ROAD, MANJERI, MALAPPURAM DISTRICT - 676 121.** **BY ADV SRI.TITUS MANI** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 01.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** M.A.C.A.No.989/2013 -:3:- _Dated this the 1[st] day of November,2021_ ## **J U D G M E N T** The appellants were the petitioners in O.P.(MV) No.717/2009 on the file of the Motor Accidents Claims Tribunal, Manjeri. The respondents in the appeal were the respondents before the Tribunal. 2. The appellants had filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 _,_ claiming compensation on account of the death of Sri. Abdul Ali M.(deceased) – the son of the appellants 1 and 2 and brother of the appellants 3 to 7. It was their case that, on 28.07.2008, while the deceased was riding his motorcycle along the Kondotty-Mundakkal road, when he reached the place named Vattaparamba, a bus bearing registration No.KL-10/P-7177(bus), driven by the second respondent in a rash and M.A.C.A.No.989/2013 -:4:- negligent manner, hit the motorcycle of the deceased. The deceased sustained serious injuries and lost his life on 28.07.2008. The deceased was working in a private firm and earning a monthly income of Rs.7,000/-. The appellants were the dependants of the deceased. The bus was owned by the first respondent and insured with the third respondent. Hence, they claimed an amount of Rs.5,40,000/- as compensation from the respondents, which was limited to Rs.5,00,000/-. 3. The respondent Nos.1 and 2 did not contest the proceedings and were set _ex parte_ . 4. The third respondent-insurer had filed a written statement admitting that the bus had a valid insurance coverage. Nevertheless, it was contended that the accident occurred due to the negligence of the deceased. The third respondent also contended that the compensation claimed was on the higher side. 5. The appellants examined the employer of the M.A.C.A.No.989/2013 -:5:- deceased as PW1 and marked Exts.A1 to A10 in evidence. The respondents did not let in any evidence. 6. The Tribunal, after analysing the pleadings and materials on record, allowed the claim petition in part, by permitting the appellants to realise from the third respondent an amount of Rs.3,44,214/- with interest at the rate of 9% per annum from the date of petition till the date of realisation and proportionate cost. 7. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioners are in appeal. 9. Heard; Sri. K. Vidyasagar, the learned counsel appearing for the appellants/petitioners and Sri. Titus Mani, the learned counsel appearing for the third respondent-insurer. 10. The sole question that emerges for consideration in the appeal is whether the quantum of compensation awarded by the Tribunal is reasonable M.A.C.A.No.989/2013 -:6:- and just? 11. This Court had by its earlier judgment dated 03.01.2018 allowed the appeal by enhancing the compensation. However, the appellants filed R.P.No.328/2018, _inter alia,_ contending that there was an error apparent on the face of the judgment. Being convinced of the error, this Court had by its order dated 14.09.2021 allowed the review petition and recalled the above judgment. The appeal was directed to be re-heard. Accordingly, the appellant is re-heard. ## **Negligence and liability:** 12. Ext.A3 chargesheet filed by the police after investigation substantiates that the accident occurred due to the negligence of the second respondent. Undisputedly, the first respondent was the owner and the third respondent was the insurer of the bus. The third respondent had admitted that the bus had a valid insurance coverage and had not proved that the first respondent had violated the insurance policy M.A.C.A.No.989/2013 -:7:- conditions. Therefore, the third respondent is to indemnify the liability of the second respondent arising out of the accident. ## **Income of the deceased:** 13. The appellants had claimed that the deceased was employed in a private firm and drawing a monthly salary of Rs.7,000/-. They produced Ext.A1 salary certificate and examined PW1 to prove the document. However, the Tribunal for the reason that no supporting materials was produced, refused to accept Ext.A1 on its face value. Accordingly, the Tribunal fixed the notional monthly income of the deceased at Rs.3,500/-. 14. In _**Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited**_ [(2011) 13 SCC 236], the Hon'ble Supreme Court has fixed the notional income of a coolie worker in the year 2004, at Rs.4,500/- per month. 15. Following the yardstick in the afore-cited M.A.C.A.No.989/2013 -:8:- decision and considering the fact that the accident occurred in the year 2008, I re-fix the notional income of the deceased at Rs.6,500/- per month. ## **Multiplier** 16. It is proved that the deceased was aged 21 years at the time of the accident/death. In the light of the law laid down in _**Sarla Verma and others v. Delhi Transport Corporation and others**_ [(2010) 2 KLT 802 (SC)],the relevant multiplier is '18'. ## **Dependants of the deceased:** 17. Admittedly, the deceased was a bachelor. Following the ratio in _**Sarla Verma**_ (supra) and ## _**National Insurance Company Ltd. v. Pranay Sethi**_ [(2017) 16 SCC 680], one-half of the compensation towards 'loss of dependency' has to be deducted towards the 'personal living expenses' of the deceased. ## **Future prospects:** 18. Going by the law laid down in _**Sarla Verma**_ and _**Pranay Sethi**_ (supra), and considering that the M.A.C.A.No.989/2013 -:9:- deceased was aged 21 years at the time of the accident, I hold that the appellants are entitled for 'future prospects' at the rate of 40% on the compensation for 'loss due to dependency'. ## **Loss due to dependency:** 19. Taking into account the above-mentioned factors, i.e, the 'notional income' of the deceased at Rs.6,500/- per month, the 'multiplier' at '18', 'future prospects' at 40% and after deducting one-half of the compensation towards the 'personal living expenses' of the deceased, I re-fix the compensation for 'loss of dependency' at Rs.9,82,800/-, instead of Rs.2,73,000/awarded by the Tribunal. ## **Conventional heads of compensation:** 20. In clause (viii) of paragraph 61 of _**Pranay Sethi**_ (supra), the Hon'ble Supreme Court has held that the dependants of the deceased are entitled for compensation under the conventional heads namely, 'funeral expenses', 'loss of estate' and 'loss of M.A.C.A.No.989/2013 -:10:- consortium' at Rs.15,000/-, Rs.15,000/- and Rs.40,000/-, respectively. 21. In the instant case, the Tribunal has awarded an amount of Rs.5,000/- towards 'loss of estate' and Rs.3,000/- towards 'funeral expenses'. As laid down in _**Pranay Sethi**_ (supra), I enhance the compensation under the above two heads by a further amount of Rs.10,000/- and Rs.12,000/-, respectively. 22. The Tribunal has not awarded any amount under the head 'loss of consortium'. Again, as held in _**Pranay Sethi**_ (supra), I award the appellants 1 and 2 – the parents of the deceased – and the appellants 5 to 7 – the minor sisters of the deceased an amount of Rs.40,000/- each, totalling to an amount of Rs.2,00,000/- towards 'loss of consortium'. I decline to award any amount under the above head to the appellants 3 and 4, as they were majors and older to the deceased, and have not proved that they were dependants of the deceased. M.A.C.A.No.989/2013 -:11:- ## **Loss of love and affection:** 23. The Tribunal has awarded an amount of Rs.10,000/- towards compensation for 'loss of love and affection'. 24. In _**New India Assurance Company Ltd. v. Somwati & Ors.**_ [2020(9)SCC 644] the Hon'ble Supreme Court has held that once compensation is awarded under the head 'loss of consortium', no compensation shall not be awarded under the head 'loss of love and affection', as it is amount to duplication of compensation. Therefore, I set aside the amount awarded under the said head. 25. The Tribunal has awarded an amount of Rs.53,214/- towards the 'medical expenses' of the deceased. Considering the fact that it was the actual expenditure that was incurred by the appellants for the treatment of the deceased, I confirm the said finding. M.A.C.A.No.989/2013 -:12:- 26. On a comprehensive re-appreciation of the pleadings, materials on record and the law laid down in the afore-cited decisions, I hold that the appellants/petitioners are entitled for enhancement of compensation as modified and re-calculated above and given in the table below for easy reference. |Sl.No|Head of claim|Amount<br>awarded by the<br>Tribunal (in<br>rupees)|Amounts<br>modified<br>and<br>recalculated<br>by this<br>Court| |---|---|---|---| |1|Medical expenses|53,214|53,214| |2|Loss of love and<br>affection|10,000|Nil| |3|Loss of estate|5,000|15,000| |4|Funeral expenses|3,000|15,000| |5|Loss<br>due<br>to<br>dependancy|2,73,000|9,82,800| |6|Loss of consortium|Nil|2,00,000| ||**Total**|**3,44,214**|**12,66,014**| 27. Even though the appellants had claimed only an amount of Rs.5,00,000/- as compensation, following the ratio in _**Sarla Verma**_ and _**Pranay Sethi**_ (supra), wherein the Hon'ble Supreme Court has held that the M.A.C.A.No.989/2013 -:13:- dependants of the deceased are entitled for 'future prospects' and compensation under the conventional heads of compensation, I award the appellants more compensation than what is claimed in the claim petition. The above course is permissible in view of the law laid down by the Hon'ble Supreme Court in _**Nagappa v. Gurudayal Singh**_ [2003 (1) KLT 115 SC] and _**Rajesh v. Rajbir Singh**_ [2013 (3) KLT 89 SC]. In the result, the appeal is allowed, by enhancing the compensation by an amount of **Rs.9,21,800/-** with interest on the enhanced compensation at the rate of 8% per annum from the date of petition till the date of realisation and proportionate cost. The third respondent/insurer is ordered to deposit the enhanced compensation with interest and cost before the Tribunal within a period of sixty days from the date of receipt of a certified copy of this judgment. The Tribunal shall disburse the enhanced compensation with interest and cost to the appellants 1, 2, 5 to 7 in M.A.C.A.No.989/2013 -:14:- the ratio of 35:35:10:10:10 and in accordance with law. Sd/- ## **C.S.DIAS,JUDGE** DST/01.11.2021 //True copy/ P.A.To Judge