High Court of KeralaDivision BenchAppeal allowed in part; enhanced compensation; ...

Valsala Venu, Venugopal, and Vibitha v. Periyasamy and National Insurance Co. Ltd.

Case / Petition Number:MACA.No. 2 of 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.K. Abdul Rehim
  • K.P. Jyothindranath
Judgment Date
2017-12-01
Court Decision / Holding
Appeal allowed in part; the notional income and multiple heads were recalibrated resulting in a total compensation of Rs. 4,56,000 with interest at the same rate as the Tribunal; the 2nd Respondent Insurance Company is to deposit the amount within two months from receipt of a copy of the judgment; no costs award.
Final Disposition
Appeal allowed in part; enhanced compensation; no costs.

Parties to the Case

Appellants / Petitioners

  • Valsala Venu
  • Venugopal
  • Vibitha

Respondents

  • Periyasamy
  • National Insurance Co. Ltd. represented by its Divisional Manager, Kayamkulam-690502

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri George Varghese (Perumpallikuttiyil)
  • • Sri A.R. Dileep
  • • Sri Manu Sebastian
  • • Sri K.J. Sharath Kumar

Counsels for Respondents

  • • Smt. P.A. Reziya
  • • Sri M.A. George

Case Synopsis & Summary

This Kerala High Court appeal challenges the quantum of compensation awarded by the Motor Accidents Claims Tribunal, Mavelikkara, in MACO/MAC-1442/2004. The deceased was a college student who died in a road accident on 19 August 2003 when his motorcycle was struck by a mini lorry. The tribunal fixed a dependency notional income of Rs. 3,500 per month, treating the deceased as a non-earning student pursuing a five-year MSc (Software Engineering) course, and used a multiplier that the appellants contend was too low. The appellants contend that the evidence, including Ext. A8 (certificate of study), supports higher notional income and future prospects, and that the tribunal erred in several heads such as funeral expenses, transportation, pain and suffering, loss of estate, and loss of love and affection. They invoke precedents like Ramakrishnapillai K. & Ors. v. New India Assurance Co. Ltd, Narendra Singh v. Nishant Sharma, and the Supreme Court’s framework in Sarla Varma v. Delhi Transport Corporation, later approved by Pranay Sethi, to argue for a higher compensation with a revised multiplier (18) and greater dependency estimates. The insurer argues the tribunal already accorded just compensation, noting the deceased’s non-earnings and the accident’s location. The High Court partially allows the appeal, recalculates several heads, and awards a total of Rs. 4,56,000 with interest, directing deposit within two months and stating there is no costs award."

Legal Doctrines & Maxims

  • Notional income principle for dependency compensation (imputation of earnings when the deceased is not a regular earner).
  • Multiplier rules for dependency compensation as per Sarla Varma v. Delhi Transport Corporation (approved in Pranay Sethi).
  • Future prospects to be considered where the deceased was a student or had prospects of earning.
  • Funeral expenses cap under Pranay Sethi (Rs. 15,000) guidance.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the deceased student, in his 3rd year of a five-year MSc course, was not earning but had future prospects. Ext. A8 and other certificates prove his academic standing. They contended the tribunal erred in fixing the monthly income at Rs.3,500 and misapplied the multiplier. Relying on Ramakrishnapillai K. & Ors. and Narendra Singh, they urged a higher notional income and proper consideration of future prospects; they invoked Sarla Varma and the Pranay Sethi rulings to adjust the multiplier (18) and recalibrate heads such as income, funeral expenses, transport, pain and suffering, loss of estate, and love and affection, ultimately seeking a larger overall compensation.

Contentions of Respondents

The Insurance Company contended the tribunal rightly determined compensation by imputing a notional income of Rs.3,500 for a non-earning student; argued that the funeral expense head was not overstated and that Rs.15,000 under Pranay Sethi is the applicable ceiling; asserted the award reflected proper apportionment of losses given the accident’s location and the claimants’ status, and that the tribunal’s schedule did not require drastic modification.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
National Insurance Company Limited v. Pranay Sethi & Ors2017 (5) KHC 350PositiveCited to justify capping funeral expenses at Rs. 15,000 as per Pranay Sethi guidelines.
Sarla Varma v. Delhi Transport Corporation2010 (2) KLT 802 (SC)PositiveUsed to justify the multiplier approach and the need to consider future prospects in dependency calculations.
Ramakrishnapillai K. & Ors. v. New India Assurance Co. Ltd2015 KHC 3703PositiveCited to support consideration of a higher notional income in a similar student-claimant scenario.
Narendra Singh v. Nishant Sharma & Anr.2015 KHC 5382PositiveCited to support assessing future prospects and higher monthly notional income in a student claimant case.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Valsala Venu, Venugopal, and Vibitha v. Periyasamy and National Insurance Co. Ltd. and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM & THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH** **FRIDAY, THE 1ST DAY OF DECEMBER 2017/10TH AGRAHAYANA, 1939** ## **MACA.No. 2 of 2014 ()** ## **---------------------AGAINST THE AWARD IN OPMV 1442/2004 of MOTOR ACCIDENTS CLAIMS TRIBUNAL, MAVELIKKARA DATED 24-09-2013** ## **APPELLANTS/PETITIONERS:** **-----------------------------------** ## **1. VALSALA VENU** **THEJUS, DESATHINAKAM, PERINGALA P.O., KAYAMKULAM.** ## **2. VENUGOPAL** **THEJUS, DESATHINAKAM, PERINGALA P.O., KAYAMKULAM.** ## **3. VIBITHA** ## **THEJUS, DESATHINAKAM, PERINGALA P.O., KAYAMKULAM.** **BY ADVS.SRI.GEORGE VARGHESE(PERUMPALLIKUTTIYIL) SRI.A.R.DILEEP SRI.MANU SEBASTIAN SRI.K.J.SHARATH KUMAR** ## **RESPONDENTS/RESPONDENTS:** **--------------------------------------** ## *** 1. PERIYASAMY** **2/100, MAVUKKALPATTY, THIRUVALLAR NAGAR, VELAGOUNDAMPATTY, TIRUCHENGODE-637 211 [DIED]** **2. NATIONAL INSURANCE CO. LTD. REPRESENTED BY ITS DIVISIONAL MANAGER, DIVISIONAL OFFICE, KAYAMKULAM-690 502.** *** [THE APPELLANT IS EXEMPTED FROM SUBSTITUTING THE LEGAL REPRESENTATIVES OF DECEASED 1ST RESPONDENT AS PER ORDER DATED 19.11.2014 IN I.A.NO.3444/2014 IN MACA 2/2014.]** **R2 BY ADV. SMT.P.A.REZIYA R BY SRI.M.A.GEORGE** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 01-12-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **SHG/** ## **C.K. ABDUL REHIM & K.P. JYOTHINDRANATH, JJ.** **- - - - - - - - - - - - - - - - - - - - - - - M.A.C.A. No.2 of 2014** **- - - - - - - - - - - - - - - - - - - - - - -** ## **Dated this the 1[st] day of December, 2017** ## **J U D G M E N T** ## **Jyothindranath, J.** Challenge is against the quantum of compensation awarded by the tribunal. A young boy who was pursuing his studies died in a motor vehicle accident occurred on 19.8.2003. The deceased was riding his motorcycle which was knocked down by a mini lorry. Alleging negligence on the side of the driver of the mini lorry as cause of accident, the parents and siblings of the deceased moved a claim petition before the tribunal. After considering the materials before it the tribunal awarded a total compensation of Rs.4,31,000/-. Feeling the compensation as inadequate, the appellants approached this court by filing this appeal. 2. When the appeal came up for hearing, the learned counsel appearing for the appellants submitted before us that in this case, the deceased student was doing his 3[rd] year M.Sc (Software Engineering) Degree course (5 year) from a reputable institution viz. Annai Mathammal Sheela 2 M.A.C.A. No.2 of 2014 Engineering College, Erumapetty. The appellants also produced a certificate from the said institution to substantiate the claim and also the Higher Secondary School Leaving Certificate which was marked as Ext.A8. The main grievance of the appellants is that the tribunal considered only a sum of Rs.3,500/- as the monthly income to assess the dependency compensation. It is also submitted before us that the multiplier used by the tribunal to assess the compensation was also not in accordance with law laid by the apex court. It is the further submission that the compensation awarded on other heads are also on a lower side. 3. Learned counsel appearing for the 2[nd] respondent, insurance company, submitted before us that here is a case where a just compensation was awarded by the tribunal. It is the further submission that as per the admitted case of the appellants, the deceased was a non-earning person. Under such circumstances the tribunal notionally fixed an income of Rs.3,500/-. It is also the submission that as per the claim petition, in column No.6 it was shown as not M.A.C.A. No.2 of 2014 3 applicable, which is an indication that he was actually not earning anything. Under such circumstances, fixation of Rs.3,500/- by the tribunal is actually on a higher side. It is further submitted before us that the compensation awarded on the head of funeral expenses is also on a higher side. As per the latest decision of the Hon'ble Apex Court in **National Insurance Company Limited v. Pranay Sethi & Ors** . **[2017 (5) KHC 350]** only an amount of Rs.15,000/can be awarded on this head. 4. After hearing the counsel, we perused the award and the schedule attached to it. In this case, as per the case of the appellants itself, the deceased was not an earing member. But at the very same time, the positive case of the appellants was that he was doing his 3[rd] year M.Sc (Software Engineering) Degree course in a reputed institution viz., Annai Mathammal Sheela Engineering College, Erumapetty. Thus, when admittedly he was only a student, while dependency compensation is assessed, court can only notionally fix the income by looking all the attending circumstances and the prospects of the deceased. M.A.C.A. No.2 of 2014 4 In this regard a decision of this court in **Ramakrishnapillai K. & Ors. v. New India Assurance Co. Ltd [2015 KHC 3703]** is relevant. That was a case where a 4[th] year B. Tech student sustained fatal injury and succumbed to the injuries. In that case, the accident was in 2006. The court found that it will be only just and proper to consider Rs.12,000/- per month as notional income to assess the dependency compensation. But in this case, it can be seen that the accident was in the year 2003. Further more, he was only in the 3[rd] year semester. The course was also five year course. In a similar case, our apex court in **Narendra Singh v. Nishant Sharma & Anr. [2015 KHC 5382]** , wherein the accident was in 1998, while notionally fixing the income in an injury case, considered the monthly income as Rs.7,000/- per month. In that case, as already stated, the accident was in 1998. But while considering the said case there was also evidence to show that injured was a brilliant student. Apart from a certificate from the institution, nothing else was seen produced or proved to consider the future prospects of the deceased. Under such M.A.C.A. No.2 of 2014 5 circumstances, we feel that it will be only just and proper to notionally fix the monthly income as Rs.7,000/- in this case. As rightly pointed out by the learned counsel for the appellants, the tribunal considered only a multiplier of 13. Going by the dictum laid down in **Sarla Varma v. Delhi Transport Corporation [2010 (2) KLT 802 (SC)** which was approved in **Pranay Sethi** 's case (supra) the appropriate multiplier will be 18. Then re-calculating the dependency, the appellants will be entitled for an additional compensation of Rs.3,92,000/- [7000x12x18x1/2 – 364000]. The said additional compensation of Rs.3,92,000/- is awarded. Towards funeral expenses, the tribunal awarded a sum of Rs.25,000/-. As per the directions issued by the Hon'ble Apex Court in **Pranay Sethi** 's case (supra) only a sum of Rs.15,000/- can be awarded. Thus, the compensation awarded on the said head is refixed as Rs.15,000/-. There will be an excess payment of Rs.10,000/is therein. But on the other heads like transportation charges, pain and suffering, loss of estate it can be seen that the compensation awarded are not seen sufficient. M.A.C.A. No.2 of 2014 6 Towards transportation expenses, only a sum of Rs.1,000/is seen awarded. It is evident that the accident occurred in Tamil Nadu. Thus, considering the place of accident and further considering the native place of the deceased i.e. Kayamkulam, an additional sum of Rs.9,000/- awarded on this head. Towards pain and suffering, only a sum of Rs.10,000/- is seen awarded. An additional sum of Rs.5,000/awarded on this head. Towards loss of love and affection, only a sum of Rs.25,000/- is seen awarded. In this case, the claimants are the parents as well as his sister. Thus, the amount granted on the said is on a lower side. An additional sum of Rs.50,000/- [25000x3 - 25000] is awarded on this head. The tribunal awarded only a sum of Rs.5,000/- on the head of loss of estate. An additional sum of Rs.10,000/awarded on the said head. Thus, the appellants will be entitled for a total compensation of Rs.4,56,000/[(392000+9000+5000+50000 +10000) – 10000]. In the result, the appeal is allowed in part by enhancing the total amount of compensation awarded by the Tribunal by a further sum of Rs.4,56,000/- (Rupees four M.A.C.A. No.2 of 2014 7 lakhs fifty six thousand only), which will carry interest at the same rate as ordered by the Tribunal from the date of the claim petition till realisation. This additional compensation also shall be shared in between the appellants/claimants in the very same ratio as ordered by the Tribunal. The 2[nd] respondent insurance company shall deposit the amount within a period of two months from the date of receipt of a copy of this judgment. Needless to observe that, on such deposit the appellants will be entitled to approach the Tribunal seeking withdrawal and the Tribunal shall pass appropriate orders thereon. There will be no order as to costs. Sd/- ## **C.K. ABDUL REHIM, JUDGE** Sd/- ## **K.P. JYOTHINDRANATH, JUDGE** //True copy// P.A. TO JUDGE shg/