High Court of KeralaSingle JudgeAppeal allowed; modified the MACT award by enha...

Vasanthi and others v. Maneesh and others

Case / Petition Number:MACA No. 807 of 2013

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • MARY JOSEPH
Judgment Date
2022-11-28
Court Decision / Holding
MACA stands allowed. The High Court re-fixes the deceased’s monthly income at ₹7,000, adds 10% for future prospects, applies a multiplier of 11 for age 54, and deducts 1/4 for personal expenses among four dependents. The resulting additional compensation is ₹6,70,300, with interest at 7.5% per annum from the petition date, payable by the insurer, and to be deposited within two months. The insurer may recover the amount from the registered owner due to policy breach. The appeal is allowed; damages for pain and suffering and love/affection are excluded, and the insurer’s liability for interest for 54 days due to petition delay is dispensed with. The Circular No.03/2019 guidance regarding payment timelines is acknowledged. The insurer is exonerated from interest for those 54 days; the remainder of the award stands with enhanced calculations. Competition of ownership remains based on policy breach.
Final Disposition
Appeal allowed; modified the MACT award by enhancing compensation and directing payment by insurer with recovery from owner due to policy breach; 54-day interest exemption for delay.

Parties to the Case

Appellants / Petitioners

  • VASANTHI, W/O.LATE MOHANAN NAIR
  • SANAL,S/O.LATE MOHANAN NAIR
  • SANITHA, D/O.LATE MOHANAN NAIR
  • SABITHA, D/O.LATE MOHANAN NAIR

Respondents

  • MANEESH, S/O.PADMANABHAN
  • RADHAKRISHNAN, S/O.GOPALAPILLA
  • THE NATIONAL INSURANCE CO. LTD.
  • MANOJ

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.ABRAHAM MATHEW (VETTOOR)

Counsels for Respondents

  • • Sri B. Jayaparakash
  • • P.G. GANAPPAN, SC

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal (MACA No. 807 of 2013) in the Kerala High Court, heard on 28 November 2022, by Justice Mary Joseph. The appellants are the legal representatives of Mohanan Nair, who died in an autorickshaw accident in 2009. They challenge the MACT Pala's award of ₹3,06,000, contending the deceased, a 54-year-old rubber tapper earning about ₹7,500 per month, should have been assigned a higher notional income. The petition claimed compensation for loss of dependency, loss of estate, funeral expenses, and loss of consortium, and urged the court to apply principles laid down in Ramachandrappa v. Royal Sundaram and the Supreme Court's Pranay Sethi guidelines, including future prospects. The insurer and owner contest the petition, noting the insured driver lacked a valid license and that the vehicle lacked a permit. The Tribunal had fixed an income of ₹4,000 per month and awarded ₹3,06,000 with 7.5% interest and permitted relief on recovery. The High Court re-assesses the claim, holding ₹7,000 per month as notional income for 2009, adds 10% future prospects, applies a multiplier of 11 for age 54, and deducts 1/4 for personal expenses among four dependents. It awards additional compensation of ₹6,70,300 and directs the insurer to deposit it within two months, with interest fixed as per the impugned award. The court allows the MACA, though it excludes damages for pain and suffering and love and affection, and clarifies the insurer may recover from the vehicle owner for breach of policy.

Provisions of Law Cited

Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income / Ramachandrappa doctrine (notional income for calculation of compensation)
  • Loss of future prospects (Pranay Sethi guidelines)

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants contend that the Tribunal erred in fixing monthly income at ₹4,000. They rely on Ramachandrappa to fix a higher notional income for 2009 and urge application of Pranay Sethi guidelines for loss of estate, funeral expenses, and loss of consortium, including future prospects. They request recalculation with ₹7,000 per month, 10% future prospects, and multiplier 11, with 1/4 deduction for four dependents, leading to enhanced compensation. They seek payment by the insurer with interest and recovery from the owner due to policy breach; they object to inclusion of pain and suffering and love-and-affection amounts, arguing such heads are not payable to petitioners. They also urge consideration of future prospects and a greater total compensation. The breach of policy is relied upon to justify recovery from the vehicle owner.

Contentions of Respondents

Respondents defend the Tribunal’s fixation of ₹4,000 per month as reasonable in the absence of evidence to raise income. They submit the driver lacked a valid license and the vehicle the permit; insurer seeks exoneration from liability and argues to recover payment from the registered owner due to breach of policy. They contend loss of love and affection and pain and suffering should not be awarded to the petitioners, and challenge any increase in compensation beyond the MACT award. They argue no valid basis to disturb the fixed income and the multiplier in the current facts, and maintain the policy breach warrants recovery from the owner.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.[(2011) 13 SCC 236]PositiveCited to justify notional income fixation and re-assessment of income for compensation calculation.
National Insurance Company Limited v. Pranay Sethi and Others[2017 (4) KLT 662 (SC)]PositiveConstitution Bench principles guiding compensation, including future prospects and related heads.

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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`** ``` MONDAY, THE 28[TH] DAY OF NOVEMBER 2022 / 7TH AGRAHAYANA, 1944 MACA NO. 807 OF 2013 ``` ``` AGAINST THE AWARD DATED 15.11.2012 IN O.P(M.V) NO.979/2009 OF MOTOR ACCIDENTS CLAIMS TRIBUNAL, PALA ``` ## **`APPELLANTS/PETITIONERS:`** - `1 VASANTHI, W/O.LATE MOHANAN NAIR, THAZHATHETHU HOUSE, PALAVELI, RAMAPURAM P.O.` - `2 SANAL,S/O.LATE MOHANAN NAIR, THAZHATHETHU HOUSE, PALAVELI, RAMAPURAM P.O.` - `3 SANITHA, D/O.LATE MOHANAN NAIR, THAZHATHETHU HOUSE, PALAVELI, RAMAPURAM P.O.` - `4 SABITHA, D/O.LATE MOHANAN NAIR, THAZHATHETHU HOUSE, PALAVELI, RAMAPURAM P.O.` ``` BY ADV SRI.ABRAHAM MATHEW (VETTOOR) ``` ## **`RESPONDENTS/RESPONDENTS:`** - `1 MANEESH, S/O.PADMANABHAN, THEKKEPARAYIL HOUSE, VAIKATHUMALA BHAGOM, KOODAPPULAM KARA, VELLIYEPPALLY VILLAGE, PIN 686 574.` - `2 RADHAKRISHNAN, S/O.GOPALAPILLA, THAZHETHOTTIYIL HOUSE, ARAKULAM, THODUPUZHA, PIN - 685 591.` - `3 THE NATIONAL INSURANCE CO. LTD. REP. BY ITS DIVISIONAL MANAGER, KOTTAYAM, PIN 689 001.` - `4 MANOJ, 7/249 KURINJILAKATTU KADALICKAD, MUVATTUPUZHA - 686 670.` - `BY ADVS. R2 BY SRI.B.JAYAPARAKASH R3 BY P.G. GANAPPAN, SC` ## **`THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY`** ``` HEARD ON 28.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` MACA.No.807 of 2013 ``` ``` 2 ``` ## **`JUDGMENT`** ## **`Dated this the 28[th] day of November, 2022`** This Appeal is filed challenging an award passed by Motor Accidents Claims Tribunal, Pala (for short ‘the Tribunal’) on 15.11.2012 in O.P.(MV) No.979/2009. The appellants are petitioners who are none other than legal representatives of one Mr.Mohanan Nair who succumbed to the injuries sustained in a motor accident. 2. For the sake of clarity, the parties to this appeal will hereinafter be referred to as the Petitioners and respondents 1 to 4 in accordance with their status before the Tribunal. 3. The averments of the petitioners are to the effect that Mr.Mohanan Nair, the husband of the 1[st] petitioner and father of rest of the petitioners, while travelling in an autorickshaw bearing Registration Number KL-6/A 1799 sustained injuries due to the rash and negligent driving of the same by its driver. Due to the serious injuries sustained by Mr.Mohanan Nair, he was transported to Devamatha Hospital, Koothattukulam for treatment and further to Chazhikkattu Hospital, Thodupuzha, ``` MACA.No.807 of 2013 ``` ``` 3 ``` but succumbed to the fatal injuries during the course of treatment. According to the petitioners, the deceased was a rubber tapper aged 54 years and earning `7,500/- monthly. Incorporating the driver, owner and the insurer and the present registered owner as respondents 1 to 4, the original petition on hand is moved. A sum of `8,00,000/- was also claimed as compensation from respondents jointly and severally. 4. Before the Tribunal 1[st] respondent did not turn up to contest the Original petition. Respondents 2, 3 and 4 filed separate written statements. According to the 2[nd] respondent he was not the registered owner of the vehicle at the relevant time of the motor accident. According to him, he had purchased the autorickshaw about 10 years ago but was sold it to one Mr.Unni M.K., Mulamoottil House, Arakulam, Moolamattom and therefore, was not a necessary party in the Original Petition. The age, occupation and the monthly income of the deceased were disputed. 5. The 3[rd] respondent filed written statement admitting Insurance coverage of the autorickshaw in the name of the 4[th] respondent as on date of the motor accident. It was contended ``` MACA.No.807 of 2013 ``` ``` 4 ``` that the 1[st] respondent, the driver of the Autorickshaw at the relevant time of the motor accident was not holding a valid and effective driving licence to drive it. The vehicle was contended as devoid of a permit and thus, seeks for exoneration from its liability to indemnify the insured. 6. Based on the contention raised by the 2[nd] respondent, the registered owner of the vehicle was impleaded as additional 4[th] respondent. Additional 4[th] respondent has filed written statement contending that the vehicle was conveyed to one Mr.Abhilash K.C at Moovattupuzha on 26.03.2009 after executing a sale agreement and therefore, he is not liable to pay any amount as compensation to the petitioners. 7. Before the Tribunal Ext.A1 to A8 were marked in evidence from the side of the petitioners. On the side of the respondents, the 4[th] respondent was examined as RW1 and Exts.B1 and B2 were marked. On appreciation of the entire evidence, the Tribunal found negligence on the part of the driver of the autorickshaw, the 1[st] respondent and arrived at a sum of `3,06,000/- as the compensation payable. The 3[rd] respondent being the insurer of the offending vehicle was directed to deposit ``` MACA.No.807 of 2013 ``` ``` 5 ``` the amount in favour of the petitioners with interest for the sum at the rate of 7.5% per annum from the date of filing of the Original Petition till the date of realisation. Since it was established before the Tribunal that the driver of the Autorickshaw was not holding a valid driving licence at the relevant time of the motor accident, the 3[rd] respondent was permitted to recover the compensation after depositing it in favour of the petitioners, from the registered owner, who stands arrayed in the Original Petition as additional 4[th] respondent. 8. It was contended by Sri.Abraham Mathew, the learned counsel for the petitioners that the Tribunal is unjustified in opting to fix `4,000/- as the monthly income on a notional basis. Since the motor accident was occurred in the year 2009, there is every reason for re-fixing the monthly income on the basis of the fixation adopted by the Apex Court in Ramachandrappa V. Manager, Royal Sundaram Alliance Insurance Co.Ltd. [(2011) 13 SCC 236] . The learned counsel for the petitioners canvassed also for awarding reasonable sums as compensation towards loss of estate, funeral expenses and loss of consortium as directed by the Constitution Bench of the Apex ``` MACA.No.807 of 2013 ``` ``` 6 ``` Court in National Insurance Company Limited v. Pranay Sethi and Others [2017 (4) KLT 662 (SC)] . Thus, he canvassed for interference with the impugned award. The learned counsel also canvassed for considering loss of future prospects in the case on hand. 9. The learned counsel for the 3[rd] respondent contended on the contrary that the monthly income was fixed notionally as `4,000/- by the Tribunal in the absence of any evidence adduced by the petitioners to establish that and therefore, interference and modification of the monthly income is not at all warranted. 10. The 3[rd] respondent has also invited this Court’s attention to the impugned award and contended that compensation was awarded by the Tribunal towards loss of love and affection and pain and suffering in dis-regard of the nonentitlement of the petitioners to receive that and canvassed for deduction of those from the total compensation found payable in addition in the appeal on hand. The learned counsel for the respondent has also pointed out that the deceased having been survived by four family members, 1/4[th] is liable to be deducted towards personal expenditure, rather than 1/3[rd] stands ``` MACA.No.807 of 2013 ``` ``` 7 ``` deducted by the Tribunal. 11. As per the averments of the petitioners in the Original Petition, the deceased was a rubber tapper. The motor accident in question being occurred in the year 2009, this Court finds it reasonable to refix `7,000/- as the monthly income of the deceased. The Tribunal took the age of the deceased at the relevant time of his death as 54 years, and that being not under challenge is maintained. 11 is the multiplier applicable for the age of 54 years and therefore, that is substituted in the place of ‘8’ wrongly adopted by the Tribunal. 10% is liable to be added to the monthly income in consideration of his loss of future prospects. Thus `7,700/- (`7,000/- +10% of `7,000/-) is arrived at. The deceased was survived by four members and therefore, 1/4[th] is liable to be deducted in consideration of personal expenditure liable to be met with by the victim, had he been alive. When re-assessed with the above modified factors, `7,62,300/- (`7,700x12x11x3/4) is arrived at. `2,56,000/- stands awarded by the Tribunal when deducted therefrom, the petitioners will get `5,06,300/- as additional compensation towards loss of dependency. As compensation ``` MACA.No.807 of 2013 ``` ``` 8 ``` towards funeral expenses and loss of estate, `5,000/- each was already awarded by the Tribunal. Therefore, the petitioners will get `11,500/- under each of the heads. As compensation towards loss of consortium, each of the four petitioners are entitled to get `44,000/- and thus, `1,76,000/- is arrived at. `10,000/- stands awarded by the Tribunal when deducted form the above sum, petitioners will get `1,66,000/- as additional compensation towards loss of consortium. In view of the disentitlement of the petitioners for getting compensation towards pain and suffering and loss of love and affection, `10,000/- and `15,000/- stands awarded is deducted and thus, `6,70,300/(`5,06,300/- + `11500/- +`11500/- +`1,66,000/-) – (`10,000/+`15,000/- ) is arrived at as the total additional compensation. 12. Thus, the petitioners will get `6,70,300/- (Rupees Six Lakhs Seventy Thousand and Three Hundred only) as additional compensation. The said amount will carry interest at the rate of 7.5 % per annum from the date of filing of the original petition till the date of realisation. The 3[rd] respondent being the insurer shall pay the amount now arrived at with interest fixed on it as well as the original compensation with interest fixed as per the ``` MACA.No.807 of 2013 ``` ``` 9 ``` impugned award (if not already paid) to the petitioners within a period of two months from the date on which a certified copy of the judgment is received in accordance with Circular No.03/2019 issued by this Court on 06.09.2019. In view of the breach of policy conditions by the insured stands established before the Tribunal and not challenged by the driver and insured of the offending vehicle, the 3[rd] respondent is permitted to recover the amount after payment to the petitioners form the 1[st] and the Additional 4[th] respondents jointly and severally. The appeal on hand being filed with a delay of 54 days, on the basis of order passed by this Court on 16.08.2022, the 3[rd] respondent is exonerated from liability to pay interest for those days. MACA stands allowed accordingly. Sd/- MARY JOSEPH JUDGE ``` MJL ```
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