High Court of KeralaDivision BenchPartial Allowance; enhancement of compensation ...

Vijaya w/o Late Sunil Kumar and Sujesh v. Royal Sundaram Alliance Insurance Co. Ltd.

Case / Petition Number:MACA.No.1906 of 2015
Neutral Citation:/null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • K. P. Jyothindr-anath
Judgment Date
2016-09-01
Court Decision / Holding
Appeal partly allowed. The claimants are entitled to enhanced compensation totaling Rs. 1,85,200. The enhanced amount shall carry interest at 8% per annum from the date of petition till realization. The respondent insurer is directed to deposit the enhanced amount within two months from receipt of a copy of this judgment, failing which interest shall accrue at 9% per annum.
Final Disposition
Partial Allowance; enhancement of compensation awarded with specific monetary uplift and conditions for deposit and interest.

Parties to the Case

Appellants / Petitioners

  • Vijaya w/o Late Sunil Kumar
  • Sujesh S/o Late Sunil Kumar

Respondents

  • Royal Sundaram Alliance Insurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri AVM Salahudin

Counsels for Respondents

  • • Adv. Sri Mathews Jacob (Sr.)
  • • Adv. Sri P. Jacob Mathew

Case Synopsis & Summary

This is a Motor Accidents Claims Appeal under MACA No. 1906 of 2015 before the Kerala High Court in division bench composition, challenging the award in O.P.(M.V.) 851/2014 of the Principal MACT, Kozhikode, concerning the death of Sunil Kumar (aged 43) in a road accident on 10 March 2014. The claimants—the widow Vijaya and the son Sujesh—contend that the Tribunal’s quantum of compensation was inadequate, particularly alleging erroneous fixation of notional income and insufficient compensation under several heads such as loss of dependency and loss of consortium. The respondents, Royal Sundaram Alliance Insurance Co. Ltd., admit negligence and insurance coverage but defend the notional income and overall quantum. The High Court, while not disturbing liability, decided to revisit quantum on two heads: loss of dependency and loss of consortium. Citing Rajesh v. Rajbir Singh, the court holds that the surviving spouse is entitled to a minimum Rs.1 lakh for loss of consortium, and subsequently awards an additional Rs.50,000 on that head. Referring to Ramachandrappa v. Manager, Sundaram Alliance, it approves a notional monthly income, recalculating to Rs.5,200 after 30% future prospects and a 1/3 deduction, culminating in an enhanced total compensation of Rs.1,85,200. The insurer is directed to deposit this enhanced amount with interest (8% p.a. from the petition date) within two months, failing which interest shall accrue at 9%. No costs.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Section 166

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Tribunal erred in not adequately compensating for loss of dependency and in under-augmenting the loss of consortium, especially given the deceased’s age (43) and the absence of documentary income evidence. They urged higher notional income and entry into an enhanced award in line with Rajesh v. Rajbir Singh.

Contentions of Respondents

The insurer argued no fault with the Tribunal’s notional income fixation; there was no proof of the deceased’s occupation or earnings, and the existing formula (including a 30% future prospects addition and a one-third deduction) was adequate; the appellants were already adequately compensated.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Rajesh v. Rajbir Singh(2013) 3 KLT 89 (SC)PositiveCourt relies on Rajesh to hold that the widow is entitled to a minimum Rs.1,00,000 for loss of consortium and can be enhanced to Rs.1,50,000 in light of the cited decision.
Ramachandrappa v. Manager, Sundaram Alliance Insurance Company Limited(2011) 13 SCC 236PositiveCourt uses Ramachandrappa to justify notional fixation of monthly income and calculation of future prospects and deductions for dependency in determining notional income for calculation of compensation.

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 Vijaya w/o Late Sunil Kumar and Sujesh v. Royal Sundaram Alliance 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.T.RAVIKUMAR** **& THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH** **THURSDAY, THE 1ST DAY OF SEPTEMBER 2016/10TH BHADRA, 1938** **MACA.No. 1906 of 2015 ()** **-------------------------** **AGAINST THE AWARD IN OPMV 851/2014 OF PRINCIPAL MOTOR ACCIDENTS CLAIMS TRIBUNAL, KOZHIKODE DATED 31.1.2015** **APPELLANT(S)/PETITIONERS:** **------------------------** **1. VIJAYA W/O.LATE SUNIL KUMAR.** **2. SUJESH** **S/O.LATE SUNIL KUMAR** **BOTH ARE RESIDING AT SUJISHA NIVAS, THEKKENDATH THAZHAM VAYALIL, CHETTIKULAM P.O., ELATHUR, KOZHIKODE.** ## **BY ADV. SRI.AVM.SALAHUDIN** ## **RESPONDENT(S)/3RD RESPONDENT:** **-----------------------------** **ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD. M.SONS ARCADE, 4TH FLOOR, CHEROOTTY ROAD, KOZHIKODE - 673 001.** **R1 BY ADV. SRI.MATHEWS JACOB (SR.) R1 BY ADV. SRI.P.JACOB MATHEW** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 01-09-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **SHG/** ## **C.T. RAVIKUMAR & K.P. JYOTHINDRANATH, JJ.** **- - - - - - - - - - - - - - - - - - - - - - - M.A.C.A.No.1906 of 2015** **- - - - - - - - - - - - - - - - - - - - - - - Dated this the 1[st] day of September, 2016** ## **J U D G M E N T** ## **Ravikumar,J.** The claimants before the Tribunal comes up in appeal feeling aggrieved by the judgment and award in O.P.(M.V.) 851/2014 passed by the Principal Motor Accidents Claims Tribunal, Kozhikode. They are the widow and son of one Sunil Kumar who died in a motor vehicle accident occurred on 10.3.2014. The deceased was a foot passenger who was knocked down by a car bearing registration No.KL-58-G7770. He was immediately taken to Medical College Hospital, Kozhikode and on the same day itself, from there, he succumbed to the injuries. It is in said circumstances that the aforesaid claim petition was filed seeking compensation for his death. Before the Tribunal, no oral evidence was adduced by both sides and in the case of the respondents they did not adduce any documentary evidence as well. On the side of the appellants they produced and got marked Exts.A1 to A5. As per the impugned award the M.A.C.A.No.1906 of 2015 2 Tribunal granted a total compensation of Rs.8,16,000/- with interest at the rate of 9% per annum from the date of petition till realization. It is seeking further enhancement of the quantum of compensation that the captioned appeal has been preferred. 2. We have heard the learned counsel for the appellants as also the learned Senior Counsel appearing for the respondent Insurance Company. 3. Evidently, the accident, the cause of accident as negligence from the part of the driver of the car as also the insurance coverage of the said offending vehicle are not in dispute. In such circumstances, we called upon to consider only the question of entitlement of the appellants for enhancement of the compensation. On consent, we are going to dispose of the appeal at this stage itself. 4. The main grievance of the appellants is that despite the fact that the accident occurred on 10.3.2014 and on the day of the accident the deceased was aged only 43 years the Tribunal fixed the monthly income notionally as Rs.5,000/-. True that the Tribunal has added 30% to the M.A.C.A.No.1906 of 2015 3 said income reckoning the future prospects. It is contended by the learned counsel that it is the erroneous fixation of the monthly income that virtually deprived by the appellants just compensation. Though in the light of the decision of the Hon'ble Apex Court in **Rajesh v. Rajbir Singh** [ **2013 (3) KLT 89 (SC)]** the first appellant being the widow of deceased Sunil Kumar, is entitled to a minimum of Rs.1 lakh towards loss of consortium the Tribunal granted only an amount of Rs.50,000/-. The learned counsel further contended that compensation granted by the Tribunal under the heads 'loss of estate', 'pain and sufferings', 'damage to clothing' and 'transportation expenses' etc. are also on the meagre side. 5. Per contra, the learned Senior Counsel appearing for the respondent contended that the Tribunal cannot be found fault with in fixing the monthly income of the deceased notionally as the appellants had not adduced any evidence to establish his occupation as also the income. Further it is contended that the fixation of the monthly income as Rs.5,000/- invites no interference as the Tribunal M.A.C.A.No.1906 of 2015 4 added 30% to it reckoning the future prospects. It is also submitted that a glance at the schedule of compensation given in the judgment would reveal that the appellants were adequately compensated under all heads. In short, it is submitted that the appellants have failed to bring out any ground warranting an appellate interference. 6. After hearing the learned counsel on both sides and perusing the impugned judgment, we are of the considered view that there is scope for consideration on the question of enhancement only under two heads viz. compensation for 'loss of dependency' and under the head 'loss of consortium'. Towards loss of consortium in the light of the decision of the Hon'ble Apex Court in Rajesh's case (supra) there cannot be any dispute with respect to the position that a minimum of Rs.1 lakh is to be granted to the surviving spouse on the death of his/her spouse and in a claim petition moved under Section 166 of the M.V.Act for compensation for the death of his/her spouse. In the light of the decision in Rajesh's case (supra) the contention of the learned counsel for the appellants that compensation M.A.C.A.No.1906 of 2015 5 granted under the head of loss of consortium requires an appellate modification is certainly to be accepted. In the light of the said decision, we are of the view that the appellants are entitled to get Rs.50,000/- more. It is granted. While considering the inadequacy of the compensation granted under the head loss of dependency certain aspects have to be looked into. True that despite taking up a contention regarding the occupation and income in the claim petition of the deceased, the appellants have failed to adduce evidence to establish such contentions. In such circumstances, we do not find any reason to hold that the Tribunal went wrong in fixing the monthly income notionally. Then the question is whether the fixation of Rs.5,000/- as the monthly income invites interference. We are of the view that the decision of the Hon'ble Apex Court in **Ramachandrappa v. Manager, Sundaram Alliance Insurance Company Limited [(2011) 13 SCC 236]** has to be taken for guidance in the matter of notional fixation of monthly income for calculation purpose. In Ramachandrappa's case a coolie who met with M.A.C.A.No.1906 of 2015 6 an accident in the year 2004 and the Hon'ble Apex Court took his monthly income notionally as Rs.4,500/-. The accident in question occurred about a decade thereafter. Even then the Tribunal took only an amount of Rs.5,000/- as the monthly income. The deceased was then aged only 45 years. Taking note of such circumstances, we are of the considered view that it is only proper to fix the monthly income as Rs.6,000/-. Accordingly it is fixed. We are also of the view that the Tribunal is justified in granting 30% addition reckoning future prospects and also in effecting a deduction of 1/3[rd] of the income reckoning the number of dependents. In such circumstances, taking into account the monthly income now fixed by us and adding 30% to it reckoning the future prospects and making a deduction of 1/3[rd] towards personal expenses the monthly income for calculation purpose has to be taken as Rs.5,200/-. In the said circumstances the amount of compensation payable under that head has to be reassessed by substituting the refixed monthly income. On such reassessment, the appellants would be entitled to get an amount of Rs.8,11,200/-. But the M.A.C.A.No.1906 of 2015 7 Tribunal has already granted an amount of Rs.6,76,000/under that head. After deducting the said amount the appellants would be entitled to get an amount of Rs.1,35,200/- additionally under the said head. In the light of the aforesaid discussion, the appellants are entitled to get a total enhanced compensation of Rs.1,85,200/- (Rupees one lakh eighty five thousand two hundred only). It is awarded. The said enhanced amount will carry interest at the rate of 8% per annum from the date of petition till realisation. The respondent insurer is directed to deposit the said amount along with interest within a period of two months from the date of receipt of a copy of this judgment, failing which the amount remaining to be paid will carry interest at the rate of 9%. There will be no order as to costs. Sd/- **JUDGE** Sd/- **C.T. RAVIKUMAR** **K.P. JYOTHINDRANATH JUDGE** //True copy// P.A. TO JUDGE shg/