High Court of KeralaDivision BenchAppeal partly allowed; enhanced compensation aw...

Vijayakumari P. v. The New India Assurance Company Ltd.

Case / Petition Number:MACA.No.1907 of 2016
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. T. Ravikumar
  • K. P. JyothindrAnath
Judgment Date
2016-11-18
Court Decision / Holding
The appeal is allowed in part. The appellant is awarded an additional compensation of Rs. 3,53,200/- with interest at 8% per annum from the date of petition till realisation. The insurer is directed to deposit the enhanced amount within two months from receipt of this judgment, and the Tribunal shall realise court fees on the additional amount. No costs.
Final Disposition
Appeal partly allowed; enhanced compensation awarded with deposit ordered; no costs.

Parties to the Case

Appellants / Petitioners

  • Vijayakumari P. w/o Chandran

Respondents

  • The New India Assurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Binoy Vasudevan
  • • Smt. K.J. Anitha

Counsels for Respondents

  • • Sri. Thomas Mathew Nellimoottil
  • • Sri. A.A. Ziyad Rahman

Case Synopsis & Summary

Vijayakumari, the claimant in O.P.(M.V.)1206/2011 before the Motor Accidents Claims Tribunal, Palakkad, sought compensation for the death of her son Rajesh in a motor vehicle accident on 24 June 2011. The Tribunal awarded Rs. 6,65,000 with interest at 9% per annum, against her claim of Rs. 8 lakhs, prompting this MACA. The sole dispute was quantum, since there was no contention about the accident or liability to indemnify the insured owner. The appellant argued that the tribunal erred by calculating the multiplier on the basis of the claimant’s age instead of the deceased’s age (27 at the time of death) and by underestimating the deceased’s income, ignoring principles on future prospects. Relying on Sarla Varma v. Delhi Transport Corporation (SC) and its affirmation in Munna Lal Jain v. Vipin Kumar Sharma, as well as Ramachandrappa v. Manager, Sundaram Alliance Insurance, she urged adherence to the age-based multiplier and a realistic notional income for calculation. The High Court held that the multiplier must be tied to the deceased’s age, fixing it at 17, and used Ramachandrappa’s approach to determine a notional monthly income of Rs. 9,100 after a 30% addition for future prospects. After applying the modified multiplier, the court revised the loss of dependency, granted Rs. 10,000 for pain and suffering, and, invoking Rajesh v. Rajbir Singh, acknowledged that compensation may exceed the claimed amount. The appeal was allowed in part, awarding an enhanced sum of Rs. 3,53,200 plus 8% interest, with deposit within two months; no costs."

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Multiplier doctrine based on the age of the deceased (Sarla Varma v. Delhi Transport Corporation)
  • Affirmation of multiplier principle in Munna Lal Jain v. Vipin Kumar Sharma
  • Notional income approach with future prospects (Ramachandrappa v. Manager, Sundaram Alliance Insurance Co. Ltd.)
  • Court may grant just compensation above the claimed heads (Rajesh v. Rajbir Singh)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argued that the tribunal erred by applying the multiplier based on the claimant’s age instead of the deceased’s age (27 at death) and by not properly applying Ramachandrappa’s notional income approach with future prospects. She sought enhancement of compensation, including a claim for pain and suffering ( Rs. 50,000) and a realistic assessment of income and prospects, supported by Sarla Varma and Munna Lal Jain principles, with the Supreme Court’s guidance in Rajesh v. Rajbir Singh.

Contentions of Respondents

The insurer contended that the claimant was bound by her claimed amount (Rs. 8 lakhs) and that there was no stable evidence of occupation or income to warrant higher figures. They argued the tribunal’s approach should be allowed, and that there is no justification to exceed the heads of compensation claimed.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Sarla Varma v. Delhi Transport Corporation2010 (2) KLT 802 (SC)PositiveThe Court follows the Sarla Varma principle that the multiplier in death claims under Section 166 MV Act must be linked to the deceased’s age.
Munna Lal Jain & Ors. v. Vipin Kumar Sharma & Ors.[(2015) 6 SCC 347]PositiveAffirms the age-based multiplier framework, reinforcing the Sarla Varma approach.
Ramachandrappa v. Manager, Sundaram Alliance Insurance Company Limited[(2011) 13 SCC 236]PositiveGuides the notional income concept and future prospects, used to compute the enhanced monthly income (Rs. 9,100).
Rajesh v. Rajbir Singh[(2013) (3) KLT 89 (SC)]PositiveAccepts that just compensation may exceed the claimant’s stated heads and claims, allowing the court to grant higher relief.

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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.T.RAVIKUMAR** **& THE HONOURABLE MR. JUSTICE K.P.JYOTHINDRANATH** **FRIDAY, THE 18TH DAY OF NOVEMBER 2016/27TH KARTHIKA, 1938** **MACA.No. 1907 of 2016 () -------------------------** **AGAINST THE AWARD IN OPMV 1206/2011 OF MOTOR ACCIDENTS CLAIMS TRIBUNAL, PALAKKAD DATED 31-10-2015** ## **APPELLANT(S)/PETITIONER:** **-----------------------** **VIJAYAKUMARI P. W/O CHANDRAN, AGED 54 YEARS, PALAKKAPARAMBU, VALLIKODU, PALAKKAD.** **BY ADVS.SRI.BINOY VASUDEVAN SMT.K.J.ANITHA** **RESPONDENT(S)/2ND RESPONDENT.: ------------------------------** **THE NEW INDIA ASSURANCE COMPANY LTD N.S TOWERS, 1ST FLOOR, NEAR STADIUM BUS STAND, COIMBATORE ROAD, PALAKKAD.678 105** **BY ADV. SRI.THOMAS MATHEW NELLIMOOTTIL R BY SRI.A.A.ZIYAD RAHMAN** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 18-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **SHG/** ## **C.T. RAVIKUMAR & K.P. JYOTHINDRANATH, JJ.** **- - - - - - - - - - - - - - - - - - - - - - - M.A.C.A.No.1907 of 2016** **- - - - - - - - - - - - - - - - - - - - - - - Dated this the 18[th] day of November, 2016** ## **J U D G M E N T** ## **Ravikumar, J.** The appellant was the claimant in O.P.(M.V.)1206/2011 before the Motor Accidents Claims Tribunal, Palakkad. The said claim petition was filed under Section 166 of the M.V. Act claiming compensation for the death of her son Rajesh. The tribunal as per the impugned award granted a total compensation of Rs.6,65,000/- with interest at the rate of 9% per annum from the date of petition till realisation as against a claim of Rs.8 lakhs. It is in the said circumstances that this appeal has been preferred seeking enhancement of the quantum of compensation. 2. We have heard the learned counsel for the appellant and also the learned counsel appearing for the respondent insurance company. 3. From the submissions made at the bar it is evident that there is absolutely no dispute regarding the 2 M.A.C.A.No.1907 of 2016 accident, the cause of accident as also the liability to indemnify the insured owner. In such circumstances we are of the view that the sole question to be resolved in this case is whether the appellant is entitled to get enhanced compensation. Hence, we are inclined to consider this appeal on merits at the admission stage itself. 4. The main grievance of the appellant is that the tribunal fixed the multiplicand as also the multiplier wrongly. It is contended that for the purpose of arriving at the multiplicand the tribunal took the monthly income of the deceased only at Rs.4,500/-. True that 50% of the income was added to the said income. It is the submission by the learned counsel appearing for the appellant that taking note of the fact that the accident occurred on 24.6.2011 and on the date of the accident the deceased was aged only 27 years the tribunal ought to have fixed the monthly income on a higher side. The further submission is that the tribunal deviated from the dictum laid down by the Apex Court in **Sarla Varma v. Delhi Transport Corporation [2010 (2)** M.A.C.A.No.1907 of 2016 3 **KLT 802 (SC)** which was affirmed by the Apex Court in **Munna Lal Jain & Ors. v. Vipin Kumar Sharma & Ors. [(2015) 6 SCC 347]** while identifying the multiplier. Instead of applying the multiplier with reference to the age of the deceased the tribunal identified the multiplier with reference to the age of the claimant. In such circumstances, we do not find any reason why the contention raised by the learned counsel for the appellant should not be accepted. In **Sarla Varma** 's case the Apex Court held that in a claim for compensation for death filed under Section 166 of the M.V. Act the multiplier has to be identified with reference to the age of the deceased. Obviously paragraph 8 of the impugned judgment itself would reveal that the tribunal identified the multiplier with reference to the age of the claimant. In such circumstances it is evident that the tribunal disregarded the dictum laid down by the Apex Court and therefore the mistake committed by the tribunal has to be corrected. In such circumstances the multiplier is taken as 17. As regards the fixation of the monthly income M.A.C.A.No.1907 of 2016 4 though the claimant averred that the deceased was a goldsmith and was earning Rs.10,000/- she has failed to establish the averments regarding occupation and income. Even in such circumstances, while fixing the monthly income of a person who died in a motor vehicle accident at the age of 27 years, that too, in the year 2011 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]** ought to have been taken as guidance. In the said decision in respect of a coolie who sustained injuries in a motor vehicle accident which occurred in the year 2004, the Hon'ble Apex Court fixed the monthly income notionally at Rs.4,500/-, for calculation purpose. The accident in question occurred about 7 years since the accident involved in Ramachandrappa's case. Taking note of the year of the accident and also the age of the deceased on the date of the accident and taking the decision of the Apex Court as guidance we are of the view that it is only proper to fix the 5 M.A.C.A.No.1907 of 2016 monthly income of the deceased as Rs.7,000/- for calculation purpose. The tribunal added 50% to the notionally fixed income. Since we have already found that the appellant had failed to establish the averments regarding the occupation of the deceased it has to be taken that absolutely no evidence was adduced by the appellant before the tribunal to show that the deceased was having a stable employment. When the appellant had failed to establish the said aspect the dictum laid down by the Apex Court in **Sarla Varma** 's case as also in **Rajesh v. Rajbir Singh** [ **2013 (3) KLT 89 (SC)]** case cannot be applied. At the same time another aspect has to be looked into. Even in the case of manual labourers increase in the cost of living, price index etc. must have some reflection. Needless to say that by lapse of years such persons would also be constrained to seek for increase in their wages. That apart it is to be noted that in the case of such manual labourers there is no retirement on superannuation and they could continue to work as long as they are healthy. In such M.A.C.A.No.1907 of 2016 6 circumstances, we are of the view that 30% addition can be made to the income notionally fixed as the deceased would have obtained such future prospects but for his untimely death. In such circumstances for calculation purpose the monthly income of the deceased has to be taken as Rs.9,100/-. Based on the modified multiplier and the multiplicand if the amount of compensation payable under the head loss of dependency is reassessed the amount payable to the appellant would be Rs.9,28,200/-. But the tribunal has already granted an amount of Rs.5,85,000/under that head. After deducting the said amount the appellant would be entitled to get an additional compensation of Rs.3,43,200/-. Though an amount of Rs.50,000/- was claimed towards pain and suffering the tribunal did not grant any amount under that head. True that the deceased Rajesh succumbed to the injuries on the same day itself viz. 24.6.2011. But, we are of the view that even in such circumstances it is certain that he must have endured excruciating pain, at least, for some time. In such M.A.C.A.No.1907 of 2016 7 circumstances a conventional amount can be granted. We are inclined to grant Rs.10,000/- under that head. Despite the persuasive argument of the learned counsel for the appellant we do not find any reason to hold that the appellant is entitled to get enhanced compensation under any other heads. 5. The learned counsel for the respondent submitted that the appellant is not entitled to get any amount in excess of the claim made before the tribunal and the appellant had limited her claim of compensation to Rs.8 lakhs. The sum and substance of the contention is that the appellant is not entitled to get compensation in excess of Rs.8 lakhs. We do not think that any volume of argument is required to answer the said contention. The Apex Court in **Rajesh** 's case (supra) held that if tribunal/court finds that the just compensation is above the amount claimed as compensation by the claimant it would be open to the tribunal/court to grant compensation even ignoring the claim of compensation or the heads of compensation. M.A.C.A.No.1907 of 2016 8 Therefore, we find absolutely no reason to uphold the contention of the respondent in that regard. 6. In the light of the above discussion, the appellant is entitled to get an additional compensation of Rs.3,53,200/- (Rupees three lakhs fifty three thousand two hundred only). 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. The Tribunal shall realise the court fee payable on the amount granted over and above the claim. There will be no order as to costs. Sd/- **C.T. RAVIKUMAR** **JUDGE** Sd/- ## **K.P. JYOTHINDRANATH** **JUDGE** //True copy// P.A. TO JUDGE shg/