High Court of KeralaSingle JudgeAppeal allowed; no-fault compensation under Sec...

V.S. Chellappan Chettiyar & Others v. Sam Thomas & Reliance General Insurance

Case / Petition Number:MACA.No.368 OF 2014
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Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2021-04-07
Court Decision / Holding
The appeal is allowed. The impugned award is set aside. The petitioners are entitled to Rs.4,46,167/- as compensation (Rs.4,26,667/- under Schedule-II plus Rs.19,500/- for funeral, loss of estate, and medical expenses, as applicable). Interest at 6% per annum from the date of petition till realization with proportionate costs. The insurer shall deposit the amount with interest and costs before the Tribunal within two months from certified copy. The distribution shall be 25% to appellants 1 and 2 and 75% to appellants 3 and 4, with the fourth appellant’s share placed in fixed deposit until majority; the Tribunal shall disburse accordingly. The judgment relies on the no-fault liability principle under Sec.163A (as affirmed by Sunil Kumar) and sets aside the negligence finding.”,
Final Disposition
Appeal allowed; no-fault compensation under Sec.163A awarded; negligence-based denial overturned; specific monetary compensation and deposit/disbursement directions issued.

Parties to the Case

Appellants / Petitioners

  • V.S. Chellappan Chettiyar
  • Rajamma Chettiyar
  • Sreekutty (minor)
  • Anandakrishnan (minor)

Respondents

  • Sam Thomas
  • Reliance General Insurance

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri Mathew John (K)
  • • Sri Domson J. Vattakuzhy

Counsels for Respondents

  • • SRI.K.B.RAMANAND

Case Synopsis & Summary

This Kerala High Court appeal under MACA No. 368 of 2014 arises from an MACT (Motor Accidents Claims Tribunal) proceeding in OPMV 243/2012 concerning the death of Unnikuttan, who died on 9 May 2010 after a road collision on 22 November 2009. The petitioners, parents and two minors represented by their grandfather, claimed compensation under Section 163A of the Motor Vehicles Act, 1988, asserting no-fault liability for the dependents of the deceased. The Tribunal, however, dismissed the petition, holding that the accident occurred due to negligence of the deceased, relying on Ext A4 (police final report) and RW1’s testimony. The respondents contended the petition was not maintainable and that the insurer’s liability did not arise due to deceased-driver negligence. The Kerala High Court, relying on United India Insurance Co. Ltd. v. Sunil Kumar (SC) (2017) (4 KLT 1093), clarified that Sections 140 and 163A create a no-fault regime and the compensation under Section 163A is determined by a structured formula without requiring proof of negligence. The court set aside the Tribunal’s finding of negligence, and computed compensation as on the date of the accident (22-11-2009) under Schedule II, noting the deceased’s age (30) and annual income (Rs. 38,400). The consolidated amount awarded is Rs 4,46,167 (Rs 4,26,667 as compensation plus Rs 19,500 under heads like funeral, loss of estate, medicals), with detailed disbursement and a deposit-order. The appeal is allowed with directions to deposit and distribute the amount among the appellants as specified.

Provisions of Law Cited

Sec. 163A of the Motor Vehicles Act, 1988Sec. 140 of the Motor Vehicles Act, 1988IInd Schedule of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • No-fault liability under Sec. 163A
  • Structured formula for compensation under Sec. 163A
  • Social security rationale of no-fault liability

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the claim petition under Sec.163A does not require proof of negligence and is governed by a no-fault regime; the Tribunal erred in basing its decision on Ext A4 (police final report) and RW1’s testimony to find negligence by the deceased. Citing the Supreme Court’s Sunil Kumar decision, they urged that compensation under Sec.163A be determined by the statutory Schedule-II formula and not by traditional negligence proof; hence the finding of negligence must be set aside and compensation computed accordingly.

Contentions of Respondents

The respondents contended that the claim petition was not maintainable under the circumstances; the accident occurred due to the deceased’s negligence, as per police findings; hence the insurer cannot be held liable beyond the no-fault framework claimed by the appellants; the Tribunal’s order should stand, denying compensation on grounds of negligence.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
United India Insurance Co.Ltd v. Sunil Kumar[2017 (4) KLT 1093(SC)]PositiveThis Supreme Court decision clarifies that Secs. 140 and 163A of the Motor Vehicles Act operate on no-fault liability and do not require proof of negligence for compensation under Sec.163A.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1 MACA.No.368 OF 2014 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **WEDNESDAY, THE 07TH DAY OF APRIL 2021 / 17TH CHAITHRA, 1943** ## **MACA.No.368 OF 2014** **AGAINST THE AWARD IN OPMV 243/2012 DATED 10-10-2013 OF ADDITIONAL MOTOR ACCIDENT CLAIMS TRIBUNAL , KOTTAYAM** ## **APPELLANT/S:** **1 V.S. CHELLAPPAN CHETTIYAR, AGED 56 YEARS S/O.LATE SASTAVU CHETTIYAR,VALIYAVEETTIL HOUSE,CHETHIPPUZHA VILLAGE,CHEERANCHIRA POST,CHANGANACHERRY 2 RAJAMMA CHETTIYAR,AGED 55 YEARS W/O.V.S CHELLAPPAN CHETTIYAR,VALIYAVEETTIL HOUSE,CHETHIPPUZHA VILLAGE,CHEERANCHIRA POST,CHANGANACHERRY 3 SREEKUTTY(MINOR) D/O.LATE UNNIKUTTAN AGED 11 YEARS 4 ANANDAKRISHNAN(MINOR),AGED 8 YEARS S/O.LATE UNNIKUTTAN,MINORS REPRESENTED BY GUARDIAN GRAND FATHER APPELLANT NO 1 V.S.CHELLAPPAN CHETTIYAR,VALIYAVEETTIL HOUSE,CHETHIPPUZHA VILLAGE,CHEERANCHIRA POST,CHANGANACHERRY** **BY ADVS. SRI.MATHEW JOHN (K) SHRI.DOMSON J.VATTAKUZHY** ## **RESPONDENT/S:** - **1 SAM THOMAS,S/O.THOMAS CHERIAN,KIZHAKKEKARA HOUSE,NALUNNAKKAL POST,CHANGANACHERRY 686 101** - **2 RELIANCE GENERAL INSURANCE, ANIL DHIRUBHAI AMBANI GROUP, MANORAMA,REPRESENTED BY BRANCH MANAGER 686 001** **R2 BY ADV. SRI.K.B.RAMANAND** **THIS MOTOR ACCIDENTS CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 7.4-2021, THE COURT ON 07-04-2021 DELIVERED THE FOLLOWING:** 2 MACA.No.368 OF 2014 ## **C.S.DIAS, J. ====================== MACA No.368 of 2014** ## **====================== Dated this the 7[th] day of April, 2021.** ## **JUDGMENT** The appellants were the petitioners in OP (MV) No.243/2012 on the file of the Additional Motor Accidents Claims Tribunal, Kottayam. The respondents in the appeal were the respondents in the claim petition. The parties are, for the sake of convenience, referred to as per their status in the claim petition. 2. The petitioners had filed the claim petition under Sec.163A of the Motor Vehicles Act, 1988 claiming compensation on account of the death of one Unnikuttan (deceased), the son of the petitioners 1 and 2 and the father of the petitioners 3 and 4, 3. The facts in brief, for the determination of the appeal, are: On 22.11.2009, while the deceased was riding a motor cycle bearing registration No.KL-33/8818 3 MACA.No.368 OF 2014 through the Changanacherry – Vazhoor road, when he reached near the Madukkummoodu Junction, another motor cycle bearing registration No.KL-33/A 3594 (offending vehicle) came from the opposite direction and hit the motor cycle of the deceased. The deceased sustained serious injuries and was under prolonged treatment. He passed away on 9.5.2010. According to the petitioners, the accident occurred solely due to the rash and negligent riding of the offending vehicle by the first respondent, who was also the owner of the said vehicle. The second respondent was the insurer of the offending vehicle. The petitioners are the dependents of the deceased. The deceased was a Carpenter by profession and earning a monthly income of Rs.3,200/-. The respondents were jointly and severally liable to pay compensation to the petitioners, which they quantified at Rs.7,00,000/-. 4. The first respondent did not contest the proceedings and was set ex parte. 4 MACA.No.368 OF 2014 5. The second respondent filed a written statement, inter alia, contending that the claim petition was not maintainable in law. The offending vehicle was insured with the second respondent during the relevant period. However, the accident occurred due to the negligence on the part of the deceased. The Police after investigation have filed a charge-sheet before the jurisdictional Magistrate finding that the accident occurred on account of the negligence on the part of the deceased. Therefore, a tort feasor is not entitled to compensation. The second respondent is not liable to pay any amount as compensation and the claim petition may be dismissed. 6. Two witnesses were examined by the petitioners and Exts A1 to A12 were marked through them. The second respondent examined RW1, the Investigating Officer and marked Exts B1 and B2 through him. 7. The Tribunal, after analysing the pleadings and 5 MACA.No.368 OF 2014 materials on record, by the impugned award dismissed the claim petition holding that the petitioners are not entitled for compensation from the respondents on account of the negligence on the part of the deceased. 8. Aggrieved by the impugned award, the petitioners are in this appeal. 9. Heard Sri.Mathew John, the learned counsel appearing for the appellants and Sri.K.B.Ramanand, the learned counsel appearing for the second respondent. 10. The question that emanates for consideration in this appeal is whether the impugned award passed by the Tribunal is correct or not. 11. The Tribunal based on Ext A4 final report filed by the Police, read with the oral testimony of RW1, the Investigating Officer, non-suited the petitioners in view of the findings of the Police that the accident occurred due to the negligence of the deceased. 12. The Tribunal lost sight of the fact that the claim petition was filed under Sec.163A of the Motor 6 MACA.No.368 OF 2014 Vehicles Act, 1988. The Hon'ble Supreme Court in **United India Insurance Co.Ltd v. Sunil Kumar – [2017 (4) KLT 1093(SC)]** has categorically laid down the law that Secs 140 and 163A of the Act are based on the concept of 'no fault liability'. These provisions have been enacted as measure of social security. Therefore, the grant of compensation under Sec.163A on the basis of a structured formula is in the nature of final award and the adjudication thereunder is to be made without any requirement of any proof of negligence of the driver/owner of the vehicle (s) involved in the accident. The adjudication of claim under Sec.163A is required to be made without the requirement of any proof of negligence of the driver/owner of the vehicle (s) involved in the accident. 13. The specific case of the petitioners was that the accident occurred due to negligence on the part of the first respondent. It was for the said reason that the 7 MACA.No.368 OF 2014 petitioners had impleaded the first respondent and the second respondent, the owner and the insurer of the offending vehicle, as parties in the proceedings. 14. In light of **Sunil Kumar** (supra), the finding of the Tribunal regarding the negligence of the deceased based on Ext A4 final report and oral testimony of RW1 is erroneous and wrong. The Tribunal fell in error in considering negligence as an issue in a claim under Sec.163A of the Act. In the said circumstances, the finding of the Tribunal with regard to the negligence on the part of the deceased is set aside. 15. In view of the setting aside of the finding on negligence on the part of the deceased, then the next point is what is the reasonable and just compensation payable to the petitioners. 16. the accident occurred on Admittedly, 22.11.2009. Therefore, the petitioners are entitled for compensation, as on the date of accident, as provided under IInd Schedule of the Act. Admittedly, the 8 MACA.No.368 OF 2014 deceased was aged 30 years at the time of his death and was said to be earning an amount of Rs.38,400/- per year. 17. Going by the IInd Schedule of the Act, the petitioners are entitled to an amount of Rs.6,40,000/minus one-third towards the personal living expenses of the deceased. Thus, the petitioners are entitled to a consolidated amount of Rs.4,46,167/- of compensation as per Schedule-II of the Act. 18. In addition to the said amount, the petitioners are also entitled for an amount of Rs.2,000/- towards funeral expenses, Rs.2,500/- towards loss of estate and subject to a maximum of Rs.15,000/- as medical expenses. Although the petitioners have produced as Ext A9 series, they are only entitled to Rs.15,000/- under the said head of claim. Thus, the petitioners are entitled to a total amount of Rs.19,500/- under the aforesaid heads. 19. On an overall reconsideration of the pleadings 9 MACA.No.368 OF 2014 and materials on record, especially the law laid down by the Hon'ble Supreme Court in **Sunil Kumar** (supra), I am of the considered opinion that the appellants/petitioners are entitled to a consolidated amount of Rs.4,26,667/- as compensation and Rs.19,500/- towards the compensation under the aforementioned heads as prescribed under Schedule-II of the Act, as on 22.11.2009, thus totalling to an amount of Rs.4,46,167/-. In the result, the appeal is allowed. The impugned award is set aside. The appellants are ordered to be entitled for Rs.4,46,167/- with interest on the said amount @ 6% per annum from the date of petition till the date of realisation with proportionate costs. The second respondent/Insurance Company shall deposit the compensation amount with interest and costs before the Tribunal within a period of two months from the date of receipt of a certified copy of this judgment. The compensation amount shall be equally apportioned in 10 MACA.No.368 OF 2014 the ratio of 25% between appellants 1 and 2 and remaining amount of 75% shall be apportioned equally between the appellants 3 and 4. The Tribunal shall disburse the compensation amount ordered above to the appellants 1 to 3, in accordance with law. The proportionate share of the fourth appellant shall be put in his name in fixed deposit until he attains majority. **Sd/-** **C.S.DIAS** > Sks/7.4.2021 **JUDGE**