IN THE HIGH COURT OF KERALA
V. CHITAMBARESH, R. BASANT, JJ.
Chellammal and Others - Appellants
Versus
Badarudeen Alias Babu and Others - Respondents
M.A.C.A. No. 1032 of 2011
Decided On : 09-11-2011
Compensation - Motor Vehicles Act - 163A
Fact of the Case:
The claimants, mother and siblings of the deceased, appealed against the compensation awarded by the Tribunal for the deceased's fatal accident. The appellants contended that the awarded compensation was low and challenged the direction for the Insurance Company to recover the amount from the owner.
Finding of the Court:
The court found that the compensation awarded was perversely low and calculated the amount payable under section 163A of the Motor Vehicles Act, determining it to be Rs. 4,36,500. The court set aside the direction for the Insurance Company to recover the compensation amount from the owner and awarded the appellants an additional amount of Rs. 2,86,500.
Issues: Low compensation amount, Legality of direction for the Insurance Company to recover the amount from the owner
Ratio Decidendi: The court determined the just compensation based on the provisions of section 163A of the Motor Vehicles Act and set aside the direction for the Insurance Company to recover the compensation amount from the owner.
Final Decision: The appeal was allowed in part, the direction for the Insurance Company to recover the compensation amount from the owner was set aside, and the appellants were awarded an additional amount of Rs. 2,86,500. Proportionate costs were also awarded to the appellants.
R. Basant, J.
1. Claimants are the appellants. They are the mother aged 62 years and siblings of the deceased, a young man aged 23 years on the date of the accident, i.e. on 25th April, 2002. He succumbed to the injury suffered in that accident. Against a total claim of limited to Rs. 6 lakhs, Tribunal awarded an amount of Rs. 1.5 lakhs as compensation as per the details given in paragraph 9 of the impugned award which we extract below.
Sl.No.
Head of claim
Amount claimed (in rupees)
Amount awarded (in rupees)
1
Transportation and ambulance expenses
Rs. 3500/-
3500/-
2
Damage to clothing
Rs. 500/-
Rs. 500/-
3
Pain and sufferings
Rs. 20000/-
Rs. 10000/-
4
Loss of dependency
Rs. 6,00,000/-
Rs. 1,26,000/-
5
Funeral expenses
Rs. 5000/-
Rs. 4000/-
6
Loss of estate, etc.
Rs. 75000/-
Rs. 5000/-
7
Extra nourishment
Rs. 2000/-
500/-
8
Bystander's expenses
Rs. 1000/-
Rs. 500/-
9
Total
Rs. 7,17,000/-
Rs. 1,50,000/-
(limited to Rs. 6,00,000/- )
We have heard the Learned Counsel for the appellants and the Learned Counsel for the 3rd respondent Insurance Company. The 3rd respondent insurer has been directed to satisfy the award with the right to claim and return the amount from the second respondent/owner. Learned Counsel for the appellants assails the impugned award on two grounds.
2. First of all, it is contended that the quantum of compensation awarded is low. It cannot be said to be just compensation for the loss suffered. Secondly, Learned Counsel for the appellants contends that the direction given in favour of the Insurance Company to recover the amount from second respondent/owner is not legally sustainable in view of the dictum in New India Assurance Company Ltd. Vs. Balakrishnan and others,
3. The Learned Counsel for the appellants contends that even accepting the finding of the Tribunal that the monthly earnings of the deceased was Rs. 3,000/- p.m. the amount Rs. 1.5 lakhs awarded as compensation warrants interference because the amount awarded is perversely low. At any rate the amount awarded should not have been lesser than the amount payable u/s 163A of the Motor Vehicles Act.
4. In the light of this contention raised by the Learned Counsel for the appellants, we have attempted to ascertain the quantum of compensation that would be payable u/s 163-A accepting the findings rendered by the Tribunal. In that event the deceased would fall under horizontal entry No. 3 can relating to persons above 20 years but not exceeding 25 years. He would fall under vertical entry No. 12 relating to persons earning income above Rs. 24,000/- upto Rs. 36,000/- . At the point where relevant horizontal column and vertical column meet Rs. 6,48,000/- is prescribed as the compensation payable for fatal accident. Taking note of the mandate under Clause 1 of the Second Schedule 1/3 of the amount has to be deducted towards the personal expenses of the deceased. In addition to the amount of compensation payable under Clause 1 compensation for funeral expenses and loss of estate as prescribed under Clause 3 will also be payable.
5. In short, if the claim were reckoned as are u/s 163-A of the Motor Vehicles Act an amount of Rs. 4,36,500/- (Rupees Four lakhs thirty six thousand and five hundred only) will be payable as shown below.
1.
Compensation for fatal accident as per the table under Clause 1 of the Second Schedule (6,48,000/- x 2/3)
Rs. 4,32,000/-
2.
Funeral expenses u/s 3 (i)
Rs. 2,000/-
3.
Loss of estate under Clause 3 (iii)
Rs. 2,500/-
Total
Rs. 4,36,500/-
6. We are satisfied in these facts and circumstances of this case that at least the amount payable u/s 163-A can safely be fixed as the quantum of compensation payable to the claimants. The challenge of this ground can succee
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.