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2024 Supreme(Ker) 847

IN THE HIGH COURT OF KERALA AT ERNAKULAM
EASWARAN S., J.
Kamala, W/o. Late Thimmayyan and Ors. - Appellants
Versus
Bajaj Alliance General Insurance Co. Ltd., Represented By Its Branch Manager – Respondent
MACA No. 2236 Of 2021
Decided On : 30-07-2024

Advocates Appeared:
For the Appellants : K.B. Arunkumar, Pooja K.S.
For the Respondent: Rinu S. Aswan, Bencilal B.S.

IMPORTANT POINT
The court established that the application of a uniform multiplier based on the deceased's age is essential in compensation claims, and the split multiplier approach is only valid when justified by specific circumstances.

Headnote:

MULTIPLIER - COMPENSATION IN MOTOR ACCIDENT CASE - Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121; National Insurance Company Limited v. Pranay Sethi and Others (2017) 16 SCC 680; Valli R and Others Vs Tamil Nadu Road Transport Corporation Ltd. (2022 (5) SCC 107) - The court discussed the application of multipliers in compensation claims, emphasizing that the multiplier should reflect the age of the deceased accurately. It highlighted that the split multiplier approach is erroneous unless justified by specific reasons. The court ultimately decided that a uniform multiplier of 13 should be applied, leading to an increase in the compensation awarded to the claimants.

Fact of the Case:

The case involves a claim for compensation following the death of Mr. Kulasekharan, who was hit by a school bus driven negligently by the first respondent. The claim was filed by the legal heirs of the deceased, contesting the compensation awarded by the Motor Accidents Claims Tribunal, which they deemed insufficient.

Finding of the Court:

The court found that the Tribunal erred in applying a split multiplier and in the amount of compensation awarded. It determined that the correct multiplier should be 13, as the deceased had not yet turned 51 at the time of death. The court also noted that the Tribunal did not provide adequate justification for its decision to apply a split multiplier.

Issues: 1. Was the Tribunal justified in applying a split multiplier? 2. What is the correct multiplier to be applied in this case? 3. Are the appellants entitled to additional compensation based on Supreme Court principles?

Ratio Decidendi: The court reaffirmed that the multiplier should be based on the age of the deceased at the time of death, following the principles established in Sarla Verma's case. It ruled that a split multiplier is not appropriate unless specific reasons are provided, and in this case, the Tribunal's application of a split multiplier was found to be unjustified.

Final Decision: The appeal was allowed, and the compensation was enhanced by Rs.20,22,272, with interest awarded at 9% from a specified date. The Insurance Company was ordered to deposit the enhanced compensation within one month.

JUDGMENT :

(Easwaran S., J.) :

Can the Tribunal adopt and apply split multiplier while deciding the claim for compensation and whether the Tribunal erred in fixing the multiplier, ignoring the binding principles laid down by the Supreme Court are the questions posed before this Court in this appeal by the claimant for enhancement of the compensation awarded by the Motor Accidents Claims Tribunal, Ottappalam.

2. The facts for the disposal of the appeal are as follows:-On 11.06.2018, at 09.05 am, the 1st respondent in OP(MV) No. 599 of 2018 was driving the school bus bearing registration No.KL-50/D-8891. He reversed the vehicle negligently at a place Natamalika, and hit Mr. Kulasekharan, S/o Thimmayyan and thereby he sustained grievous injuries and further succumbed to the injuries. The claim was preferred by the legal heirs of the deceased. The Insurance Company appeared and contested the claim and contented that the claim amount in the petition was highly excessive and exaggerated. However, the policy in respect of Vehicle No.KL-50/D-8891 was admitted. The Motor Accidents Claims Tribunal, Ottapalam framed the following issues:-

    1. Whether the 1st respondent was driving the school bus bearing registration No.KL-50/D-8891 in a rash and negligent manner thereby caused the accident?

2. Whether deceased Kulaseskharan died due to the injuries sustained in the accident and if so whether the petitioners are entitled to get compensation as claimed?

3. if so, what is the quantum to be awarded?

4. Reliefs and costs?

3. Exts.A1 to A16 were marked. No oral or documentary evidence was adduced on the side of the parties by the respondents. PW1 and PW2 were examined from the claimant’s side. After considering the evidence on record and also the rival pleadings, the Motor Accidents Claims Tribunal, Ottapalam allowed the claim, however, substantially limiting the claim of the appellants. Hence the appeal.

4. I have heard Adv.Pooja K.S. learned counsel appearing for the appellants and Adv.Rinu S. Aswan, assisted by Sri. Bencilal B.S, the learned counsel appearing for the respondent.

5. The learned counsel appearing for the appellants submitted that, the award passed by the Tribunal limiting the compensation claimed by the appellants is erroneous and hence liable to be interfered with by this Court in exercise of its appellate power. She also pointed out that the multiplier adopted by the Tribunal was completely erroneous and against the various settled principles of law propounded by the Hon’ble Supreme Court as well as this Court. She placed reliance on the judgment of this Court in P.O. Meera & Anr. V Ananda P.Naik & Ors (2022 (1) KHC 591) to contend for the proposition that the multiplier adopted by the Tribunal should have been 13, considering the fact that the deceased was aged 50 years and 15 days at the time of the death. She further pointed out that based on the judgment in the Apex Court in Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121], the multiplier for persons between 46-50 age should have been taken as 13. Since the deceased had only crossed 15 days on attainment of the age of 50, it cannot be assumed that the deceased was 51 years old. She further pointed out that the split multiplier taken by the Tribunal because the deceased was due to retire at the age of 56 was also improper. In support of her contentions, the judgment of the Division Bench of this Court in Valsa and Others v. Ulahannan Thomas and Others [2015 (1) KHC 729] is placed reliance on.

6. On the other hand, the learned counsel appearing for the Insurance Company would contend that the compensation awarded by the Tribunal is just and proper. It is pointed out that the deceased was aged 50 years and 15 days and therefore, the age of the deceased has to be taken as 51. Hence, the multiplier applied by the Tribunal is perfectly correct. According to the learned counsel, the compensation awarded was just and proper hence no interference at the hands of this Cou

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