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2025 Supreme(Ker) 2757

IN THE HIGH COURT OF KERALA AT ERNAKULAM
SHOBA ANNAMMA EAPEN, J.
Chinna W/o Late Changan – Appellant
Versus
Sukumaran S/o Krishnankutty – Respondent
MACA No. 659 of 2019
Decided On : 19-09-2025

Advocates Appeared:
For the Appellants : Sheji P. Abraham, Thushara Paily
For the Respondents: C. Harikumar, Dinesh Mathew J. Muricken, Renjith Rajappan, Harikrishnan

The court enhances compensation for death in an accident by rationalizing notional income and adjusting multipliers, emphasizing just compensation principles.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for death in motor accident - Claimants sought enhancement of the ₹7,72,000/- awarded by Tribunal, asserting lower notional income and wrong multiplier - Court re-evaluated the notional income at ₹8,000/- with 40% future prospects adding to total dependency of ₹12,09,600/- and remanded the issue regarding liability - The enhanced amount directed to be paid by insurer with 8% interest. (Paras 6, 8 and 9)

(B) Appeal - Scope - Appellant not to claim under heads not awarded by Tribunal to uphold just and reasonable compensation. (Paras 6 and 9)

Facts of the case:
The claimants are legal heirs of deceased Prahladhan, who died in an accident caused by the rash driving of a bus where they claimed ₹16,00,000/- as compensation.

Findings of Court:
The Tribunal's award was modified to grant an additional compensation amounting to ₹4,72,750/- with 8% interest and remanded the liability decision back to the Tribunal.

Issues: The calculation of loss of dependency, funeral expenses, and the legality of compensation under various heads were addressed.

Ratio Decidendi: The court maintained that just compensation entails revisiting notional income and multiplier usage, with acknowledgment of precedents to support findings.

Result: Appeal disposed of with modifications in compensation and remanding liability back for fresh consideration.

Table of Content
1. claimants' case based on an accident leading to death. (Para 3)
2. discussion on compensation enhancement and income calculation. (Para 4)
3. court's rationale for decision-making on claims and multipliers. (Para 5)
4. court's observation on liability and compensation awards. (Para 6 , 7)
5. final disposition of appeal with remand of liability issues. (Para 8 , 9)

JUDGMENT :

SHOBA ANNAMMA EAPEN, J.

1. This appeal has been filed by the appellants/claimants in O.P.(MV) No.1320 of 2011 on the files of the Motor Accident Claims Tribunal, Thrissur seeking enhancement of compensation awarded by the Tribunal. The respondents herein are the respondents before the Tribunal.

2. According to the claimants, on 24.04.2011 at about 2.30 pm, when the deceased Prahladhan was riding a motorcycle bearing registration No. KL-48-795 through Koottupatha – Arangottukara public road and when he reached near Irumbakassery, a bus bearing registration No.KL-10-V-1094 driven by the 1st respondent in a rash and negligent manner hit the motorcycle. Due to the impact of the hit, Prahladhan sustained severe injuries and succumbed to the injuries on 25.04.2011. The claimants, who are the legal heirs of the deceased Prahladhan approached the Tribunal claiming a total compensation of ₹16,00,000/-.

3. The driver and owner of the offending vehicle who were arrayed as 1st and 2nd respondents respectively remained ex parte before the tribunal. The 3rd respondent, insurer, contested the petition and filed a written statement admitting the insurance policy and contended that at the time of the accident, the 1st respondent did not have a valid driving licence and the 2nd respondent had violated the policy condition. Further, they disputed the quantum of compensation claimed and the age of the deceased. Exts.A1 to A7 and Ext.B1 policy were marked. The Tribunal, after analysing the pleadings and materials on record, awarded a sum of ₹7,72,000/- as compensation under different heads with interest @ 9% per annum from the date of petition till realisation with proportionate costs against the 3rd respondent, being the insurer. The tribunal granted the right to recover the amount from respondents 1 and 2. Dissatisfied with the quantum of compensation awarded by the Tribunal, the petitioners have come up with this appeal.

4. Heard the learned counsel appearing for the appellants, the learned counsel appearing for respondents 1 and 2 and the learned Standing Counsel appearing for the insurance company.

5. The learned counsel for the appellants sought enhancement mainly under the following heads:-

I. Notional Income:- The learned counsel for the appellants submitted that the appellants claimed an amount of ₹9,000/- as the income of the deceased who was a coolie and the Tribunal took only ₹5,000/- as notional income. The learned counsel further submitted that even going by the judgment in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. (2011) 13 SCC 236, the monthly income of coolie ought to have been taken at ₹8,000/-, since the accident is of the year 2011 and sought for enhancement of income fixed. Accordingly, following the judgment in Ramachandrappa (supra) and in order to award a just and reasonable compensation, I find it appropriate to re-fix the notional monthly income at ₹8,000/-. Since the deceased was aged only 24 years at the time of accident, following the apex court judgement in National Insurance Company Ltd. v. Pranay Sethi, 2017 (4) KLT 662 (SC), by adding 40% future prospectus to the income fixed, the total income to calculate dependency is ₹11,200/- (8,000/-x40/100=3,200/-+8,000).

II. Loss of dependency:- The learned counsel for the appellants submitted that in paragraph 13 and 14 of the award, the Tribunal had found that the deceased was aged 24 years. However, the multiplier was wrongly adopted as ‘17’ instead of ‘18’. I find some force in the argument. On a perusal of the afore paragraphs, it is seen that the age of the dec

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