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2022 Supreme(Online)(KER) 16629

HIGH COURT OF KERALA
MANIRAJ – Appellant
Versus
P.K.SAIDALAVI – Respondent
MACA 2417 2012



Advocates:
RENIL ANTO KANDAMKULATHY

In cases involving minors, compensation calculations should apply a multiplier of 15 and a notional income reflective of current standards.

Headnote:

Compensation - Motor Accident Claims - Motor Vehicles Act, 1988 Sections 163A - The court interpreted the notional income and multiplier in minor death compensation claims, aligning with precedents to determine the total compensation and correct the Tribunal's award.

Fact of the Case:

Minor aged 13 died in an accident while cycling; parents sought compensation from the Tribunal for loss of dependency and other expenses, claiming the awarded amount was insufficient.

Finding of the Court:

The court found the Tribunal's application of multiplier and notional income erroneous, citing legal precedents to establish a higher compensation amount.

Issues: Were the Tribunal’s calculations for compensation in the death of a minor adequate and in accordance with established legal principles?

Ratio Decidendi: The court held that the appropriate multiplier is 15 and the notional income for a minor should be Rs.25,000, ruling based on existing legal precedents.

Final Decision: Appeal allowed; total compensation awarded is Rs.4,70,000/-.

J U D G M E N T

This appeal is at the instance of the petitioners in O.P.(MV)No.981 of 2009 on the file of the Motor Accidents Claims Tribunal, Kozhikode. The respondents herein are the respondents before the Tribunal. 2. Heard the learned counsel for the appellants as well as the learned Standing Counsel for the insurance company.

3. Brief facts of the case are as follows:

Consequent on the death of one 'Vishnu' aged

13 years, who was studying in 8th standard at the time of accident, the parents and minor sibling approached the Tribunal and pressed for granting compensation to the tune of Rs.2,50,000/- on the ground that the above said Vishnu died in an accident occurred on 15.11.2008 at about 7.00 a.m., while he was pedaling his cycle on the public road near Pavangad junction and when he was hit down by a car bearing Registration No.KL-11-Z- 2627 came from Calicut side driven by the first respondent, owner cum driver of the car. 4. R1 was set ex-parte by the Tribunal.

5. R2, the insurance company filed written statement disputing the accident and negligence, while admitting policy. Quantum also was disputed.

6. The Tribunal adjudicated the claim, acting on documentary evidence marked as Exts.A1 to A6 and Ext.C1. No evidence let in by the respondents. Finally, Rs.1,50,300/- was granted as compensation along with

7% interest and Rs.2,000/- as cost.

7. While assailing award, it is submitted by the learned counsel for the appellants that the Tribunal wrongly assessed the award and wrongly fixed the notional income at Rs.15,000/-. The Tribunal applied '18' as the multiplier.

8. The learned counsel placed a decision of the Apex Court reported in [ (2014) 1 SCC 244 ],Kishan Gopal and Another v. Lala and Others . The said case, while considering the case of a minor aged 10 years, the Apex Court after following the ratio in [(2001) 8 SCC 197],Lata Wadhwa v. State of Bihar applied multiplier '15' and fixed the notional income at Rs.30,000/- without any deduction. The learned counsel for the appellants pressed for calculating compensation based on the ratio inKishan Gopal's case (Supra). After dictating the case, he also placed a latest decision of the Apex Court reported in [ 2022 ACJ 166 ], Kuruvan Ansari and another v. Shyam Kishore Murmu and another . In this decision, the Apex Court held that we deem it appropriate to take notional income of the deceased at Rs.25,000/- per annum. Accordingly, when the notional income is multiplied with applicable multiplier '15', as prescribed in Schedule II for the claims under Section 163-A of the Motor Vehicles Act, 1988 , it comes to Rs.3,75,000/- (Rs.25,000xmultiplier 15) towards loss of dependency. The appellants are also entitled to a sum of Rs.40,000/- each towards loss of filial consortium and Rs.15,000/- towards funeral expenses. Thus, the appellants are entitled to the following amounts towards compensation:

(a) Loss of dependency Rs.3,75,000 (b) Loss of filial consortium(Rs.40,000x2) Rs.80,000 (c) Funeral expenses Rs.15,000 Total Rs.4,70,000 /-

9. A Division Bench of this Court in the decision reported in [ 2016(1) KLT 704 ],New India Assurance Co.Ltd. v. P. Vijayan considered the compensation payable in cases of death under Sections 166 and 163A of Motor Vehicles Act in cases of minors. Thereafter, it was held that proper multiplier is '15' relying on the decision reported in [ 2010 (2) KLT 802 ], Sarla Verma v. Delhi Transport Corporation Similarly, this Court considered the application of deduction in cases of minor. It was held that deduction towards the probable personal expenses should have been 1/3rd or 50%, as contended by the insurance company. It was held further that, in order to fill up the lacuna inSarla Verma's case(Supra) with regard to the multiplier for children upto 15 years, the three number Bench of the Apex Court held in [ 2013 KHC 4253 ], Reshma Kumari and Others v. Madan Mohan and Another, this Court considered Rs.3,000/- as the monthly income of the minor aged 13 years

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