Kerala High Court
Syamala C vs M/S.Royal Sundaram Alliance Insurance ... on 1 November, 2024
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE EASWARAN S.
FRIDAY, THE 1ST DAY OF NOVEMBER 2024 / 10TH KARTHIKA, 1946
MACA NO. 1687 OF 2021
AGAINST THE AWARD DATED 25.02.2021 IN O.P.(M.V.) NO.280 OF
2015 OF MOTOR ACCIDENT CLAIMS TRIBUNAL ,PUNALUR
APPELLANTS/PETITIONERS:
1 SYAMALA C.
AGED 53 YEARS
W/O.MUKUNDAN, BHAVANI NIVAS, VADAKKE VAYAL,
PULIPPARA P.O., KADAKKAL, KOLLAM DISTRICT.
2 NANDA
AGED 18 YEARS
D/O.SYAMALA, BHAVANI NIVAS, VADAKKE VAYAL,
PULIPPARA P.O., KADAKKAL, KOLLAM DISTRICT.
BY ADV
ANCHAL C.VIJAYAN
RESPONDENT/RESPONDENT NO.3:
M/S.ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LIMITED
VISHRANTHI, MELARAM TOWERS, NO.2/319,
RAJEEV GANDHI SALARI (O.M.R.), KAVAPAKKAM,
CHENNAI, PIN - 600 097, REPRESENTED BY ITS MANAGER.
BY ADV.
SRI. P. JACOB MATHEW, SC
THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD
ON 01.11.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
MACA NO. 1687 OF 2021 -2-
2024:KER:81629
JUDGMENT
The mother and sister of one Nandu, a final year B.Tech.Computer Science student who died in a motor accident, are the appellants. Deceased Nandu was travelling in a Maruti Swift Dzire car bearing Registration No.KL-01 BE/8324 through Madurai-Tenkasi National Highway and when the vehicle reached at Chinthamani near Vasudevanalloor, the offending vehicle was driven in a rash and negligent manner and hit against a tamarind tree standing in the northern side of the said road due to which Nandu sustained injuries and succumbed to the injuries at Government Hospital, Sivagiri. The claimants contended that deceased Nandu was doing his final year B.Tech. Computer Science under the Kerala University. He was drawing a monthly income of Rs.15,000/-. To prove the educational background, the claimants produced Exts.A9 to A15. The MACA NO. 1687 OF 2021 -3- 2024:KER:81629 insurance company entered appearance and contested the case however produced no evidence. The tribunal proceeded to assess the notional income of the deceased at Rs.10,000/- and granted the following compensation:
"
Sl. Head of Claim Amount Amount Basis vital No. Claimed Awarded details in a Rs. Rs. nut shell 1 Transport to 10000 10000 hospital 2 Damage to clothing and other articles 5000 - (Disallowed) 3 Medical expenses - (Disallowed) and bystanders 25000 expense 4 Funeral expense 15000 40000 5 Compensation for 60000 pain and suffering 20000 6 Compensation for -
loss of love and 800000
affection and (Disallowed)
7 Compensation for 15000
loss of estate 560000
8 Compensation for - 40000
loss of consortium
9 Compensation for
MACA NO. 1687 OF 2021 -4-
2024:KER:81629
pecuniary loss 3000000
caused by the death 1512000
of the deceased and
compensation for
future prospects
Total 4500000 161200
"
2. Heard Sri.Anchal C.Vijayan, learned counsel appearing for the appellant and Sri.P.Jacob Mathew, learned Standing Counsel appearing for the insurance company.
3. Learned counsel for the appellant contended that under no stretch of imagination, the notional income fixed by the tribunal could be assumed to be correct. According to the learned counsel, a B.Tech. Engineering student in Computer Science pursuing his education in the final year, cannot be equated that with a coolie worker. Considering the educational qualification, the tribunal ought to have granted sufficient compensation. He relied on the judgments of Honourable Supreme Court in Kumud Gupta Vs. Iffco Tokio General MACA NO. 1687 OF 2021 -5- 2024:KER:81629 Insurance Company Limited (2024 KHC Online 8230) and S.Vasanthi and another Vs. Adhiparasakthi Engineering College and another (Civil Appeal No.7180 of 2022 dated 11.10.2022). The learned counsel further submitted that in both these judgments, the Honourable Apex Court has fixed the notional income of an engineering student between Rs.20,000 to Rs.30,000 and prayed that the same principles be adopted in the present case.
4. On the other hand, the learned Standing Counsel appearing for the insurance Company, Sri.P.Jacob Mathew relied on the judgment of the Honourable Supreme Court in Meena Pawaia and Others v. Ashraf Ali and Others [2021 (6) KHC 596(SC)] to contend for the proposition that the notional income in respect of death of an engineering student in the year 2012 has been fixed at Rs.10,000/-. Therefore, MACA NO. 1687 OF 2021 -6- 2024:KER:81629 prays that the principles followed by the Supreme Court in Meena Pawaia (supra) may be adopted in order to fix the notional income at Rs.20,000/-.
5. I have considered the rival submissions raised across the Bar.
6. The educational qualification of the deceased Nandu cannot be disputed. Ext.A11 proved beyond doubt that deceased Nandu was an engineering student in Computer Science. While fixing the notional income, the tribunal has not considered the future prospects of an engineering student and also the job opportunities once the student passes out of the course. Such an inconsiderate approach of the tribunal has resulted in the inadequacy of the compensation to the appellants.
7. The judgment cited across the Bar by both learned counsel appearing for the appellants and the learned Standing Counsel appearing for the insurance MACA NO. 1687 OF 2021 -7- 2024:KER:81629 company reveals that there is no absolute rule as laid down by the Apex Court while fixing notional income of an engineering student. Similarly, there can be no absolute rule that the notional income of an engineering student has to be fixed at Rs.20,000/-. The fixation of the notional income and consequent grant of loss of dependency are purely guided by the principles of just and fair compensation under Section 166 of the Motor Vehicles Act. It may not be possible to predict in precise scale that a student of B.Tech Computer Science would earn only Rs.20,000/- or Rs.30,000/- as the case may be once he passes out of his course.
8. Considering the peculiar facts and circumstances, this Court feels that a pragmatic approach as regard the fixation of notional income has to be made. There has been instances where this Court has fixed a notional income of Rs.12,000/- in an accident for MACA NO. 1687 OF 2021 -8- 2024:KER:81629 the year 2012 for an engineer student and grant 40% future prospects. As stated above, in the absence of any precise rule in the matter of fixation of notional income, the same should be left best to the discretion of the courts and tribunals. Considering these aspects, this Court is of the considered opinion that the notional income of deceased Nandu has to be fixed at Rs.25,000/-. Adding future prospects to the same at 40% would come to Rs.35,000/-. The compensation under the head loss of dependency would be thus calculated as follows:
35000 x 12 x 18 /2 = 37,80,000 - 15,12,000 = 22,68,000 Thus, a total amount of Rs.22,68,000/- (Rupees Twenty two lakh sixty eight thousand only) is awarded as enhanced compensation. The said amount shall carry interest at 7% per annum from 26.05.2015 till realization. The appellant would also be entitled for proportionate costs in the case. The claimant shall MACA NO. 1687 OF 2021 -9- 2024:KER:81629 furnish the details of the bank account to the insurance company for transfer of the amount. The appeal is ordered accordingly.
Sd/-
EASWARAN S. JUDGE vv