IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MRS. JUSTICE M.C.HARI RANI FRIDAY, THE 2ND SEPTEMBER 2011 / 11TH BHADRA 1933 MACA.No. 2161 of 2005() ----------------------- OPMV.501/2003 of MOTOR ACCIDENT CLAIMS TRIBUNAL, PUNALUR .................... APPELLANTS/PETITIONERS: ---------------------------------------- 1. THRESSIAMMA @ RANI MATHEW, W/O.LATE K.M.MATHEW, KANJIRATHUMKUNNIL HOUSE, RAMAPURAM, KOTTAYAM, NOW RESIDING AT MUTTATHIL HOUSE, CHERUKULAM.P.O, ANCHAL, KOLLAM DISTRICT. 2. RINU MATHE (MINOR), S/O.LATE K.M.MATHEW, REPRESENTED BY HIS MOTHER THRESSIAMMA @ RANI MATHEW, W/O.LATE K.M.MATHEW, KANJIRATHUMKUNNIL HOUSE, RAMAPURAM, KOTTAYAM, NOW RESIDING AT MUTTATHIL HOUSE, CHERUKULAM.P.O, ANCHAL, KOLLAM DISTRICT. BY ADVS. SRI.P.V.BABY SRI.A.N.SANTHOSH RESPONDENTS: --------------------- 1. K.M.KUMBATH, S/O.KOYA, KURINGATTICKAL MEETHAL, VELLEYAMKODU.P.O. 2. K.K.ABOO, S/O.MOIDEEN, KOOLIKANDI HOUSE, PERAMBRA.P.O, KOZHIKODE. 3. THE BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD., CALICUT BRANCH. ADV. SRI.P.JAYASANKAR FOR R3 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 02/09/2011, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: R. BASANT & M.C.HARI RANI, JJ. ----------------------------------------------------------------- M.A.C.A. No.2161 of 2005 ---------------------------------------------------- Dated this the 2nd day of September, 2011 JUDGMENT R. BASANT,J. Claimants are mother and brother of a deceased child aged 12 years. He was a student of the 6th standard on the date of the accident, ie, 08.03.2003. He was traveling along with his parents and brother. The vehicle in which they were traveling got involved in an accident. The child suffered injuries and succumbed to the injuries on the same day. His father also succumbed to the injuries. The claimants claimed a total amount of Rs.6,20,000/- as compensation; The Tribunal by the impugned award directed payment of a total amount of Rs.2,23,000/- as compensation as per the details given below: Sl.No. Head Amount awarded 1 Pain and sufferings Rs.15,000/- 2 Loss of amenities Rs. 3 Medical expenses Nil 4 Transportation expenses Rs. 3,000/- 5 Loss of earnings Rs. 6 By stander expenses Rs. M.A.C.A. No.2161 of 2005 2 Sl.No. Head Amount awarded 7 Disability/Dependency Rs.2,00,000/- 8 Future Medical expenses Rs. 9 Extra Nourishment Rs. 10 Damage to clothings Rs. 11 Funeral expenses Rs.5,000/- 12 Love and affection Rs.Nil Total Rs.2,23,000/- = = = = = = = = = The said amount was directed to be paid along with interest @ 6% p.a. 2. The challenge against the impugned award is on the short ground that the quantum of compensation awarded is not adequate. 3. Learned counsel for the appellants was requested to explain and be specific. The learned counsel for the appellants submits that the amount of compensation awarded is not just, fair and reasonable. A 12 year old child had succumbed to the injuries. The Tribunal has not taken into reckoning the possible future earnings of the child and consequent loss to the claimants. 4. Ascertainment of the quantum of compensation payable M.A.C.A. No.2161 of 2005 3 in the case of children, who have not started earning is one of the difficult and vexing problems in the law relating to payment of compensation. Learned counsel for the appellants after discussions at the bar, submits that this court may at least award the amount which is payable under Section 163(A) of the M.V.Act. The amount presently awarded is below even that amount contends counsel. Learned counsel submits that at any rate it may be ensured by this Court that the amount of compensation payable in respect of such a child is not permitted to fall below the compensation that would have been payable following the formula under Section 163A of the M.V.Act. 5. We find force in that submission. This court had taken the view in National Insurance Company v. Muneer(2003(1) KLT 137) as also in subsequent decisions that the amount of compensation awarded in a case like the instant one cannot fall below the amount that would have been claimable under Section 163(A) of the M.V.Act. The observations of the Supreme Court in R.K.Malik and another v. Kiranpal and others(2009 SC 2506) also accept this approach. We have adverted to this aspect again in Sree Devi. v. K.S.R.T.C (2011(3) KLT 716). We are M.A.C.A. No.2161 of 2005 4 in these circumstances, satisfied that the amount payable under Section 163(A) can safely be awarded to the 1st claimant-mother. 6. The child was aged 12 years. He therefore falls under horizontal column No.1 in the table/chart given under clause 1 of the second schedule. He had not started earning and pressing into service clause 6(a) of the second schedule to the M.V.Act, the annual income of the child can be deemed to be Rs.15,000/- for the purpose of Section 163(A) of the M.V.Act. The child therefore, would fall under the 10th vertical column, which deals with victims whose annual income is above Rs. 12,000/- up to 18,000/-. The amount of compensation payable in the case of death is given rupees in thousands by the entry where the X and Y axes would meet. Rs.3,60,000/- is the amount stipulated in the relevant entry. From this 1/3rd is to be deducted in accordance with the note to the table/chart. Accordingly, we find that if the claim were reckoned as one under Section 163(A) of the M.V.Act, 1st claimant-mother would have been entitled for an amount of Rs.2,44,500/- as per the details given below: 1. Compensation for fatal accident (under clause (1) (3,60,000X2/3) : Rs. 2,40,000/- M.A.C.A. No.2161 of 2005 5 2.Funeral expenses (under column 3(i)) : Rs. 2,000/- 3.Loss of estate (under clause 3(iii)) : Rs. 2,500/- ----------------------- Total :Rs.2,44,500/- = = = = = = = 7. We are satisfied that the said amount can safely be awarded to the 1st claimant-mother in this case. 8. Learned counsel for the appellants then points out that interest has been awarded only at the rate of 6% p.a. This is grossly inadequate, contends the learned counsel. We agree. We are satisfied that interest can be awarded at the rate of 7.5% p.a. 9. In the result: a. This appeal is allowed in part. b. The 1st claimant/1st appellant is found entitled to a total amount of Rs.2,44,500/- (Rupees two lakh forty four thousand and five hundred only) as compensation, in supersession of the directions issued by the Tribunal. M.A.C.A. No.2161 of 2005 6 c. We direct that the entire amount of compensation shall carry interest at the rate of 7.5 % p.a. from the date of the claim, to the date of payment/realisation. d. All other directions of the Tribunal are upheld. R. BASANT, JUDGE M.C.HARI RANI, JUDGE ln