IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID THURSDAY, THE 18TH SEPTEMBER 2008 / 27TH BHADRA 1930 MACA.No. 116 of 2003() ---------------------- OPMV.896/1997 of MOTOR ACCIDENT CLAIMS TRIBUNAL, TRIVANDRUM .................... APPELLANT(S): APPELLANT/1ST RESPONDENT -------------------------------------- MANAGING DIRECTOR, KERALA STATE ROAD TRANSPORT CORPORATION, CHIEF OFFICE, EAST FORT, THIRUVANANTHAPURAM. BY ADV. SRI. JOHNSON P. JOHN SC. KSRTC RESPONDENT(S): PETRS & 2ND RESPONDENT ------------------------------------- 1. S.S.SWAMIDAS, SRIRANGAM, PULLUKADU, KARIMANAL P.O., KULATHOOR, THIRUVANANTHAPURAM 695 583. 2. SRIJITH SWAMI, RESIDING AT DO. DO. 3. SREEKANTH SWAMI, RESIDING AT DO. DO. 4. SURESH S/O JOSEPH, PUNNAKKAVILA VEEDU, KANCHAMPAZHANGY (NEAR GOVT.HIGH SCHOOL) THIRUPURAM, THIRUPURAM P.O. (RESPONDENTS 2 & 3 ARE MINORS REP.BY THEIR FATHER THE 1ST RESPONDENT) R1 TO R3 BY ADVS. SRI.R.T.PRADEEP SRI.V.VIJULAL THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 18/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. -------------------------------------------- M.A.C.A. No. 116 OF 2003 -------------------------------------------- Dated this the 18th day of September, 2008 JUDGMENT Ramachandran Nair,J. Appeal is filed by the KSRTC against compensation awarded by the MACT for the death of first respondent's wife in a road accident. We have heard counsel appearing for the KSRTC and counsel appearing for the respondents. The total compensation awarded for the death of deceased who was a School Teacher aged 48 at the time of the accident is Rs. 8,24,980/- out of which Rs. 8,10,480/- represents compensation for loss of dependency. 2. Counsel for the appellant mainly contended that loss of dependency worked out based on the incremental basis is excessive and arbitrary. Counsel for the respondents on the other hand contended that MACT has applied the formula in the decision of the Supreme Court referred to in the judgment, and therefore no interference is called for. We are unable to uphold the award of the MACT because the formula 2 applied by the Supreme Court pertains to death of a person who was only 38 years of age while in employment in a successful private sector company where the incremental benefits are substantial, whereas in this case the deceased was only a School teacher who was entitled to only regular annual increment of a small amount. The MACT while applying the formula in SUSAMMA THOMAS's case, (1994) 1 KLT 67 (SC) doubled the income of the school teacher who died, even though she would have retired in the course of seven years' time. We are unable to uphold the ratio applied by the MACT by which salary at the time of death has been virtually doubled for awarding compensation for loss of dependency. It is not possible to precisely assume incremental benefits in the career of a person which will depend upon wage increase given by Government periodically. Taking into account the incremental benefits, we refix the income of the deceased per month at Rs. 6000/-. If loss of dependency is worked out adopting this figure after deducting one-third towards personal expenses, the entitlement of compensation under this head will be Rs. 5,28,000/- as against Rs. 8,10,480/- granted by MACT. Even though 3 counsel for the appellant canvassed for reduction of the multiplier because of retirement of the deceased at the age of 55, We do not think any such reduction is called for because, a retired teacher in the normal course gets reemployment in a private sector even after retirement and will be able to earn for some more years. Consistent with the interest granted by the Supreme Court in similar cases, we reduce the interest to 7.5 per cent per annum from the date of application till date of deposit. We do not think reduction is called for, for the compensation awarded under any other head. We therefore allow the appeal in part reducing the compensation as above. (C.N.RAMACHANDRAN NAIR) Judge. (HARUN-UL-RASHID) Judge. kk 4