IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 25 TH JUNE 2008 / 4TH ASHADHA 1930 M.F.A.No. 806 of 2002(B) ---------------------- OP(MV)NO.810/1997 OF MOTOR ACCIDENT CLAIMS TRIBUNAL, VADAKARA .................... APPELLANTS/PETITIONERS: ------------------------ 1. DEVI AMMA, W/O. SUKUMARAN RESIDING AT TIRUPPERA HOUSE, CHINGAPURAM, THIKKODI, KOYILANDY (WIFE OF THE DECEASED). 2. SMITHA K.S. D/O. SUKUMARAN, RESIDING AT THIRUPPERA HOUSE, P.O. CHINGAPURAM, THIKKODI, KOYILANDY (DAUGHTER OF THE DECEASED). 3. HAREESH K.S., S/O. SUKUMARAN, RESIDING AT THIRUPPERA HOUSE, P.O. CHINGAPURAM, THIKKODI, KOYILANDY (SON OF THE DECEASED) 4. MANJUSHA, D/O. SUKUMARAN, (MINOR) REPRESENTED BY MOTHER AND GUARDIAN DEVI AMMA RESIDING AT THIRUPPERA HOUSE, P.O. CHINGAPURAM, THIKKODY, KOYILANDY (DAUGHTER OF THE DECEASED). 5. NARAYANI AMMA, W/O. PADMANABHAN NAIR, RESIDING AT KUNHALODY HOUSE, P.O. CHINGAPURAM, THIKKODY (MOTHER OF THE DECEASED). 6. PADMANABHAN NAIR, S/O. KRISHNAN NAIR, RESIDING AT DO. DO. (FATHER OF THE DECEASED). * 7. RAVEENDRAN, AGED 55 YEARS, S/O. NARAYANI AMMA, KUNHALODI HOUSE, (P.O) CHINGAPURAM, (VIA) THIKKODI. M.F.A.No. 806/2002 * 8. PARVATHI AMMA, AGED 52 YEARS, D/O. NARAYANI AMMA, KUNHALODI HOUSE, (P.O) CHINGAPURAM, (VIA) THIKKODI. * 9. GIRIJAN, AGED 45 YEARS, S/O.NARAYANI AMMA, KUNHALODI HOUSE, (P.O) CHINGAPURAM, (VIA) THIKKODI. * 10. SYLAJA, AGED 38 YEARS, D/O.NARAYANI AMMA, KUNHALODI HOUSE, (P.O) CHINGAPURAM, (VIA) THIKKODI. BY ADV. SRI.C.VATHSALAN SRI.C.D.SHAJU (* SUPPLEMENTAL APPELLANTS 7 TO 10 ARE IMPLEADED AS PER ORDER DATED 18/12/2007 IN I.A. NO.503/2005) RESPONDENTS/RESPONDENTS: ------------------------- 1. SAVITHA VIJAYAN, W/O. K.P. VIJAYAN, KOYILOTH THAZHE KUNIYIL HOUSE, P.O. THIRUVALLOOR, VATAKARA. (R.C.OWNER KL-11-D.4616 MINI LORRY). # 2. SAJEEVAN, S/O. VASU ALIAS BHASKARAN, CHERUPANA KUNIYIL HOUSE, PANNIYYANNOOR AMSOM CHEMBANAD DESOM, P.O. PANNANOORE, VIA PANOOR, D/L NC 810/89 BADGE NO.1318/90. (DRIVER KL-11-D.4616 MINI LORRY).(DELETED) 3. THE UNITED INDIA INSURANCE COMPANY LTD., BRANCH OFFICE VATAKARA, THROUGH THE DIVISIONAL OFFICE, KOZHIKODE POLICY NO. 10030731/21/96 CERTIFICATE NO.076448. BY ADV. SMT.K.C.BEENA - R3 (# R2 IS DELETED FROM THE PARTY ARRAY AT THE RISK OF THE PETITIONER AS PER ORDER DATED 18/12/2007 IN C.M.P 877/2003.) THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 25/06/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: scm J.B. Koshy & P.N.Ravindran, JJ. -------------------------------------- M.F.A. No. 806 of 2002 --------------------------------------- Dated this the 26th day of June, 2008 Judgment Koshy,J. A 52 year old man sustained fatal injuries in an accident on 26.9.2007. His legal representatives including his wife, three children and parents filed application for compensation claiming an amount of Rupees Ten lakhs. The tribunal found that the accident occurred due to the negligence of the driver of the vehicle insured by the third respondent insurance company. The first respondent driver of the above vehicle was found to be negligent. The second respondent owner of the vehicle was vicariously liable and third respondent being the insurer was liable to indemnify the insured. Hence, third respondent was directed to deposit the amount of Rs.4,31,724/-. The only dispute raised in this appeal is the quantum of compensation. 2. The deceased was aged 52. Therefore, taking guidance from the second schedule, apt multiplier is 11. The tribunal has taken 11 as the multiplier. We see no ground to interfere in the same. The salary certificate shows that his monthly M.F.A.No.806/2002 2 salary was Rs.8,818/-. He was employed as an Overseer in the Kerala State Electricity Board. The tribunal considered the deductions from the salary, namely, the amount to be paid to co- operative society for items purchased and house building loan etc. They are all for the benefit of the family. But, the tribunal took Rs.4,500/- as the monthly income and one-third was deducted for calculating compensation. We are of the opinion that the above calculation is totally incorrect. His monthly salary was Rs.8,818/-. After deducting tax and allowances payable with regard to the duty, his monthly income was Rs.8,100/-. Deducting one-third, the monthly multiplicand should be Rs.5,400/-. Claimant has got a case that he had three more years of service. There is likelihood of promotion, yearly increment, benefit of wage revision etc., but, at the same time, he will have to retire at the age 55 and he will not get full wages thereafter. But, according to the claimants, they will be entitled to retiral benefits like gratuity etc. considering the full length of service and last drawn salary. That itself will be a huge sum. It is also contended that being a technical employee, an Overseer employed in the Electricity Board, will be able to get a better employment after retirement also. Vagaries of life cannot be predicted. We have also seen that after deducting one-third for M.F.A.No.806/2002 3 personal expenses from the salary received, balance amount will be Rs.5,400/=. It is true that in the usual course, taking increments and hike in salary etc. he would have got a higher amount as last drawn salary at the time of retirement. His gratuity and other retiral benefits also will be calculated on the basis of the length of service and last drawn salary and he may get a job also after retirement. At the same time, he will have to retire after three years and he will not get salary from the Electricity Board. Taking all these things into account, we take only Rs.4,000/- as the multiplicand instead of Rs.5,400/-. If that be so, compensation payable will be Rs.4000 x 12 x 11 = Rs.5,28,000/-. The tribunal has granted only Rs.4,00,224/- for loss of dependency. Therefore, claimants are entitled to an additional amount of Rs.1,27,776/-. 3. During the course of appeal proceedings, fifth appellant mother died and her legal representatives were impleaded. 4. The additional amount of Rs.1,27,776/- should be deposited by the third respondent insurance company with 7% interest from the date of application till its deposit over and above the decreed amount by the tribunal. On deposit of the amount, M.F.A.No.806/2002 4 sixth appellant father of the deceased is allowed to withdraw Rs.20,000/- and out of the balance one-third is allowed to be withdrawn by the wife and the balance should be allowed to be withdrawn by the 2nd, 3rd and 4th appellants in equal proportion. Appeal allowed partly. J.B.Koshy Judge P.N.Ravindran Judge vaa M.F.A.No.806/2002 5 J.B. KOSHY AND P.N.RAVINDRAN,JJ. ------------------------------------- M.F.A. No. 806 of 2002 ------------------------------------- Judgment Dated:26th June, 2008