IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR TUESDAY, THE 24TH FEBRUARY 2009 / 5TH PHALGUNA 1930 MACA.No. 1594 of 2007() ----------------------- OPMV.907/2001 of MOTOR ACCIDENT CLAIMS TRIBUNAL, ALAPPUZHA .................... APPELLANT(S): APPELLANTS/CLAIMANTS ---------------------------------- 1. SANILA, AGED 32 YEARS, W/O LATE SUKESAN, MUPPATHIL, KANJIPADAM, ALLAPPUZHA-5 2. SUJIMOL, AGED 6 YEARS, D/O LATE SUKESAN, REP.BY HER MOTHER SANILA, W/O LATE SUKESAN, MUPPATHIL, KANJIPADAM, ALLAPPUZHA-5. 3. SANTHAMMA, AGED 64 YEARS, MOTHER OF DECEASED SUKESAN, DO. DO. DO. BY ADV. SRI.ELDHO PAUL SMT.TESSY JOSE RESPONDENT(S): RESPONDENTS -------------------------- 1. VISWANATHAN, S/O BAPPUTTY, THIRUTHIMMEL HOUSE, CHERAVANNOOR PULLICHERRYKUNNIL KOZHIKODE. 2. KRISHNAKUMAR MENON, SOUTHERN REGIONAL MANAGER, SHAKTHI AUTOMOBILES, KOZHIKODE-18. 3. THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE COMPANY LTD., DIVISIONAL OFFICE, IV, 1087-C AVANASHI ROAD, PAPPENAICKEN PALAYAM, COIMBATURE. ADV. SRI.P.MURALEEDHARAN FOR R3 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 24/02/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: R.BASANT & C.T.RAVIKUMAR, JJ. * * * * * * * * * * * * * * * * * * M.A.C.A.No.1594 of 2007 ---------------------------------------- Dated this the 24th day of February 2009 J U D G M E N T BASANT,J The claimants are the wife, posthumous child and mother of the deceased. Their claim before the tribunal was for an amount of Rs.25,00,000/- as compensation. The deceased was a 28 year old Airman in the Indian Air Force. The claimant/wife was aged 26 years. The child was a posthumous child. Its mother, the first claimant was pregnant by 5 months at the time of the accident and the mother of the deceased was 64 years. The tribunal awarded a total amount of Rs.8,46,872/- as compensation. The said amount was awarded under the following heads: Loss of dependency Rs.8,02,872/- (5,575 x 12 x 2/3 x18) Pain and suffering Rs.5,000/- (death on the same day) Loss of consortium Rs.15,000/- Loss of love and affection Rs.15,000/- Ambulance charges Rs.5,000/- Funeral expenses Rs.3,000/- M.A.C.A.No.1594/07 2 Damage to clothing Rs.1,000/- Total Rs.8,46,872/- 2. Interest was awarded @ 6% per annum. The learned counsel for the appellants assails the impugned award on two grounds. First of all it is contended that the loss of dependency arrived at by resorting to the multiplier multiplicand method is grossly inadequate. In spite of production of the salary certificate which showed that the total income of the deceased at the relevant time was Rs.7,810/-, the tribunal unjustifiably reckoned only an amount of Rs.5,575/- as the monthly income. Unjustified deductions were made in the total monthly income of Rs.7,810/- to reckon the multiplicand only at Rs.5,575/-. One third of that amount was deducted towards the personal expenses of the deceased and it is thereafter that the amount was worked out by the multiplier multiplicand method. Further prospects in employment was not considered at all, it is lamented. In these circumstances, at least the entire amount shown in the salary certificate must have been accepted, contends the counsel. 3. The only other contention raised is that the rate of M.A.C.A.No.1594/07 3 interest awarded is 6%. Interest must have been awarded @ 9% per annum, contends the learned counsel for the appellant. 4. The first contention is about the multiplicand reckoned by the tribunal. Ext.A9 last pay certificate shows that the deceased was earning an income of Rs.7,810/- per mensum as per the details shown below: 1. Basic Pay Rs.4040/- 2. GCB Pay Rs.40/- 3. DA Rs.1,495/- 4. CCA Rs.95/- 5. Composite allowance Rs.75/- 6. Ration allowance Rs.179/- 7. CILQ Rs.900/- (Cash in lieu of Quarters) 8. Conservancy allowance Rs.NIL 9. Transport Allowance Rs.100/- 10. LORA Rs.886/- (Living out ration allowance) Total Rs.7,810/- 5. The tribunal, took into consideration only the basic pay, GCB Pay, DA as components of admissible salary for M.A.C.A.No.1594/07 4 earnings. All the other amounts were not reckoned and thus an amount of Rs.5,575/- was reckoned as the multiplicand. The learned counsel for the appellant, relying on the decision in National Insurance Company Ltd. v. Indira Srivastava [2008(1)KLT 62(SC) contends that all the perquisites which the deceased was drawing at the time of his death are to enure to the benefit of himself and the family and in these circumstances there is no justification in excluding items 4 to 10 shown in Ext.A9 from the multiplicand. We find merit in that contention. None of those amounts shown as items 4 to 10 can be reckoned as repayment of expenses incurred in connection with his employment; but is connected with the sustainment of the deceased and his dependents. In this view of the matter, we are satisfied that the entire amount of Rs.7,810/- must have been reckoned as multiplicand. The deceased, we note, would have been entitled to receive the entire amount of Rs.7,810/-. There is nothing to show that any tax is liable to be deducted. 6. Appellants are therefore found to be entitled for a further amount of Rs.3,21,768/- as compensation i.e. (7,810 x 12 x 2/3 x 18 minus Rs.8,02,872/-. We are further satisfied in the M.A.C.A.No.1594/07 5 circumstances of the case that interest @ 7.5% per annum would have been absolutely reasonable taking into account the rates of interest what would have been payable from financial institutions at the relevant time. 7. The above discussions lead us to the conclusion that the appellant is entitled for a further amount of Rs.3,21,768/- under the head of loss of dependency and that the entire amounts awarded should carry interest @ 7.5% per annum from the date of the petition. 8. This appeal is allowed in part to the above extent. (R.BASANT, JUDGE) (C.T.RAVIKUMAR, JUDGE) jsr M.A.C.A.No.1594/07 6 M.A.C.A.No.1594/07 7 R.BASANT &C.T.RAVIKUMAR, JJ. .No. of 200 ORDER/JUDGMENT 06/02/2009