2010 Supreme(Mad) 421
High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE R. BANUMATHI & THE HONOURABLE MR. JUSTICE M.M. SUNDRESH
The New India Assurance Co., Ltd., Tiruppur Coimbatore District
Versus
Kayalvizhi & Others
Civil Miscellaneous Appeal No. 2320 of 2007
Decided on: 01-02-2010
For the Appellant:C. Ramesh Babu, Advocate.
For the Respondents:P. Valliappan, Advocate.
The main legal point established in the judgment is the application of principles for calculating compensation in motor accident cases, considering the deceased's income from agricultural lands and business, deduction for personal expenses, and other components of compensation.
Headnote:
Compensation - Motor Accident - 2003 ACJ 1800 - The court discussed the quantum of compensation awarded to the dependents of the deceased in a motor accident case. It considered the deceased's income from agricultural lands and business, the deduction for personal expenses, and the multiplier to calculate the loss of dependency. The court also addressed the compensation for loss of love and affection, loss of consortium, medical expenses, and funeral expenses.
Fact of the Case:
The deceased was involved in a motor accident and succumbed to the injuries. The dependents filed a claim petition seeking compensation. The Tribunal awarded compensation of Rs.31,89,000 to the dependents, which was challenged by the Appellant-National Insurance Co.
Finding of the Court:
The court analyzed the evidence and held that the accident was due to rash and negligent driving. It considered the deceased's income from agricultural lands and business to calculate the loss of dependency. The court also addressed the compensation for loss of love and affection, loss of consortium, medical expenses, and funeral expenses. The court reduced the compensation to Rs.27,60,000 and modified the interest rate to 7.5% p.a.
Issues: The main issue was the quantum of compensation awarded to the dependents of the deceased, considering the deceased's income from agricultural lands and business, deduction for personal expenses, and other components of compensation.
Ratio Decidendi: The court applied the principles established in 2003 ACJ 1800, which stated that the normal rule about deprivation of income is not directly applicable to cases where agricultural income is the source of deceased's or injured's income. The court also emphasized that there can be no golden rule applicable to all cases for measuring the value of human life or a limb.
Final Decision: The court partly allowed the appeal, reducing the compensation to Rs.27,60,000 and modifying the interest rate to 7.5% p.a.
R. BANUMATHI,J
Being aggrieved by the award of compensation of Rs.31,89,000/-to the dependents of Sriram, Appellant-National Insurance Co., has preferred this Appeal.
2. Brief facts are that on 10.9.2004, deceased Sriram was riding his Motorcycle bearing registration No.TN-36 F 3006 from his native place Karatadipalayam to Tiruppur. When deceased Sriram was proceeding at Ayyampalayam on Perumanallur to Tiruppur road, the Bajaj Tempo Trax bearing registration No.TN-39-Z 6890 driven by its driver [1st Respondent] in a rash and negligent manner hit against deceased Sriram. Due to the accident, deceased Sriram sustained injuries over chest, abdomen, fracture in hands and multiple injuries all over the body. After the accident, deceased Sriram was admitted in Mayur Hospital, Perumanallur and succumbed to the injuries. Regarding the accident, Criminal case was registered in Crime No.372/2004 of Perumanallur Police Station. Alleging that the accident was due to rash and negligent driving of Bajaj Tempo Trax driven by the driver, dependents of Sriram [Wife, daughter, mother and father] have filed Claim Petition claiming compensation of Rs.50,00,000/-.
3. Before the Tribunal, 1st Claimant herself was examined as PW1 and one Saravanamurthy was examined as PW2 and one Arangaraj was examined as PW3 and one Ramasamy was examined as PW4. Exs.P1 to P44 were marked on the side of Claimants. On the side of Appellant-Insurance Company, one Pushpanathan, working as Administrative Officer was examined as RW1. No documents were marked.
4. Upon analysis of evidence, Tribunal held that accident was due to rash and negligent driving of Bajaj Tempo Trax driver. Deceased Sriram was an agriculturist and was also running apparels shop, Tribunal has taken monthly income of deceased at Rs.25,000/- to Rs.30,000/- and after giving personal expenses, Tribunal has fixed the contribution to the family at Rs.14,000/- and adopted multiplier 18, Tribunal awarded compensation of Rs.31,89,000/- as under:-
Loss of earning (Rs.14,000 x 12 x 18) : Rs.30,24,000.00 Medical expenses : Rs. 10,000.00 Loss of love and affection : Rs. 1,50,000.00 Funeral expenses : Rs. 5,000.00
Total : Rs.31,89,000.00
5. Learned counsel for Appellant-Insurance Company has submitted that even after the death of deceased Sriram, agricultural lands continues to remain with the family. Learned counsel for Appellant further submitted that normal rule of deprivation of income to the family is not applicable in case of death of agriculturists. It was further submitted that Tribunal has not given mandatory deduction for personal expenses and absolutely there is no basis for fixing the monthly contribution at Rs.14,000/- and the quantum of total compensation of Rs.31,89,000/- awarded is exorbitant.
6. Taking us through the documents and order of Tribunal, learned counsel for Respondents 1 to 4 submitted that deceased Sriram owned vast extent of lands and also running business and Tribunal has rightly fixed the monthly contribution to the family at Rs.14,000/-and adopted multiplier 18 and the quantum of compensation is very much reasonable warranting no interference.
7. It is not necessary for us to narrate entire facts in detail such as, as to how the accident occurred and who was negligent and insurance policy coverage and who is liable to pay compensation. It is for the reason that these things are recorded infavour of Claimants and secondly, none of the findings are under challenge. Only quantum of compensation is in dispute.
8. In her evidence, PW1-Kayalvizhi [1st Claimant] has stated that deceased was an agriculturist cultivating 20 acres of lands. Deceased was also running apparels shop under the name and style 'Glossy Apparels' and Exs.P18 to P32 were produced. Tribunal has taken the monthly income at Rs.25,000/- to Rs.30,000/- and calculated the loss of income at Rs.30,24,000/-. President of Gopi Primary Co-operative Society was examined as PW3. In his evidence, PW3 has stated tha