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2010 Supreme(Mad) 1244

High Court of Judicature at Madras
R. BANUMATHI & M. VENUGOPAL
Oriental Insurance Company Limited, Coimbatore
Versus
Minor Swapnalekha & Others
C.M.A. NO. 1583 of 2006
Decided On :25-03-2010

Advocates Appeared:
For the Appellant :Arunkumar, Advocate.
For the Respondents:R5 - C. Anandaramani, R6 - G. Sankaran, R9 - N. Vijayaraghavan, Advocates.

The main legal point established in the judgment is that the deceased's gross salary should be considered for calculating compensation, and future prospects should be taken into account, along with the inclusion of dearness allowance, in determining the compensation.

Headnote:

Compensation - Motor Accident Claims Tribunal - Payment of Wages Act, 1936, Industrial Disputes Act - [Section 2(vi) of the Payment of Wages Act, 1936, Section 2(rr) of the Industrial Disputes Act] - The court upheld the compensation awarded by the Tribunal, considering the deceased's gross salary for calculating compensation and applying a 15-year multiplier. The court also emphasized the inclusion of dearness allowance and future prospects in determining the compensation.

Fact of the Case:

The deceased and his wife were involved in a road traffic accident, resulting in the death of the wife and the deceased succumbing to injuries later. The claimants filed a compensation claim, which was resisted by the Insurance Company. The Tribunal found the accident to be due to rash and negligent driving and awarded compensation, which was challenged by the Insurance Company.

Finding of the Court:

The court upheld the Tribunal's findings regarding the manner of accident and liability, focusing solely on the quantum of compensation. It affirmed the use of the deceased's gross salary for calculating compensation and the application of a 15-year multiplier, emphasizing the inclusion of dearness allowance and future prospects in determining the compensation.

Issues: The main issue was the quantum of compensation awarded by the Tribunal, specifically the calculation method for the deceased's income and the choice of multiplier.

Ratio Decidendi: The court held that the Tribunal was correct in considering the deceased's gross salary for calculating compensation and applying a 15-year multiplier. It emphasized the inclusion of dearness allowance and future prospects in determining the compensation.

Final Decision: The compensation amount awarded by the Tribunal was confirmed, and the Civil Miscellaneous Appeal was dismissed. The Insurance Company was directed to deposit the balance of the compensation amount along with accrued interest. The court also provided directions for the withdrawal of the compensation amount by the claimants.

Judgment :-

R.BANUMATHI, J.

1. In this appeal, Appellant/Insurance Company challenges the quantum of compensation of Rs.16,95,680/- awarded in M.C.O.P.No.1629 of 2001 on the file of Motor Accident Claims Tribunal (Subordinate Judge, Dharapuram) to the Claimants for the death of Balasubramanian in the road traffic accident on 17.1.2001 to the Claimants – daughters and parents.

2. The brief facts are that on 17.1.2001 at about 9.15 A.M, the deceased -Balasubramanian was riding his scooter TN 37B 4032 and his wife Shanmugasumathi Suganya was travelling as a pillion rider. They were proceeding towards east on the northern edge of the east west Coimbatore to Palakkad main road near Kuniamuthur Aruna Theatre in a minimum speed. At that time, the fifth Respondent drove the mini lorry bearing Registration No.T.N 33 T 2296 owned by the 6th Respondent -Kuniyamuthur Town Panchayat in a rash and negligent manner. The fifth respondent lost the control of the mini lorry and suddenly came to the main road and dashed against the Tata Sumo TN 38 C 4449 which was coming in the main road and then came to the edge of the road and dashed against the scooter of the deceased with great force. The deceased and his wife were thrown off and sustained grievous injury all over their body. Shanmugasumathi Suganya – wife of the deceased died on the spot itself. The deceased was immediately taken to the C.M.C.Hospital at Coimbatore and then to K.G.Hospital and was admitted as in-patient. In spite of intensive treatment, Balasubramanian succumbed to injuries on 30.1.2001. A criminal case was registered in Crime No.31 of 2001 of Podanur Police Station under Sections 337 and 304(A) IPC. Balasubrmanian was working as Clerk cum Shroff in Indian Bank, Coimbatore and he was getting salary of Rs.14,238/-. Alleging that the accident was due to rash and negligent driving of mini lorry driver, Claimants have filed Claim Petition -M.C.O.P.No.1629 of 2001 before the Sub-Court, Dharapuram claiming compensation of Rs.30,00,000/-. Before the Tribunal, the Insurance Company resisted the Claim Petition denying the manner of accident, age, income and status of the deceased.

3. Before the Tribunal, 4th Claimant- mother – A.Mariyayee was examined as P.W.1. Eye witness Arumugam was examined as P.W.2 and the Manager from Indian Bank was examined as P.W.3 and salary certificate of deceased Balasubramanian was marked as Ex.P.8. Another witness - P.W.4 was also examined. On Claimants side, Exs.P.1 to P.10 were marked. No oral and documentary evidence was adduced by the Respondents.

4. Upon consideration of oral and documentary evidence, Tribunal held that the accident was due to rash and negligent driving of mini-lorry owned by the 6th Respondent -Kuniyamuthur Town Panchayat and the Appellant – Insurance Company, owner and driver of the mini-lorry are jointly and severally liable to pay the compensation. Insofar as the quantum of compensation, based upon Ex.P.8, Tribunal has taken pecuniary loss to the family at Rs.13,964/- and after deducting 1/3rd for personal expenses and adopting multiplier 15, Tribunal has calculated loss of dependency/pecuniary loss at Rs.16,75,680/-. Tribunal has awarded Rs.5,000/- for funeral expenses and Rs.15,000/- for loss of love and affection and awarded total compensation of Rs.16,96,680/-.

5. Challenging the quantum of compensation, by placing reliance upon (2004) 1 ACJ 448, (ASHA AND OTHERS VS. UNITED INDIA INSURANCE COMPANY LIMITED AND ANOTHER ) the learned counsel for Appellant – Insurance Company Mr.Arunkumar submitted that the Tribunal ought to have taken net salary received by the deceased for the purpose of arriving compensation and erred in taking gross salary for arriving compensation. It was further contended that the Tribunal also erred in applying 15 years multiplier without following the judgment reported in 2005 AIR SCW 2542 = (2005) 6 SCC 236 (T.N. State Transport Corpn. Ltd. v. S. Rajapriya).

6. It is not necessary for us to elabora


























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