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2010 Supreme(Mad) 2315

High Court of Judicature at Madras
P.P.S. JANARTHANA RAJA
M/s. United India Insurance Co., Ltd
Versus
Saraswathi & Others
C.M.A.NPD. NO. 913 OF 2003
Decided On : 14-06-2010

Advocates Appeared:
For the Appellant:Mrs. Revathi Muralidharan, Advocate.
For the Respondents:R1 to R3 - Mr. V. Kumaravellan for Mr. U. Karunakaran, Advocate.

The main legal point established in the judgment is the application of principles for assessment of compensation in cases of death, emphasizing the need for a fair and reasonable compensation based on settled principles and data establishing a reasonable nexus between the loss incurred and the compensation awarded.

Headnote:

Insurance - Motor Accident Claims - SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER, UP State Road Transport Corporation V. Trilok Chandra, SYED BASHEER AHAMED AND OTHERS VS. MOHAMMED JAMEEL AND ANOTHER - [Motor Accident Claims, Compensation, Rash and Negligent Driving] - [General Manager, Kerala State Road Transport Corporation Vs. Susamma Thomas, UP State Road Transport Corporation V. Trilok Chandra, Gobald Motor Service Ltd. v. R.M.K. Veluswami] - The court discussed the relevant principles for assessment of compensation in cases of death, including the multiplier method and factors to be considered for calculating pecuniary loss to a dependent. The court emphasized the need for a fair and reasonable compensation based on settled principles and data establishing a reasonable nexus between the loss incurred and the compensation awarded. The court also highlighted the importance of not allowing the Act to be used as a source of profit or windfall, and the objective of providing compensation to place the claimants in almost the same financial position as before the accident.

Fact of the Case:

The deceased Chandrasekara Pillai @ Harikumar met with a motor vehicle accident, and the claimants, his family members, sought compensation. The Tribunal awarded a compensation of Rs. 4,10,000/-, which the appellant-Insurance Company appealed as excessive. The court considered the evidence and arguments presented by both parties.

Finding of the Court:

The court found that the accident occurred due to the rash and negligent driving of the lorry driver and upheld the Tribunal's decision on the quantum of compensation. The court also modified the compensation amount for funeral expenses, transport expenses, and loss of love and affection, and adjusted the interest rate.

Issues: The issues involved the quantum of compensation and the specific amounts awarded for various heads of claim, including funeral expenses, transport expenses, and loss of love and affection.

Ratio Decidendi: The court applied the principles from SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER, UP State Road Transport Corporation V. Trilok Chandra, and SYED BASHEER AHAMED AND OTHERS VS. MOHAMMED JAMEEL AND ANOTHER to determine a fair and reasonable compensation based on established legal standards and data establishing a reasonable nexus between the loss incurred and the compensation awarded.

Final Decision: The court upheld the Tribunal's decision on the quantum of compensation, modified the amounts for funeral expenses, transport expenses, and loss of love and affection, and adjusted the interest rate. The respondents/claimants were entitled to the modified compensation of Rs. 4,28,000/- with interest at 7.5% p.a.

Judgment :-

1. The appeal is preferred by the appellant-Insurance Company against the judgment and decree dated 17.04.2002 made in MCOP No.861 of 2000 on the file of the Motor Accident Claims Tribunal (I Additional District Judge), at Krishnagiri.

2. Background facts in nutshell are as follows:

The deceased Chandrasekara Pillai @ Harikumar met with motor vehicle accident on 20.04.2000 at about 13.15 hours. The said deceased Chandrasekara Pillai and two others were travelling in the Maruti Car bearing Registration No.KL04/G8200 from Kirshnagiri to go to Dharmapuri on the extreme left side of the road. When they were proceeding near old Dharmapuri Sri Murugan Naveen Rice Mill, the Lorry bearing Registration No.TDJ 5211 belonging to one Deivanai/4th respondent herein, which was insured with the appellant-Insurance Company came in a rash and negligent manner and dashed against the Maruthi Car. Due to the same, the deceased died on the spot. The claimants are father, mother and brother of the deceased. The claimants claimed a sum of Rs.37,47,000/- but restricted their claim to Rs.10,00,000/- as compensation before the Tribunal. The appellant-Insurance Company resisted the claim. On the pleadings the Tribunal framed the following issues:-

"1. Whether the accident was due to the rash and negligence of the part of the driver of the lorry?

2. Whether the claimants are entitled to get compensation, and if so, to what amount?

After considering the oral and documentary evidence, the Tribunal held that the accident had occurred only due to the rash and negligent driving of the driver of the lorry and awarded a compensation of Rs. 4,10,000/-with interest at 9% per annum from the date of petition and the details of the same are as under:-

Loss of dependency Rs. 4,08,000/- Funeral expenses Rs. 2,000/-

Total... Rs. 4,10,000/-

=============

Aggrieved by that award, the appellant-Insurance Company has filed the present appeal.

3. The learned counsel appearing for the appellant-Insurance Company questioned only the quantum of compensation awarded by the Tribunal and contended that the amount awarded by the Tribunal is excessive, exorbitant, without basis and justification and therefore, the same has to be set aside.

4. The learned counsel appearing for the respondents/claimants submitted that the Tribunal had considered all the relevant materials and evidence on record and came to the right conclusion and awarded a just, fair and reasonable compensation. Further, the learned counsel appearing for the respondents/claimants submitted that the Tribunal has not awarded any amount towards Transport and loss of love and affection and the Tribunal awarded a sum of Rs. 2,000/-towards Funeral expenses which is very low and the same has to be enhanced.

5. Heard the learned counsel on either side and perused the materials available on record. On the side of the claimants, One Saraswathi, who is the mother of the deceased, was examined as P.W2 and also given her oral evidence. Ex. P7 is the Postmortem Report of the deceased. On the side of the appellant-Insurance Company, no one was examined and no documents were marked to substantiate their claim. After considering the above oral and documentary evidence, the Tribunal had given a categorical finding that the accident had occurred only due to the rash and negligent driving of the driver of the lorry belonging to the fourth the respondent and the finding is based on valid materials and evidence.

6. In the case of SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows:

"7. Before considering the questions arising for decision, it would be appropriate to recall the relevant principles relating to assessment of compensation in cases of death. Earlier, there used to be considerable variation and inconsistency in the decisions of Courts T































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