High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE C.T. SELVAM
The New India Assurance Co. Ltd.,
Versus
Gowsalya Ramasamy & Others
C.M.A. No.26 of 2008
Decided On : 23-11-2010
Motor Accidents - Compensation - [Motor Vehicles Act, 1988, Section 166] - The court discussed the application of the multiplier method for calculating loss of dependency and referred to the Sarala Varma case to determine the appropriate multiplier based on the age of the deceased. The court also highlighted the relevance of future prospects in determining the salary component for a person in permanent employment.
Fact of the Case:
The deceased, an additional Superintendent of Police, died in a car accident caused by a lorry insured by the appellant. The legal heirs sought compensation, and the Tribunal awarded a sum of Rs.12,03,568/-, which was affirmed on appeal.
Finding of the Court:
The court affirmed the Tribunal's findings on negligence and liability, and upheld the awarded compensation. It considered the deceased's age and future prospects in determining the appropriate multiplier for loss of dependency.
Issues: Dispute over the quantum of compensation based on the application of the multiplier method and future prospects of the deceased's income post-retirement.
Ratio Decidendi: The court applied the Sarala Varma case to determine the appropriate multiplier based on the age of the deceased and considered the deceased's future prospects in determining the salary component for a person in permanent employment.
Final Decision: The appeal was dismissed, and the awarded compensation was affirmed. The court allowed the respondents to withdraw the balance amount of the compensation.
1. This appeal arises against the judgment and decree dated 24.11.2005 made in M.C.O.P.No.812 of 2004, on the file of the Motor Accidents Claims Tribunal,(Principal District Judge) Erode.
2. The facts necessary for the disposal of this Civil Miscellaneous Appeal are as follows:
The Insurance company is the appellant herein. One Ramaswamy who was an additional Superintendent of Police meet his death on 04.04.2004 at about 11.30a.m. On the said day, he was driving his car when a lorry bearing registration No.TN-57-7389 insured with the appellant corporation dashed against the car resulting in the said Ramaswamy suffering multiple grievous injuries and dying on the spot. His legal heirs comprising wife and two major children raised a claim petition informing of the deceased being aged 57 years at the time of his death of his promotional opportunities and sought compensation in a sum of Rs.30,00,000/-.
3. Before the tribunal, the petitioners examined four witnesses and marked the following exhibits:-
Ex.A1 - Copy of FIR
Ex.A2 -Copy of Rough Sketch
Ex.A3 -Copy of Observation Mahazar
Ex.A4 - Copy of Motor Vehicle Inspector Report for the vehicle bearing registration No.TN-30-D-9900
Ex.A5 - Copy of Motor Vehicle Inspector Report for the vehicle bearing registration No.TN-57-7389
Ex.A6 - Copy of Post-mortem Certificate
Ex.A7 -Copy of charge sheet
Ex.A8 -Copy of Judgment in STC.No.1142 of 2004 Ex.A9 - Legalheirship certificate
Ex.A10 - Certificate issued by the Superintendent of Police
Ex.A11 - Official Memorandum issued by the Office of Superintendent of Police, Namakkal
Ex.A12 - Attested xerox copy of service book of the deceased M.Ramasamy
Ex.A13 - Attested xerox copy of the letter issued by Siva Compulink Ltd., Chennai to P.W.4
Ex.A14 - Attested xerox copy of Salary certificate issued by Siva Compling Ltd. Chennai
Ex.A15 - Original of Ex.A14
Ex.A16 -Permission letter given by Siva Compulink Ltd. Chennai to P.W.4
None were examined on behalf of the respondent, nor were any exhibits marked. On consideration of material before it, the Tribunal found that the rash and negligent driving of the lorry insured by the appellant corporation has caused the accident and directed payment of compensation in a sum of Rs.12,03,568/- . Taking the salary of the deceased as exhibited from the records at Rs.18,649/- the tribunal deducted 1/3rd thereof towards his personal expenses. Applying the multiplier of 8 it arrived at the loss of dependency at Rs.11,93,568/-. A further sum of Rs.10,000/-was awarded towards funeral expenses. The Tribunal directed payment together with interest at 7.5% per annum. Apportionment amount of compensation between the claimants also was directed. It negated the submissions of the claimants regarding the possibility of the deceased earning a sum of Rs.25,000/- per month post retirement which was 19 months away from the date of death. Though such was the earning of PW4, a retired Deputy Superintendent of Police, the tribunal found, there is nothing to show that the deceased had already applied to any private company for employment or what his probable income would be post retirement.
4. Heard the learned counsel appearing for the appellant and the learned counsel appearing for the respondents 1 to 3.
5. In appeal, neither the accident, negligence or the liability to pay compensation is disputed. The quantum of compensation is disputed by informing that as the deceased had only 19 months of service left, the multiplier adopted ought not to have been 8 but ought to have been 6 as such was the multiplier fixed in a case similar to the present one. In the decision in K.Rengasamy and Another vs. Revathi and Others, in 2008(5) MLJ 580, it has been held as follows:
"The salary of the deceased as per Exhibit P.11 is found to be a sum of Rs.24,400/- per month and it is the evidence of P.W.3 that the deceased is entitled for further promotion and revision of pay structure accordingly and as such, considering the fact t
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