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2012 Supreme(Mad) 2811

High Court of Judicature at Madras
P. DEVADASS
S. Thangam & Another
Versus
Metropolitan Transport Corporation Ltd. Represented by its Managing Director Pallavan Salai
C.M.A.No.2871 of 2006
Decided On : 05-07-2012

Advocates Appeared:
For the Appellants:S. Gangaram Prasad, Advocate.
For the Respondent:V. Kasiviswanathan, Advocate.

The central legal point established in the judgment is the application of SARALA VERMA and SANTOSH DEVI judgments in determining compensation for loss of future prospects in fatal accident cases, emphasizing the consideration of future salary increase and cost of living for individuals employed in the private sector.

Headnote:

Compensation - Road Accident - S.Selvadurai - SARALA VERMA, SANTOSH DEVI - [SARALA VERMA (supra), SANTOSH DEVI (supra)] - The court discussed the application of the SARALA VERMA and SANTOSH DEVI judgments in determining the quantum of compensation for loss of future prospects in a road accident case. It highlighted the interpretation of the multipliers and the consideration of future salary increase and cost of living in determining the compensation amount.

Fact of the Case:

The claimants, parents of the deceased, appealed against the quantum of compensation granted by the Tribunal for the death of their son in a road accident. The main issue was the determination of the quantum of compensation based on the deceased's employment and future prospects. The court analyzed the age of the deceased, his employment, and the application of SARALA VERMA and SANTOSH DEVI judgments.

Finding of the Court:

The court found that the Tribunal's adoption of a multiplier of 10 and the deduction for loss of future prospects did not align with the principles established in SARALA VERMA and SANTOSH DEVI judgments. It concluded that the deceased's employment in a private job warranted consideration for future salary increase and cost of living, leading to a modification of the compensation amount awarded by the Tribunal.

Issues: The main issues revolved around the determination of the multiplier for compensation, consideration of future prospects for individuals employed in the private sector, and the application of SARALA VERMA and SANTOSH DEVI judgments in fatal accident cases.

Ratio Decidendi: The court's decision was based on the interpretation of SARALA VERMA and SANTOSH DEVI judgments, emphasizing the inclusion of future salary increase and cost of living in determining compensation for loss of future prospects, irrespective of the deceased's employment in the private sector.

Final Decision: The court allowed the appeal in part and modified the compensation amount, awarding a total compensation of Rs.4,24,184/- with interest @ 7.5% p.a. from the date of the original petition till deposit, based on the principles established in SARALA VERMA and SANTOSH DEVI judgments.

Judgment :-

1. The claimants, who are parents of the deceased, who lost his life in a road accident, appealed as against the quantum of compensation granted to them by the Tribunal.

2. On 03.06.2004, in a road accident, the appellants' son S.Selvadurai lost his life. The Tribunal recorded a categorical finding that the accident was due to the rash and negligent driving of the driver of the respondent.

3. Now, this appeal lie in a narrow compass, namely, the quantum of compensation.

4. According to the learned counsel for the appellants, in the light of the decision of the Hon'ble Supreme Court in SMT.SARALA VERMA AND OTHERS Vs. DELHI TRANSPORT CORPORATION AND ANOTHER [2009 (2) TN MAC 1 (SC)], considering the age of the mother, the multiplier should be "14", however, the Tribunal had taken the multiplier "10". In SANTOSH DEVI Vs. NATIONAL INSURANCE CO. LTD. AND OTHERS [2012 ACJ 1428], the Hon'ble Supreme Court held that even as regards persons employed in unorganized sector or in a private sector as they are also entitled to salary increase due to pay revision, wage increase, there is loss of future prospects, for such a loss, in the facts and circumstances of this case, 50% of his salary is to be added to his monthly salary. Thus, just compensation was not awarded to them.

5. On the other hand, the learned counsel for the respondent would contend that there is no evidence to give compensation for loss of future prospects. The deceased died a bachelor. So, even as per SARALA VERMA (supra), deduction for his pleasure and other expenses should be 50% of his monthly salary. He was employed in a private job. So, no compensation for future loss shall be given to him. But, the Tribunal had deducted only 1/3rd. What was granted to them by the Tribunal itself is on the higher side.

6. I have considered the rival submissions, perused the case-records and the decisions cited by the learned counsel for the appellants.

7. Admittedly, the deceased died a bachelor. Then, he was 19 years old. The Tribunal adopted the multiplier "10". As per SARALA VERMA (supra), in a fatal case, for the death of a bachelor, age of his mother is to be taken for choosing the multiplier. In this case, the mother of the deceased, namely, first appellant was then 42 years old. As per SARALA VERMA (supra), the multiplier is "14".

8. S.Selvadurai, admittedly, at the time of his death, he was 19 years old. He died a bachelor. The evidence of his employer PW3, Elango Baskaran and Exs.P10 to P13 shows that the deceased was then a Machine Operator under PW3. Ex.P10 Salary Certificate shows that he was paid Rs.2,850/- per month.

9. The deceased died a bachelor. He did not support a big family. He supported a family consisting of two persons, who are his parents/appellants. The Tribunal adopted the multiplier 10. As per SARLA VERMA (supra), age of the mother is to be taken for the purpose of choosing the multiplier. The age of the mother of the deceased at the time of his death was 42 years. As per SARLA VERMA (supra), the multiplier is "14".

10. The Tribunal had deducted 1/3rd from his monthly salary towards his pleasure and other expenses. But, as per SARLA VERMA (supra), in case of bachelor, it must be 50% of the salary. So, the rate of reduction has to be revised.

11. It has been strenuously contended by the learned counsel for the appellants that the benefit of giving compensation for loss of future prospects cannot be restricted to persons employed in stable jobs such as Government Job or Bank jobs etc., even persons employed in unorganized sector, in private jobs are also getting salary increase / pay revision and promotions and increase in cost of living also cannot be ignored.

12. The learned counsel for the respondent contended that as per SARALA VERMA (supra) giving of compensation for loss of future prospects arises when the deceased was having a stable job, such as Govt. service or in the service of State or Central Govt. Corporations. But, in the case before











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