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2018 Supreme(Mad) 3500

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.K. SASIDHARAN, R. SUBRAMANIAN, JJ.
Anbukarasi Manoharan - Appellant
Vs.
R. Arul Prakash - Respondent
Civil Miscellaneous Appeal No. 3210 of 2017
Decided On : 26-09-2018

Advocates Appeared:
K. Suryanarayanan, Adv., J. Chandran, Adv.

Headnote:

Compensation - Motor Accident - Split Multiplier - Section 166 - The Motor Vehicles Act, 1988, Sarala Varma & Other Vs. Delhi Transport Corporation & another, (2009) 2 TNMAC 1 - The Hon'ble Supreme Court has pointed out that the normally multiplier suggested by the Hon'ble Supreme Court in Sarala Varma & Other Vs. Delhi Transport Corporation & another should be applied. When there is evidence on record to show that the income of the deceased would not be the same after a certain point of time, then the High Court or the Tribunal can adopt a split multiplier if it is shown that the dropping income would be within the span of number of years suggested as multiplier in Sarala Varma & Other Vs. Delhi Transport Corporation & another.

Fact of the Case:

The claimants sought enhancement of compensation for the death of Manoharan in a motor accident. The Tribunal concluded that the accident occurred due to the rash and negligent driving of the motorbike rider and awarded a sum of Rs. 28,64,024 as compensation.

Finding of the Court:

The court found that the Tribunal erred in adopting 50% of the deceased's salary as the base figure to work out the monetary loss for the remaining period. The court enhanced the compensation to Rs. 31,00,000 with 7.5% interest per annum from the date of petition till date of payment.

Issues: The main issue was the calculation of compensation and the applicability of the split multiplier method.

Ratio Decidendi: The court held that the normally multiplier suggested by the Hon'ble Supreme Court in Sarala Varma & Other Vs. Delhi Transport Corporation & another should be applied. When there is evidence on record to show that the income of the deceased would not be the same after a certain point of time, then the High Court or the Tribunal can adopt a split multiplier if it is shown that the dropping income would be within the span of number of years suggested as multiplier in Sarala Varma & Other Vs. Delhi Transport Corporation & another.

Final Decision: The appeal was partly allowed, and the compensation awarded by the Tribunal was modified to Rs. 31,00,000 with 7.5% interest per annum from the date of petition till date of payment. The claimants were apportioned the amount accordingly, and the Insurance Company was directed to deposit the balance amount with proportionate interest and costs within a period of four (4) weeks from the date of receipt of a copy of the judgment.

JUDGMENT

R. Subramanian, J.

The claimants who were favoured with an award for a sum of Rs. 28,64,024/- for the death of one Manoharan who died in a motor accident that occurred on 16.08.2011 at about 21.05 hours are the appellants. They seek enhancement of compensation.

2. According to the claimants, the accident occurred due to the rash and negligent driving of the rider of the Bajaj Pulsar motorbike bearing registration No. TN-33-AP-9238. The claimants would contend that when the said Manoharan along with his wife and daughter was crossing the road after taking all precautions, the rider of the motor cycle drove the vehicle in a rash and negligent manner at a high speed and dashed against the said Manoharan and his daughter. Due to the grievous injuries sustained, the said Manoharan died on the same day at about 23.30 hours. The claimants would further contend that the said Manoharan was employed in Southern Railways and was earning about Rs. 43,000/- per month. Contending that the sudden death of Manoharan had left the family in shatters, the claimants would seek a compensation of Rs. 40,00,000/-.

3. The claim was resisted by the 1st respondent contending that there was no negligence on his part. According to him, it was the deceased who suddenly crossed the road in a prohibited area which resulted in the accident.

4. The Insurance Company also filed a counter contending that the accident did not occur due to the rash and negligent driving of the rider of the motorcycle. The Insurance Company would also deny the particulars of employment, income and age of the deceased.

5. While the legal representatives of Manoharan filed MCOP.No.4572 of 2011 seeking compensation for his death the 2nd claimant in MCOP.No.4572 of 2011 filed MCOP. No. 4903 of 2011 seeking compensation for the injuries suffered by her.

6. The Tribunal on examination of the evidence on record concluded that the accident occurred due to the rash and negligent driving of the driver of the two wheeler. In coming to the said conclusion the tribunal relied upon, Ex.P1, the FIR and Ex.P2, the sketch. The Tribunal also took note of the charge sheet filed against the driver of the two-wheeler which has been marked as Ex.P3. The Tribunal disbelieved the evidence of RW1, the driver of the two-wheeler inasmuch as the charge sheet was also filed against him.

7. On quantum, the Tribunal granted a sum of Rs. 28,64,024/. In arriving at the said quantum of compensation, the Tribunal took note of the fact that the deceased was a railway employee and he was aged about 54 years at the time of the accident and he had only five years of service left. Taking the multiplier at "11", the Tribunal worked out the loss of pecuniary benefits on the basis of the salary for a period of five years and for the remaining period of six years the Tribunal worked out the loss of pecuniary benefits at the assumed pension that would be drawn by the deceased.

8. It is this split multiplier method adopted by the Tribunal which is very seriously challenged by Mr. Suryanarayanan, learned counsel appearing for the appellants. We have heard Mr.J.Chandran, learned counsel appearing for the insurance Company also.

9. Admittedly, the deceased was working as an accountant in Southern Railways and earning a sum of Rs. 42,197/- per month as salary at the time of the accident. The Tribunal added 15% towards future prospects, and deducted 1/3rd towards his personal expenses. The Tribunal also deducted 20% of Rs. 3,96,124/- being the income tax payable by the deceased. On such working the Tribunal arrived at the yearly loss of dependency at Rs. 3,44,600/-. Applying a multiplier of "5" the Tribunal worked out the pecuniary loss upto the date of retirement of the deceased at Rs. 17,23,000/-. Thereafter, the Tribunal took the pension at 50% of the salary drawn at Rs. 22,000/-. After deducting 1/3rd towards his personal expenses, the Tribunal arrived at the monthly loss of dependency at Rs. 14,667/-, adopting the multiplier o











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