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2020 Supreme(Mad) 137

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
IFFCO-TOKIO General Insurance Co. Ltd., Represented by its Manager, K.S.C.M.F. Buildings, Bangalore - Appellant
Versus
Mageswari & Others - Respondent
C.M.A. No. 2898 of 2015 & M.P. No. 1 of 2015
Decided On : 13-03-2020

Advocates Appeared:
For the Appellant:C.R. Krishnamoorthy, Advocate. For the Respondents:R1 to R4, M. Selvam, Advocate, R5, No Appearance.

The main legal point established is the need to consider current cost of living and price index in assessing just compensation for motor accident claims involving minors.

Headnote:

Motor Vehicles Act - Compensation Calculation - 279, 304(A) IPC - 163-A MV Act - Lata Wadhwa v. State of Bihar - Sarla Verma v. DTC - MCD v. Uphaar Tragedy Victims Assn.

Fact of the Case:

The Civil Miscellaneous Appeal is filed against the judgment and decree passed by the Motor Accidents Claims Tribunal. The appeal mainly challenges the quantum of compensation awarded and the liability due to the driver not having a valid driving license. The accident resulted in the death of a 10-year-old boy, and a compensation of Rs.28,55,000/- was claimed.

Finding of the Court:

The Court found that the driver was responsible for the accident and negligent. It upheld the Tribunal's decision to order pay and recovery from the owner of the vehicle due to the driver not having a valid license. The Court confirmed the compensation amount of Rs.8,10,000/- awarded by the Tribunal.

Issues: The issues revolved around the quantum of compensation, liability of the driver, and the relevance of previous judgments in determining the compensation amount.

Ratio Decidendi: The Court considered the principles laid down in Lata Wadhwa v. State of Bihar and Sarla Verma v. DTC to determine the compensation for the deceased 10-year-old boy. It emphasized the need to consider the current cost of living and price index in assessing just compensation.

Final Decision: The judgment and decree of the Tribunal were confirmed, and the appeal was dismissed. The appellant/Insurance Company was directed to deposit the entire Award amount with accrued interest, and the respondent/claimants were permitted to withdraw the amount.

JUDGMENT

(Prayer: The Civil Miscellaneous Appeal is preferred under Section 173 of the Motor Vehicles Act, 1988, against the Award and decree dated 15.09.2014 passed in M.C.O.P.No.40 of 2014 on the file of the learned Special District Judge, Special District Court-cum-Motor Accidents Claims Tribunal, Dharmapuri.)

1. The present Civil Miscellaneous Appeal is directed against the judgment and decree dated 15.09.2014 passed by the learned Special District Judge, Special District Court-cum-Motor Accidents Claims Tribunal, Dharmapuri in MCOP No.40 of 2014.

2. The appellant/Insurance Company preferred the present Civil Miscellaneous Appeal mainly on the ground of quantum of compensation awarded by the Tribunal as well as the liability and in view of the fact that the driver of the vehicle, which met with an accident was not in possession of a valid driving license and under those circumstances, the Tribunal ordered for pay and recovery.

3. The learned counsel appearing on behalf of the appellant has stated that the claimant was a minor aged about 10 years old and therefore, the calculation of compensation by the Tribunal is in violation of the judgment of the Hon’ble Supreme Court of India in the case of Kishan Gopal and Others vs. Lala and Others [2013 (2) TN MAC 358 (SC)].

4. The accident occurred on 24.01.2011 at about 17.00 Hours in front of Tea Shop at Arasakanahalli Village. Perumbalai Police Station registered a case in Crime No.25 of 2011 under Sections 279 and 304 (A) of IPC. The minor boy died on the way to Salem Government Hospital, who was aged about 10 years at the time of accident and a compensation of Rs.28,55,000/- was claimed.

5. The Tribunal adjudicated the issues and the factum regarding the accident was established before the Tribunal and accordingly the Tribunal arrived a conclusion that the first respondent-Driver in the claim petition was responsible for the accident and he who committed negligence and accordingly, the accident happened and the minor boy died.

6. The evidence was let in by the appellant/Insurance Company regarding the driving license of the driver and it was found that the driver was not in possession of a valid driving license at the time of accident. In the absence of establishing the fact that the driver was not in possession of a valid license, then the Tribunal ought to have ordered for pay and recovery, enabling the appellant/Insurance Company to recover the compensation amount from the owner of the vehicle.

7. As far as the pay and recovery order is concerned, this Court is of the considered opinion that the driver, who was driven the vehicle, which met with an accident, was not in possession of valid driving license and therefore, the appellant/Insurance Company has to recover the compensation from the owner of the vehicle, after paying the same to the victim. As far as the quantum of compensation is concerned, the Tribunal awarded a sum of Rs.8,10,000/-. The future prospects was calculated and a sum of Rs. 2,70,000/- was awarded, loss of income was calculated and a sum of Rs.5,40,000/- was awarded. The monthly income of Rs.3,000/- was fixed for the minor boy aged about 10 years and 15 multiplier was applied.

8. It is relevant to consider the judgment of the Hon’ble Supreme Court of India in the case of Kishan Gopal and Others vs. Lala and Others (cited supra). As far as the 10 years old boy is concerned, the Apex Court considered various aspects and fixed the compensation at Rs.5 lakhs. Paragraph-18 of the judgment, cited supra, is relevant with reference to the fixation of compensation, more specifically, for a 10 years old boy, who died in the accident and the same is extracted as under:-

“18. Point Nos.2 and 3 are answered together in favour of the appellants for the following reasons.

The Tribunal having answered the contentious Issue 1, against the appellants in its judgment the same is concurred with by the High Court by assigning erroneous reasons and it has affirmed dismissal of the cla

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