IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B. BALAJI, J.
Ranjani & Others – Appellants
Versus
M. Senthil Kumar & Another – Respondents
C.M.A. No. 1846 of 2018
Decided On : 09-03-2023
Motor Vehicles Act - Compensation - 173 - 2017(1) TNMAC 598 (SC), 2009 6 SCC 121, 2017 16 SCC 680
Fact of the Case:
The appellants sought compensation for the death of Velusamy in a road accident. The Tribunal awarded Rs.7,82,400, which the claimants appealed to enhance based on the deceased's income and future prospects.
Finding of the Court:
The Court found the Tribunal's calculation of the deceased's income and future prospects to be erroneous and not in line with established legal principles. It modified the judgment, increasing the compensation to Rs.17,90,000.
Issues: Calculation of deceased's income, future prospects, and other compensation heads.
Ratio Decidendi: The Court applied the principles laid down in 2017(1) TNMAC 598 (SC), 2009 6 SCC 121, and 2017 16 SCC 680 to determine the deceased's income, future prospects, and compensation.
Final Decision: The Civil Miscellaneous Appeal was partly allowed, modifying the judgment and decree to award the claimants Rs.17,90,000 with interest at 7.5%.
JUDGMENT
(Prayer: Appeal filed under Section 173 of the Motor Vehicles Act, 1988 seeking enhancement of compensation in the judgment and decree dated 27.04.2018 made in M.C.O.P.No.269 of 2014 on the file of the Motor Accident Claims Tribunal/Sub Court at Sathyamangalam, Erode District.)
1. This present Civil Miscellaneous Appeal is at the instance of the claimants, aggrieved by the award passed by the Motor Accidents Claims Tribunal/Sub Court, Sathyamangalam in M.C.O.P.No.269 of 2014 in and by judgment and decree dated 27.04.2018, awarding a sum of Rs.7,82,400/- together with interest at 7% per annum.
2. The brief facts set out in the claim petition are as hereunder:
The appellants before this Court as appellants, wife and father of the deceased, one, Velusamy, S/o Mahali who died in a road accident on 04.06.2014 sought for compensation of Rs.20,00,000/-. The case of the claimants before the Tribunal was that late Velusamy was running a provision stores and was earning not less than Rs.20,000/- per month and that the 1st respondent/State Transport Corporation bus driven in a rash and negligent manner and that too at high speed and without using horn hit the deceased motor cycle resulting in grievous injuries and also died on the spot.
3. The 2nd respondent/State Transport Corporation filed a counter denying the allegations of rash and negligent driving by the 2nd respondent''s driver. In the said counter, it is also contended that the deceased was not earning Rs.20,000/- per month and only Rs.15,000/- ought to be taken towards notional income as per the II schedule of the Motor Vehicles Act. The insurance company also denied the compensation claimed under various heads and put the claimants to strict proof of such claims.
4. Before the Tribunal, the wife of the deceased was examined as P.W.1 and one Murugesan was examined as P.W.2. Exs.P.1 to P.16 were marked on the side of the claimants. On the side of the respondents no oral and documentary evidence was let in.
5. The Tribunal after considering the oral and documentary evidence available on record, awarded a sum of Rs.7,82,000/-, with each of the claimants being entitled to 50%, being wife and father of the deceased.
6. Aggrieved by the said award the claimants as appellants are before this Court.
7. The main grounds of challenge to the award are that the income of the deceased fixed by the Tribunal at Rs.8,000/- is very low and erroneous and that future prospects have not been taken into account at all, considering the deceased was only aged 41 years. It is also contended that the Tribunal has not awarded any amount towards transport to hospital. On these grounds, the judgment and decree of the Tribunal was sought to be modified.
8. Learned counsel appearing for the parties have made their rival submissions and in so far as applying the multiplier of 14, both the learned counsel fairly conceded that even though there was a discrepancy with regard to the age of the deceased, a multiplier of 14 was rightly adopted.
9. In so far as deduction towards personal expenses, as rightly contended by the learned counsel for the appellants, admittedly the number of dependants being two i.e., wife and father of the deceased, 1/3rd should have been deducted towards personal expenses of the deceased. However, this Court finds that the Tribunal has deducted ½ which is clearly erroneous and not in line with the ratio laid down by the Hon''ble Supreme Court in number of cases, which have been repeatedly followed by this Hon''ble Court as well.
10. In so far as the income of the deceased, this Court finds that the Tribunal has fixed the notional income at Rs.8,000/- per month, even though it is the specific case of the claimants that the deceased was earning not less than Rs.20,000/- per month. Admittedly, the accident was in the year 2014. The Hon''ble Supreme Court in M.Shiva Kumar vs. The Managing Director, BMTC, reported in 2017(1) TNMAC 598 (SC) held, while deciding the income of a pain
The main legal point established is the correct determination of compensation under the Motor Vehicles Act based on the deceased's income and future prospects.
The Court considered the deceased's qualifications, age, and future prospects to determine the notional income and enhance the compensation accordingly.
The Court applied the principles of determining compensation under the Motor Vehicles Act and relevant case laws to reach a decision on the compensation amount.
In the absence of evidence of actual income, notional income can be considered for computing compensation under the Motor Vehicles Act, 1988.
The main legal point established in the judgment is the court's authority to modify and enhance compensation awarded by the Tribunal based on considerations such as the deceased's avocation, income, ....
The main legal point established in the judgment is the determination of compensation for the death of the deceased in a motor accident, considering various factors such as monthly income, future pro....
The court applied relevant Supreme Court rulings to determine compensation for the deceased's death in a road accident.
Compensation in motor accident claims must reflect fair assessment of victim's income and depend on valid evidence to determine just compensation.
The court's decision emphasized the importance of considering the deceased's notional income, age, and nature of work in determining compensation, as guided by relevant legal principles.
The court re-determined the notional income and adjusted the compensation for loss of income, love and affection, and loss of estate based on legal precedents and the nature of the case.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.