IN THE HIGH COURT OF JUDICATURE AT MADRAS
RMT. TEEKAA RAMAN, J.
Arulmary & Others – Appellants
Versus
Kavitha & Another – Respondents
CMA No. 2808 of 2022
Decided On : 14-03-2023
Motor Vehicles Act - Compensation Enhancement - Section 173 of Motor Vehicles Act, 1988 - [Section 173] - [Motor Vehicles Act, 1988] - [Summary of Acts and Sections]: The court discussed the calculation of compensation under the Motor Vehicles Act, 1988, specifically focusing on the notional income of the deceased, future prospects, multiplier, and deduction towards personal and living expenses. The court referred to the decision of the Hon-ble Supreme Court in National Insurance Company Limited Vs. Pranay Sethi, reported in 2017 (16) SCC 680 and Sarla Varma Vs. Delhi Transport Corporation Ltd., reported in TNMAC 2009 (2) SC to interpret and apply the legal provisions. The court enhanced the compensation amount from Rs.15,96,250/- to Rs.20,40,000/- based on the re-assessment of loss of dependency/income and transportation charges.
Fact of the Case:
The appellants sought enhancement of compensation awarded by the Motor Accident Claims Tribunal. The accident, negligence, and findings of the tribunal were not disputed. The main contention was the calculation of compensation, specifically the notional income of the deceased.
Finding of the Court:
The court confirmed the findings of the tribunal regarding the accident and negligence. However, it re-assessed the notional income of the deceased and enhanced the compensation amount based on the interpretation of legal provisions and relevant court decisions.
Issues: The main issue was the calculation of compensation, particularly the notional income of the deceased and the quantum of compensation awarded by the tribunal.
Ratio Decidendi: The court re-assessed the notional income of the deceased and enhanced the compensation amount based on the interpretation of legal provisions and relevant court decisions.
Final Decision: The court partly allowed the Civil Miscellaneous Appeal and enhanced the compensation amount from Rs.15,96,250/- to Rs.20,40,000/-.
JUDGMENT
(Prayer: This Civil Miscellaneous Appeal is filed under Section 173 of Motor Vehicles Act, 1988 to enhance the award dated 07.03.2022 passed in MCOP No.100 of 2019 on the file of the Motor Accident Claims Tribunal [Sub Court], Panruti.)
Claim petitioners are the appellants seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal (Sub Court), Panruti, vide judgment and decree dated 07.03.2022 in MCOP No.100 of 2019.
2. For the sake of convenience, the parties are hereinafter referred to as per their ranking before the claims tribunal.
3. The factum of the accident, the manner of the accident and the negligence on the part of the driver of the offending vehicle, are not disputed and hence, the findings of the tribunal are confirmed.
4. On the point of quantum of compensation both the parties are heard.
5. Main contention of the learned counsel for the appellants/claim petitioners, is that the claims tribunal by fixing a lesser income i.e. Rs.9,000/- as notional income of the deceased-Francis, who was a Mason, adding 25% towards future prospects as per the decision of our Hon-ble Supreme Court in [National Insurance Company Limited Vs. Pranay Sethi, reported in 2017 (16) SCC 680], by applying -13- multiplier and deducting 1/4th towards the personal and living expenses of the deceased, has awarded Rs.13,16,250/-, towards loss of income/dependency and hence, she seeks for enhancement.
6. During the trial, PW1, the 1st claim petitioner and PW2-occurrence witness are examined and Ex.P1 to Ex.P8 are marked. Based upon Ex.P8-Aadhar card of the deceased, the claims tribunal has come to the conclusion that at the time of the accident, the deceased was aged 50 years, as the year of birth of the deceased was mentioned as 1968 in Ex.P8-Aadhar card and the date of accident is 03.06.2018. Though, in Ex.P2-Postmortem certificate, the age of the deceased is mentioned as 53, in view of the positive evidence available i.e. Ex.P8-Aadhar card of the deceased, I am inclined to accept the finding of the claims tribunal. However, the income fixed by the claims tribunal is less and taking into consideration the year of the accident i.e. 2018 and the avocation pleaded i.e. Mason, I am of the considered view that fixing a sum of Rs.12,000/-per month as Notional Income, will meet the ends of justice as against the sum of Rs.9,000/- per month fixed by the tribunal.
7. In view of the above, by fixing Rs.12,000/-pm as notional income; adding 25% of income towards future prospects, as per the decision of our Hon-ble Supreme Court in National Insurance Company Limited Vs. Pranay Sethi, reported in 2017 (16) SCC 680; adopting -13- multiplier, as per the decision of the Hon-ble Supreme Court in Sarla Varma Vs. Delhi Transport Corporation Ltd., reported in TNMAC 2009 (2) SC and by deducting 1/4th towards the personal and living expenses of the deceased, as there are four dependants, the loss of dependency/income is reassessed as under
| Monthly income | Rs.12,000/- |
| Future Prospects @ 25% | Rs. 3,000/- |
| Total Income | Rs.15,000/- |
| Loss of dependency/income = Rs.15,000/- x 12 x 13 x 3/4 | Rs.17,55,000/- |
= 8. Further, the award of the tribunal under the head -transportation charges- for the accident of the year 2018 is less and hence, the same is enhanced from Rs.10,000/- to Rs.15,000/-. The award of the tribunal under other heads, is just and reasonable and hence, the same is confirmed.
9. In view of the above discussion, the award of the tribunal is enhanced from Rs.15,96,250/- to Rs.20,40,000/- as detailed hereunder.
| Pecuniary loss | = Rs.17,55,000/- |
| Loss of consortium | = Rs. 40,000/- |
| Loss of Estate | = Rs. 15,000/- |
| Loss of love and affection @ Rs.40,000/- each to claimants 2 to 6 | = Rs. 2,00,000/- |
| Funeral Expenses | = Rs. 15,000/- |
| Transportation Charges | = Rs. 15,000/- |
| Amount now awarded | = Rs.20,40,000/- |
| Amount awarded by the Tribunal | = Rs.15,96,250/- |
| Enhanced Amount | = Rs. 4,4 |
The main legal point established in the judgment is the re-assessment of compensation based on the interpretation of legal provisions and relevant court decisions.
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.
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The court applied the principles of notional income, future prospects, and loss assessment to determine the enhanced compensation for the deceased's death due to a road accident.
The court considered the deceased's notional income, loss of love and affection, and funeral expenses in enhancing the compensation amount for death in a road accident.
The main legal point established in the judgment is the determination of compensation under the Motor Vehicles Act based on the deceased's profession, age, and various aspects such as loss of depende....
The main legal point established in the judgment is the application of legal principles from the Motor Vehicles Act and relevant judgments of the Hon'ble Apex Court to determine and modify the compen....
Compensation in motor accident claims must reflect fair assessment of victim's income and depend on valid evidence to determine just compensation.
The main legal point established in the judgment is the determination of compensation under the Motor Vehicles Act and the application of relevant case laws in deciding the appeal.
The court emphasized the power of the courts to grant just compensation, more than the amount claimed by the claimants, and the consideration of the deceased's qualifications and future prospects in ....
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