IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
Valli & Others – Appellants
Versus
K. Saravana Velu & Another – Respondents
C.M.A. No. 431 of 2017
Decided On : 06-07-2023
Motor Vehicles Act - Compensation - 173 - 1988 - 2009 (2) TNMAC 1 SC
Fact of the Case:
The appeal was filed to enhance the award amount with interest at the rate of 18% per annum. The deceased was a Gangman Mazdoor at the office of Tamil Nadu Highways Department and was earning a salary of Rs.11,256. The appellant sought to include home loan deductions in the compensation. The insurance company objected to the veracity of the deceased's employment. The court considered the evidence and the law laid down in Sarla Verma & others vs. Delhi Transport Corporation & another reported in 2009 (2) TNMAC 1 SC.
Finding of the Court:
The court found that the deceased's income and various compensations were not properly calculated by the Tribunal. The court modified the compensation awarded by the Tribunal and increased it from Rs.7,39,000 to Rs.21,77,000 with interest at the rate of 7.5% per annum.
Issues: The issues revolved around the calculation of compensation for the deceased's dependents, including loss of income, love and affection, funeral expenses, loss of estate, and transportation. The veracity of the deceased's employment was also questioned.
Ratio Decidendi: The court relied on the evidence presented, including the deceased's salary and deductions, to calculate the compensation. The court also applied the legal principles established in the Sarla Verma case to determine the entitlement of the dependents to compensation.
Final Decision: The Civil Miscellaneous Appeal was partly allowed, and the compensation awarded by the Tribunal was enhanced to Rs.21,77,000 with interest at the rate of 7.5% per annum. The appellants were directed to pay necessary Court fee, and the Insurance Company was directed to deposit the enhanced award amount along with interest and costs.
JUDGMENT
(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, to enhance the award amount with interest at the rate of 18% per annum and costs.)
1. The Civil Miscellaneous Appeal was filed to enhance the award amount with interest at the rate of 18% per annum
2. The learned counsel appearing for the appellant would submit that the as per the Ex.P6, the deceased, who died due to the accident occurred on 25.12.2010, was working as Gangman Mazdoor at the office of Tamil Nadu Highways Department and at the time of death, he was about 35 years old and he was drawing a salary of Rs.11,256/-. With regard to the same, a documentary evidence was produced before the Tribunal and the same was marked as Ex.P6. Further, it appears that he was paying a sum of Rs.4,575/- towards the home loan along with GPF and the said amount was deducted by the Tribunal while awarding the compensation. According to the learned counsel for the appellant, the said amount has to be included and thereafter only the compensation should be awarded.
3. He would further contend that the compensation awarded under the head “love and affection” to the second and third respondents herein is on the lower side and the Tribunal had awarded the funeral expenses only to a sum of Rs.5,000/- and no amount was awarded for loss of estate and transportation. Hence, this appeal.
4. On the other hand, the learned counsel appearing for the insurance company/second respondent had strongly objected the submissions made by the learned counsel for the appellant and further, questioned about the veracity of Ex.P6. He would further submit that since Ex.P6 is not supported by evidences, the employment of the deceased as Gangman Mazdoor at the office of Tamil Nadu Highways Department is doubtful. Hence, he prays for the dismissal of this petition.
5. In reply, the learned counsel appearing for the appellant would request this Court to fix the notional income and award compensation based on the Ex.P6 and with regard to all other heads, he requests this Court to award compensation as per the law laid down in the judgement in Sarla Verma & others vs. Delhi Transport Corporation & another reported in 2009 (2) TNMAC 1 SC.
6. I had given due consideration to the submissions made by the learned counsel for the appellant as well as the respondent.
7. As per Ex.P6, the deceased was receiving a sum of Rs.11,256/- as salary and the same was proved by the document, which was produced and marked through PW1 as Ex.P6. Further, PW1 had categorically stated that her husband as working as Gangman Mazdoor at the office of Tamil Nadu Highways Department at the time of death and PF contribution and loan repayment was also made by him and hence, it is an admitted fact. Therefore, I do not find any error in the order passed by the Court below with regard to the consideration of Ex.P6. However, the Tribunal ought not to have deducted a sum of Rs.4,575/-, which was contributed towards the PF and home loan by the deceased. Since these are all the income of the deceased, the same has to be considered by the Trial Court while awarding compensation.
8. In view of the above, this Court is inclined to take the income of the deceased as a sum of Rs.11,256/- at the time of accident. Since there are three dependents in the family of deceased, towards his personal expenses 1/3rd of the amount has to be deducted i.e., Rs.3,752/-. After deducting the said amount, the loss of income for the dependents would come around a sum of Rs.7,504/- (Rs.11,256 – Rs.3,752). Further, the Court below had not included the future prosperous as per the law laid down in Sarla case. Therefore, in the present case, this Court is inclined to include 40% towards future prosperous. By adding 40%, the loss of income per month would be a sum of Rs.10,505/-. In the present case, the multiplier applicable is ''16''
AI
Proper calculation of compensation for dependents under the Motor Vehicles Act based on the deceased's income and legal precedents.
The main legal point established in the judgment is the court's authority to enhance compensation based on a thorough analysis of the deceased's income, future prospects, and other compensations.
The deduction of amounts from the deceased's income for the purpose of calculating compensation should be just and reasonable, taking into consideration the benefits to the deceased's family members.
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'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 considered the deceased's qualifications, age, and future prospects to determine the notional income and enhance the compensation accordingly.
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