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2024 Supreme(Mad) 335

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Krishnan Ramasamy, J.
M/s. The National Insurance Company Limited, Chennai - Appellant
Vs.
Yogalakshmi & Others - Respondent
C.M.A. Nos. 1921 & of 2023 & C.M.P. Nos. 18589 & 16935 of 2023
Decided On : 22-03-2024

Advocate Appeared:
For the Parties :J. Micheal Visuvasam, Ramya V.Rao, Advocates.

IMPORTANT POINT
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.

Headnote:

Motor Vehicles Act, 1988 - Compensation for Loss of Income - Section 173 - Ex.P11, Ex.P12, Ex.P13

Fact of the Case:

The appeal was filed to challenge the quantum of compensation awarded by the Motor Accidents Claims Tribunal for the death of R.Sathishkumar in a road accident. The main contention was the deduction of certain amounts from the deceased's income for the purpose of calculating compensation.

Finding of the Court:

The Court found that the deduction made by the Tribunal was not just and reasonable, and recalculated the deceased's income for the purpose of awarding compensation. The compensation awarded under other heads was confirmed.

Issues: The main issue was the quantum of compensation, specifically the calculation of the deceased's income and the deduction of certain amounts from it.

Ratio Decidendi: The Court held that the amounts contributed towards Provident Fund, Benevolent, and Medical Premium were not solely for the benefit of the deceased, but also for the benefit of the deceased's family members. Therefore, the deduction made by the Tribunal was not just and reasonable.

Final Decision: The Court modified the compensation awarded by the Tribunal for loss of income and confirmed the compensation awarded under other heads. The total compensation amount was reduced, and the apportionment of the compensation among the claimants was determined.

JUDGMENT :

(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, to set aside the decree and judgment dated 17.03.2023 in MCOP.No.5532 of 2019 by the Hon'ble Motor Accidents Claims Tribunal, (Chief Judge, Court of Small Causes), Chennai.

Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, to enhance the compensation in MCOP.No.5532 of 2019 dated 17.03.2023 on the file of the Hon'ble Motor Accidents Claims Tribunal, (Chief Judge, Court of Small Causes), Chennai.)

1. These civil miscellaneous appeals have been filed challenging the judgment and decree dated 17.03.2023 in MCOP.No.5532 of 2019.

2. The learned counsel for the claimant would submit that on 21.09.2019, while one R.Sathishkumar was driving a car bearing Registration No.TN-02- BK-8883from Chennai to Kollimalai, a Gas Tanker Lorry bearing Registration No.TN-88-A-9316 came in a rash and negligent manner and dashed against the said car, due to which the said R.Sathishkumar was died on the spot. Considering all the aspects, the Tribunal had awarded the compensation in the following manner:

S.No

Heads

Compensation (Rs.)

1

Loss of Income

75,96,696

2

Loss of Estate

15,000

3

Loss of Consortium

2,00,000

4

Funeral Expenses

15,000

 

Total

78,26,696

3. She would further submit that at the time of accident, the deceased was aged about 32 years and earning a sum of Rs.41,000/- per month. To prove the same, the claimants had produced Ex.P8/Confirmation Letter of J.B.Chemicals and Pharmaceuticals Ltd., Ex.P9/Increment Letter 2017-18, Ex.P10/Resignation Acceptance, Ex.P11/Letter of Appointment of Macleods Pharmaceuticals Ltd., Ex.P12/Salary Slip for the months of May, June and August, 2019 and Ex.P13/Copy of Summary of Account as on 31.07.2019. Based on the Salary Slip of the deceased, the Tribunal had fixed a sum of Rs.37,682/- as income of the deceased after deducting a sum of Rs.3,318/-, which was contributed towards Provident Fund, Benevolent and MED PREM.

4. She would contend that since the amount deducted towards Provident Fund, Benevolent and MED PREM are contributed to the family members of the deceased, the Tribunal is not supposed to deduct the same. Hence, she requests this Court to re-determine the compensation awarded by the Tribunal towards loss of income. She would also submit that the compensation awarded by the Tribunal under the other heads are just and fair and hence, she requests this Court to confirm the same.

5. In reply, the learned counsel appearing for the Insurance Company would submit that in the present case, the deceased was initially working at J.B.Chemicals & Pharmaceuticals Limited as Area Manager. Thereafter, he resigned the job and to prove the same, the resignation letter was also marked before the Tribunal as Ex.P10. Hence, there is no doubt that after resignation, he worked at Macleods Pharmaceuticals Limited for a period of 6 months and during the probation period, he passed away due to the accident.

6. Further, he would submit that the deceased was passed away on 21.09.2019, however, on perusal of Ex.P13/ Copy of Summary of Account of the deceased, it appears that the salary was credited to the account of the deceased only up to August, 2019 and no salary was credited for the month of September, 2019. Hence, he would submit that the Insurance Company has to ascertain as to whether, the probation of the deceased was confirmed or not.

7. In reply, the learned counsel for the claimant would submit that the entire benefit of the deceased was handed over to the wife of the decased by way of cash, due to which, the salary of the September, 2019, was not reflected in the Copy of Summary of Account of the deceased. Hence, she would request this Court to re-determine the income and award compensation.

8. Heard the learned counsel for the claimant and the Insurance Company and also perused the doc

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