IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.SOUNTHAR, J.
The Divisional Manager, The United India Insurance company Limited - Appellant
Vs.
A.Lakshmi - Respondent
CMA No.976 of 2025 and C.M.P.No.7767 of 2025
Decided On : 01-04-2025
(A) Motor Vehicles Act, 1988 - Compensation for death in a road accident - Claimants sought Rs.50,00,000/- for the death of Azhagesan due to negligence of the driver of an insured vehicle - Tribunal awarded Rs.29,88,000/-, which was contested by the insurance company on grounds of contributory negligence and notional income. (Paras 2-4)
(B) Contributory Negligence - The court held that mere absence of a valid driving license does not establish contributory negligence without positive evidence of the deceased's fault. (Paras 7)
(C) Notional Income - The court modified the notional income from Rs.18,000/- to Rs.16,500/- based on prevailing circumstances and family size, applying a multiplier of 13 for loss of dependency. (Paras 10-11)
(D) Total Compensation - The total compensation was reduced to Rs.26,83,125/- with interest at 7.5% per annum from the date of filing. (Paras 12-13) (E) Apportionment - The compensation was apportioned among the claimants, with specific amounts designated for each. (Paras 14-15)
Facts of the case:
The claimants, including the wife and children of the deceased, argued that the accident was due to the negligence of the driver of an insured vehicle. The insurance company contested the claim, asserting contributory negligence due to the absence of a valid driving license.
Findings of Court:
The court found no evidence of contributory negligence and adjusted the notional income, ultimately reducing the compensation amount.
Issues: The main issues included the determination of contributory negligence and the appropriate amount for notional income.
Ratio Decidendi: The court ruled that absence of a valid driving license alone does not imply contributory negligence without evidence of fault, and it adjusted the notional income based on the circumstances of the case.
Result: The Civil Miscellaneous Appeal is partly allowed, reducing the compensation to Rs.26,83,125/-.
JUDGMENT :
S.SOUNTHAR, J.
The Civil Miscellaneous Appeal is filed challenging the award passed by the Motor Accident Claims Tribunal, Special District Court, Cuddalore by the insurance company.
2. It was the case of the respondents 1 to 5/claimants 1 to 6 that the husband of the first claimant, father of the claimants 2 to 5 and son of the deceased 6th claimant namely Azhagesan died in a road accident that had taken place on 10.07.2020. According to the claimants, the deceased was driving his two-wheeler in Cuddalore to Vridhachalam main road. When he came near V.Sathamangalam new bus stand, an Ashok Leyland goods carrier belonged to the 6th respondent, insured with the appellant came in a rash and negligent manner and dashed against the two-wheeler. As a result of the accident, the deceased sustained grievous injuries and died. Therefore, the claim petition was filed seeking compensation of Rs.50,00,000/-
3. The 6th respondent remained exparte before the Tribunal and the claim petition was contested only by the appellant/ insurance company, on the ground that the accident had occurred only due to the rash and negligent driving of the deceased.
4. The Tribunal, based on the evidence of P.W.2 and the contents of Ex.P1, FIR and Ex.P5, final report, came to the conclusion that the accident had occurred due to the negligence on the part of the driver of the vehicle insured with the appellant/ insurance company. The compensation payable to the claimants was quantified at Rs. 29,88,000/-.Aggrieved by the same, the insurance company has come before this court by way of this appeal.
5. The learned counsel for the appellant/Insurance Company submitted that the deceased did not possess a valid driving license at the time of accident. Therefore, the tribunal should have fixed contributory negligence on his part. He further submitted that the notional income of Rs.18,000/- fixed by the tribunal is on higher side. It is also stated by him that the amount awarded by the tribunal under conventional damages is also on higher side.
6. The learned counsel for the respondents 1 to 5/ claimants submitted that mere failure to produce the valid driving license is not a ground to fix contributory negligence. The learned counsel also submitted that the deceased had six dependents at the time of accident including one son and three unmarried daughters. Therefore, the tribunal was justified in fixing Rs.18,000/- per month as notional income.
7. The Hon'ble Apex Court in the case of Sudhir Kumar Rana Vs Surinder Singh and Others reported in (2008) 12 SCC 436 categorically held that mere failure to produce a valid driving license is not a ground to fix contributory negligence on the part of the deceased unless there is a positive evidence to show that he also contributed to the accident. In the case on hand, there is no positive evidence to suggest that the deceased by his rash and negligence contributed to the accident. Therefore, following the law laid down in Sudhir Kumar Rana case cited supra, this Court holds that contributory negligence cannot be fixed on the part of the deceased.
8. As far as the quantum of compensation is concerned, the claimants in their petition had stated that the deceased was a contract labourer employed in NLC India Limited and was earning a sum of Rs. 25,000/- per month. However, to prove the said plea, they have not produced any documentary evidence. In these circumstances, the tribunal fixed Rs.18,000/- as notional income for the deceased. Even if there is no evidence to prove the avocation and income, this Court, by taking into consideration the facts and circumstances of the case, can fix a notional income.
9. It is submitted by the learned counsel for the claimants that the deceased had a large family including three unmarried daughters and one son. Therefore, according to him, the tribunal was justified in fixing Rs.18,000/- as notional income.
10. Having a large family or more dependents is not a factor while fixing the notiona
Contributory negligence cannot be established solely by the absence of a valid driving license; evidence of fault is required. Notional income can be adjusted based on prevailing circumstances.
The court can determine notional income based on prevailing economic conditions, leading to an enhanced compensation amount reflecting the loss suffered by dependants.
Non-possession of a driving license does not constitute contributory negligence without evidence of rash driving; compensation was enhanced based on adjusted notional income.
Contributory negligence must be supported by evidence; the notional income of the deceased was adjusted based on age and circumstances, correcting the multiplier as per established legal principles.
Contributory negligence must be proven and cannot be inferred; the deceased was not negligent, leading to a modified compensation of Rs.23,61,250.
The court revised the compensation for loss of dependency and recognized loss of love and affection, establishing that contributory negligence should not diminish rightful compensation.
In motor accident claims, the court established proper calculations for dependency loss and emphasized the need for evidence of contributory negligence to support liability assertions.
Court affirmed the Tribunal's determination of contributory negligence while enhancing total compensation amount to Rs.3,82,500 based on evidential assessment and adherence to legal standards for cla....
Motor Accident - Assessment of compensation - No filial consortium has been granted to parents of deceased. Moreover, interest at rate of 9% is as soon higher side which should be reduced to 7%. Acco....
The court ruled that contributory negligence of the deceased was rightly assigned at 50%, and recalibrated income for compensation to Rs.7,500, affirming spousal and parental consortium allowances.
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