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2025 Supreme(Mad) 3771

IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. NISHA BANU, R. SAKTHIVEL, JJ.
Branch Manager, Reliance General Insurance Co. Ltd. - Appellant
Versus
A. Vijayakumar - Respondent
C.M.A. No. 4775 of 2019, C.M.P. No. 27494 of 2019
Decided On : 10-01-2025 


Advocates:
Advocate Appeared:
For the Appellant : Bhuvanasundari
For the Respondents: M. Guruprasad, N.B. Sweetha

The court upheld the liability of vehicle owners and the insurance company for compensation based on established negligence and application of the multiplier method for calculating losses.

Headnote:(A) Motor Vehicles Act, 1988 - Liability and Compensation - The Insurance Company challenged the award in a case of road accident where the claimant suffered grievous injuries due to the negligent driving of the insured lorry. The Tribunal found the vehicle owners and insurance jointly liable for compensation. The Tribunal's award of Rs. 18,48,500 was upheld as just. (Paras 9, 12, 14, 17)

(B) Evidence and Negligence - The court rejected the insurance company's claim of contributory negligence by the claimant, reinforcing that the driver of the offending vehicle was primarily at fault. (Paras 12, 14)

(C) Determination of Income and Compensation - The Tribunal based its compensation on documented medical expenses, loss of earning capacity, and established the claimant's notional income as Rs. 6,500 monthly consistent with Supreme Court precedents. (Paras 10, 17)

Facts of the case:
The claimant, a 36-year-old agricultural worker, sustained severe injuries in a motor accident caused by the first respondent's negligent driving. His significant medical treatments and subsequent inability to work compounded his claims for compensation totaling Rs. 25,00,000.

Findings of Court:
The Tribunal found the first respondent liable for the accident, leading to the award of Rs. 18,48,500.

Issues: The case primarily addressed the negligence of the first respondent and the quantum of compensation awarded to the claimant.

Ratio Decidendi: The court confirmed that the evidence substantiated the claimant's injuries and losses, vindicating the Tribunal's application of the multiplier method and compensation calculation.

Result: Appeal dismissed; Tribunal's award upheld.

Table of Content
1. accident details and claim background. (Para 1 , 2 , 3 , 4)
2. responses from the parties involved. (Para 5 , 6 , 7)
3. tribunal findings on liability. (Para 8 , 9)
4. quantum of compensation awarded. (Para 10 , 17)
5. court's verdict affirming tribunal's decision on compensation. (Para 11)
6. arguments from both sides regarding compensation. (Para 12 , 13 , 14 , 15 , 16)
7. court's final decision and order. (Para 18)

JUDGMENT :

J. NISHA BANU, J.

1. Feeling aggrieved by the Award dated December 11, 2018 passed in M.C.O.P.No.195 of 2013 on the file of the Motor Accidents Claims Tribunal, Sub Court, Gobichettipalayam, ['Tribunal' for short] the third respondent / Insurance Company preferred this Civil Miscellaneous Appeal.

2. For the sake of convenience, the parties herein will be referred to as per their rank in the Motor Claim Original Petition.

Petitioner's case

3. The case of the petitioner / claimant is that on October 24, 2012 at 1.30 pm, the petitioner was travelling as a pillion rider in the motorcycle bearing registration no.TN 36 J 8283 driven by the fourth respondent on the left side of the road towards East to west in Perundurai to Thingalur road, at Thudupathi near Thulukkampalayam in a normal speed by following traffic rules. At that time the first respondent drove the lorry bearing registration No. TN 30 U 5271 in a rash and negligent manner, dashed against the motorcycle. Due to the accident the claimant suffered multiple fractures in his right leg. Immediately after the accident, the claimant was taken to KMCH hospital, Erode. Accident took place due to the rash and negligent driving of the first respondent. A criminal case was also registered against the first respondent. The first respondent admitted the offence and remitted the fine amount on January 3, 2013. The claimant was admitted in the hospital more than 34 days as in-patient in the hospital and during the said period surgery was performed five times. During one of the Surgery performed on the right leg, a steel plate was fixed. The claimant spent huge amount towards medical expenses. Further the doctor advised the claimant to undergo two more surgeries on the right leg and he has to spend huge amount in this regard. The claimant is not yet recovered from the grievous injuries and fractures sustained by him in the accident. At the time of the accident the claimant was 36 years old and he owned agricultural land where he is doing agricultural work. That apart he owned Omini van bearing registration No.TN 36 T 6354 and he was driving the van for hire. Due to the accident, he was enable to drive the Omini van, hence he sold the same. He was earning not less than 40,000/- per month, from the Omini van as well as the agricultural income. Accordingly, he seeks 25,00,000/- lakhs as compensation from the respondents 1 and 2.

4. The first respondent is the driver of the lorry who caused the alleged accident and the second respondent is the owner of the lorry. The third respondent is the insurer of the second respondent’s lorry. The fourth respondent is the rider on which the claimant was a pillion rider. The fifth respondent is the insurance company of the fourth respondent's motor vehicle. The respondents 4 and 5 were added as a formal parties but no relief was sought against them.

5. The respondents 1, 2 & 4 were set exparte before the Tribunal.

Third respondent's case

6. The 3rd respondent – Insurance Company filed counter stating that the first respondent/driver drove the lorry slowly by following all the traffic rules and regulations. At that time the rider of the motorcycle came in the wrong side of the road, unable to control his vehicle, suddenly moved into the middle of the road and invited the accident. There is no fault on the part of the driver of the lorry/first respondent. Therefore, the owner and insurance company of the motorcycle bearing registration No.TN 36 J 8283 i.e. respondents 4 and 5 are equally liable for paying compensation. As it is

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