SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Mad) 4359

IN THE HIGH COURT OF JUDICATURE AT MADRAS
J.NISHA BANU, R.SAKTHIVEL, JJ.
The Manager Reliance General Insurance Company Limited - Appellant 
Versus 
Sanjeevan, S/o. Subramani - Respondent 
CMA NO.147 OF 2025 AND CMP NOS.1232 AND 1234 OF 2025
Decided on : 29-01-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.P.Suresh Srinivasan
For the Respondent: Mr.M.Selvam

The court ruled that separate compensation for loss of income is inadmissible when loss of earning capacity is calculated using the multiplier method under the Motor Vehicles Act.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for injuries sustained in a motor accident - The Tribunal awarded Rs.27,11,340/- after deducting 10% for contributory negligence, later modified to Rs.26,03,340/- upon appeal, confirming various heads of compensation. (Paras 7, 13)

(B) Compensation - The court held that while the multiplier method is applicable, a separate award for loss of income is inadmissible when compensation for loss of earning capacity is already calculated. (Paras 11, 13)

Facts of the case:
The petitioner, a student and National Level athlete, sustained injuries from a collision caused by a car driven recklessly, leading to a claim for Rs.75,00,000/-. (Para 3)

Findings of Court:
The Tribunal's compensation was modified to Rs.26,03,340/- after setting aside the loss of income award. (Paras 13, 14)

Issues: The court addressed whether the Tribunal's compensation calculation was legally sound and the appropriateness of awarding loss of income. (Paras 10, 11)

Ratio Decidendi: The court emphasized that separate compensation for loss of income is not permissible when loss of earning capacity has been accounted for using the multiplier method. (Para 13)

Result: The appeal is partly allowed, modifying the compensation amount.

JUDGMENT :

J .NISHA BANU, J.

Feeling aggrieved by the 'Award dated August 28, 2024 passed in M.C.O.P.No.213 of 2022’ [henceforth ‘impugned Award’ for clarity and convenience] by the 'Exclusive Motor Accident Claims Tribunal, Dharmapuri ' [henceforth ‘Tribunal’ for brevity], the appellant/2nd respondent has preferred this Civil Miscellaneous Appeal.

2. For the sake of convenience, henceforth, the parties will be referred to as per their array in the Original Petition.

PETITIONER'S CASE:

3.On January 17, 2022, at 12:45 p.m., the petitioner Sanjeevan, along with one Sakthivel, were proceeding to B.S. Agraharam on a motorcycle bearing Registration No. TN38-CY-0338, which was being driven by Sakthivel. When they came near the A-Sekkarapatti– Pappampalayam Diversion Road, a car bearing Registration No. TN01- AS-8285, which was coming from the opposite direction and driven at high speed in a rash and negligent manner, collided with the motorcycle. As a result of the accident, both Sakthivel and petitioner sustained injuries. Immediately, the petitioner was taken to the Government Hospital in Dharmapuri for first aid and then shifted to Ganga Hospital in Coimbatore for further treatment. He was admitted as an inpatient from January 17, 2022, to January 26, 2022. During the course of treatment, the petitioner underwent surgery on his right leg. At the time of the accident, the petitioner was 20 years old and a third-year B.Sc. Geology student. He was also a National Level Kho Kho player and had been selected to participate in the International Kho Kho game. The first respondent is the owner of the Car and the second respondent is the insurer of the Car. Therefore, the petitioner filed Original Petition claiming compensation of Rs.75,00,000/- from the respondents.

FIRST RESPONDENT'S CASE:

4. The first respondent remained absent and hence, was set ex-parte before the Tribunal.

SECOND RESPONDENT'S CASE:

5.The second respondent, the Insurance Company, filed a counter denying the allegations made by the petitioner in the claim petition, including the manner of the accident. According to the second respondent, the driver of the first respondent's Car did not possess a valid driving license at the time of the accident. The vehicle records of the Car were not in order at the time of the accident. Furthermore, the rider of the motorcycle was not wearing a helmet and was riding without a valid driving license. Since the accident occurred solely due to the negligence of the rider of the motorcycle, the second respondent contended that they are not liable to pay compensation. Additionally, the petitioner’s claim amount and the interest sought are excessive. Accordingly, the second respondent prayed for the dismissal of the original petition.

TRIBUNAL

6. On the side of the petitioner, petitioner examined himself as P.W.2 and Sakthivel was examined as P.W.1 and two other witnesses were examined as P.W.3 and P.W.4. and Ex-P.1 to Ex-P.19 and Ex-X.1 and Ex- X.2 were marked. On the side of the second respondent, neither any witness nor any document was marked.

7. The Tribunal, relying on the evidence of P.W.1 and P.W.2 and Ex-P.1 – First Information Report (FIR), held that the accident occurred due to the rash and negligent driving of the driver of the Car bearing Registration No.TN01-AS-8285 and awarded compensation under various heads along with interest thereon at the rate of 7.5% per annum from the date of presentation of the petition till the date of realization and directed the second respondent/insurance company to deposit compensation, as tabulated hereunder:

Sl.No.HeadAmount Rs.
1Compensation for loss of earning capacity21,77,300.00
2Compensation for disability-
3Pain and Suffering1,00,000.00
4Extra nourishment20,000.00
5Attender charges15,000.00
6Loss of income1,08,000.00
7Damages to clothes5,000.00
8Future medical expenses--
9Medical expenditure5,02,300.00
10Loss of Amenities75,000.00
11Transportation charges10,000.00
12Grand Total30,12,600.00
13Less 10% towards contr

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top