The court ruled that actual income based on Income Tax Returns must be considered for compensation calculations, rejecting arbitrary figures set by the Tribunal.

JUDGMENT :

R.SURESH KUMAR, J.

This Civil Miscellaneous Appeal has been filed by the claimant seeking enhancement of the compensation awarded by the Motor Accidents Claims Tribunal, Special Subordinate Judge, Erode in M.C.O.P.No.153 of 2021 dated 29.11.2023.

2. In view of the order that is going to be passed, notice to the respondents 1 and 2 is hereby dispensed with.

3. Due to the motor vehicle accident that took place on 10.01.2021, the appellant / claimant was injured and he had taken treatment as in-patient for 38 days. He was assessed to have suffered 55% disability by the Medical Board. Based on this disability that he suffered due to the accident, the claimant / appellant, who is an Advocate by profession, filed MCOP No.153 of 2023 before the Tribunal.

4. The learned Tribunal, having taken the functional disability at 100%, applied the correct multiplier, but had taken the monthly earning only at the rate of Rs.16,000/-, based on which the following award has been passed.

“As per the dictum in 2018 (1) TN MAC 731 (SC) ICICI Lombard General Insurance Co. Ltd., -vs- Ajay Kumar Mohanty and another” , the petitioner is entitled for loss of earning as granted above.

13) a) In the result, this petition in MCOP No.153/2021 is allowed in part with proportionate cost and the petitioner is awarded compensation for a sum of Rs.19,11,000/- (Rupees Nineteen Lakhs and Eleven Thousand Only) together with interest at the rate of 7.5% per annum (Interest less future medical expenses Rs.1,50,000/-) from the date of the petition till the notice of deposit given to the petitioner, payable by the 3^rd respondent on behalf of the 2^nd respondent.

b) The petitioner is not entitled for any interest for the period of default if any.

c) The 3^rd respondent is hereby directed to deposit the award amount to the credit of the “MACT' Special Subordinate Judge, which is the Bank Account of this Claims Tribunal specially being maintained for this purpose at State Bank of India Town Branch, Erode – 638 011, Account No.35981547810 and IFSC Code – SBIN0007897 directly by NEFT (or) RTGS mode.

5. In the said award, under the head “Permanent Disability and Loss of Earning Power” only a sum of Rs.13,73,000/- has been awarded. Aggrieved over the same, the appellant / claimant has filed the present appeal seeking for enhancement.

6. Heard Mr.S.Kalyanaraman, learned counsel for the appellant and Mr.C.R.Krishnamoorthy for the third respondent.

7. The only area where enhancement is sought for by the appellant is with regard to the monthly income that has been fixed at Rs.16,000/- by the Tribunal through the impugned award, whereas the appellant being an Advocate has filed Income Tax Returns regularly and for the purpose of calculation of compensation, we have taken the Income Tax Returns filed by the appellant/claimant for the Assessment Years 2019-20 and 2020-21.

8. For the Assessment Year 2019-20, the gross total income of the appellant/claimant was Rs.3,53,011 and after deductions, the net taxable income was fixed at Rs.2,32,230/-. Insofar as the Assessment Year 2020-21 is concerned, the gross total income was fixed at Rs.6,13,147/- and after deductions, the taxable net income was fixed at Rs.4,97,789/-.

9. If this is the Income Tax Assessment for the two immediate preceding years of the date of the accident, which occurred on 10.01.2021, the Tribunal ought to have taken these Income Tax Returns into consideration. Thereby, the immediate preceding year's net income since was fixed at Rs.4,97,798/- which is around Rs.40,000/- per month, and hence