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2025 Supreme(Mad) 5105

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K.MURALI SHANKAR, J.
S.Ganeshamoorthy - Appellant 
Vs.
W.Joseph Shibu - Respondent 
C.M.A.(MD)No.902 of 2025
Decided On : 12-09-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr.K.Kumaravel
For the Respondents: Mr.V.J.Kumaravel, Mr.R.Anand

Compensation adjustments must align with judicial findings, and future earning potential should be considered in determining appropriate compensation amounts.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation Claim - Appeal against award of compensation of Rs.14,18,300/- by Tribunal for death of Shanmugaraj in an accident - Tribunal wrongly deducted 50% of awarded compensation despite finding both drivers liable. (Paras 6-8, 10-14)

(B) Legal Principles - Apportionment of liability must align with judicial findings; Inadvertent mistakes in awards warrant rectification; Future prospects can be included in income assessment for compensation purposes. (Paras 11-12)

Facts of the case:
The claimants, parents of deceased Shanmugaraj, challenged the Tribunal's award claiming an inadequate compensation amount, alleging mechanical deduction of 50% inconsistent with established liability. (Paras 1, 5, 6)

Findings of Court:
The Tribunal's deduction was highlighted as an inadvertent error, leading to the compensation being corrected from Rs.28,36,600/- to Rs.28,58,600/- due to enhanced amounts for consortium and other heads. (Paras 14)

Issues: The court addressed whether the Tribunal erred in reducing compensation and if the evidentiary basis for calculating notional income was appropriate. (Paras 10, 12)

Ratio Decidendi: The court emphasized that any compensation adjustments must be consistent with judicial findings and that future earnings potential should be considered, confirming the adjustments in compensation made based on judicial precedent. (Paras 12, 14)

Result: Appeal partly allowed; compensation enhanced to Rs.28,58,600/- with interest.

Table of Content
1. compensation awarded for fatal accident (Para 1 , 2 , 4)
2. assessment of liability and compensation errors (Para 5 , 7 , 8)
3. arguments on income and compensation enhancement (Para 6 , 10 , 12)
4. court's reasoning on compensation entitlement (Para 11 , 13)
5. final order on compensation enhancement (Para 14)

JUDGMENT :

K.MURALI SHANKAR, J.

The Civil Miscellaneous Appeal is directed against the award made in M.C.O.P.No.813 of 2018 dated 12.03.2025 on the file of the Motor Accident Claims Tribunal / Special District Court to deal with MCOP cases, Madurai.

2. The appellants / claimants, who were awarded with a compensation of Rs.14,18,300/- (Rupees Fourteen Lakhs Eighteen Thousand and Three Hundred only) with interest at 7.5% per annum payable by the respondents 2 and 4, for the death of Shanmugaraj, consequent to an accident occurred on 02.01.2017, challenged the quantum of compensation awarded at by the Tribunal.

3. For the sake of convenience and brevity, the parties herein after will be referred to as per their status / ranking in the Tribunal.

4. During enquiry, the claimants examined the first claimant as P.W.1 and one Kalimuthu as P.W.2 and exhibited 13 documents as Ex.P.1 to Ex.P.13. The fifth respondent had remained ex-parte. The respondents 1 to 4 adduced neither oral nor documentary evidence.

5. The learned trial Judge, upon considering the evidence both oral and documentary and on hearing the arguments of both the sides, passed the impugned order dated 12.03.2025 holding that the accident was occurred due to the rash and negligent driving of the fifth respondent and the third respondent's driver and directed the respondents 2 and 4 being the insurers to pay compensation of Rs.14,18,300/- to the claimants with interest and costs. Aggrieved by the impugned award, the claimants have preferred the present appeal.

6. The learned counsel appearing for the claimants would submit that the Tribunal, after giving such a finding that the driver of both the vehicles were responsible for the accident and consequently mulcted liability on the insurer of both the vehicles, directed them to pay 50% of the compensation each to the claimants, but in the final portion of the order, the Tribunal instead of directing the respondents 2 and 4 to pay compensation of Rs.14,18,300/- each, erroneously deducted 50% of the compensation payable to the claimants.

7. As rightly pointed out by the learned counsel appearing for the claimants, in paragraph No.13 while deciding point No.2, the Tribunal has concluded, “As the second respondent is the insurer of the first respondent and as the third respondent is insurer of the fourth respondent are liable to pay the each 50% of compensation to the claimants.” But the Tribunal before result paragraph, in paragraph No.22 has held, “As already this Tribunal fixed the second respondents and fourth respondent are liable to pay each 50% of compensation in total amount of compensation to the petitioners 1 and 2 (Rs.28,36,600/- - 50% (Rs.14,18,300/-) = Rs.14,18,300/-). Hence this Tribunal is awarded the total compensation Rs.14,18,300/- to the claimants 1 and 2 after deduction of 50% of compensation.”

8. Considering the above, as rightly contended by the learned counsel appearing for the claimants and conceded by the learned counsel appearing for the respondents 2 and 4, the Tribunal's deduction of 50% of the compensation is inconsistent with its finding that both drivers are responsible for the accident. Given the Tribunal's finding that both insurers are liable, the deduction appears to be an inadvertent mistake that warrants rectification.

9. As already pointed out, the claimants have filed the present appeal challenging the quantum of compensation.

10. The learned counsel appearing for the claimants would mainly contend that the deceased was an engineering graduate and he has already completed his course in Raja College of Engineering and Technology, Madurai but the Tribunal, without considering the ab

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