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2025 Supreme(Mad) 5141

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.Sounthar, J.
Kavitha and ors. - Appellants
Versus
R.Latha and ors. - Respondents
CMA No.1029 of 2025
Decided On : 29-04-2025

Advocates Appeared:
For the Appellant : Mr.R.P.Ruban Chakravarthy for Mr.S.Kaithamalai Kumaran
For the Respondent: M/s.R.Sree Vidhya

The court determined appropriate notional income based on current living costs, enhancing compensation for loss of dependency and awarding additional conventional damages, resulting in an increased total award.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for death in road accident - Claimants sought enhancement of compensation fixed at Rs.13,15,000/- by the Tribunal to Rs.40,00,000/- - The deceased died in an accident caused due to negligent driving of lorry - Tribunal justified in fixing notional income at Rs.10,000/-, later revised to Rs.18,000/- by High Court considering living costs at the time of the accident. (Paras 2, 4, 11, 14)

(B) Compensation - Appellants entitled to future prospects enhancement and conventional damages - Formula applied for calculating loss of dependency includes multiplier of 13 and deductions for personal expenses. (Paras 11, 12)

Facts of the case:
The husband of the first claimant, Raja, died in a road accident while riding his two-wheeler - The claimants alleged that the accident occurred due to the lorry's negligent driving, leading to compensation claims. (Paras 1-3)

Findings of Court:
The Court held that the claimants were entitled to an enhanced compensation of Rs.28,41,500/- with interest at 7.5% per annum. (Paras 14)

Issues: The primary issues were the proper quantification of the deceased’s income and the evaluation of compensation for loss of dependency and conventional damages. (Paras 6, 10)

Ratio Decidendi: The Court determined that notional income should reflect the current cost of living and held the Tribunal's initial assessment was too low, concluding to enhance the compensation significantly based on verified evidence. (Paras 11, 14)

Result: Civil miscellaneous appeal allowed, enhancing the awarded compensation to Rs.28,41,500/- with interest.

Table of Content
1. claimants seek compensation enhancement. (Para 1 , 2)
2. tribunal found lorry driver's negligence. (Para 3 , 4)
3. arguments on deceased's income necessity. (Para 6 , 7)
4. evidence of salary disputed. (Para 8 , 9)
5. court sets reasonable notional income. (Para 10 , 11)
6. claimants granted enhancements. (Para 12)
7. compensation award modified. (Para 13 , 14)

JUDGMENT :

S.Sounthar, J.

Not satisfied with the quantum of compensation fixed by the Motor Accident Claims Tribunal, the claimants have come before this court seeking enhancement of the compensation.

2. According to the appellants/claimants, the husband of the first claimant, the father of the claimants 2 to 4 namely Raja died in a road accident that had taken place on 21.09.2022. It was the case of the claimants before the Tribunal that the deceased Raja was riding his two- wheeler on the extreme left side of the Salem-Omalur main road. The lorry belonged to the first respondent and insured with the second respondent, came in the same direction in a rash and negligent manner and hit against the two-wheeler from behind. As a result of the accident, the above said Raja sustained grievous injuries and died on the spot. Hence, the claim petition was filed by his dependents seeking compensation of Rs.40,00,000/-.

3. The first respondent, owner of the lorry remained ex-parte before the Tribunal and the claim petition was opposed by the insurer of the lorry on the ground that the accident had occurred due to the rash and negligent driving of the deceased.

4. The Tribunal, based on the evidence available on record, came to the conclusion that the accident had occurred only due to the negligence on the part of the driver of the lorry. The compensation payable to the claimant was quantified at Rs.13,15,000/-. Not satisfied with the quantum, the claimants preferred this appeal.

5. Both the learned counsel for the appellants as well as the second respondent have not advanced any arguments on the questions of negligence as well as liability. Hence, the facts necessary to decide those questions are not discussed in this appeal.

6. The learned counsel for the Appellants submitted that the deceased was working as a driver and the Tribunal fixed the notional income only at Rs.10,000/- per month including the future prospects and hence, the same requires enhancement.

7. The learned counsel for the 2nd Respondent/Insurance Company submitted that the claimants have not produced any credible evidence to prove the avocation and income of the deceased. Hence, the Tribunal was justified in fixing notional income at Rs.10,000/- per month.

8. In the claim petition, it was stated by the claimants that the deceased was working as Jeep driver in SVV Enterprises, Salem and was drawing a salary of Rs.25,000/- per month. In order to prove the same, the employer of the deceased was examined as PW-2 and through him, Exhibit X3, salary certificate was marked.

9. A combined reading of the evidence of PW-2 and Exhibit X3 would indicate that the deceased was paid a salary of Rs.18,000/- and Rs. 7,000/- as batta per month. Therefore, according to the claimants, the income of the deceased was Rs.25,000/- per month. The Tribunal observed that the employer of the deceased failed to produce his account book, Attendant register, etc., to prove that the deceased was employed under him and he was paid Rs.25,000/- per month. It is also stated that the employer did not produce any document to show that proper deductions were made from the salary of the deceased towards PPF, ESI, etc. PW2 in his evidence admitted that he paid a sum of Rs.5,000/- as income tax. Relying on the said admission, the Tribunal observed that the claim made by PW2 that he paid a salary of Rs.25,000/- to his employee is not believable. Had he paid Rs.25,000/-(Rs.3,00,000/- per annum) to his driver as salary, his income should have been much more and he should have paid much more income tax. Hence, his evidence cannot be fully believed.

10. I

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