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2024 Supreme(Mad) 2802

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. Hemalatha, J.
S.Pazhani and ors. - Appellants
Versus
The Managing Director, Tamil Nadu State Transport Corporation - Respondent
C.M.A.No.1924 of 2021
Decided On : 30-09-2024

Advocates Appeared:
For the Appellant : Ms.Ramya V.Rao
For the Respondent: Mr.S.Santhosh Kumar

Court enhanced compensation due to inadequate initial assessment, applying principles of notional income and future prospects in line with established precedents.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166(1) - Compensation for road accident - Claim petition filed for Rs.40,00,000/- due to death of Chitra - Tribunal awarded Rs.14,20,240/- - Court enhanced compensation to Rs.34,95,600/- based on notional monthly income of deceased fixed at Rs.15,000/- with future prospects and multiplier applied for dependents - Interest awarded at 7.5%. (Paras 1, 10, 12)

(B) Calculation of compensation - Court determined that notional income and future prospects should reflect the deceased's earning capacity and dependents' needs, ensuring justice. (Paras 10, 11)

(C) Appeal - Appellants contended for enhancement based on inadequate compensation fixed by Tribunal, justified by income claims. Respondent upheld Tribunal's calculation principles. (Paras 8, 9)

Facts of the case:
Accident occurred on 09.10.2019 when Chitra was hit by a bus; she succumbed to her injuries four days later. Negligence was established against the bus driver.

Findings of Court:
Compensation enhanced due to inadequate initial assessment of income and dependency.

Issues: Focus on adequacy of compensation based on evidence provided regarding the victim's income and the application of dependency multiplier.

Ratio Decidendi: Appellant's claims supported by evidence demonstrated the need for enhanced compensation, prioritizing future earnings and dependents' welfare.

Result: Civil Miscellaneous Appeal partly allowed; compensation increased to Rs.34,95,600/- with interest.

Table of Content
1. claim for compensation due to negligence in road accident (Para 1 , 2)
2. arguments regarding income assessment and compensation (Para 4 , 8 , 9)
3. calculation and enhancement of compensation awarded (Para 5 , 10 , 11)
4. final judgment and order on compensation appeal (Para 12)

JUDGMENT :

R. Hemalatha, J.

The appellants are the claimants in M.C.O.P.152 of 2020 on the file of the Motor Accident Claims Tribunal, Cuddalore. They filed the claim petition under Section 166(1) of the MOTOR VEHICLES ACT , 1988 seeking compensation of Rs.40,00,000/- for the death of one Chitra, ( wife of claimant 1 ; mother of claimants 2 to 6) in a road accident that took place on 09.10.2019.

2. The brief case of the appellants / claimants is as follows :

On 09.10.2019, Chitra (since deceased) was walking along Cuddalore – Trichy National Highways Road and when she was nearing Thambipettai Kesavanarayanan Junction, a bus bearing Registration Number TN-32-N-3951 belonging to the appellant, the Tamil Nadu State Transport Corporation Limited, hit her, as a result of which, she sustained injuries all over her body. She was immediately rushed to Government Hospital, Kurinjipadi, from where she was referred to Jipmer Hospital, Puducherry. However, she succumbed to injuries on 13.10.2019. 3. According to the claimant, the rash and negligent driving of the driver of the bus bearing Registration Number TN-32-N-3951 belonging to the Tamil Nadu State Transport Corporation (Villupuram Division - I) Limited was the cause of accident and therefore, they are liable to pay compensation to them.

4. The respondent resisted the claim petition by filing its counter.

5. The Tribunal vide its orders dated 14.12.2020, fastened negligence on the part of the driver of the bus bearing Registration Number TN-32-N-3951 and awarded compensation of Rs.14,20,240/- to the claimants together with interest at the rate of 7.5% per annum from the date of claim petition till the date of realisation.

6. Aggrieved over the quantum of compensation awarded by the Tribunal, the appellants (claimants) have filed the present appeal under Section 173 of the MOTOR VEHICLES ACT , 1988.

7. Heard Ms.Ramya V.Rao, learned counsel appearing for the appellants and Mr.S.Santhosh Kumar, learned counsel appearing for the respondent.

8. Ms.Ramya V.Rao, learned counsel appearing for the appellants would contend that the deceased was a daily wager earning a sum of Rs.15,000/- per month. However, the Tribunal fixed the notional monthly income of the deceased only as Rs.6,000/-, which, according to her, is very meagre. She therefore, prayed for enhancement of compensation.

9. Per contra Mr.S.Santhosh Kumar, learned counsel appearing for the respondent contended that the Award passed by the Tribunal is based on the well laid down principles of law which were in vogue at the time of passing of the order and therefore, the same need not be disturbed at this stage.

10. In the claim petition, it is contended that the deceased was aged about 35 years and was a daily wager earning a sum of Rs.15,000/- per month. In the absence of satisfactory income proof, the Tribunal fixed the notional monthly income of the deceased as Rs.6,000/-. Considering the age of the victim, year of the accident and the number of minor children depending on their deceased mother, this Court is of the opinion that fixing notional monthly income of the deceased at Rs.15,000/- would meet the ends of justice. As per the decision of the Supreme Court of India in National Insurance Co. vs Pranay sethi and others reported in 2017 (2) TNMAC 601, 40% is added towards future prospects of the deceased. Since there are five dependents, 1/5th of the deceased's income should be deducted towards his personal expenses. The proper multiplier to be adopted in the instant case is 16 as per the decision rendered in Sarla Verma and others vs. Delhi Transport Corporation and another reported in (2009) 6 SCC 121.

Calculation

Notional Income = Rs.15,000/-

40%

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