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2025 Supreme(Mad) 5002

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, MUMMINENI SUDHEER KUMAR, JJ.
Bajaj Allianz General Insurance Co. Ltd. – Appellant
Versus
Manivasagam (Died) – Respondent
C.M.A. No. 469 of 2014, C.M.P. No. 25565 of 2019, Cross Objection No. 102988 of 2019
Decided On : 24-09-2025

Advocates Appeared:
For the Appellant : K. Padmanabhan
For the Respondents: Ma. Pa. Thangavel, K. Vinod, Elveera Ravindran

Compensation in motor accident cases must consider actual income loss and the appropriate multiplier based on age, while negligence claims require reliable evidence.

Headnote:(A) Motor Vehicles Act - Legal principles regarding compensation for road accidents - Determination of loss of income post-accident based on functional disability - Application of appropriate multiplier for age of victim established under the precedent of Sarala Verma vs. Delhi Transport Corporation - Death of claimant after filing for enhancement of compensation. (Paras 17, 21, 22)

(B) Assessment of contributory negligence - No reliable evidence provided to establish contributory negligence on part of the lorry driver. (Paras 18, 20)

Facts of the case:
The claimant was involved in an accident on 01.06.2005 resulting in 100% disability; the claimant's pre-accident monthly income was cited as Rs.6000, but the Tribunal fixed it at Rs.3000. A claim for Rs.15,00,000 was made. The Insurance Company challenged the award regarding negligence attributed to the auto driver and the compensation amount.

Findings of Court:
The claim of contributory negligence by the lorry driver was not substantiated, and the assessment of functional disability was supported. A revised compensation amount was calculated as Rs.15,86,471, with specific values assigned to various heads.

Issues: The primary issues included whether there was contributory negligence on part of the lorry and the appropriate multiplier for age and loss of earning capacity.

Ratio Decidendi: The court affirmed that the Tribunal's determination of negligence was valid, while the notional income and application of multiplier must reflect fair compensation principles.

Result: Civil Miscellaneous Appeal dismissed; Cross Objection for enhancement of compensation disposed of.

Table of Content
1. implementation of legal heirs in appeal. (Para 1 , 2 , 3)
2. circumstances of the accident and claims. (Para 4 , 5)
3. disputes over negligence and assessment of income. (Para 6 , 7 , 8 , 9 , 10)
4. previous rulings on negligence. (Para 11 , 12 , 13)
5. disputing claims after the accident. (Para 14 , 15)
6. social welfare legislation considerations. (Para 16 , 17)
7. 100% disability and evidence assessment. (Para 18 , 19 , 20)
8. errors in multiplier application. (Para 21 , 22 , 23 , 24)
9. conclusion and summary of awards. (Para 25 , 26 , 27 , 28)

JUDGMENT :

G. JAYACHANDRAN, J.

1. It is brought to the notice of this Court that 1st respondent/Manivasagam died, this Court suo motu impleads respondents R5 to R7 as parties to the appeal (C.M.A.No.469 of 2014) and also impleads petitioners 2 to 4 in Cross Objection SR.No.102988 of 2019 in their capacity as the legal heirs of the deceased 1st petitioner.

2. Civil Miscellaneous Appeal is filed by the Insurance Company, being aggrieved by the award passed by the Motor Accident Claims Tribunal, Tiruppur, in M.C.O.P.No.582 of 2005.

3. Cross Objection SR.No.102988 is filed by the petitioner/Cross objector to enhancement of compensation.

4. The claimant/Cross objector had taken out an application for enhancement of compensation. It is not out of context to record the facts that, pending appeal, the 1st respondent, who is the claimant has lost his breath on 20.02.2024, living behind his wife, his mother (widow) and son who has just attained majority.

5. Adverting to the facts of the case, on 01.06.2005 early morning at 4.45 a.m, an auto bearing Reg.No.TN-39-AB-2079, carrying four passengers besides the driver had dashed against a Lorry bearing Reg.No.TN-28-4509. The occupants of the auto had sustained injuries. The claimant/Manivasagam was one among them. The claim petition seeking compensation of Rs.15,00,000/- instituted by Manivasagam contending that the injuries sustained by him had made him cripple, causing 100% disability and unable to earn his livelihood or maintain his dependent. Claiming that, before the accident, he was earning a sum of Rs.6000/- per month as welder in a carpentry and the accident occurred due to the rash and negligent act of the auto driver in which he was travelling. Consequently, the claimant has instituted the claim petition against (i) the owner of the auto and its insurer and (ii) the owner of the lorry and its insurer.

6. The claim petition was strongly and vehemently contested by the Insurance Company. The Tribunal, after considering the evidence on the side of the petitioner as well as the evidence on the side of the respondents, including the documents relied on either side, held that the accident occurred wholly due to the rash and negligent driving of the auto driver in which the claimant was travelling and sustained injuries.

7. Regarding the loss of income and the quantum of compensation, though the claimant has averred that he was earning Rs.6000/- per month and adduced oral evidence of the co-worker to support his claim. However, the Tribunal had fixed the notional income of Rs.3000/- per month and the applied multiplier since the medical evidence indicated that the claimant had sustained 100% functional disability.

8. The award of the Tribunal is challenged by the Insurance Company on the ground that when there is head on collusion between the Auto and the lorry, the negligence on the part of the lorry driver has been totally ignored by the Tribunal and had fixed entire liability on the insurer of the Auto.

9. Regarding the quantum of compensation, it was contended that a sum of Rs.3000/- per month as notional income fixed by the Tribunal is per se without any basis. Further, submitted that multiplier 18 should be applied for the injured person, whose age is 27 is also not inconsonance with the dictum laid down in Sarala Verma vs. Delhi Transport Corporation and another , (2009) 6 SCC 121 .

10. The Learned Counsel for the Appellant/Insurance Com

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