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2025 Supreme(Mad) 5080

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. GOVINDARAJAN THILAKAVADI, J.
Ramani – Appellant 
Versus
M/s Great Lakes Institute of Management – Respondent
C.M.A. No. 1209 of 2022
Decided On : 05-06-2025

Advocates Appeared:
For the Appellant : F. Terry Chella Raja
For the Respondent: S. Arun Kumar

Future loss compensation is valid for deceased minors; potential contributions can justify claims despite no actual financial benefits during their lifetime.

Headnote:(A) Motor Vehicles Act - Compensation for death of minor in an accident - Tribunal awarded Rs.6,35,000/-, which was deemed inadequate compared to claim - Court enhanced compensation to Rs.9,77,000/- with 7.5% interest. (Paras 4-8)

(B) Notional income assessment - Despite no fixed formula, prospective loss claim permitted for deceased minors. Monthly income set at Rs.7,000/- with 40% future prospects included as reasonable. (Paras 6-7)

Facts of the case:
The claimants sought compensation for their deceased minor son who died in an accident at age 14 while studying. The claim of Rs.30,00,000/- was significantly reduced by the Tribunal, which led to the appeal.

Findings of Court:
The original amount was deemed insufficient considering the minor's potential future contributions; an enhanced award was decided.

Issues: The court considered the adequacy of compensation for the death of a minor and notional income determination for minors in such cases.

Ratio Decidendi: Compensation is warranted for prospective loss even in cases lacking actual pecuniary benefit during the child's lifetime. A reasonable expectation of future benefits must be established.

Result: Appeal partly allowed; compensation enhanced to Rs.9,77,000/-.

Table of Content
1. overview of case and compensation claim (Para 1 , 2 , 3)
2. disputed monthly income for compensation (Para 4 , 5)
3. principles for loss of dependency and future prospects (Para 6)
4. calculation of enhanced compensation awarded (Para 7 , 8)
5. final judgment and order on compensation (Para 9)

JUDGMENT :

K. GOVINDARAJAN THILAKAVADI, J.

1. The above Civil Miscellaneous Petition is directed against the judgment and decree dated 02.03.2022 in M.A.C.T.O.P. No. 4789/2019 on the file of the Motor Accident Claims Tribunal, Chief Judge, Court of Small Causes, Chennai.

2. The minor son of the claimants/appellants died in an accident which occurred on 25.10.2019. A compensation of Rs.30,00,000/- was claimed before the Motor Accident Claims Tribunal, Chief Judge, Court of Small Causes, Chennai.

3. The Tribunal has awarded a compensation of Rs.6,35,000/- with interest at the rate of 7.5% per annum. Aggrieved by the quantum of compensation, the claimants/appellants have preferred this appeal for enhancement of compensation.

4. Though several grounds have been raised in the Memorandum of Appeal, the learned counsel for the claimants/appellants specifically stated that at the time of accident, the deceased was aged about 14 years and was a student studying IX standard. Added to it, the learned counsel submitted that the deceased was highly brilliant and intelligent who had a bright future, but, unfortunately died in the said accident. The Tribunal, however, failed to consider the same and awarded a sum of Rs.6,35,000/- as compensation which is very low. Hence, he prayed to fix the monthly income of the deceased at the rate of Rs.9,000/-, placing reliance on the judgment rendered by the Hon'ble Division Bench of this Court in the case of P. Revathi & another vs. R. Karpagavalli and another, CDJ 2023 MHC 7620, in which a sum of Rs.9,000/- was fixed as a monthly income for a deceased minor child.

5. On the other hand, the learned counsel appearing for the second respondent/Insurance Company submits that the Hon'ble Supreme Court in Rajendra Singh and others vs. National Insurance Co. Ltd. and others , 2020 ACJ 2211, fixed the notional monthly income of a deceased minor at the rate of Rs.5,000/-. In the present case, the Tribunal has fixed the notional monthly income of the deceased minor at the rate of Rs.3,000/-. He, therefore, fairly submitted that applying the principle laid down by the Hon'ble Supreme Court in the abovesaid case, this Court can fix the notional monthly income of the deceased minor at the rate of Rs.5,000/-.

6. I have considered the submissions made on behalf of the parties. It is not in dispute that the deceased minor was a school going child aged about 14 years and that he had died prematurely due to the accident at a very tender age for no fault of him even before he could start his life. It is true that there could be no fixed formula on the basis of which notional monthly income could be calculated in respect of a child aged about 14 years. However, it is settled preposition that though in the case of death of a minor child there may have been no actual pecuniary benefit derived by the parents during the child's lifetime, it may not necessarily bar the claim of the parents and prospective loss will be found to be a valid claim, provided the parents establish that they had a reasonable expectation of pecuniary benefits if the child had lived. Therefore, the determination of a just and proper compensation to the claimants/appellants with regard to the deceased child, in entirety of the facts and circumstances of the case, persuade this Court to enhance the same fixed by the Tribunal from Rs.3,000/- to Rs.7,000/- with an addition of 40% towards future prospects would be just and equitable in the circumstances of the case.

7. Loss of dependency is reworked, on the basis of the above, as follows:

Calculation Notional Income = Rs.7,000/-

40% Future Prospects = Rs.9,800/-

After 1/2 deduction = Rs.4,900/-

Loss of dependency

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