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2025 Supreme(Online)(Mad) 20069

IN THE HIGH COURT OF JUDICATURE AT MADRAS
,
Insurance Company – Appellant
Versus
Petitioners – Respondent
M.C.O.P.No.806 of 2022



Advocates:
For the Appellants/Petitioners:
For the Respondents:

In motor accident claims, contributory negligence must be fixed only on credible evidence; notional income and personal expense deductions should be calculated as per recognized legal standards when direct proof is absent.

Headnote:(A) Rules of the Road Regulation, 1989 - Rule 9 - Contributory negligence - Motor Accident Claims - Quantum of compensation - Notional income determination - Deduction towards personal expenses following Sarala Varma principles - Future prospects enhancement - Impact of absence of documentary proof for monthly salary consideration. (Paras 4, 10 and 11)

(B) Contributory Negligence - Partial contributory negligence fixed at 30% on the deceased based on lack of clean negligence evidence on part of the deceased and negligence of vehicle driver - Initial 50% contributory negligence reduced by the court. (Paras 4, 7, 11)

Facts of the case:
On 18.02.2022, deceased rider crossing National Highway was hit by a four wheeler driven rashly by 1st respondent. Deceased died due to injuries. Legal heirs filed claim before MACT. Insurance company appealed against contributory negligence and quantum awarded. The dispute involved contributory negligence, proof of monthly income, and personal expense deductions.

Findings of Court:
The court modified contributory negligence from 50% to 30%, fixed notional income at Rs.20,000 with 10% future prospects, and applied one-third deduction towards personal expenses following Sarala Varma case principles. Total compensation reduced accordingly, other heads confirmed.

Issues: Whether contributory negligence was rightly fixed; appropriate monthly income to be reckoned; and proper deduction for personal expenses considering dependents.

Ratio Decidendi: Absence of reliable evidence of deceased's recklessness led to reduction in contributory negligence. Notional income should be fixed when documentary proof of salary absent, with appropriate deduction of personal expenses as per Sarala Varma. Future prospects to be included in income calculation.

Result: Civil Miscellaneous Appeal and Cross Objection partly allowed with modification of contributory negligence and compensation amount.

Table of Content
1. factual background of accident and parties' involvement. (Para 1 , 3 , 8 , 9)
2. contentions regarding contributory negligence, income proof, and personal expenses deductions. (Para 4 , 5)
3. court analysis on evidence, law application, and modification of negligence and compensation. (Para 6 , 7 , 10 , 11)

JUDGMENT

Challenging the award passed in M.C.O.P.No.806 of 2022, dated 19.02.2024 on the file of the Motor Accident Claims Tribunal/Special District Judge (MACT), Madurai, this civil miscellaneous appeal has been filed by the Insurance Company.

2. For the sake of convenience, the parties herein are referred to as per the ranking before the learned Tribunal.

3. The appellant Insurance Company is the 2nd respondent before the Tribunal. The petitioners are the legal heirs of the deceased person. The 1st respondent is the owner cum driver of the four wheeler involved in the accident. On 18.02.2022, after purchasing groceries, the deceased riding his TVS XL bearing registration no.TN67F7130 intending to cross the Virudhunagar to Thirumangalam NH7. While crossing the road from west to east, Hundai i10 bearing registration no.TN09BP6518 which was driven in a fast and negligent manner by the 1st respondent from south to north, hit against the rider of the two wheeler causing an accident. As a result of which, the rider of the two wheeler, namely Muthuramalingam sustained serious injuries, who on admission at Thirumangalam Government Hospital was declared dead on the date. The 1st respondent had insured his four wheeler with the 2nd respondent Insurance Company. At the time of accident, the deceased was aged about 59. Seeking to compensate the death of Muthuramalingam, his legal heirs had laid M.C.O.P.No.806 of 2022.

4. The learned counsel for the Insurance Company submitted that this appeal has been preferred as against the award of the Tribunal on three grounds. (i) The Tribunal ought not to have preferred to fix 50% of contributory negligence on the deceased when he had recklessly and carelessly crossed the road without caution and the learned Tribunal ought to have fixed the entire negligence on the deceased. He submitted that though he possessed a license, the same was with respect to four wheeler and he did not possess license for two wheeler. Hence, the entire negligence ought to have fixed on the deceased himself. That apart, he also insisted that the particular Sevarakottai intersection is not an authorized intersection for the deceased to cross the National Highway road and as such, he categorically contended that the entire negligence ought to have been fixed as against the deceased.

(ii) He has submitted that one Shanmugasundaram was examined as P.W.3, who deposed his evidence stating that he had paid the deceased a monthly salary of Rs.28,500/- and the deceased had served as Driver in his Sri Shanmuga Logistics Company. However, no authenticated document was marked through him for proving that an amount of Rs. 28,500/- was credited into the account of the deceased as monthly salary. Only a certificate of salary as certified by P.W.3 himself was marked as Exhibit P.6 which ought not to have been relied upon by the learned Tribunal to fix the monthly income of the deceased. The learned Tribunal ought to have fixed notional income which is probable to the income of a heavy license holder. Having not done so, the quantum of monthly income fixed by the learned Tribunal should also be modified.

(iii) He insisted that the 1st petitioner is the wife and the 2nd to 6th petitioners are the married daughters of the deceased. Hence, the learned Tribunal ought to have deducted 1/3rd towards personal expenditure of the deceased following Sarla Varma case , instead the learned Tribunal had proceeded to deduct 1/4th as personal expenses considering the married daughters as his dependents which is not legally sustainable. On that basis, he sought for modification of the award of the learned Tribunal.

5. Per contra, the learned

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