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2026 Supreme(Online)(Mad) 17009

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.GOVINDARAJAN THILAKAVADI, J
Savithri – Appellant
Versus
Nandhakumar – Respondent
Civil Miscellaneous Appeal|M.C.O.P. No.440 of 2022



Advocates:
For the Appellants/Petitioners: Mr. S.P. Yuaraj
For the Respondents: Mr. J. Chandran for R2 R1 & R3

Compensation for loss of dependency must reflect the deceased's earning potential, and conventional heads must be mandatorily granted in determining total compensation.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeal for enhancement of compensation - Compensation enhanced from Rs.14,05,000/- to Rs.30,44,000/- based on assessment of notional income and principles of compensation as laid down in precedents - Court found that the initial assessment by the Tribunal did not adequately reflect loss of dependency or future prospects. (Paras 1, 12)

(B) Compensation Determination - The court adjusted the notional monthly income of the deceased from Rs.10,000/- to Rs.18,000/- considering evidence and future prospects - Reiterated that conventional heads are to be mandatorily granted as per judicial precedent. (Paras 6, 9, 10)

(C) Rights of Minor Claimants - Funds allocated for the minor shall be deposited in a fixed deposit until reaching majority to secure their financial interests. (Paras 12 v).

Facts of the case:
The deceased was involved in a motorcycle accident due to negligent riding from an opposing vehicle, resulting in his death. The claimants contended for a compensation of Rs.50,00,000/- citing the deceased’s monthly earning of Rs.25,000/-.

Findings of Court:
The court affirmed the Tribunal's findings regarding liability but enhanced the compensation substantially to reflect actual loss incurred by the claimants.

Issues: Whether the notional income and compensation awarded were adequate given the circumstances of the deceased's earning potential and dependents’ needs.

Ratio Decidendi: The court established that the failure to account sufficiently for future earning potential and conventional compensation heads warranted an increase in awarded damages.

Result: Civil Miscellaneous Appeal partly allowed, enhancing compensation to Rs.30,44,000/-.

Table of Content
1. claim for compensation due to fatal accident. (Para 1 , 2 , 3)
2. determination of compensation amount. (Para 4 , 5 , 6)
3. court's findings on income and dependency. (Para 8 , 9)
4. calculation methodology for enhanced compensation. (Para 10 , 11)

JUDGME NT

This Appeal, under Section 173 of Motor Vehicles Act, has been filed by the appellants / claimants for enhancement of the sum awarded by the Claims Tribunal.

2. Shortly stated, on 18.08.2022 at about 1.15 p.m., when the deceased Ravi @ Ravikumar was riding his two wheeler bearing Registration No.TN-30-AZ-6446 from Kaveripuram to Kolathur in Kovindapadi Kolathur road, a two wheeler bearing Registration No.TN-93-D-2929, ridden by its rider in a rash and negligent manner, came in the opposite direction and hit against the two wheeler of the said Ravi, due to which, the deceased was thrown out. He was immediately taken to Government Hospital, Mettur, where he died. The legal representatives of the deceased preferred a claim petition for a compensation of Rs.50,00,000/- for the loss caused to them due to the death of the deceased Ravi.

3. The 2nd respondent resisted the claim petition stating that they are not liable to pay compensation to the claimants since the offending vehicle was driven by a minor without driving license. Hence, prayed to dismiss the said Claim Petition.

4. The Claims Tribunal framed necessary issues and came to the conclusion that the accident took place due to the rash and negligent riding of the rider of the 1st respondent vehicle and that the claimants are entitled to claim compensation. A compensation of Rs.14,05,000/- was awarded by the Tribunal and the 2nd respondent was directed to pay the said compensation 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, at the first instance and then recover the same from the 1st respondent, since he allowed his vehicle to be ridden by a minor without driving license.

5. Mr. S.P. Yuaraj, the learned counsel for the appellants / claimants submits submits that the deceased was a lorry owner earning a sum of Rs.25,000/- per month, however, the Tribunal had fixed the monthly income of the deceased notionally at Rs.10,000/- per month, which is very meagre. He would further submit that the Tribunal ought to have awarded more amounts under all the heads. Hence, prayed for enhancement of compensation awarded by the Tribunal.

6. On the other hand, the learned counsel appearing for the 2nd respondent / Insurance Company would submit that the Tribunal, after analysing the oral and documentary evidence, has awarded a just compensation, which requires any interference by this Court.

7. Heard on both sides. Records perused.

8. The findings of the learned Tribunal regarding the involvement of the vehicle in question, and the deceased having sustained fatal injuries which ultimately resulted in his death are not in dispute. The aforesaid findings of the Tribunal appear to be quite correct. The findings are based on proper appreciation of evidence on record and there is no ground to interfere with the above findings of the learned Tribunal. Hence, the findings of the learned Tribunal in this regard are affirmed.

9. Now, the question arises as to whether fixing of notional monthly income of the deceased at Rs.15,000/- and the compensation awarded under the other heads by the Tribunal is appropriate and reasonable.

10. On a perusal of the impugned order, it is seen that since no proof has been adduced by the claimants for the income of the deceased, the Tribunal had fixed the notional monthly income of the deceased at Rs.10,000/-. However, considering the year of accident and the facts and circumstances of this case, this Court deems it fit to fix the monthly income of the deceased at Rs.18,000/-. Since there are 4 dependants, 1/4 is deducted towards the personal expenses of the deceased. Considering the age of the deceased and applying the pri

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