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2026 Supreme(Online)(Mad) 36952

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.GOVINDARAJAN THILAKAVADI, J
G. Ravichandran (since died) 1. Sumathi, R. 2. Vijayalakshmi, R. 3. Sowndhariya, R. Ambika (died) – Appellant
Versus
The Managing Director, Tamil Nadu State Transport Corporation (Kumbakonam Division I) Limited – Respondent
C.M.A.Nos.3173 and 3174 of 2025 | M.C.O.P. Nos.3970 and 3969 of 2014



Advocates:
For the Appellants/Petitioners: Mr.F. Terry Chella Raja
For the Respondents: No appearance

In motor accident claims, multiplier applies for loss of earning capacity with future prospects where substantiated; no enhancement for graded employees without salary loss; notional income fixed per accident year.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 - Appeals against Tribunal award for compensation in motor accident claims due to rash and negligent driving of bus.

(B) Motor Accident Claims - Quantum of compensation - Notional income, loss of earning capacity, future prospects, multiplier method for partial permanent disability - Tribunal's adoption of per percentage method upheld where no salary loss; enhanced for appropriate notional income and multiplier considering year of accident. (Paras 7, 10, 11)

Facts of the case:
On 14.08.2014 at 1.45 a.m., claimants travelling in respondent bus driven at high speed in rash and negligent manner near Azhangal bridge, thrown inside bus sustaining grievous injuries; Tribunal awarded Rs.9,27,865/- and Rs.11,08,200/- with 7.5% interest; appeals filed for enhancement.

Findings of Court:
Appeal in one claim dismissed; in other, compensation enhanced to Rs.11,25,865/- with 7.5% interest from date of claim petition; notional income fixed at Rs.9,000/-, multiplier 14 applied for 50% functional loss.

Issues: Quantum of compensation including notional income, loss of earning capacity, adoption of multiplier vs. per percentage method, future prospects, future medical expenses.

Ratio Decidendi: Where no salary loss for graded employee, no multiplier for permanent disability; notional income enhanced to Rs.9,000/- for year of accident with 25% future prospects, multiplier 14 for partial permanent disability; other heads reasonable absent substantiation.

Result: One appeal dismissed; other partly allowed with enhanced compensation.

Table of Content
1. appeals against tribunal's compensation award (Para 1 , 2 , 6)
2. accident due to driver's negligence (Para 4 , 5)
3. claimants seek enhanced compensation for injuries (Para 7 , 10 , 11)

COMMON JUDGMENT

These appeals, under Section 173 of Motor Vehicles Act, have been filed by the appellant/petitioner for enhancement of the sum awarded in the Common Award dated 18.02.2022 made in M.C.O.P. Nos.3970 and 3969 of 2014 on the file of the I Additional Sub Judge, Motor Accident Claims Tribunal, Cuddalore.

2. For the sake of convenience, the parties are referred to as per their ranking in the Tribunal.

3. Shortly stated, on 14.08.2014, at about 1.45 a.m, when the appellant /

petitioner in both the MCOPs were travelling in the respondent Bus bearing Registration No. TN-68-N-0633, near Azhangal bridge, the driver of the bus drove the bus at a very high speed, in a rash and negligent manner, without following the traffic rules, as a result of which, both the petitioners were thrown inside the bus and sustained grievous injuries. They preferred claim petitions before the Motor Accident Claims Tribunal, Cuddalore, in MCOP No. 3969/2014 (filed by T. Purusothaman) and MCOP No.3970/2014 (filed by G. Ravichandran) seeking compensation of Rs.10,00,000/- and Rs.25,00,000/-

respectively.

4. The Claim petitions were resisted by the respondent / Transport Corporation by stating that the driver of the respondent bus drove it with due care and caution observing traffic rules from Chennai to Kumbakonam. According to the respondent, near Koliyanur Cross Road, since the road in that stretch was in a very poor condition with potholes, the bus was jolting. Since the petitioners were not holding the handle, they fell down into the bus. Except the petitioners, nobody was injured in the bus. According to the respondent, the petitioners alone were responsible for the accident and hence, the respondent / Transport Corporation is not liable to pay any compensation to the petitioners.

5. The Claims Tribunal framed necessary issues and came to the conclusion that the accident occurred due to the negligence of the driver of the respondent bus and directed the respondent to pay a compensation of Rs.9,27,865/- to the petitioner in MCOP No.3969/2014 and a sum of Rs.11,08,200/- to the petitioner in MCOP No.3970/2014 together with interest at the rate of 7.5% per annum from the date of the claim petition till the date of realisation.

6. Seeking enhancement of compensation awarded by the Tribunal, the present Civil Miscellaneous Appeals are filed by the petitioner in both the MCOPs.

7. The learned counsel for the appellant would contend that, the petitioner in MCOP No.3970 of 2014 was working as a Technician at Neyveli Lignite Corporation and was earning Rs.47,000/- per month. The Tribunal failed to award compensation for the injured under the head of loss of income in spite of producing Ex.P18 Salary Reduction and De-promotion report, which clearly shows that the petitioner has lost Rs.20,000/- per month due to the injury and disability arising out of the accident. He would further submit that the injured was assessed with 80% disability for the whole body and lost his earning capacity and hence, the Tribunal ought to have adopted multiplier method for determining his loss of earning capacity instead of per percentage method.

7.1. The learned counsel would further submit that the petitioner in MCOP No. 3969 of 2014 was a manufacturer of chamber bricks and agriculturist earning a sum of Rs.20,000/- per month. However, the Tribunal fixed the notional monthly income of the petitioner as Rs.7,200/- and awarded loss of income for the period of 5 months. It is further submitted that the petitioner has completely lost his earning capacity and that the Tribunal has not considered the same in awarding just compensation towards loss of earning capacity. Further, the Tribunal failed to award compensation under the head of future medical expenses, damages, disfigurement a

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