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2026 Supreme(Mad) 1502

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. Anand Venkatesh, K. K.Ramakrishnan, JJ.
The Divisional Manager, The New India Assurance Company Ltd. - Appellant
Versus
Ashik Ali - Respondent
C.M.A.(MD).No.457 of 2026 and C.M.P(MD).No.4581 of 2026
Decided On : 08-04-2026

Advocates Appeared:
For the Appellant : Mr.G.Prabhu Rajadurai
For the Respondent: Mr.K.Kumaravel

Lorry parked without lights/reflectors on road at night constitutes full negligence; no contributory negligence if victim's hasty action results from created danger; notional income for young engineer moderated absent proof.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 122, 168 and 173 - Motor accident claim - Appeal against award - Lorry parked in middle of road at night without parking lights or reflectors - Collision by car resulting in death of driver - Tribunal fixed 100% negligence on lorry driver and awarded compensation based on monthly income of Rs.30,000/- - Held, finding on negligence sustainable as eyewitness testimonies corroborated by police report established improper parking creating danger; no contributory negligence where one party's negligence places other in sudden danger - Income reduced to notional Rs.27,500/- for lack of proof; future prospects 40%, multiplier 18 applied; conventional heads modified per precedents - Compensation reduced from Rs.61,28,000/- to Rs.56,99,000/- with 7.5% interest. (Paras 8.1, 8.2, 9)

(B) Motor Vehicles Act, 1988 - Section 122 - Duty of halted vehicle driver - Mandatory to use parking lights, reflectors or warning signals on public roads to prevent danger or obstruction - Violation constitutes negligence. (Para 8.1.3)

Facts of the case:
Car dashed into stationary lorry parked without lights or signals on national highway at 1.50 a.m., killing car driver (aged 24, site engineer) and another occupant; claimants sought Rs.50 lakhs compensation; insurance company contested negligence and income.

Findings of Court:
Negligence solely on lorry driver confirmed; notional income Rs.27,500/- with 40% future prospects; loss of income recomputed; loss of love and affection Rs.1,20,000/- total; other heads confirmed; total Rs.56,99,000/- with 7.5% interest.

Issues: (1) Sustainability of 100% negligence on lorry driver or contributory negligence by car driver? (2) Reasonableness of notional monthly income fixed at Rs.30,000/-?

Ratio Decidendi: Tribunal's negligence finding upheld based on eyewitness evidence and police report showing lorry parked dangerously without precautions; no contributory negligence in sudden danger situations; income moderated to Rs.27,500/- absent documentary proof, applying standard computation with future prospects and multiplier.

Result: Appeal partly allowed; compensation reduced to Rs.56,99,000/- with 7.5% interest.

Table of Content
1. lorry parking without signals constitutes sole negligence (Para 1 , 2 , 3 , 5 , 6)

JUDGMENT :

K.K. RAMAKRISHNAN, J.

The appellant insurance company, being the third respondent in M.C.O.P. No.40 of 2024 on the file of the Motor Accident Claims Tribunal (Principal District Court), Ramanathapuram, has preferred the present appeal to set aside the award dated 22.09.2025, on the grounds relating to negligence and quantum of compensation.

2. Facts of the Case:

2.1. It is averred in the claim petition filed in M.C.O.P. No.40 of 2024 that, on 16.07.2023, at about 1.50 a.m., the deceased, along with six others, was travelling in a car bearing Registration No. TN-04-M-6768 along the Kanyakumari–Tirunelveli National Highway, proceeding from south to north. When the vehicle reached the Nanguneri Bridge near Krishnamputhur Village, a lorry bearing Registration No. TN-88-8046 was found parked in the middle of the road without any signal indication or parking lights. Consequently, the car driven by the deceased dashed against the said lorry. Due to the impact, the occupants of the car sustained injuries, and the deceased, Sheikh Abdullah, along with another occupant, Ameer Abbas, died on the spot, while three other occupants sustained injuries. The injured were initially admitted to the Government Hospital, Nanguneri, and thereafter referred to the Government Hospital, Tirunelveli, for further treatment. Based on the information received, the Nanguneri Police registered a case against the driver of the lorry for the offences punishable under Sections 279, 337, and 304(A) of the IPC.

2.2. The dependents of the deceased, Sheikh Abdullah, filed the claim petition in M.C.O.P. No. 40 of 2024 seeking compensation of Rs.50,00,000/-. It is stated in the petition that the deceased had completed a B.E. in Civil Engineering from Mohamed Sathak Engineering College, Kilakarai, Ramanathapuram District, and was employed as a Site Engineer with a construction company IH Constructions, Kilpauk, Chennai, from June 2021 to June 2023, earning a monthly salary of Rs. 30,000/-.

2.3. The appellant insurance company filed a counter statement denying both the occurrence of the accident and the allegation of negligence. It was contended that the accident occurred solely due to the negligence of the car driver, namely the deceased, who allegedly drove the vehicle in a rash and negligent manner without noticing the parked lorry. The insurance company also disputed the income of the deceased.

2.4. During the trial, on the side of the claimants, P.W.1 to P.W.3 were examined and Exhibits P1 to P23 were marked. On the side of the appellant insurance company, no oral or documentary evidence was adduced.

3. Finding of the Tribunal

The Tribunal, upon appreciation of the oral and documentary evidence, including the testimony of P.W.1, as well as the First Information Report and the final report, concluded that the accident occurred solely due to the negligence of the driver of the lorry. Accordingly, the Tribunal held that the appellant/Insurance Company is liable to pay compensation. The Tribunal, on the basis of Exs.P9, P12 and P14, fixed the age of the deceased at 24 years. Further, taking into consideration the nature of employment of the deceased, the Tribunal fixed his monthly notional income at Rs.30,000/-. On such determination, the Tribunal awarded a total compensation of Rs.61,28,000/-under the following heads:

Sl. No.Heads of CompensationAmount (Rs.)
1Loss of Income60,48,000/-
2Loss of Love and Affection (Rs.15,000/- each to the claimants)45,000/-
3Funeral Expenses15,000/-
4Transportation Charges5,000/-
5Loss of Articles15,000/-
Total61,28,000/-

4. Submission of the learned counsel for the appellant:

4.1. The learned counsel for the appellant/Insurance Company would contend that the Tribunal erred in fixing negligence entirely on the part of the driver of the lorry, without properly appreciating the circumstances of the case. According to the learned counsel, the de

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