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2026 Supreme(Online)(Mad) 47208

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.Kalaimathi, J
Ariyan – Appellant
Versus
Dhareppa Ummannavar – Respondent
Civil Miscellaneous Appeal|M.C.O.P.No.535 of 2020



Advocates:
For the Appellants/Petitioners: S.Udayakumar
For the Respondents: R1 and R3 Notice Dispensed With, P.Suresh Srinivasan for R2, K.Swaminathan for R4

In motor accident claims for death, the tribunal must fix a just and reasonable notional income by considering the deceased's age and potential, subsequently applying standard deductions and additions for future prospects to ensure the compensation fulfills the mandate of 'just compensation'.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Death in motor accident - Dependency - Enhancement of compensation - Tribunal assessed notional income at a lower rate despite evidence and documents regarding qualifications - High Court fixed notional income at a reasonable sum based on the nature of employment and age of deceased - Application of standard addition of 40% for future prospects and 1/3rd deduction for personal expenses as per established precedents - Multiplier of 18 applied in accordance with age of 22 years - Compensation reworked and enhanced. (Paras 6, 8, 9, 10, 11)

Facts of the case:
Dependents of the deceased claimed compensation for a road traffic accident. The Tribunal awarded a specific amount as compensation. Not satisfied with the quantum of the award, particularly regarding the determination of the notional income of the deceased, the claimants filed an appeal seeking enhancement.

Findings of Court:
The court observed that the deceased was a young person. While certain educational certificates provided were noted, they did not conclusively prove a high income; however, the court deemed it fit to enhance the notional income to a more realistic figure considering the prevailing circumstances. Applying the standard principles for computation, including future prospects and personal expense deductions, the total compensation was increased.

Issues: The main issue was whether the notional income determined by the Tribunal was adequate and whether the total compensation required enhancement based on accepted legal standards for dependency and future prospects.

Ratio Decidendi: The court maintained that while documentary evidence for income might not be fully conclusive, it is the duty of the court to fix a just and reasonable notional income. By applying the mandatory standard addition for future prospects and correcting the calculations regarding dependency and multiplier, the court ensures that the compensation is both just and commensurate with the deceased's age and earning potential.

Result: Appeal partly allowed. Compensation enhanced with interest at 7.5% per annum.

Table of Content
1. overview of claim petition and tribunal award. (Para 1 , 2 , 3 , 4 , 5)
2. parties' contentions regarding the enhancement of compensation. (Para 6 , 7)
3. judicial assessment of notional income, multiplier, and future prospects. (Para 8 , 9 , 10 , 11)
4. final calculation and order for enhanced compensation disbursement. (Para 12)

JUDGMENT

Not satisfied with the quantum of compensation granted in Award dated 22.12.2021 passed in M.C.O.P.No.535 of 2020 on the file of Special District Court (to deal with M.C.O.P. cases), Kirshnagiri, dependents of the deceased Ajith, have preferred this Civil Miscellaneous Appeal for enhancement of compensation.

2. Parties are indicated herein as per their litigative status and ranking before the Tribunal.

3. Claim petition was filed under Section 166 of Motor Vehicles Act, 1988, by the dependents of the deceased Ajith, claiming compensation of Rs.50,00,000/- for the death of Ajith, in a road traffic accident that occurred on 04.12.2019.

4. At trial, to substantiate the claim, on the claimant side, two witnesses have been examined and seventeen documents have been marked. On the side of the 4th respondent/Insurance Company, owner-

cum-driver of the lorry has been examined as RW1(Tr.Prakash).

5. The Tribunal upon consideration of entire oral and documentary evidence and after hearing the arguments advanced by either side, granted compensation of Rs.14,90,800/- with 7.5% interest per annum from the date of claim petition. The amounts awarded under various heads are given hereunder:-

Towards Loss of Dependency - Rs.13,60,800/-; Towards loss of Estate and for Funeral Expenses – Rs.15,000/- under each head; Towards loss of consortium – Rs.1,00,000/- in toto Rs.14,90,800/- was granted.

6. The learned Counsel for the appellants / claimants would strenuously argue that deceased was working as a lorry cleaner and earning a sum of Rs.30,000/- p.m., but the Tribunal has assumed the notional income of the deceased at Rs.9,000/- p.m., is less and sought for enhancement of compensation.

7. Per contra, the learned counsel for the 2nd respondent/Insurance Company would vehemently contend that taking note of the age, avocation, income of the deceased and the other attending circumstances the notional income of the deceased taken by the Tribunal is quite reasonable and according to him it does not warrant any interference by this Court.

8. The manner in which the accident took place is not in dispute. It has come on record through the evidence of PW1 that the deceased was working as lorry cleaner and earning a sum of Rs.20,000/- p.m., at the relevant point of time. To substantiate the income details of the deceased, copy of Course completion Certificate in Diploma in Electronics and Communications Engineering (ECE) issued by Government Polytechnic, Krishnagiri is marked as Ex.P13. Ex.P21 is the copy of the application for the selection by Indian Army Services. These two documents will not help the claimants in fixing the notional income of the deceased. However, this Court deems fit to fix the notion income of the deceased at Rs.12,000/- p.m.. As regards the age of the deceased, as per copy of the post-mortem certificate Ex.P2, age of the deceased is taken as 22 years.

9. As held in National Insurance Co. Ltd., v. Pranay Sethi and others, reported in 2017 (2) TN MAC 609(SC), standard addition is required to be added with the notional income of the deceased as future prospects while computing the loss of dependency as 40%. Claimants are parents and brother of the deceased.

10. As held in Smt.Sarla Verma and Ors., v. Delhi Transport Corporation and Another reported in 2009 (2) TN MAC 1 (SC), 1/3rd has to be deducted towards personal and living expenses. The relevant multiplier to be selected is 18m. Based on the aforestated details, for computing loss of dependency, following formula emerges :-

Rs.12,000/- + 40% - 1/3 X 12 X 18m = Rs.24,19,200/-.

11. Towards loss of consortium Rs.20,000/- is granted in addition

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