The High Court reduced the compensation awarded by the Tribunal in a fatal accident claim by lowering the notional monthly income of the deceased teacher and recalculating the loss of dependency. The rest of the award was confirmed.
Compensation reduced from Rs.18,28,600/- to Rs.16,27,000/- with 7.5% interest.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
C.M.A.No.2183 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.08.2024
CORAM
THE HONOURABLE MRS. JUSTICE J.NISHA BANU AND
THE HONOURABLE MRS. JUSTICE R.KALAIMATHI
C.M.A.No.2183 of 2024
and
C.M.P.No.16991 of 2024
The Oriental Insurance Co.Ltd., No.115, Prakasam Salai, Broadway, Chennai - 600 108.
..Appellant
Vs.
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C.M.A.No.2183 of 2024
Prayer:
Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, against the order made in M.C.O.P.No.695 of 2015 on the file of Motor Accidents Claims Tribunal (Special Sub Court No.1 Motor Accidents Claims Petitions) Small Causes Court, Chennai, dated 26.09.2023.
For Appellant : Mr.M.Krishnamoorthy
For Respondents : Mr.S.Parthasarathy
J U D G M E N T
(The order of the Court was made by Mrs.J.Nisha Banu,J.)
This Civil Miscellaneous Appeal has been preferred by the
Insurance Company, challenging the award dated 26.09.2023 passed in MCOP.No. 695 of 2015 on the file of Motor Accidents Claims Tribunal (Special Sub Court No.1, Motor Accidents Claims Petitions) Small Causes Court, Chennai.
M.C.O.P.No.695 of 2015 on the file of Motor Accidents Claims Tribunal (Special Sub Court No.1 Motor Accidents Claims Petitions) Small Causes
Court, Chennai. The 1st respondent is the driver of the vehicle and he is https://www.mhc.tn.gov.in/judis Page 2/10
C.M.A.No.2183 of 2024
set exparte before the Tribunal. The respondents 1 & 2/claimants had filed the said claim petition claiming a sum of Rs.50,00,000/- as compensation for the death of one Mrs.E.Selvi, who died in the accident that took place on 10.12.2013.
denying the averments made in the claim petition. The appellant denied
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C.M.A.No.2183 of 2024
the alleged manner of accident, the nature of injuries, age of the deceased employment and income of the deceased. The appellant states that the amount claimed is also excessive. The appellant Insurance Corporation also denied the validity of vehicle records, driving licence of the driver and insurance coverage alleged to have been given by the respondents 1 & 2. Hence, prayed to dismiss the claim petition.
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C.M.A.No.2183 of 2024
Rs.18,28,600/-(Rupees Eighteen Lakhs Twenty Eight Thousand Six
Hundred only) as detailed hereunder :
| Heads | Amount awarded by the Tribunal (Rs.) |
|---|---|
| Loss of dependency Rs.11,900(8,500+3400)x12x18 |
17,13,600 |
| Loss of consortium | 80,000 |
| Loss of estate | 15,000 |
| Funeral expenses | 15,000 |
| Transport charges | 5,000 |
| Total | 18,28,600 |
P.Ws.1 and 2 and the documentary evidence of Exs.P1, P10 and P11,
and since there is also no sufficient contra evidence, the Tribunal had come to the conclusion that the accident had occurred due to the negligence of the driver of lorry bearing Reg.No.TN-67-AP-9302, with which, we are not inclined to interfere with.
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C.M.A.No.2183 of 2024
Insurance Company Ltd., Vs. Pranay Sethi reported in (2018) 1 LW 331 , has fixed the notional income as Rs.11,900/- per month. It is stated by the claimants that the deceased E.Selvi was working as a teacher and she had studied B.Sc., B.Ed. Except the educational qualification certificates, the claimants have not produced the salary certificate of the deceased to prove that she was earning Rs.15,000/- per month at the time of accident as claimed by them in the claim petition. The deceased was a teacher in a private school at the time of accident, i.e., in the year 2013. However, the Tribunal had fixed the notional income as Rs.8,500/- p.m., which we find that the same is on the higher side. Therefore, we fix the monthly income of the deceased as Rs.7,500/- and by adding 40% future prospects as per judgment of National Insurance Company Ltd., Vs. Pranay Sethi reported in (2018) 1 LW 331 , has fixed the notional income as Rs.10,500/- per month. Thus, the annual income of the deceased is fixed at Rs.1,26,000/-. Further, deducting 1/3rd amount as per Sarla verma &Ors vs. Delhi Transport Corporation & Anr. (2009) 4 MLJ (SC) 997 , the balance (Rs.1,26,000 - Rs.42,000) is Rs.84,000/- and the same is considered to be the contribution to the dependents of the family per annum. Since the age of the deceased was 23 at the time of https://www.mhc.tn.gov.in/judis Page 6/10
C.M.A.No.2183 of 2024
death, the multiplier will be 18. Therefore, the total loss of dependency would be Rs.15,12,000/- (84,000 x 18).
Tribunal is hereby modified as under:
| S. No |
Description | Amount awarded by Tribunal (Rs) |
Amount awarded by this Court (Rs) |
Award confirmed or enhanced or granted |
|---|---|---|---|---|
| 1. | Loss of dependency Rs.10500(7500+3000)/ 3 x12x18 |
17,13,600 | 15,12,000 | Reduced |
| 2. | Loss towards consortium | 80,000 | 80,000 | Confirmed |
| 4. | Loss of Estate | 15,000 | 15,000 | Confirmed |
| 5. | Funeral Expenses | 15,000 | 15,000 | Confirmed |
| 6. | Transport charges | 5,000 | 5,000 | Confirmed |
| Total | Rs.18,28,600 | Rs.16,27,000/- | Reduced by Rs.2,01,600/- |
and the compensation awarded by the Tribunal at Rs.18,28,600/- is https://www.mhc.tn.gov.in/judis Page 7/10
C.M.A.No.2183 of 2024
hereby reduced to Rs.16,27,000/- together with interest at the rate of 7.5% per annum from the date of petition till the date of deposit. The appellantInsurance Company is directed to deposit the award amount now determined by this Court along with interest and costs, less the amount already deposited, if any, within a period of six weeks from the date of receipt of a copy of this judgment, to the credit of M.C.O.P.No.695 of 2015 on the file of the Motor Accidents Claims Tribunal (Special Sub Court No.1 Motor Accidents Claims Petitions) Small Causes Court, Chennai. On such deposit, the claimants are permitted to withdraw the award amount now determined by this Court, along with interest and costs, less the amount if any, already withdrawn by making necessary applications before the Tribunal. The 1st claimant, husband of the deceased is entitled to Rs.10,27,000/- (Rupees Ten Lakhs Twenty Seven Thousand only) and the 2nd claimant is entitled to Rs.6,00,000/- (Rupees Six Lakhs only).
concerned, the same shall be deposited in a Fixed deposit in any one of the Nationalized Banks, till he attains the age of majority and the interest
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C.M.A.No.2183 of 2024
accrued thereon shall be withdrawn by the guardian of the minor claimant once in three months, directly from the Bank. If the second respondent / minor claimant has attained the age of majority, it is open to him to file a formal petition before the Tribunal to get his share of apportionment. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.
(J.N.B,J.) (R.K.M., J.) Index : Yes / No 08.08.2024 Internet : Yes vsi
To
The Motor Accidents Claims Tribunal (Special Sub Court No.1 Motor Accidents Claims Petitions) Small Causes Court, Chennai
J. NISHA BANU, J. and R.KALAIMATHI,J.
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C.M.A.No.2183 of 2024
vsi
C.M.A.No.2183 of 2024
08.08.2024
Page 10/10
2 issues framed by the court
Whether the Motor Accidents Claims Tribunal erred in fixing the notional monthly income of the deceased at Rs.8,500/-?
Whether the compensation awarded by the Tribunal is just and reasonable?
Colour shows how this judgement treated each authority
National Insurance Company Ltd. v. Pranay SethiRelied on¶51
National Insurance Company Ltd., Vs. Pranay Sethi reported in (2018) 1 LW 331
Sarla Verma v. Delhi Transport CorporationRelied on¶54
Sarla verma &Ors vs. Delhi Transport Corporation & Anr. (2009) 4 MLJ (SC) 997
1 provisions across 1 enactments
The Oriental Insurance Co.Ltd.
C.Elumalai
Suriya
G.Veeraraj
J.Nisha Banu
R.Kalaimathi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
