Appeal against quantum of compensation in motor accident claim. Court enhanced loss of dependency by applying 50% future prospects add-on per Pranay Sethi and awarded loss of love and affection. Total compensation increased from Rs. 26,14,000/- to Rs. 28,12,320/-.
Compensation enhanced from Rs. 26,14,000/- to Rs. 28,12,320/- 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.272 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.03.2024
CORAM :
The Hon'ble Mr. Justice Krishnan Ramasamy
C.M.A.No.272 of 2024
... Appellants/Petitioners
Vs.
... Respondents
Prayer: Civil Miscellaneous Appeal filed under Section 173 of Motor Vehicle Act, 1988 against the order passed in MCOP No.2355 of 2021 dated 08.12.2023 on the file of Motor Accidents Claims Tribunal (Special Sub Court-I), Chennai.
For Appellants : Mr.N.Elumalai
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For R1 : Mr.J.Chandran
JUDGEMENT
C.M.A.No.272 of 2024
This Civil Miscellaneous Appeal has been filed by the appellants/claimants, challenging the quantum of compensation awarded by the Motor Accidents Claims Tribunal vide award dated 08.12.2023 in M.C.O.P.No.2355 of 2021.
2. On 01.03.2021 at about 11.40 hours, when the deceased was riding a two wheeler bearing Reg.No.TN-16-Y-1078, he was hit by a lorry, bearing Reg.No.NL-01-G-0999, which was driven by its driver in a rash and negligent manner. As a result of which, the deceased sustained multiple grievous injures all over his body and died on the spot. Hence, the appellants being the parents and sister of the deceased, made a claim petition before the Tribunal, claiming a sum of Rs.46,35,000/- as compensation.
3. On consideration of both oral and documentary evidence, the Tribunal has awarded a sum of Rs.26,14,000/- towards compensation to the
appellants. Being not satisfied with the said compensation amount, the appellants have filed the present appeal.
C.M.A.No.272 of 2024
4. The learned counsel for the appellants submitted that, at the time of
accident, the deceased was working as a Store Keeper in a private limited VR Mall, Anna Nagar and as per the appointment order, he was supposed to receive a sum of Rs.18,610/- per month and as per the salary slip for the month of February 2021, the deceased earned monthly gross income at Rs.16,526/-. Further, PW3 who was examined from the employer side, also confirmed the receipt of salary for a sum of Rs.16,526/- per month. The learned counsel for the appellants would contend that the Tribunal though fixed the monthly income of the deceased at Rs.16,526/- per month, but added only 40% towards future prospects instead of 50% since the deceased was in regular employment and receiving fixed salary. He relied upon the decisions rendered by the Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay sethi and others reported in 2017 (16) Supreme Court Cases 680 , wherein, it has been held that while determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made.
4.1. In the present case, on perusal of salary certificate, it is clear that
the deceased was in regular employment, but the Tribunal has awarded 40%
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towards future prospects. Hence, the learned counsel seeks appropriate modification of the Tribunal's award. Further, he submitted that, the Tribunal has not awarded any amount towards “loss of love and affection”. Hence, he requests this Court to consider the same and enhance the compensation in favour of the appellants.
5. The learned counsel appearing for the first respondent/Insurance Company submitted that, the Tribunal has considered the salary slip of February 2021, wherein it has been stated that the deceased had earned a sum of Rs.16,526/- per month and the same was confirmed by PW2 employer of the deceased, the Tribunal has rightly considered and fixed the notional income of the deceased at Rs.16,526/- and there is no infirmity in this aspect. He also fairly submitted that the Tribunal has not awarded any amount towards “loss of love and affection” as well as the amount towards “future prospects” and the same may be re-determined by this Court.
6. Heard the learned counsel for the appellants and the learned counsel appearing on behalf of the first respondent and perused the materials available on record.
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C.M.A.No.272 of 2024
7. In the present case, the Tribunal has taken a sum of Rs.16,526/- as
monthly income of the deceased and awarded the compensation towards “loss of dependency” to the appellants. On perusal of documents, it appears that the deceased was in regular employment and in view of the judgement of Pranay Sathi cited supra, 50% has to be added towards “future prospects”. Thus, the total monthly income of the deceased is quantified along with future prospects (Rs.16,526+Rs.8,263) at Rs.24,789/- per month. Since the deceased was a bachelor and aged 23 years at the time of the accident, 50% has to be deducted towards his personal and living expenses and thereby, by adopting multiplier of 18 and fixing the monthly income of Rs.12,395/- per month and the loss of income to the family is arrived at Rs.12,395/-x12x18 = Rs.26,77,320/-, which is worked out as follows:-
| Loss of Income | Amount in Rs. |
|---|---|
| Notional income (Per month) | 16,526 |
| **Add:**Future Prospects (Rs.16,526 x 50%) (Per month) |
8,263 |
| 24,789 | |
| **Less:**Personal expenses (50%) (Rs.24,789/- x 1/2) (Per month) |
12,395 |
| Notional income (per annum) (Rs.12,395/- x 12) | 1,48,740 |
| Multiplier | 18 |
| Total | 26,77,320/- |
under the head of 'Loss of Dependency' is hereby modified and enhanced to
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C.M.A.No.272 of 2024
Rs.26,77,320/- . Further, this Court finds that the Tribunal has failed to award
any amount towards “loss of love and affection”, hence, this Court is inclined to
award a sum of Rs.20,000/- under the said head.
heads is concerned, this Court finds the same is just and proper and the same is hereby confirmed. Thus, the compensation awarded by the Tribunal is modified
as under :-
| Heads | Awarded by the Tribunal (Amount in Rs.) |
Awarded by this Court (Amount in Rs.) |
|---|---|---|
| Loss of Dependency | 24,98,688/- | 26,77,320 / - (enhanced) |
| Loss of consortium | 80,000/- | 80,000/- |
| Loss of love and affection | Nil | 20,000/- (awarded) |
| Funeral expenses | 15,000/- | 15,000/- |
| Loss of estate | 15,000/- | 15,000/- |
| Transportation charges | 5,000/- | 5,000/- |
| Total (Rounded off) | 26,14,000/- | 28,12,320/- |
10. Consequently, the total compensation amount of R s. 26,14,000/-
awarded by the Tribunal is hereby modified and enhanced to Rs.28,12,320/-
which shall carry interest at the rate of 7.5% per annum from the date of claim
petition till the date of deposit. Out of total compensation availed to the appellants; the first appellant, the father and mother of the deceased are entitled
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C.M.A.No.272 of 2024
to a sum of Rs.12,00,000/- each together with proportionate interest; the third appellant, the sister of the deceased is entitled to a sum of Rs.4,12,320/together with proportionate interest.
11. In the result, the Civil Miscellaneous Appeal filed by the appellants/claimants is partly allowed on the following terms:-
(i) The first respondent, Insurance Company is directed to deposit
the entire amount awarded by this Court along with interest at the rate of 7.5 % p.a. and costs before the Tribunal within a period of six weeks from the date of
receipt of a copy of this judgment, after deducting the amount already deposited, if any.
(ii ) On such deposit being made by the first respondent/Insurance
Company, the Tribunal shall transfer the amount directly to the claimants' respective bank accounts through RTGS within a period of three weeks thereon.
Krishnan Ramasamy,J., jd
(iii) The appellants/claimants are entitled to withdraw the entire
award amount, less the amount already withdrawn, if any, by making necessary application before the Tribunal.
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C.M.A.No.272 of 2024
iv) The appellants/claimants are directed to pay the court fee for the
enhanced compensation, if any.
v) There shall be no order as to costs.
0 6.03.2024
Index : Yes / No NCC : Yes / No jd
To
C.M.A.No.272 of 2024
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2 issues framed by the court
Whether 50% should be added to the deceased's income towards future prospects instead of 40%.
Whether compensation for loss of love and affection should be awarded.
Colour shows how this judgement treated each authority
National Insurance Company Limited v. Pranay SethiRelied on¶30
National Insurance Company Limited Vs. Pranay sethi and others reported in 2017 (16) Supreme Court Cases 680
1 provisions across 1 enactments
K.Arasu
A.Kamala
A.Pavithra
The Oriental Insurance Company Ltd.
Trichy Sri Kannan Transports Pvt Ltd.
Raj Singh
Krishnan Ramasamy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
