Appeal by insurance company against compensation quantum for death in motor accident. Court upheld income assumption but altered personal expense deduction from one-third to one-half for a bachelor, reducing total compensation from Rs. 41,82,000 to Rs. 31,74,000.
Compensation reduced from Rs. 41,82,000 to Rs. 31,74,000 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.MA.No.758 of 2024
THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26.03.2024
CORAM:
THE HONOURABLE MR. JUSTICE R.SUBRAMANIAN AND
THE HONOURABLE MR. JUSTICE R.SAKTHIVEL
C.M.A.No.758 of 2024 and
C.M.P.No.7029 of 2024
The New India Assurance Co. Ltd., T.P.Hub, No.232, 6th Floor, N.S.C.Bose Road, Bombay Mutual Building, Chennai - 600 001.
...Appellant
Vs.
1.T.Malarkodi 2.T.Vignesh 3.T.Vinoth 4.G.Perumal ...Respondents
Prayer : Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988 against the judgment and decree passed in M.C.O.P.No.1884 of 2019 dated 22.12.2022 on the file of the Motor Accident Claims Tribunal (Chief Judge, Small Causes Court, Chennai).
For Appellant : Mr.J.Chandran
For Respondents : Mr.V.Jayanandakumar for R1 to R3 R4 - Exparte
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C.MA.No.758 of 2024
J U D G M E N T
(Judgment of the Court was made by R.SUBRAMANIAN, J.)
The Insurance Company is on appeal. Challenge is only to the quantum of compensation awarded in MCOP.No.1884 of 2014 on the file of the Chief Judge, Small Causes Court, (Motor Accident Claims Tribunal), Chennai.
2.Since the challenge is only on the quantum, we are not delving upon the other aspects. The Tribunal has awarded a sum of Rs.41,82,000/for the death of one Sivasankaran in a motor accident that occurred at about 16.45 hours on 24.05.2018. The deceased was a Mechanical Engineering graduate and was pursuing his Masters in Business Administration at the time of the accident. He is survived by his mother and two brothers. The Tribunal took the monthly income of the deceased at Rs.20,000/-, added 40% towards future prospects, deducted 1/3rd towards his personal expenses and arrived at the total loss of dependency at Rs.40,32,000/-. It also awarded a sum of Rs.15,000/- each towards loss of estate and funeral expenses and a sum of Rs.1,20,000/- at Rs.40,000/- each to the mother and two brothers for loss of love and affection. Thus, the total compensation was arrived at Rs.41,82,000/-.
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C.MA.No.758 of 2024 3.We have heard Mr.J.Chandran, learned counsel appearing for the
appellant / Insurance Company and Mr.V.Jayanandakumar, learned counsel for the respondents 1 to 3. The 4th respondent remained exparte before the Tribunal.
4.Mr.J.Chandran, learned counsel appearing for the Insurance Company would submit that the assumption of monthly income at Rs.20,000/- is flawed. He would submit that the monthly income assumed can only be Rs.15,000/- and the deduction must be 1/2 and not 1/3.
5.Contending contra, Mr.V.Jayanandakumar, learned counsel appearing for the claimants / respondents 1 to 3 would submit that in the peculiar circumstances of the case where the deceased lost his father also, the Tribunal was right in assuming 1/3 deduction. The Tribunal cannot be faulted for assuming Rs.20,000/- as monthly income, particularly, when the accident took place in the year 2018. We have considered the rival submissions.
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C.MA.No.758 of 2024 6.We are unable to agree with the contention of the learned counsel
for the appellant that the fixation of Rs.20,000/- as monthly income is on the higher side. Admittedly, the deceased was an Engineering Graduate and was pursuing his Masters in Business Administration therefore, fixation of Rs.20,000/- appears to be reasonable more so, when even the last grade servant in the Government was earning around Rs.18,000/- to Rs.20,000/- at the relevant point of time.
7.On the question of deduction towards personal expenses, we have to necessarily acced to the contention of the learned counsel for the appellant. The deceased having died as a Bachelor, the Tribunal ought to have deducted 1/2 towards his personal expenses instead of 1/3. If we deduct 1/2 towards his personal expenses, the loss of dependency would be Rs.28,000/- x 12 x 18 x 1/2 = Rs.30,24,000/-. If we add the other three heads of compensation granted at Rs.15,000/- each towards loss of estate and funeral expenses and Rs.1,20,000/- for loss of love and affection, the total compensation would be Rs.31,74,000/-.
8.In fine, this Civil Miscellaneous Appeal is partly allowed , the total
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C.MA.No.758 of 2024 compensation fixed is modified and reduced to Rs.31,74,000/- The interest granted by the Tribunal at 7.5% per annum from the date of filing of the application till date of realization is applied. The compensation is apportioned as follows:-
i)The first claimant namely, mother of the deceased would be entitled to a sum of Rs.24,74,000/-
ii) The remaining sum of Rs.7,00,000/- is apportioned to the other two claimants equally at Rs.3,50,000/-.
9.The claimants would be entitled to proportionate interest on the amount apportioned to them. The Insurance Company will have twelve (12) weeks time to deposit the award amount as modified and on such deposit, the Tribunal will pay out the monies to the claimants who are admittedly majors. The parties will bear their own costs in this appeal. Consequently, connected miscellaneous petition is closed.
(R.S.M.,J.) (R.S.V., J.) 26.03.2024 kkn Index :No Internet :Yes Neutral Citation :No Speaking
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C.MA.No.758 of 2024
R.SUBRAMANIAN, J. and R.SAKTHIVEL, J.
KKN
To :-
The Motor Accident Claims Tribunal, Chief Judge, Court of Small Causes, Chennai.
C.M.A.No.758 of 2024 and C.M.P.No.7029 of 2024
26.03.2024
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1 issue framed by the court
What is the appropriate monthly income and deduction for personal expenses for a deceased mechanical engineering graduate pursuing MBA?
1 provisions across 1 enactments
The New India Assurance Co. Ltd.
T. Malarkodi
T. Vignesh
T. Vinoth
G. Perumal
R. Subramanian
R. Sakthivel
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
