Madras High Court

The Manager vs K.Adam on 26 April, 2021

                                                                            Judgment dated 26.04.2021
                                                                             in C.M.A.No.4234 of 2019

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      Dated: 26.04.2021

                                                           Coram:

                                       THE HONOURABLE MR.JUSTICE R.SUBBIAH
                                                      and
                                   THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN

                                                   C.M.A.No.4234 of 2019
                                                            and
                                                   C.M.P.No.23948 of 2019

                     The Manager,
                     Royal Sundaram Alliance
                       General Insurance Co. Ltd.,
                     No.1, Club House Road,
                     Anna Salai, Chennai.                                             .. Appellant

                                                             Vs.

                     1. K.Adam, S/o Kondaiya
                     2. Joharana, W/oK.Adam
                     3. V.Murugan                                                  .. Respondents


                                     Civil Miscellaneous Appeal (CMA) filed uner Section 173 of the

                     Motor Vehicles Act, against the order and decree dated 03.01.2019 made in

                     M.C.O.P.No.4802 of 2015 on the file of the Motor Accidents Claims

                     Tribunal, Chief Judge, Court of Small Causes, Chennai.


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https://www.mhc.tn.gov.in/judis/
                                                                               Judgment dated 26.04.2021
                                                                                in C.M.A.No.4234 of 2019

                                    For appellant : Mr.G.Vasudevan
                                    For respondents: Mrs.A.Subadra for M/s.M.Malar for RR-1 & 2


                                                         JUDGMENT

(The Judgment of the Court was delivered by R.Subbiah, J)

This Civil Miscellaneous Appeal (CMA) is filed by the Insurance

Company as against the Award dated 03.01.2019 made in M.C.O.P.No.4802

of 2015 on the file of the Motor Accidents Claims Tribunal, Chief Judge,

Small Causes Court, Chennai.

2. It is the case of the respondents 1 and 2/claimants that they are

the father and mother of the deceased A.Suresh Babu, who was aged about

27 years at the time accident. On 29.07.2014 at about 12.30 p.m., when the

deceased was riding his motor-cycle bearing Registration Mo.TN-11-H-

7228 on the Perumbakkam Main Road, Pudhu Nagar, Medavakkam, from

West to East, a water tank Lorry bearing Registration No.TN-11-Y-2301,

which was coming from behind the said two-wheeler driven by the

deceased, dashed on the rear side of the said two-wheeler, as a result of

which, the deceased fell down and sustained injuries and died on the spot

itself.

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3. It is the further case of the claimants (respondents 1 and 2

herein) that at the time of accident, the deceased was working as Senior

Analyst in WIPRO and earning a sum of Rs.43,000/- per month. Hence, the

claimants have made a claim for Rs.1,01,00,000/- as compensation before

the Tribunal.

4. The case of the claimants, was resisted by the Insurance

Company by filing counter-statement before the Tribunal, denying the

manner in which the accident had occurred, the relationship between the

deceased and the claimants, age and avocation of the deceased, etc.

5. In order to prove the claim, on the side of claimants, the father

of the deceased was examined as P.W.1, besides an eye witness to the

occurrence, was examined as P.W.2 and the Senior Executive of the WIPRO

company, was examined as P.W.3 and 16 documents were marked as

Exs.P1 to P-16. On the side of Insurance Company, neither any oral

evidence, nor any document was marked.

6. The Tribunal,on an analysis of the entire evidence available on

record, came to the conclusion that the accident is the result of the rash and

negligent driving of the said lorry owned by the third respondent herein,

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which was insured with the appellant-Insurance Company and passed an

Award for a sum of Rs.48,50,000/- with interest @ 7.5% per annum from

the date of claim petition till the date of realisation. The break-up details of

the amounts awarded by the Tribunal are as follows:

Sl. Heads under which the amounts are awarded Amounts awarded (in No. by the Tribunal Rs.) 1 Loss of future dependency 47,60,000 2 Loss of Estate 15,000 3 Funeral expenses 15,000 4 Parental consortium and love and affection 60,000 Total 48,50,000

7. Challenging the above compensation awarded by the Tribunal,

the present appeal is filed by the Insurance Company.

8. Now, it is the submission of the learned counsel appearing for

the appellant/Insurance Company that the deceased was a bachelor and the

claim was made only by the parents of the deceased. In such a situation, the

Tribunal, while calculating the compensation under the head "Loss of future

dependency", ought to have deducted 50% towards the personal expenses,

whereas the Tribunal deducted only 1/3 from the monthly income of the

deceased towards personal expenses. Hence, the amount awarded under the

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head "Loss of future Dependency", has to be calculated afresh.

9. Per contra, the learned counsel appearing for the claimants

(respondents 1 and 2 herein) supported the Award passed by the Tribunal.

The learned counsel appearing for the claimants also stated that the monthly

salary of the deceased was Rs.31,678/- as per Ex.P-15, which includes the

advance bonus, additional allowance and attendance increment, etc. The

claimants also produced Form-16 to show that the actual salary of the

deceased was Rs.28,112/- per month, whereas, the Tribunal has taken only

Rs.25,000/- as the monthly income of the deceased, and therefore, there is

no need to reduce the amount by deducting 50% towards personal expenses,

and prayed for dismissal of the appeal.

10. We find that the Tribunal, by fixing Rs.25,000/- as the

monthly income and deducting 1/3 towards personal expenses, thereby,

adopting "17" multiplier, had awarded a sum of Rs.47,60,000/- under the

head "Loss of future Dependency". As contended by the learned counsel

appearing for the appellant/Insurance Company, the Tribunal, while

calculating the compensation under the head "loss of dependency", ought to

have deducted 50% of the amount towards the personal expenses, since the

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deceased was a bachelor. In the instant case, the Tribunal had deducted only

1/3 towards the personal expenses. We are of the opinion that as per Form-

16, the actual salary of the deceased was Rs.28,112/-. Accordingly, if

Rs.28,112/- is taken as the monthly income of the deceased, the annual loss

of income works out to Rs.3,37,344/-. If 50% of the same is added towards

future prospects, the total loss of income works out to Rs.5,06,016

(3,37,344 + 1/2 of 3,37,344). The income tax deductible as per Form-16 is

Rs.26,203/-. If this amount is deducted, the balance amount being the

actual loss of income works out to Rs.4,79,813/- (5,06,016 - 26,203). If 50%

of this amount is deducted towards personal expenses, the balance amount

works out to Rs.2,39,907/-. If multiplier 17 is applied to this case, the actual

loss of dependency works out to Rs.40,78,419/- (2,39,907 x 17). Hence, the

sum of Rs.47,60,000/- awarded by the Tribunal under the head "Loss of

dependency" is hereby reduced to Rs.40,78,419/-.

11. Further, we find that the Tribunal had awarded only

Rs.60,000/- towards parental consortium and loss of love and affection

totally. As per the decision of the Supreme Court in the case of National

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Insurance Company Limited Vs. Pranay Sethi, reported in 2017 (16)

SCC 680, a sum of Rs.40,000/- to each of the claimants, has to be awarded,

i.e. Rs.40,000 x 2 = Rs.80,000/-. Thus, while setting aside the award passed

by the Tribunal under the common head of parental consortium and loss of

love and affection at Rs.60,000/-, this Court awards the said amount of

Rs.80,000/- under the head of Loss of Love and Affection.

12. It is seen from the Award of the Tribunal that a sum of

Rs.15,000/- each, respectively, was awarded towards Loss of Estate and

Funeral Expenses, which are reasonable and the same are hereby confirmed.

13. Further, the Tribunal had not awarded any amount towards

transportation charges and this Court, taking into consideration the facts,

awards a sum of Rs.15,000/- towards transportation charges.

14. Accordingly, the break-up details of the amounts awarded by

this Court, in comparison with the Award passed by the Tribunal, are as

follows:

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Sl. Heads under which the Amounts Amounts awarded No. amounts are awarded awarded by the by this Court Tribunal (in Rs.) (in Rs.) 1 Loss of Dependency 47,60,000 40,78,419 2 Loss of Estate 15,000 15,000 3 Funeral expenses 15,000 15,000 4 Loss of love and affection 60,000 80,000 5 Transportation charges 15,000 15,000 Total 48,50,000 42,03,419 rounded off to Rs.42,03,500/-

Thus, the total compensation awarded by the Tribunal at Rs.48,50,000/- is

hereby reduced to Rs.42,03,500/- with 7.5% interest.

15. In the result, the appeal is partly allowed, with a direction to

the appellant/Insurance Company to pay a sum of Rs.42,03,500/- (Rupees

forty two lakhs three thousand and five hundred only) with 7.5% interest per

annum from the date of claim petition till the date of deposit. Such amount

shall be deposited before the Tribunal within a period of six weeks from the

date of receipt of a copy of this judgment, after adjusting the amounts, if

any, already deposited by the Insurance Company. On such deposit, the

claimants (respondents 1 and 2 herein) are permitted to withdraw the entire

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