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The Managing Director vs S. Rajalakshmi
2021 Latest Caselaw 17483 Mad

Citation : 2021 Latest Caselaw 17483 Mad
Judgement Date : 26 August, 2021

Madras High Court
The Managing Director vs S. Rajalakshmi on 26 August, 2021
                                                                              C.M.A.No.527 of 2021

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED: 26.08.2021

                                                         CORAM:

                                   THE HON'BLE MR. JUSTICE S. VAIDYANATHAN

                                                 C.M.A.No. 527 of 2021 &
                                                  C.M.P.No.3356 of 2021

                     The Managing Director,
                     Tamil Nadu State Transport Corporation,
                     Kumbakonam Division Ltd.,
                     Railway Station New Road,
                     Kumbakonam – 612 001.                                         ...Appellant

                                                            Vs.

                     1. S. Rajalakshmi
                     2. M.Kanagavalli                                           ...Respondents

                                  Civil Miscellaneous Appeal filed under Section 173 of the Motor
                     Vehicles Act, 1988 against the Judgment and decree dated 26.08.2019
                     made in M.C.O.P. No.1220 of 2015 on the file of the Motor Accident
                     Claims Tribunal, Principal District Judge, Cuddalore.


                                     For Appellant   : Mr. D.Venkatachalam

                                     For Respondents : Ms.Ramya V.Rao




https://www.mhc.tn.gov.in/judis
                     1/14
                                                                                C.M.A.No.527 of 2021

                                                         JUDGMENT

This appellant / Transport Corporation has filed this appeal

challenging the award dated 26.08.2019 passed by the learned Principal

District Judge, Motor Accident Claims Tribunal, Cuddalore in M.C.O.P.

No.1220 of 2015.

2.By consent of both parties, this appeal is taken up for final

disposal at the admission stage itself.

3. The respondents are the claimants and the Legal Representatives

of the deceased C. Rabbayil @ Subramaniyan, who died on 28.09.2013

as a result of an accident caused by a bus owned by the appellant /

Transport Corporation.

4. The claimants are the legal representatives and the dependants

of the deceased and they are his wife and daughter. They preferred a

claim before the Motor Accidents Claims Tribunal, Principal District

Court, Cuddalore against the appellant / Transport Corporation seeking

a compensation of Rs.25,00,000/-.

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C.M.A.No.527 of 2021

5. The Motor Accidents Claims Tribunal (Principal District Court),

Cuddalore by its award dated 26.08.2019 passed in M.C.O.P. No.1220

of 2015, directed the appellant / Transport Corporation to pay the

claimants a sum of Rs.18,65,000/- together with interest at 8% per

annum from the date of claim till the date of realization. Out of the total

compensation, the Tribunal determined the amount payable to the first

respondent / claimant being the wife of the deceased at Rs.14,65,000/-

and the second respondent / claimant, being the daughter of the deceased

at Rs.4,00,000/-.

6. The details of the compensation awarded by the Tribunal to the

respondents / claimants are as follows :-

                                               Heads                  Amount awarded
                                                                       by the Tribunal
                                                                            (Rs.)
                                   Loss of dependency                        17,94,366
                                   Rs.24,079/- + Rs.3611.85 =
                                   Rs.27,690.85      x    12    =
                                   Rs.3,32,290/-             Less
                                   Rs.33,229/- towards Income
                                   Tax @ 10% = Rs.2,99,061/- x
                                   1/3rd     towards     personal
                                   expenses = Rs.1,99,374/- x 9
                                   multiplier = Rs.17,94,366/-
                                   Conventional heads                           70000
                                   i.e. loss of consortium, loss of
                                   estate and funeral expenses

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                                                                           C.M.A.No.527 of 2021

                                             Heads             Amount awarded
                                                                by the Tribunal
                                                                     (Rs.)
                                   Total                              18,64,366
                                   Rounded off                        18,65,000


7. Mr.D. Venkatachalam, learned counsel for the appellant /

Transport Corporation submits that the appellant / Transport Corporation

has challenged the award both on the liability as well as quantum. He

further reiterated the grounds and submitted that the quantum of

compensation awarded by the Tribunal is excessive and the claimants

have not established before the Tribunal that the Driver of the bus owned

by the appellant / Transport Corporation was at fault, which resulted in

the accident. He also submits that the Tribunal failed to consider the

evidence of RW1, the Driver of the bus, wherein the Driver has stated

that the deceased had fallen down from the running bus negligently due

to carriage of suitcase in both of his hands. He further stated that the

Tribunal also failed to consider Ex.R1 and the deceased died after three

days from the date of accident. Hence, he prays before this Court to set

aside the impugned decree and judgment passed by the Tribunal.

8. Per contra, Ms.Ramya V. Rao, learned counsel for the https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

respondents / claimants submits that due to negligence on the part of the

Driver of the bus owned by the appellant / Transport Corporation, the

accident happened, as an eye witness (PW2) has been examined before

the Tribunal and the Tribunal has rightly considered the same. She

further submitted that the quantum of compensation awarded by the

Tribunal is not excessive as the amount awarded under the “conventional

heads” is too meagre. Hence, she prays before this Court for an higher

compensation.

9. Heard the learned counsel appearing on both sides and perused

the entire materials available on record.

10. Before the Tribunal, the claimants have filed four documents,

which were marked as Exs.P1 to P4 and two witnesses were examined on

their side, namely, the second respondent / second claimant as PW1 and

an eye witness to the accident as PW2. On the side of the appellant /

Transport Corporation one document was filed and the same has been

marked as Ex.R1 and one witness was examined on their side viz., RW1.

11. From the materials on record, it is seen that the cause of the https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

accident has not been disputed by the Transport Corporation. Though it

is the contention of the appellant / Transport Corporation that mere

registration of an FIR is not enough for holding negligence on their part,

it has to be noted that the respondents/ claimants have proved their case

by not alone filing an FIR, which has been marked as Ex.P1 but has also

adduced oral evidence through an eyewitness to the accident viz., PW2.

No contra evidence has been produced by the appellant/ Transport

Corporation before the Tribunal to disprove the contention of the

respondents/ claimants that only due to the rash and negligent driving by

the driver of the bus owned by the appellant / Transport Corporation, the

accident had happened which succumbed to fatal injuries. Thus, the

Tribunal on appreciation of the oral and documentary evidence on record

held that the accident occurred on account of rash and negligent driving

by the Driver of the bus owned by the Appellant / Transport Corporation

and hence, this Court confirms the award passed by the Tribunal in

respect of the negligence aspect.

12. Insofar as the quantum of compensation is concerned, the

deceased was aged 59 years at the time of the accident which happened

on 25.09.2013. Though it is stated in the claim petition that the age of the

deceased was 55 years at the time of the accident, the Tribunal has taken https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

the age of the deceased as 59 years at the time of the accident based on

the Identity card issued by the Government of Puducherry, his employer,

which has been marked as Ex.P3. The deceased who was a Water Tank

Operator employed with Government of Puducherry was in receipt of

Rs.24,079/- per month as salary and to that effect, the claimants have

filed the Pay certificate of the deceased, which has been marked as

Ex.P4. The aforesaid contention is not disputed by the appellant /

Transport Corporation. Further, it is seen that after his death, the first

respondent/wife of the deceased is entitled for half of the monthly

income of the deceased i.e. Rs.12,039/- as family pension. Thus, the

deceased was 59 years at the time of accident and he had a left over

service of two months. The Tribunal following the principles laid down

by the Hon'ble Apex Court in the case of Puttamma & Ors. vs.

K.L.Narayana Reddy & another reported in 2014 ACJ 526 did not

apply split multiplier and applied multiplier 9, as applicable to a person

aged 59 years. Hence, this Court is of the considered view that split

multiplier has to be adopted and accordingly adopts split method for

calculating the amount under the head loss of dependency. The Tribunal

has rightly awarded 15% towards future prospects and has also rightly

deducted 1/3rd towards personal expenses of the deceased since the https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

dependants of the deceased are three in number. Hence, this Court

awards the same to the respondents / claimants.

a. Thus, the loss of dependency while the deceased was in service

is calculated as follows :-

                                  Monthly Income        :                 Rs.24,079/-
                                  Future prospects @ 15% :                      3,611/-
                                                                          --------------
                                                                          Rs.27,690/-
                                  Rs.27,690 x 12 x 1 = Rs.3,32,280/-
                                  Less 1/3rd deduction  : 1,10,760/-
                                                        ------------------
                                       Total (1) *        2,21,520/-
                                                        ------------------

b. Thus, the loss of dependency while the deceased after the

period of retirement is calculated as follows :-

                                  Monthly Income        :                Rs.12,039/-
                                  Future prospects @ 15% :                     1,806/-
                                                                         --------------
                                                                         Rs.13,845/-
                                  Rs.13,845 x 12 x 8 = Rs.13,29,120/-
                                  Less 1/3rd deduction :     4,43,040/-
                                                         ------------------
                                        Total (2) #          8,86,080/-
                                                         ------------------

                                        * Total (1) :Rs.2,21,520/-
                                        # Total (2) :Rs.8,86,080/-
                                                   -------------------
                           Loss of dependency : Rs.11,07,600/-
                                                   -------------------

In effect, the total comes to Rs.11,07,600/- towards loss of dependency.

13. The Tribunal has awarded a sum of Rs.70,000/- under the https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

conventional heads, which has to be bifurcated and now this Courts

modifies such head and awarded the amount under separate heads i.e.,

loss of consortium, loss of love and affection, loss of estate and funeral

expenses. Accordingly, this Courts awards a compensation of

Rs.40,000/- towards loss of consortium to the first respondent /claimant,

being the wife of the deceased and Rs.40,000/- towards loss of love and

affection to the second respondent / claimant, being the daughter of the

deceased, as per the decision of the Hon'ble Supreme Court in the case of

National Insurance Co. Ltd. vs. Pranay Sethi reported in 2017 16 SCC

14. This Court awards a sum of Rs.15,000/- towards loss of estate

which the respondents / claimants are legally entitled to as per Pranay

Sethi's case.

15. Further this Court awards a sum of Rs.15,000/- towards

funeral expenses as per the settled law.

16. Though it is a fatal claim, it is seen that the deceased was

hospitalised for a period of three days from the date of the accident, and

thus, this Court feels to award a compensation of Rs.10,000/- under the

https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

head Transportation and accordingly, the same is awarded under the said

head.

17. Thus the second contention raised by the appellant / Transport

Corporation with regard to the quantum of compensation awarded by the

Tribunal is modified.

18. For the aforesaid reasons, the award of the Tribunal is hereby

reduced in the manner indicated hereunder:

                                          Heads             Amount awarded Amount reduced
                                                             by the Tribunal by this Court
                                                                  (Rs.)          (Rs.)
                           Loss of dependency                         1794366               1107600

                           Conventional heads
                           i.e. loss of consortium, loss
                           of estate and funeral
                           expenses                                     70000                       -
                           Loss of consortium to P1                           -               40000
                           Loss of love and affection to                                      40000
                           P2                                                 -
                           Loss of estate                                     -               15000
                           Transportation                                     -               10000
                           Funeral expenses                                   -               15000
                           Total                                      1864366               1227600
                           Rounded off                             1865000             1227600

19. In brief, this Court confirms the award of the Tribunal in respect

of the negligence aspect and with regard to the quantum of compensation

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C.M.A.No.527 of 2021

is reduced from Rs.18,65,000/- to 12,27,600/- as stated supra.

20. On perusal of the impugned award, it reveals that the Tribunal

has erroneously awarded interest at 8% per annum. As per the normal

practice, the Tribunal ought to have awarded interest at 7.5% per annum.

Accordingly, this Court modifies the interest at 7.5% per annum instead

of 8% erroneously fixed by the Tribunal.

21. In the result, this Civil Miscellaneous Appeal stands disposed of

with the aforesaid terms. No costs. Consequently, connected

miscellaneous petition is closed.

21a. The appellant / Transport Corporation is directed to deposit

the modified award amount (Rs.12,27,600/-), as assessed by this Court

together with interest at 7.5% p.a. from the date of claim petition till the

date of realization, less the amount, if any, already deposited to the credit

of M.C.O.P. No.1220 of 2015 on the file of the Motor Accident Claims

Tribunal, Principal District Court, Cuddalore, within a period of four

weeks from the date of receipt of a copy of this Judgment. The appellant /

Transport Corporation is permitted to withdraw excess amount, if any

paid by them.

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C.M.A.No.527 of 2021

b. On such deposit being made, the Tribunal is directed to transfer

the award amount directly to the bank account of the respondents

/claimants 1 and 2, as per the same ratio of apportionment made by the

Tribunal, through RTGS, within a period of two weeks thereafter.

26.08.2021

dpq

Index: Yes/No Internet: Yes/No Speaking Order/Non-Speaking Order

To

1. The Principal District Judge Motor Accident Claims Tribunal, Cuddalore.

2. The Section Officer, V.R. Section, High Court, Madras.

https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

S. VAIDYANATHAN, J.

dpq

https://www.mhc.tn.gov.in/judis

C.M.A.No.527 of 2021

C.M.A.No.527 of 2021

26.08.2021

https://www.mhc.tn.gov.in/judis

 
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