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United India Insurance Co. Ltd vs K.Prabhakar Reddy
2021 Latest Caselaw 4802 Mad

Citation : 2021 Latest Caselaw 4802 Mad
Judgement Date : 24 February, 2021

Madras High Court
United India Insurance Co. Ltd vs K.Prabhakar Reddy on 24 February, 2021
                                                                      C.M.A.No.144 of 2019



                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 24.02.2021

                                                     CORAM:

                                     THE HONOURABLE MR.JUSTICE R.SUBBIAH
                                                       and
                    THE HONOURABLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP


                                               C.M.A.No.144 of 2019
                                                      and
                                               C.M.P.No.683 of 2019


                  United India Insurance Co. Ltd.,
                  No.70, N.S.C. Bose Road,
                  Sowcarpet, Chennai – 600079.                         ... Appellant

                                                        vs

                  1.K.Prabhakar Reddy
                    S/o.K.Koni Reddy

                  2.K.Kamalamma
                    W/o.Prabhakar Reddy

                  3.K.Lakshmi
                    W/o.M.Srikanth Reddy

                  K.Sireesha (since died)
                  D/o.Prabhakar Reddy
                  (K.Sireesha since died amended as per
                   order in MP.121/2018 dated 13.3.2018)

                  4.V.Laxmi
                    W/o.Vengi                                          ... Respondents
https://www.mhc.tn.gov.in/judis/


                  1/10
                                                                                  C.M.A.No.144 of 2019



                  Prayer: Civil Miscellaneous Appeal filed u/s.173 of the Motor Vehicles Act,
                  1988, against the judgment and decree dated 16.04.2018 passed in
                  M.C.O.P.No.6742 of 2013 on the file of the Motor Accident Claims Tribunal,
                  Special Sub Court II, Chennai.


                                          For Appellant     : Mr.S.Arunkumar
                                          For Respondents : Mr.P.Selvaraj [R1 to R3]
                                                            Ex parte [R4]

                                                          *****

                                                       JUDGMENT

[Judgment of the Court was delivered by R.SUBBIAH, J]

This matter is heard through Video-Conferencing.

2. For the sake of convenience, appellant herein is referred to as

'Insurance Company' and respondents 1 to 3 herein are referred to as

'Claimants'.

3. Questioning the quantum of compensation awarded by the Tribunal in

and by its judgment and decree 16.04.2018 passed in M.C.O.P.No.6742 of

2013 on the file of the Motor Accident Claims Tribunal, Special Sub Court II,

Chennai., the Insurance Company has filed the present appeal.

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

C.M.A.No.144 of 2019

4. The brief facts of the case are as follows:

Claimants are parents and sister of deceased K.Nanda Kishore

respectively. On 02.01.2013 at about 08.00 a.m., while the deceased was

riding his two-wheeler bearing Registration No.TN-22-BW-7929 on the

Velacherry to Medavakkam Main Road, a Tipper Lorry bearing Registration

No.TCW-4626 came in a rash and negligent manner and dashed against the

two-wheeler of the deceased, due to which the deceased sustained grievous

injuries and died. Hence, claimants filed a petition seeking compensation in a

sum of Rs.40,00,000/- for the death of the deceased.

5. Resisting the claim made by claimants, Insurance Company has filed

a detailed counter statement inter alia contending that the accident had not

occurred in the manner as projected by claimants. They have also denied the

age, occupation and income of the deceased. Thus, they prayed for dismissal

of the claim petition.

6. To prove their claim, on the side of claimants, 3 witnesses were

examined as PWs.1 to 3 and 17 documents were marked as Exs.P1 to P17. On

the side of Insurance Company, 1 witness was examined and 4 exhibits were

marked.

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

C.M.A.No.144 of 2019

7. On appreciation of materials and the evidence on record, the Tribunal

arrived at a finding that the accident had occurred due to the rash and

negligent driving of the Tipper Lorry bearing Registration No.TCW-4626.

On coming to such a finding, the Tribunal directed the Insurance Company, as

insurer of the offending vehicle, to pay compensation. The Tribunal awarded a

sum of Rs.27,18,000/- as compensation. The break-up details are as follows:

Sl.No. Compensation awarded under the head Amount (in Rs.)

1. Loss of pecuniary benefits 26,88,000/-

                             2.    Loss of estate                                    15,000/-
                             3.    Funeral expenses                                  15,000/-
                                                                Total       27,18,000/-

The said sum of Rs.27,18,000/- was directed to be paid together with interest

at 7.5% p.a. from the date of claim petition till the date of realisation.

Questioning the quantum of compensation, the Insurance Company has filed

the present appeal.

8. Learned counsel for Insurance Company submits that it was the claim

of claimants before the Tribunal that the deceased was working as Purchasing

Manager in M/s.R.K.International Service Pvt. Ltd., Neelankarai, Chennai and

was earning a sum of Rs.20,000/- p.m. To establish such contention, a staff

from such company has been examined as PW-3 and through him, Ex.P17 –

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

C.M.A.No.144 of 2019

Salary Certificate of the deceased was marked, in which the monthly salary of

the deceased was shown as Rs.20,000/-. The Tribunal, based on Ex.P17 –

Salary Certificate, fixed the monthly income of the deceased at Rs.20,000/-.

The grievance of the Insurance Company is that except Ex.P17 – Salary

Certificate, no other authenticated documents such as attendance register, pay

slip etc. have been produced. Under such circumstances, the Tribunal ought

not to have fixed the monthly income of the deceased at Rs.20,000/- solely

relying upon Ex.P17 – Salary Certificate. Hence, learned counsel prays this

Court to fix the notional monthly income of the deceased at Rs.12,000/- and

accordingly, modify the compensation awarded by the Tribunal.

9. On the other hand, learned counsel for claimants made his

submissions supporting the award passed by the Tribunal.

10. This Court has considered the rival submissions. Perused the

materials on record.

11. Since only the quantum of compensation is challenged in the present

appeal, this Court is not dealing with the other aspects of the award passed by

the Tribunal.

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

C.M.A.No.144 of 2019

12. As rightly submitted by the Insurance Company, this Court finds

that except Ex.P17 – Salary Certificate, no other authenticated document has

been produced to establish the monthly income of the deceased. Under such

circumstances, the Tribunal ought not to have fixed the monthly income of the

deceased at Rs.20,000/- solely relying upon Ex.P17 – Salary Certificate.

Considering the avocation and age of the deceased at the time of accident as

also the fact that the accident took place in the year 2013 and the cost of living

prevailed at that point of time, this Court is of the view that it would be

appropriate to fix a sum of Rs.12,300/- as the monthly income of the deceased

to arrive at a just and proper compensation. Accordingly, the monthly income

of the deceased is fixed at Rs.12,300/-. The deceased was a bachelor. Hence,

50% of the income has to be deducted towards personal expenses.

Accordingly, the compensation payable under the head 'loss of pecuniary

benefits' is re-calculated as follows:

                                   Monthly Income               :     Rs.    12,300/-

                                   Add : Future Prospects
                                   40% of Rs.12,500/-           :     Rs.      4,920/-
                                                                      -----------------
                                                                      Rs. 17,220/-
                                   Less : Personal expenses
                                   1/2 of Rs.17,500/-           :     Rs.      8,610/-
                                                                      ------------------
                                                                      Rs.      8,610/-
https://www.mhc.tn.gov.in/judis/



                                                                                        C.M.A.No.144 of 2019



                                    Annual income
                                    (Rs.8,610 *12)                  :      Rs. 1,03,320/-

                                    Multiplier                      :                 x 16
                                                                           ------------------
                                    Loss of pecuniary benefits      :      Rs.16,53,120/-
                                                                           ------------------


13. Further, this Court finds that no sum has been awarded towards loss

of love and affection. Hence, a sum of Rs.1,20,000/- (40000 * 3) is awarded

towards loss of love and affection. A sum of Rs.15,000/- awarded by the

Tribunal towards funeral expenses is on the higher side and hence, the same is

reduced to Rs.10,000/-. The amount of Rs.15,000/- awarded under the head

'loss of estate' is hereby confirmed.

14. Accordingly, the modified compensation payable would be:

                                                                    Award of the        Award of
                         Sl.       Compensation awarded under
                                                                     Tribunal          this Court
                         No.               the head
                                                                      (in Rs.)           (in Rs.)
                          1. Loss of pecuniary benefits                 26,88,000/- 16,53,120/-
                          2. Loss of love and affection                            -    1,20,000/-
                          3. Loss of estate                               15,000/-        15,000/-
                          4. Funeral expenses                             15,000/-        10,000/-
                                                            Total       27,18,000/- 17,98,120/-
                                                  Rounded off to                       18,00,000/-



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



                                                                                    C.M.A.No.144 of 2019



In the result, the Civil Miscellaneous Appeal is partly allowed. The

compensation of Rs.27,18,000/- awarded by the Tribunal is reduced to

Rs.18,00,000/- [Rupees Eighteen Lakhs only]. The Insurance Company is

directed to deposit the modified compensation, less the amount already

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

the date of deposit within a period of four weeks from the date of receipt of

this judgment. On such deposit being made by Insurance Company,

respondents 1 to 3/claimants are permitted to withdraw their respective shares,

as apportioned by Tribunal, along with accrued/proportionate interest and

costs, less the amount, if any already withdrawn by them, by filing necessary

application before the Tribunal. No costs. Connected miscellaneous petition is

closed.

                                                                   [R.P.S., J]            [S.S.K., J]
                                                                                 24.02.2021

                  Speaking/Non-speaking order
                  Index: yes/no
                  Internet:yes/no
                  gm




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



                                                          C.M.A.No.144 of 2019




                  To
                  1.The Motor Accident Claims Tribunal,
                    Special Sub Court II,
                    Chennai.

                  2.The Section Officer,
                    VR Section,
                    High Court, Madras.




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



                                                      C.M.A.No.144 of 2019



                                                     R.SUBBIAH, J
                                                             and
                                   SATHI KUMAR SUKUMARA KURUP, J

                                                                      gm




                                                 C.M.A.No.144 of 2019




                                                            24.02.2021




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



 
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