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M/S. Royal Sundaram General vs V.Rajathi
2021 Latest Caselaw 14125 Mad

Citation : 2021 Latest Caselaw 14125 Mad
Judgement Date : 15 July, 2021

Madras High Court
M/S. Royal Sundaram General vs V.Rajathi on 15 July, 2021
                                                                             C.M.A. No. 1767 of 2021

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED : 15.07.2021

                                                          CORAM :

                                    THE HON'BLE MR.JUSTICE N.KIRUBAKARAN
                                                     and
                                   THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

                                                    C.M.A.No. 1767 of 2021

                M/s. Royal Sundaram General
                      Insurance Co. Ltd.
                Subramaniam Building, I Floor
                No.1, Club House Road
                Anna Salai, Chennai – 600 002.                                      ... Appellant

                                                              Vs

                     1.   V.Rajathi
                     2.   Minor V.Ashwin
                     3.   Minor V.Harish
                     4.   M.Shanmugam
                     5.   K.Vasanthi                                            ... Respondents


                PRAYER : Civil Miscellaneous Appeal filed under Section 19 of the Family

                Courts Act, 1984, praying to set aside the judgment and decree dated

                07.03.2019 passed in M.C.O.P. No. 7130 of 2016 on the file of the Motor

                Accidents Claims Tribunal, Chennai (In the II Court of Small Causes,

                Chennai).

                                    For Appellant       : Mr. G.Vasudevan

https://www.mhc.tn.gov.in/judis/
                1/10
                                                                               C.M.A. No. 1767 of 2021

                                                 JUDGMENT

(Judgment of the Court was delivered by N.KIRUBAKARAN, J)

The matter has been heard through "Video Conference".

“Whether the presence of beneficiary is necessary?

Whether benefit could be given to the party in absentia?”

When the Respondents are to be benefited by the order of this Court, neither

notice is necessary nor their presence is necessary.

2. When a benefit accrues to the concerned parties, even in their absence,

the benefits could be granted by this Court, when this Court notes injustice was

done to the parties. This is the one such case, where the compensation could be

enhanced suo motu to the parties in absentia even, in the appeal filed by the

Insurance Company while dismissing the Insurance appeal at the admission

stage itself.

3. The Appeal has been preferred by the Insurance Company against the

award of the Tribunal, by which the negligence was fixed on the driver of the

insured vehicle and a sum of Rs.22,49,000/- was awarded for the death of the

husband of the 1st Respondent viz., K.Vadivelan. On 21.10.2016 at about 7.45

hours, the husband of the 1st Respondent/deceased was riding his motor cycle https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

bearing Registration No. TN-13-E-5157 on Chennai to Bangalore National

Highways, from Chennai to Vellore direction. At that time, a Lorry insured

with the Appellant Insurance Company hit behind the victim's vehicle, which

came from the same direction in a rash and negligent manner causing accident

resulting the death of victim. Hence, the claim Petition. On contest, the

Tribunal found that the accident occurred because of the rash and negligent

driving of the driver of the insured lorry and fixed the liability on the

Appellant/Insurance Company and awarded a sum of Rs.22,49,000/-. The said

order is being challenged before this Court.

4. Heard Mr. G.Vasudevan, Learned Counsel appearing for the Appellant,

and perused the materials placed on record.

5. Appellant would contend that there was contributory negligence on the

part of the victim and therefore, the amount awarded by the Tribunal has to be

reduced proportionately. Moreover, the Tribunal fixed the monthly income at

Rs.11,000/- without any proof and therefore the compensation has to be

reduced.

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

C.M.A. No. 1767 of 2021

6. A perusal of the records shows that the Tribunal, based on PW2/

eye-witness and Ex.P1 - FIR came to a factual conclusion that the lorry was

driven rashly and the accident occurred because of the negligent driving of the

insured vehicle. There is no contra evidence adduced on behalf of the

Appellant / Insurance company contradicting what has been stated by PW2 eye-

witness. Therefore, there is no occasion for this Court to interfere with the

factual finding reached by the Tribunal based on the evidence.

7. The claim of the claimants was that the victim was working as a Maistry

and was earning a sum of Rs.30,000/- per month at the time of accident.

However, there is no documentary evidence, except Ex.P7, ID card of the

deceased issued by the Labour welfare board to show that he was a Maistry. It

is a fact that it is very difficult to get a Maistry for Rs.750/- per day. The daily

wages of the Maistry is minimum Rs.750/-, which this Court could take judicial

note of it.

8. Even in the absence of any proof, the Tribunal only took Rs.11,000/- as a

monthly income. Considering the scarcity of the Maistry, who are not available

for less than Rs.750/- per day, this Court is inclined to redetermine the daily

income at Rs.750/-. This Court takes the job of the deceased as Maistry for 25 https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

days per month and hence, the monthly income would be Rs.750/- X 25

= Rs.18,750/-.

9. The Tribunal rightly determined the age of the deceased at 36 based on

Ex.P6 / Driving license of the victim. If 36 is the age, as per the Constitution

Bench's judgment of the Honourable Apex Court in National Insurance

Company Limited V. Pranay Sethi and others, reported in 2017 (2) TN MAC

609 (SC), 40% has to be added towards future prospects. If 40% is added, the

monthly income comes to Rs.26,250/- [Rs.15750/- (+) 40% of Rs.15,750/- viz.,

Rs.7,500/-].

10. The dependents of the deceased family is 4, consisting of his wife, two

minor children and mother. Therefore, the Tribunal rightly deducted 1/4 th

towards personal expenses. If 1/4th is deducted towards personal expenses, the

monthly income would be Rs.19,687.50 [26250.50 – 1/4 (22050/4)]. Since the

age of the deceased was 36 years at the time of the accident, as per the

judgment of the Honourable Supreme Court in the case of Sarla Verma &

Others .Vs. Delhi Transport Corporation & another, reported in 2009 (2)

TNMAC 1 (SC), appropriate multiplier is “15”. Therefore, loss of income

would be at Rs.35,43,750/- (Rs.19687.50 x 12 x 15). 10% income tax has to be https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

deducted and loss of income after tax deduction would be Rs.35,43,750/- - 10%

= Rs.31,89,375/-

11. The Tribunal awarded a sum of Rs.40,000/- towards Loss of consortium

as per the Constitution Bench's judgment of the Honourable Apex Court in

National Insurance Company Limited V. Pranay Sethi and others, reported in

2017 (2) TN MAC 609 (SC), a sum of Rs.15,000/- awarded towards Loss of

Estate and a sum of Rs.15,000/- awarded towards Funeral Expenses. Since the

above amounts are reasonable, the same are confirmed.

12. No amount was awarded towards transportation. Therefore, a sum of

Rs.15,000/- is added towards Transportation. Further, it is seen that Rs.50,000/-

was awarded to the Second and Third Respondents towards loss of love and

affection. The said amount is very meager since minor children, who lost love,

affection and care of their father throughout their life. Therefore, Rs.50,000/-

awarded towards loss of love and affection is enhanced to Rs.1,00,000/-.

Similarly no amount was awarded towards loss of love and affection for the

Fourth Respondent, who gave birth to the victim. Therefore, a sum of

Rs.50,000/- is awarded towards loss of love and affection to the Fourth

Respondent. Hence, the award of the Tribunal of Rs.22,49,000/- is suo motu https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

enhanced to Rs.32,11,660/- as under :-

                                   S.No.             Heads                 Amount
                                    1.     Loss of Income             Rs.31,89,375/-
                                    2.     Loss of consortium         Rs.40,000/-
                                    3.     Loss of Love and Affection Rs.1,50,000/-
                                    4.     Funeral Expenses           Rs.15,000/-
                                    5.     Loss of Estate             Rs.15,000/-
                                    6.     Transportation             Rs.15,000/-
                                           Total                      Rs.34,24,375/-


13. Therefore, Rs.22,49,000/- awarded by the Tribunal is enhanced to

Rs.34,24,375/- rounded off to Rs.34,25,000/- and the rate of interest fixed by

the Tribunal at 7.5% is confirmed. Out of the modified award amount, 1 st

Respondent is entitled to get Rs.10,00,000/-, Respondents 2 & 3 are entitled to

get Rs.9,50,000/- each and the 4th Respondent is entitled to get Rs.5,25,000/-,

14. Invoking Order 41 Rule 33 of CPC and Section 151 of CPC and Article

227 of Constitution of India this Court suo motu enhances the compensation as

just compensation was not granted by the Tribunal. The provisions of the Motor

Vehicles Act are benevolent in nature and what is required to be awarded is just

and reasonable compensation. Neither it could be inflated nor inadequate.

Therefore, even in the absence of appeal/cross-appeal by the claimant, this

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

C.M.A. No. 1767 of 2021

Court has got power and jurisdiction to enhance the compensation, which has

been recognised by the Honourable Supreme Court in Nagappa V. Gurdayal

Singh reported in 2004 (2) TN MAC 398 (SC).

15. The appellant/Insurance Company is directed to deposit the entire

modified award amount as per the Judgment made by this Court along with

interest and costs after deducting the amount, if any, already deposited, within a

period of six weeks from the date of receipt of a copy of this Judgment. On

such deposit being made, the tribunal is directed to transfer the respective

shares of the Respondents as per the ratio stated supra, through RTGS within a

period of one week, except the shares of 2nd and 3rd Respondents/minors, which

shall be deposited in any one of the Nationalized Banks in interest bearing

Fixed Deposit till they attain majority. The 1st Respondent is permitted to

withdraw the interest accruing on such deposits once in three months.

16. Since without notice to the claimants the enhancement of compensation

has been made suo motu in favour of the claimants, while dismissing the appeal

filed by the insurance company at the time of admission itself, there is no

occasion for the claimants to know about enhancement. Therefore, copy of this

order is directed to be sent to the claimants at free of costs. The Appellants are https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

directed to deposit the entire award amount of Rs.32,12,000/- along with

interests and costs within a period of four weeks from the date of receipt of a

copy of this judgment. The claimants are directed to pay the requisite court-fee

for the enhanced amount alone, if any, within a period of two weeks from the

date of receipt of a copy of this order. If the requisite court-fee is not paid by

the claimants, the Tribunal is directed to deduct the requisite court fee from the

compensation awarded to the claimants and thereafter, transfer within two

weeks the remaining award amount to the claimants' account as per the share

fixed by this Court.

17. In the result, this Civil Miscellaneous Appeal filed by the Insurance

Company is dismissed at the admission stage itself, enhancing the award of the

Tribunal suo motu from Rs.22,49,000/- to Rs.34,25,000/- with interest at 7.5%

to be paid to the Respondents. No costs. Consequently, connected

Miscellaneous petition is closed.

[N.K.K., J.] [T.V.T.S., J.] 15.07.2021 Maya

Index: Yes Internet : Yes Speaking order/Non-speaking order https://www.mhc.tn.gov.in/judis/

C.M.A. No. 1767 of 2021

N.KIRUBAKARAN, J.

and T.V.THAMILSELVI, J.

Maya

To

The Learned Judge, II Court of Small Causes Motor Accidents Claims Tribunal Chennai.

C.M.A.No.1767 of 2021

Dated: 15.07.2021

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

 
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