Madras High Court

Nirmala Devi vs M/S.Universal Transport Service on 15 July, 2021

                                                                       C.M.A.No.1880 of 2020

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 15.07.2021

                                                     CORAM:

                                   THE HONOURABLE TMT.JUSTICE S.KANNAMMAL

                                               C.M.A.No.1880 of 2020


                   1. Nirmala Devi
                   2. Ranvir Singh                            ...                    Appellants

                                                        Vs.

                   1.M/s.Universal Transport Service
                   Rep. By its Prop. C.Ravindran
                   Thirunallar Main Road,
                   Patchur, Karaikal
                   Pin – 609 602.

                   2.New India Assurance Company Limited,
                   (Motor Third Party Cell)
                   Bombay Mutual Buidlings, 6th Floor,
                   No.232, NSC Bose Road,
                   Chennai – 600 001.                     ...                    Respondents


                   Prayer: This Civil Miscellaneous Appeal is filed under Section 173 of the

                   Motor Vehicles Act, 1988, against the Judgment and Decree dated

                   16.07.2019 made in M.C.O.P.No.4237 of 2018 on the file of the Motor

                   Accident Claims Tribunal, Chief Court of Small Causes, Chennai.




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                                                                            C.M.A.No.1880 of 2020



                                   For Appellants    :     Mr.K.Varadhakamaraj

                                   For R2            :     Mr.S.Dhakshinamoorthy


                                                     JUDGMENT

The matter is heard through “Video Conferencing/Hybrid mode”.

2. This Civil Miscellaneous Appeal has been filed for enhancement of

compensation granted by the award dated 16.07.2019 made in

M.C.O.P.No.4237 of 2018 on the file of the Motor Accident Claims Tribunal,

Chief Court of Small Causes, Chennai.

3. The appellants are the claimants in M.C.O.P.No.4237 of 2018 on the

file of the Motor Accident Claims Tribunal, Chief Court of Small Causes,

Chennai. They filed the above said claim petition, claiming a sum of

Rs.1,00,00,000/- as compensation for the death of one Himanshu who died in

the accident that took place on 28.03.2018.

4. The Tribunal considering the pleadings, oral and documentary

evidence, held that the accident occurred due to rash and negligent driving by

https://www.mhc.tn.gov.in/judis/ C.M.A.No.1880 of 2020

the driver of the bus belonging to the 1st respondent and directed the 2nd

respondent-Insurance Company to pay a sum of Rs.43,39,000/- as

compensation to the appellants.

5. Not satisfied with the amounts awarded by the Tribunal, the

appellants have come out with the present appeal seeking enhancement of

compensation.

6. The learned counsel appearing for the appellants contended that at

the time of accident, the deceased was aged 26 years, working as Data

associate in M/s.Amazon Development Centre (India) Pvt. Ltd., Chennai and

was earning a sum of Rs.38,000/- per month. To prove the avocation and

income of the deceased, the appellants examined PW3, Manager of

M/s.Amazon Development Centre (India) Pvt. Ltd., Chennai and have marked

Ex.P5 – Pay Slips, Ex.P6 – Bank statement and Ex.P19 – salary certificate

issued by the employer of the deceased wherein Rs.4,20,934/- has been

mentioned as the annual income of the deceased for the year 2018. During

February 2018, the gross monthly income of the deceased was Rs.35,096/-.

The Tribunal, erroneously fixed a sum of Rs.30,000/- as monthly income of

the deceased as against Rs.38,000/-, claimed by the appellants. The Tribunal

https://www.mhc.tn.gov.in/judis/ C.M.A.No.1880 of 2020

failed to award any amount towards loss of estate. The amounts awarded by

the Tribunal towards funeral expenses and loss of love & affection are

meagre and prayed for enhancement of compensation.

7. Per contra, the learned counsel appearing for the 2nd respondent-

Insurance Company contended that as per Ex.P19 – salary certificate, the

last drawn CTC was mentioned as Rs.3,73,150/-. In the absence of filing the

Income Tax Returns of the deceased, the Tribunal has fixed the monthly

income of the deceased as Rs.30,000/- and the same is proper. The Tribunal

considering the entire materials on record, has awarded a sum of

Rs.43,39,000/- as compensation to the appellants under different heads and

the same is not meagre. The appellants have not made out any case for

enhancement of compensation and prayed for dismissal of the appeal.

8. Heard the learned counsel appearing for the appellants as well as the

learned counsel appearing for the 2nd respondent-Insurance Company and

perused the entire materials on record.

9. The main contention raised by the learned counsel for the appellants

is that the monthly income of the deceased fixed by the Tribunal at

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Rs.30,000/- is on the lower side. In support of his contention, he drew the

attention of this Court to Ex.P5 – pay slips of the deceased from October

2017 to February 2018 and Ex.P19 – salary certificate issued by the employer

of the deceased. Even as per Ex.P19, the last drawn Cost To Company (CTC)

of the deceased for the year 2018 was mentioned as Rs.4,20,934/-. P.W.3 –

Manager of the company where the deceased was working at the time of

accident has also deposed to that effect. Cost to Company (CTC) is the

yearly expenditure that a company spends on an employee. Each employee

spend depends on their salary and variable. CTC is calculated by adding

salary and additional benefits that an employee receives such as EPF,

gratuity, house allowance, food coupons, medical insurance, travel expense

and so on. CTC in colloquial terms is the cost an employer bears to hire and

sustain its employees. CTC = Gross Salary + Benefits. Therefore, as per

Ex.P19, the gross monthly income of the deceased comes to Rs.35,078/-

(Rs.4,20,934 / 12). Hence, this Court fixes a sum of Rs.35,000/- per month

as the notional income of the deceased.

10. The deceased was a bachelor aged 26 years at the time of accident.

The Tribunal, following the judgment of the Hon'ble Apex Court, has rightly

granted 40% towards future prospects, applied multiplier 17 and deducted

https://www.mhc.tn.gov.in/judis/ C.M.A.No.1880 of 2020

50% towards personal expenses of the deceased. Thus, by fixing the

monthly income of the deceased as Rs.35,000/-, the compensation awarded

by the Tribunal towards loss of income is modified to Rs.49,98,000/-

[Rs.35000 + 14000 (35000 x 40%) x 12 x 17]. The Tribunal failed to award

any amount towards loss of estate. Hence, a sum of Rs.15,000/- is awarded

towards loss of estate. Considering the age, avocation, income of the

deceased and year of accident, this Court is of the considered view that the

amounts awarded by the Tribunal under other heads are just and reasonable

and hence, the same are hereby confirmed. Thus, the compensation awarded

by the Tribunal is modified as follows:

                         Sl.          Description      Amount          Amount            Award
                         No                           awarded by     awarded by       confirmed or
                                                       Tribunal       this Court      enhanced or
                                                         (Rs)            (Rs)           granted
                       1.          Loss of             42,84,000/-    49,98,000/-      Enhanced
                                   dependency
                       2.          Loss of love and       40,000/-       40,000/-      Confirmed
                                   affection
                       3.          Funeral expenses       15,000/-       15,000/-      Confirmed
                       4.          Loss of Estate         -              15,000/-       Granted
                                   Total               43,39,000/-    50,68,000/- Enhanced by
                                                                                  Rs.7,29,000/-





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                                                                              C.M.A.No.1880 of 2020

11. In the result, this Civil Miscellaneous Appeal is partly allowed and

the compensation awarded by the Tribunal at Rs.43,39,000/- is hereby

enhanced to Rs.50,68,000/- together with interest at the rate of 7.5% per

annum from the date of petition till the date of deposit. The 2nd respondent-

Insurance Company is directed to deposit the award amount now determined

by this Court along with interest and costs, less the amount already deposited,

if any, within a period of six weeks from the date of receipt of a copy of this

judgment, to the credit of M.C.O.P.No.4237 of 2018 on the file of the Motor

Accident Claims Tribunal, Chief Court of Small Causes, Chennai. On such

deposit, the appellants are permitted to withdraw their share of the award

amount, now determined by this Court, on the basis of apportionment fixed

by the Tribunal, along with proportionate interest and costs, less the amount