Madras High Court
National Insurance Company vs Unknown on 22 July, 2021
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
In the High Court of Judicature at Madras
Dated : 22.7.2021
Coram
The Honourable Mr.Justice ABDUL QUDDHOSE
Civil Miscellaneous Appeal No.691 of 2016
and Cross Objection No.32 of 2017
National Insurance Company
Ltd., Divisional Office,
Court Road, Tirupur ...Appellant in
CMA & R1 in
Cross Obj.
Vs
1.
R.Dhanalakshmi
2.P.Rajangam ...R1 & R2 in
CMA & cross
objectors in
Cross.Obj.
3.S.Arunkumar ...R3 in CMA &
R2 in Cr.Obj.
APPEAL under Section 173 of the Motor Vehicles Act, 1988
against the fair and decretal order dated 22.1.2014 in MCOP.No.519 of
2012 on the file of the Motor Accidents Claims Tribunal (Subordinate
Court), Sathyamangalam; and
CROSS OBJECTION under Order XLI Rule 22 of the Civil
Procedure Code against the fair and decretal order dated 22.1.2014 in
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
MCOP.No.519 of 2012 on the file of the Motor Accidents Claims
Tribunal (Subordinate Court), Sathyamangalam.
For Appellant in CMA &
R1 in Cross Obj. : Mr.K.Padmanabhan
For R1 & R2 in CMA &
cross objectors in
Cross.Obj. : : Mr.J.Hariharan for Mr.V.Nicholas
R3 in CMA &
R2 in Cr.Obj. : set ex parte
COMMON JUDGMENT
I have heard the learned counsel appearing on both sides.
2. The above civil miscellaneous appeal has been filed by the
Insurance Company challenging the award dated 22.1.2014 passed in
MCOP.No.519 of 2012 on the file of the Motor Accidents Claims
Tribunal (Subordinate Court), Sathiyamangalam.
3. The cross objection has been filed by the claimants seeking
enhancement of compensation under the very same impugned award.
4. The details of compensation awarded by the Tribunal under
the impugned award are as follows :
“a. Loss of dependency to the family
of the deceased : Rs.7,80,000/-
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
b. Loss of love and affection : Rs.30,000/-
c. Transport : Rs. 5,000/-
d. Funeral expenses : Rs.10,000/-
e. Loss of estate Rs.60,000/-
_________________
Total : Rs.8,85,000/-”
__________________
5. The deceased Kannan was an engineering student aged 19
years at the time of accident, which happened on 24.9.2012. The
Tribunal fixed the notional monthly income of the deceased based on
the evidence available on record at Rs.10,000/-, which is a correct
assessment since the accident took place on 24.9.2012.
6. The claimants filed 10 documents, which were marked as
Ex.A1 to Ex.A10 before the Tribunal and two witnesses were examined
on their side namely Dhanalakshmi - mother of the deceased as PW1
and an eyewitness to the accident as PW2. On the side of the
Insurance Company, neither any witness was examined nor any
document was filed before the Tribunal. The Insurance Company also
has not disputed that the deceased was an engineering student and
aged 19 years at the time of accident. Only after giving due
consideration of the aforementioned factors, the Tribunal fixed the
notional monthly income of the deceased at Rs.10,000/- for an
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
accident that happened in the year 2012. Therefore, the said
assessment is a correct assessment.
7. The Tribunal has erroneously failed to award any
compensation towards loss of future prospects to the claimants in
accordance with the settled law laid down by the Hon'ble Supreme
Court in the case of National Insurance Co. Ltd. Vs. Pranay Sethi
[reported in 2017 (16) SCC 680]. The deceased was aged 19 years
and was an engineering student at the time of accident. In accordance
with the law laid down by the Hon'ble Supreme Court in the case of
Pranay Sethi referred to supra, the claimants are entitled to 50%
towards loss of future prospects. Therefore, this Court awards 50%
towards loss of future prospects to the claimants, which the Tribunal
has erroneously omitted to award.
8. The Tribunal has rightly deducted 50% towards personal
expenses of the deceased and the same is hereby confirmed by this
Court. The Tribunal has also rightly adopted 13 as multiplier after
giving due consideration to the age of the deceased, who was 19 years
old at the time of accident. In view of the addition of loss of future
prospects by this Court, the loss of dependency payable to the
claimants is enhanced to Rs.11,70,000/- instead of Rs.7,80,000/-
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
erroneously fixed by the Tribunal.
9. The Tribunal has erroneously awarded a lesser compensation
towards loss of love and affection at Rs.30,000/-. In accordance with
the decision of the Hon'ble Supreme Court in the case of Pranay
Sethi referred to supra, the parents of the deceased namely the
claimants are entitled to Rs.40,000/- each and therefore, the
compensation payable towards loss of love and affection has to be
enhanced to Rs.80,000/- instead of Rs.30,000/- erroneously fixed by
the Tribunal.
10. The Tribunal erroneously awarded a compensation of
Rs.5,000/- towards transportation, which has to be enhanced to
Rs.10,000/- as per the decision of the Hon'ble Supreme Court in the
case of Pranay Sethi referred to supra and it is hereby enhanced to
Rs.10,000/-.
11. The Tribunal has awarded a lesser compensation of
Rs.10,000/- towards funeral expenses, which has to be enhanced to
Rs.15,000/- and it is hereby enhanced to Rs.15,000/- as per the
decision of the Hon'ble Supreme Court in the case of Pranay Sethi
referred to supra.
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
12. The Tribunal has erroneously awarded a higher compensation
of Rs.60,000/- towards loss of estate, which has to be necessarily
reduced to Rs.15,000/- by this Court in accordance with the decision of
the Hon'ble Supreme Court in the case of Pranay Sethi referred to
supra and it is hereby reduced to Rs.15,000/- instead of Rs.60,000/-.
13. For the foregoing reasons, the above civil miscellaneous
appeal is dismissed and the cross objection is partly allowed and the
total compensation awarded under the impugned award is enhanced
from Rs.8,85,000/- to Rs.12,90,000/- (Rupees twelve lakhs and ninety
thousand only) as detailed hereunder :
(a) Loss of dependency : Rs.11,70,000/-
(b) Loss of love and affection : Rs. 80,000/-
(c) Transportation : Rs. 10,000/-
(d) Funeral expenses : Rs. 15,000/-
(e) Loss of estate : Rs. 15,000/-
------------------------
Total: Rs.12,90,000/-
------------------------
No costs.
14. The appellant - Insurance Company is directed to deposit the
entire award amount as determined by this Court in this appeal
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
together with interest at the rate of 7.5% per annum from the date of
petition till date of realization less the amount already deposited to
the credit of the claim petition within two weeks from the date of
receipt of a copy of this judgment. This Court, by order dated
27.4.2017, permitted the claimants to withdraw 50% of their
respective shares as apportioned by the Tribunal. It is made clear that
on deposit of the entire award amount to the extent indicated in this
judgment, the Tribunal is directed to transfer the balance award
amount together with interest lying to the credit of the claim petition
directly to the respective bank accounts of the claimants as
apportioned by the Tribunal through RTGS within two weeks thereafter.
22.7.2021
To
The Motor Accidents Claims Tribunal (Subordinate Court),
Sathiyamangalam.
RS
https://www.mhc.tn.gov.in/judis/
CMA.No.691 of 2016 &
Cross Obj.No.32 of 2017
ABDUL QUDDHOSE,J
RS
CMA.No.691 of 2016 and
Cross Obj.No.32 of 2017
22.7.2021
https://www.mhc.tn.gov.in/judis/
