Madras High Court
M/S.Reliance General Insurance ... vs Nagarathinam on 16 June, 2021
CMA No.1088 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 16.06.2021
CORAM:
THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE
CMA No.1088 of 2016
and
CMP No.8067 of 2016
M/s.Reliance General Insurance Company Limited,
Rai's Tower,
Plot No.2054, 2nd Avenue,
2nd Floor,
Next to Senthil Nursing Home,
Anna Nagar,
Chennai – 600 040. ... Appellant
Versus
1. Nagarathinam
2. Ellammal
3. M.Dhanapal ... Respondents
Civil Miscellaneous Appeal filed under Section 173 of the Motor
Vehicles Acts, 1988 against the judgment and decree in MCOP No.2735
of 2011, dated 05.08.2015 on the file of the Motor Accidents (Claims
Tribunal, IV Court of Small Causes, Chennai.
For Appellant : Mr.M.B.Raghavan
For Respondents : Mr.F. Terry Chellaraja for R1 & R2
R3 – Served – No appearance
JUDGMENT
This appeal has been filed by the Insurance Company
challenging the award dated 05.08.2015 passed by the Motor Accident
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CMA No.1088 of 2016
Claims Tribunal IV Court of Small Causes, Chennai in MCOP No.2735
of 2011.
2. The appellant / Insurance Company has challenged the
impugned award questioning the quantum of compensation awarded by
the Tribunal as according to them, it is excessive.
3. The Tribunal under the impugned award directed the appellant /
Insurance Company to pay the respondents 1 and 2 / claimants a
compensation of Rs.8,60,000/- together with interests and costs as
detailed hereunder :-
Heads Amount awarded
by the Tribunal
(Rs.)
Loss of dependency 2,70,000
Love and affection 4,00,000
Funeral expenses 25,000
Medical expenses 1,65,000
Total 8,60,000
4. Heard Mr.M.B.Raghavan, learned counsel for the appellant /
Insurance Company and Mr.F.Terry Chellaraja, learned counsel for the
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CMA No.1088 of 2016
respondents 1 and 2. Despite service of notice on the 3rd respondent,
there is no representation on his side.
5. This Court has perused the materials and evidence available on
record before the Tribunal.
6. The deceased was a Student when the accident happened on
11.07.2010 and he was aged 16 years. The Tribunal has fixed the
notional annual income of the deceased at Rs.15,000/- and has applied
the correct multiplier of 18 and has awarded a compensation towards loss
of dependency at Rs.2,70,000/-, which in the considered view of this
Court is low.
7. The Tribunal ought to have fixed the notional annual income of
the deceased at a much higher sum. However, the Tribunal has awarded
a compensation of Rs.4,00,000/- towards loss of love and affection,
which is extremely high, if the decision of the Hon'ble Supreme Court in
the case of National Insurance Co. Ltd. vs. Pranay Sethi reported in
2017 16 SCC 680 is taken as a yardstick.
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CMA No.1088 of 2016
8. Similarly, the Tribunal has awarded a compensation of
Rs.25,000/- towards funeral expenses, which is also high. However, this
Court is of the considered view that in view of the fact that the notional
annual income of the deceased fixed at Rs.15,000/- by the Tribunal is too
low, the overall compensation of Rs.8,60,000/- awarded by the Tribunal
cannot be considered to be excessive and it is a just compensation.
9. For the foregoings reasons, this Court does not find any merit in
this appeal and the Civil Miscellaneous Appeal is dismissed. No costs.
Consequently, connected miscellaneous petition is closed.
10. The Appellant / Insurance Company is directed to deposit the
entire award amount awarded by the Tribunal 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. 2735
of 2011 on the file of the Motor Accidents Claims Tribunal, IV Court of
Small Causes, Chennai, within a period of eight weeks from the date of
receipt of a copy of this Judgment. On such deposit being made, the
Tribunal is directed to transfer the award amount directly to the bank
account of the respondents 1 and 2 / claimants through RTGS, within a
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CMA No.1088 of 2016
period of two weeks thereafter as per the ratio of apportionment fixed by
the Tribunal.
16.06.2021
Index: Yes/No
Internet: Yes/No
Speaking Order/Non-Speaking Order
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To
1. The Judge,
IV Court of Small Causes, Chennai.
2. The Section Officer,
V.R. Section
High Court of Madras, Chennai - 104.
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CMA No.1088 of 2016
ABDUL QUDDHOSE, J.
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CMA No.1088 of 2016
16.06.2021
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