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Managing Director vs Minor. S.Gowtham
2021 Latest Caselaw 11935 Mad

Citation : 2021 Latest Caselaw 11935 Mad
Judgement Date : 18 June, 2021

Madras High Court
Managing Director vs Minor. S.Gowtham on 18 June, 2021
                                                         C.M.A.No.3956 of 2019
          IN THE HIGH COURT OF JUDICATURE AT MADRAS

                            DATED: 18.06.2021

                                 CORAM

                  THE HON'BLE MR.JUSTICE C.SARAVANAN

                          C.M.A.No.3956 of 2019
                                   and
                          Cros.Obj.No.15 of 2020

In C.M.A.No.3956 of 2019
Managing Director,
Tamil Nadu State Transport
Corporation (Kumbakonam) Ltd.,
Railway Station New Road,
Kumbakonam – 612 001.                 ... Respondent/ Appellant
                                     Vs.
1. Minor. S.Gowtham
2. Minor S. Muralidharan
3. A.Muthukrishnan,
 (Minor petitioners rep by grandfather,
  guardian NF, Muthukrishnan)
  All are residing at Post Office Street,
  Karamanikuppam and Post,
  Cuddalore Taluk.
  Permanently residing at 8B1, Old Pillayarkuppam,
  Maligampattu, Panruti Taluk.             ... Petitioners / Respondents

      Civil Miscellaneous Appeal filed under Section 173 of Motor
Vehicles Act, 1988 to set aside the Decree and Judgment dated
15.04.2019 made in M.C.O.P.No 1759 of 2017 on the file of the Motor
Accident Claims Tribunal, Special Sub Judge, Cuddalore and be pleased
to dismiss the above claim as against the appellant.
             For Appellant             : Mr.L.Ramanathan
             For Respondents-1&2 : Mrs.Ramya V. Rao
                                         for Mr.D.Venkatachalam
In Cross Objection No.15 of 2020


_________
Page No 1 of 10
                                                            C.M.A.No.3956 of 2019
1. Minor. S.Gowtham S/o.Late Selvakumar

2. Minor S. Muralidharan S/o.Late Selvakumar

3. A.Muthukrishnan,
 Father of Late Selvakumar
 Respondents 1 to 3 residing at
 Old Post Office Street,
 Karamanikuppam and Post,
 Cuddalore Taluk.
                                    ... Cross Objectors/ Respondents 1 to 3


                                          Vs

Managing Director,
Tamil Nadu State Transport Corporation Ltd.,
Railway Station New Road,
Kumbakonam – 612 001.                ..Respondent/ Appellant


        Cross Objection filed under Order 41, Rule 22 of CPC, to enhance

the award amount in the Cross Objection.

                  For Cross Objectors     : Mrs.Ramya V. Rao
                  For Respondent          : Mr.L.Ramanathan
                                            for Mr. D.venkatachalam




_________
Page No 2 of 10
                                                          C.M.A.No.3956 of 2019
                               JUDGMENT

This appeal in C.M.A.No.3956 of 2019 has been filed by the State

Transport Corporation questioning the award amount.

2. In this appeal, the appellant/State Transport Corporation submits

that a sum of Rs.9,05,000/- would be a just compensation as against

Rs.19,05,000/-.

3. The claimants who are two minors have filed a cross objection in

cross objection No.15/2020 and they seek for enhancement of

compensation.

4. The tribunal while awarding the compensation of Rs.19,05,000/,

has considered a notional income of Rs.10,000/- of the deceased namely

N. Selvakumar.

5. In the claim statement, it has been stated that the deceased was

earning a sum of Rs.40,000/- per month and was earning income from

agricultural activities apart from wholesale and retail business of

cashewnut and other seasonal foods in Panruti.

6. The learned Counsel for the respondents/claimants (minors)

_________ Page No 3 of 10 C.M.A.No.3956 of 2019 submits that in the absence of direct evidence to substantiate monthly

income of Rs.40,000/-, the monthly income of the deceased can be

considered as Rs.20,000/- per month for awarding just compensation.

7. Defending the impugned judgement and decree, the learned

Counsel for the respondents submits that the tribunal has considered

monthly income of Rs.10,000/- which itself is exaggerated and therefore,

submits that the appeal filed by the State Transport Corporation can be

allowed.

8. I have considered the arguments advanced by the learned

Counsels and perused the exhibits which came to be marked by the

tribunal and the deposition of P.W.1 and P.W.2.

9. It is a pathetic case of two young minor children aged 10 years

and 7 years at the time of accident when their father passed away. The

3rd respondent is the father of the deceased. Already, the wife of the

deceased/the mother of the respondents 1 and 2 had pre-deceased.

10. Considering the year of accident, it would be reasonable to

construed a notional income of Rs.15,000/- for awarding Just

_________ Page No 4 of 10 C.M.A.No.3956 of 2019 compensation as two young children who have been orphaned on account

of the death of their father as they are already lost their mother.

11. In this circumstances, the amount awarded by the tribunal is

enhanced by considering the notional income of the deceased

M.Selvakumar, aged 38 years at the time of accident as Rs.15,000/- per

month.

12. On the aforesaid amount, there shall be an addition of 40%

towards future prospects as per the decision of the Hon'ble Supreme

Court in National Insurance Company Limited Vs. Pranay Sethi and

Others, (2017) 16 SCC 680.

13. Considering the age of the deceased as 38 years, the correct

multiplier adopted is 15% as per the decision of the Hon'ble Supreme

Court in Sarla Verma (Smt) and Others Vs. Delhi Transport

Corporation and Another, (2009) 6 SCC 12.

                        st         nd                   st   nd

        14. Since, the 1 & 2            respondents/1 & 2         claimants are two

                              rd                   rd

young children and the 3            respondent/3        claimant is father of the

deceased, they are entitled for compensation towards Parental

Consortium and loss of Filial Consortium respectively as per the decision

of the Hon'ble Supreme Court in Magma Insurance Company Limited

_________ Page No 5 of 10 C.M.A.No.3956 of 2019 Vs Nanuram @ Chuhruram and others, (2018) 18 SCC 130.

15. In this circumstances, the amount awarded by the tribunal for a

sum of Rs.19,05,000/- is enhanced to Rs.26,85,000/- as details below:-

            Heads and Calculation                  Amount
    Loss of earning capacity:-

    Monthly                       Income
    : Rs.15,000/-

    Add: *Future Prospects at 40%
                  (15,000 x 40/100)
    : Rs. 6,000/-

    ----------------

    : Rs.21,000/-
                                 rd

    Less: Personal Expenses 1/3
                     (21,000 x 1/3)
    : Rs. 7,000/-
                                                          Rs.25,20,000/-
    ----------------

    : Rs. 14,000/-

Annual Contribution to the family (14,000 x 12) : Rs.1,68,000/-

**Multiplier 15(1,68,000x2/3) : Rs.25,20,000/-

***Loss of Parental Consortium to Rs. 80,000/-

            st         nd

    the 1 and 2              respondents
    (Rs.40,000/- each)
                                         rd
                                                          Rs.    20,000/-

Loss of Filial Consortium to the 3 respondent Loss of Estate Rs. 20,000/-

    Funeral Expenses                                      Rs.    15,000/-
_________
Page No 6 of 10
                                                             C.M.A.No.3956 of 2019
    Transportation                                           Rs.    10,000/-
                     Total                                   Rs.26,65,000/-




* Future prospects is added by this Court at 40% as per the

decision of the Hon'ble Supreme Court in National Insurance Company

Limited Vs. Pranay Sethi and Others, (2017) 16 SCC 680.

** Proper Multiplier is fixed by this Court as per the decision of

the Hon'ble Supreme Court in Sarla Verma (Smt) and Others Vs. Delhi

Transport Corporation and Another, (2009) 6 SCC 12.

*** Parental Consortium and Love and Affection is granted by this

court as per the decision of the Hon'ble Supreme Court in Magma

Insurance Company Limited Vs Nanuram @ Chuhruram and others,

(2018) 18 SCC 130.

16. The appellant/State Transport Corporation is therefore directed

to deposit the enhanced amount of compensation of Rs.26,65,000/-

together with interest at 7.5% per annum from the date of numbering of

the claim petition till the date of such deposit, less any amount already

deposited by it, within a period of six weeks from the date of receipt of a

copy of this Judgment.

                        st      nd               st     nd

        17. Since the 1 and 2        respondents/1 and 2 claimants are stated
_________
Page No 7 of 10
                                                          C.M.A.No.3956 of 2019

to be minors at the time of filing of the claim petition, their shares shall

be deposited in an interest bearing account and the interest shall be

rd rd

allowed to be withdrawn by their grand father 3 respondent/3 claimant

st

for the benefit of the minors. On attaining the age of majority, the 1 and

nd st nd

2 respondents/1 and 2 claimants may also file appropriate application

for withdrawing their shares of compensation.

18. In the result, the Civil Miscellaneous Appeal filed by the

appellant/State Transport Corporation is dismissed and the cross objection

filed by the respondents/claimants is partially allowed. No costs.

18.06.2021

ksa-2 Internet : Yes / No Index : Yes/No Speaking Order/Non-speaking Order

_________ Page No 8 of 10 C.M.A.No.3956 of 2019

To:

1.Motor Accident Claims Tribunal, Special Sub Judge, Cuddalore.

2.The V.R.Section, Madras High Court, Madras.

_________ Page No 9 of 10 C.M.A.No.3956 of 2019 C.SARAVANAN, J.

ksa-2

C.M.A.No.3956 of 2019 and Cros.Obj.No.15 of 2020

18.06.2021

_________ Page No 10 of 10

 
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