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The New India Assurance Company ... vs S.Selvi
2021 Latest Caselaw 5825 Mad

Citation : 2021 Latest Caselaw 5825 Mad
Judgement Date : 5 March, 2021

Madras High Court
The New India Assurance Company ... vs S.Selvi on 5 March, 2021
                                                                              C.M.A(MD)No.147 of 2020


                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                              DATED: 05.03.2021


                                                        CORAM:
                      THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA
                                             AND
                           THE HONOURABLE MRS.JUSTICE S.KANNAMMAL

                                           C.M.A(MD)No.147 of 2020
                                                    and
                                      C.M.P(MD)Nos.2502 & 6168 of 2020

                    The New India Assurance Company Limited,
                    Rep. by its Divisional Manager,
                    Divisional Office No.3,
                    161-A, East Veli Street,
                    Madurai – 625 001.              ... Appellant/2nd Respondent

                                                        Vs.

                    1.S.Selvi
                    2.Minor S.Varsion
                    3.G.Sakthivel
                    4.S.Chinnathal                            ... Respondents 1 to 4/
                                                                    Petitioners 1 to 4

                    5.K.Palanichamy                           ... 5th Respondent/1st Respondent


                          (R- 2 is rep. by his
                              mother/first respondent)


                    Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor
                    Vehicles   Act,   1988,   against    the     Judgment    and   Decree,    dated
                    23.09.2019 made in M.C.O.P.No.79 of 2017, on the file of the Motor
                    Accident Claims Tribunal/Additional District Court, Palani.




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                                                                          C.M.A(MD)No.147 of 2020


                               For Appellant             : Mr.D.Sivaraman


                               For RR 1 to 4             : Mr.D.Venkatesh


                                                     JUDGMENT

(Judgment of the Court was delivered by PUSHPA SATHYANARAYANA,J.)

Challenging the award, dated 23.09.2019 made in

M.C.O.P.No.79 of 2017, on the file of the Motor Accident Claims

Tribunal/Additional District Court, Palani, the present Civil

Miscellaneous Appeal is filed by the New India Assurance Company

Limited with regard to quantum.

2.The claimants, who are the respondents 1 to 4, have filed a

claim petition claiming compensation for the death of one Senthil @

Senthil Kumar, who died in the accident that occurred on 09.08.2015.

The respondents 1 to 4 are the wife, child and parents of the deceased

Senthil @ Senthil Kumar.

3.The brief facts relevant for the consideration of the above case

are that on 09.08.2015, when the deceased was riding his two-

wheeler bearing Registration No.TN-57-AW-2156 at Palani-Dindigul

road, the bus bearing Registration No.TN-57-AM-1515, which was

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C.M.A(MD)No.147 of 2020

driven by the fifth respondent/first respondent in a rash and negligent

manner, which was coming from the opposite direction, hit the

deceased. Immediately, he was admitted in Government Rajaji

Hospital, Madurai and subsequently, he died. Hence, the claimants

have filed a claim petition claiming a compensation of Rs.20,00,000/-.

4.Resisting the claim petition, the second respondent/Insurance

Company has filed a counter affidavit contending that the accident had

occurred only due to the reckless act of the deceased and the

quantum of compensation claimed by the claimants is highly excessive

and without any basis.

5.Before the Tribunal, on the side of the claimants, P.W.1 and

P.W.2 were examined and Exs.P1 to Ex.P7 were marked. On the side

of the appellant, R.W.1 and R.W.2 were examined and Ex.R1 to Ex.R5

were marked.

6.The Tribunal, after considering the oral and documentary

evidence, held that the accident had occurred only due to the rash and

negligent driving of the driver of the fifth respondent/first respondent

and that the deceased had sustained injuries and due to the impact,

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C.M.A(MD)No.147 of 2020

he died. The Tribunal further held that the appellant/Insurance

Company is liable to pay compensation to the claimants and had

awarded a total compensation of Rs.25,00,000/- under various heads,

which is as follows:-

S.No Description Amount awarded by Tribunal (Rs)

1. Loss of income 24,30,000/-

                          2.       Loss of consortium of                          40,000/-
                                   the first respondent
                          3.       Funeral expenses                               15,000/-
                          4.       Loss of estate                                 15,000/-
                                   Total                                    Rs.25,00,000/-




7.The learned counsel appearing for the appellant/Insurance

Company would submit that relying on Ex.P.5, the Tribunal had fixed

the monthly income of the deceased at Rs.18,000/- per month, which

is erroneous. The learned counsel would further submit that the

quantum awarded by the Tribunal is on the higher side.

8.The learned counsel appearing for the respondents/claimants

would submit that the Tribunal had correctly awarded the

compensation under various heads and the same need not be

interfered with.

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C.M.A(MD)No.147 of 2020

9.Heard the learned counsel appearing on either side and

perused the materials available on record.

10.A cursory reading of the award itself would show that the

monthly income of the deceased fixed by the Tribunal is correct and

arrived at the compensation of Rs.24,30,000/- (Rs.18,000 X 12 X 15

= 32,40,000/-, after deducting 1/4th towards loss of income) towards

loss of income.

11.Further, the Tribunal has failed to award any compensation

on different conventional heads under the General Law and awarded

only scheduled amount on all such conventional heads when only

Rs.40,000/- towards loss of consortium to the first respondent, a sum

of Rs.15,000/- towards funeral expenses and a sum of

Rs.15,000/- towards loss of estate are awarded.

12.The Hon'ble Apex Court in the case of National Insurance

Company Limited Vs. Pranay Sethi and Others reported in

2017(2) TN MAC 609(SC), so as to provide just compensation, held

that reasonable amount under the conventional heads like loss of

estate, loss of consortium and funeral expenses quantifying the same

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C.M.A(MD)No.147 of 2020

to Rs.15,000/-, Rs.40,000/- and Rs.15,000/- respectively. Now, it is

undisputed proposition of law that though on all such conventional

heads, for decades together, the Courts were awarding good amount

of compensation upto Rs.3.5 Lacs, after the decision in Pranay

Sethi's case (cited supra), the claimants are certainly entitled to

atleast Rs.70,000/- on such conventional heads though at the relevant

time, Courts were awarding more than Rs.70,000/- in aggregate for

all such different conventional heads. Therefore, we see no merit in

the Civil Miscellaneous Appeal filed by the Insurance Company.

Accordingly, the same is dismissed.

13.The rate of interest awarded by the Tribunal at 7.5% per

annum remains unaltered.

14.In the result,

(i) This Civil Miscellaneous Appeal is dismissed,

confirming the award, dated 23.09.2019 made in

M.C.O.P.No.79 of 2017 on the file of the Motor Accident

Claims Tribunal, Additional District Court, Palani.

(ii) The appellant/Insurance Company is directed to

deposit the award amount together with accrued interest

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C.M.A(MD)No.147 of 2020

and costs to the credit of claim petition, less the amount

already deposited, if any, within a period of six weeks

from the date of receipt of a copy of this order.

(iii) On such deposit being made, the respondents

1, 3 and 4/claimants 1, 3 and 4 are entitled to withdraw

their share in the award amount as per the ratio of

apportionment made by the Tribunal together with

proportionate accrued interest and costs. The share of the

minor claimant/second respondent is permitted to be kept

in any of the Nationalised Bank in interest bearing fixed

deposits, initially for a period of three years, renewable

thereafter, till he attains majority and the guardian/first

respondent is permitted to withdraw the interest amount

from the above said fixed deposit, once in three months

and utilize the same for the welfare of the minor child.

No costs. Consequently, connected Miscellaneous Petitions are closed.

[P.S.N.,J] [S.K.,J.] 05.03.2021 Index :Yes/No Internet :Yes/No ps

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C.M.A(MD)No.147 of 2020

Note :

In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate / litigant concerned.

To

1.The Motor Accident Claims Tribunal/ Additional District Court, Palani.

2.The V.R Section (Records), Madurai Bench of Madras High Court, Madurai.

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C.M.A(MD)No.147 of 2020

PUSHPA SATHYANARAYANA,J.

and

S.KANNAMMAL,J.

ps

C.M.A(MD)No.147 of 2020

05.03.2021

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