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The New India Assurance Co. Ltd vs Govindan (Died) ... I
2021 Latest Caselaw 6453 Mad

Citation : 2021 Latest Caselaw 6453 Mad
Judgement Date : 11 March, 2021

Madras High Court
The New India Assurance Co. Ltd vs Govindan (Died) ... I on 11 March, 2021
                                                                              CMA No.1574 of 2011

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                  Dated : 11.03.2021
                                                         Coram
                            THE HONOURABLE MR.JUSTICE D.KRISHNAKUMAR
                                               CMA No.1574 of 2011 and
                                                    M.P.No.1 of 2011


                     The New India Assurance Co. Ltd.,
                     Third party Cell, 69-70, Sheikpet Nadu Street,
                     Kanchipuram.                                ... Appellant/ Claimant

                                                           Vs.

                     1. Govindan (died)                       ... I respondent/ Claimant

                     2. S. Sathiya                            ... II respondent/ I respondent

                     3. Kuppammal
                     4. Velmurugan
                     5. Selvam                              ... Respondents 3 to 5/
                                                                    added in the appeal
                         (Respondents 3 to 5 brought on record as legal heirs of the
                          deceased R1 viz Govindan, vide order dated 16.02.2021 in
                          CMP No.14012, 14029 and 14031 in CMA 1574 of 2011)


                     Prayer:
                               Civil Miscellaneous Petitions filed under Section 173 of the Motor
                     Vehicles Act against the decree and judgment dated 03.02.2011 passed in
                     M.C.O.P.No.216 of 2006 by the Additional Subordinate Judge, Motor
                     Accident Claims Tribunal, Chengalpattu.



https://www.mhc.tn.gov.in/judis/
                     1 of 9
                                                                             CMA No.1574 of 2011

                               For appellants          : Mr.M.Krishnamoorthy

                               For Respondents         : notice unserved to R2


                                                   JUDGMENT

Aggrieved over the orders passed by the Tribunal, the

Insurance company is before this court to set aside the same.

2. The first respondent/ Claimant has filed a claim petition

seeking compensation of Rs.2,00,000/- for the injuries sustained by him

in a road accident that took place on 17.04,2006.

3. The brief case of the claimants is as follows:

On 17.04.2006, the claimant was walking along G.S.T Road,

Kattankulathur and while he was nearing a Petrol bunk, a mini lorry

bearing registration NO.TN -32-C-1641 coming from Tambaram to

Chengalpattu route, dashed against him on his back side, thereby he

sustained fracture and multiple injuries all over his body. According to

the claimant, the rash and negligent driving of the driver of the mini lorry

was the cause of accident and since the owner of the lorry insured his

vehicle with the insurance company, both of them are liable to pay

https://www.mhc.tn.gov.in/judis/ 2 of 9 CMA No.1574 of 2011

compensation to him.

4. The driver and the owner of the vehicle remained exparte

before the Tribunal and the insurance company contested the claim

petition by filing counter affidavit.

5. Before Tribunal, on the side of the claimant, the claimant

and Dr. S. Kannan Isac were examined as PW1 and PW2 respectively

and Ex.P1 to Ex.P8 were marked. On the side of the respondents, no oral

and documentary evidence was adduced.

6. After analysing the evidence on record, the Tribunal has

awarded a sum of Rs.3,84,500/- under various heads, which is extracted

here under.

                                       Sl                 Heads                  Amount in
                                       No                                          Rs.
                                   1        Loss of earning power(300x25         2,52,000

(bearing the Sunday being holiday) x 12 x 8 = 72,20,000 x35% 2 Pain and suffering 25,000 3 Loss of amenities 10,000 4 Loss of income during treatment 90,000 period and convalescence period (one year)

https://www.mhc.tn.gov.in/judis/ 3 of 9 CMA No.1574 of 2011

Sl Heads Amount in No Rs.

                                   5        Transportation charges              2,000
                                   6        Extra nourishment                   5,000

                                            Total                             3,84,500

Aggrieved over the above said order, the insurance company has filed the

present appeal challenging the quantum of compensation.

7. Pending appeal, the sole claimant died and hence, his

legal heirs were impleaded as respondents 3 to 5.

8. The learned counsel appearing for the appellant/ insurance

company submitted that the Tribunal has awarded a huge amount as

compensation towards loss of earning power without any medical

records. He further submitted that the claimant himself stated in his

claim petition that his income per day is Rs.100/- and his monthly

income for 25 days is Rs.2,500/-, but the Tribunal has fixed the monthly

income as Rs.7,500/-, which is erroneous. He also contended that the

disability assessed by the Doctor did not speak about the loss of earning

power and no proof of income was filed, however, the Tribunal has

awarded compensation towards loss of earning power. Therefore, he

https://www.mhc.tn.gov.in/judis/ 4 of 9 CMA No.1574 of 2011

prayed to set aside the orders passed by the Tribunal.

9.The contention of the claimant in the claim petition is that

due to the accident, the he has suffered a lot and he was working as a

mason and has earned a sum of Rs.300/- per day and due to the accident,

he is not able to do his mason work as done earlier and his future earning

capacity is totally affected.

10. Now the point for consideration is whether the

compensation awarded by the Tribunal has to be scaled down?

11. Point:

The contention of the learned counsel appearing for the

appellant is that, without any evidence and materials on record and

without any basis, the Tribunal has awarded compensation towards “ loss

of future earning capacity”. As per the decision of the Honourable

Supreme Court of India in Raj Kumar Vs. Ajay Kumar & Anr. reported in

2011(1) SCC 343, the Tribunal has to ascertain the actual extent of

permanent disability of the claimant based on the medical evidence and it

https://www.mhc.tn.gov.in/judis/ 5 of 9 CMA No.1574 of 2011

has to determine whether such permanent disability has affected or will

affect his earning capacity. Further, the claimant should prove that the

disability suffered by him is a permanent and he lost his earning capacity

in future. In the light of the above decision, adoption of multiplier

method would not arise in this case and therefore, this court accept the

contention of the counsel for the appellant. As per Ex.P7, the Doctor

has assessed the disability suffered by the Claimant as 35% The above

said doctor was examined as PW2 and he has also deposed that the

claimant has sustained fracture on his left hip and due to the malunion of

the fracture, his movement is restricted. Considering the above said

evidence, it is appropriate to award a sum of Rs.3000/- per percentage.

Accordingly, a sum of Rs.1,05,000/- (35 x 3000) is awarded towards

permanent disability. Further, due to the accident, he would not be able

to do his work as earlier atleast for one year. As per the evidence of the

claimant as PW1 and the Ex.P6, the Tribunal has rightly fixed the

monthly income of the claimant as Rs.300/- and has rightly awarded a

sum of Rs.90,000/- towards " Loss of earning capacity during the

treatment period" . Inview of the above discussion and also considering

the facts of the case, it is appropriate for this court to modify the Award

https://www.mhc.tn.gov.in/judis/ 6 of 9 CMA No.1574 of 2011

passed by the Tribunal under various heads as extracted hereunder.

                               Sl.          Heads               Compensation Compensation
                               No                               Awarded by the enhanced/
                                                                  Tribunal     Awarded by
                                                                                this court
                              1      Loss of earning power         2,52,000    1,05,000
                              2      Pain and sufferings            25,000       25,000
                              3      Loss of amenities              10,000       15,000
                              4      Loss of income during          90,000       90,000
                                     treatment period and
                                     convalescence period
                                     (1 year)
                              5      Transportation                  2,000        2,000
                                     charges
                              6      Extra nourishment               5,000       10,000
                              7      Attender charges                 -          10,000
                                     Future           medical         -          10,000
                              8      expenses

                              Total                          3,84,500        2,67,500

This amount shall carry interest at the rate of 7.5% per annum.

12. In the result,

(i) The civil miscellaneous appeal is partly allowed and the

compensation awarded by the Tribunal is scaled down from

Rs.3,84,500/- to Rs.2,67,500. No costs. The connected miscellaneous

petition is closed.

https://www.mhc.tn.gov.in/judis/ 7 of 9 CMA No.1574 of 2011

(ii) The appellant/insurance company is directed to deposit

the revised compensation of Rs.2,67,500/- along with interest at the rate

of of 7.5% per annum from the date of claim petition till the date of

deposit, within a period of six weeks from the date of receipt of a copy of

this order, less the amount if already deposited.

(iii) On such deposit being made by the insurance company,

the third respondent (Kuppammal) is entitled to get Rs.67,500/- and the

fourth and fifth respondents (Velmurugan and Selvam) are entitled to get

Rs.1,00,000/- each, after following due process of law.

11.03.2021

Index : Yes/No Internet: Yes/No Speaking order/Non Speaking order

mst

To

1. The Additional Subordinate Judge, Motor Accident Claims Tribunal, Chengalpattu.

2. The New India Assurance Co. Ltd., Third party Cell, 69-70, Sheikpet Nadu Street, Kanchipuram.

3. The Section Officer, V.R.Section, Madras High Court, Chennai-104.

https://www.mhc.tn.gov.in/judis/ 8 of 9 CMA No.1574 of 2011

D.KRISHNAKUMAR, J.

mst

CMA No.1574 of 2011 and M.P.No.1 of 2011

11.03.2021

https://www.mhc.tn.gov.in/judis/ 9 of 9 CMA No.1574 of 2011

https://www.mhc.tn.gov.in/judis/ 10 of 9

 
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