Madras High Court
The National Insurance Company ... vs Vedhapriya on 2 November, 2021
C.M.A.No.3144 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.11.2021
CORAM:
THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE
C.M.A. No. 3144 of 2021
and C.M.P.No. 17770 of 2021
The National Insurance Company Ltd.,
Divisional Office, No.9, Infantry Road,
Near Alankar Theatre, Vellore. ... Appellant
Vs
1. Vedhapriya
2. Minor S.Dhanushri
(Represented by her mother 1st respondent)
3. Amudha
4. Sekaran
5. K.Subramani ... Respondents
Prayer: The Civil Miscellaneous Appeal is filed under Section 173 of Motor
Vehicles Act, 1988, against the award and decree dated 09.03.2021 made in
M.C.O.P.No. 213 of 2019 on the file of the Motor Accidents Claims Tribunal (II
Additional District Court), Vellore @ Ranipet.
For Appellant : Mr.D.Bhaskaran
For Respondents : Mr.M.Sivakumar
1/10
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C.M.A.No.3144 of 2021
JUDGMENT
This appeal has been filed by the appellant Insurance Company,
challenging the impugned award dated 09.03.2021 passed by the Motor Accident
Claims Tribunal, II Additional District Court, Vellore at Ranipet in M.C.O.P. No. of
213 of 2019.
2. The appellant Insurance Company has challenged the impugned
award questioning the quantum of compensation awarded by the Tribunal. They
have not questioned the liability to pay compensation.
3. The Tribunal under the impugned award directed the appellant
Insurance Company to pay the respondents/claimants, the compensation at
Rs.58,58,840/- (Rupees Fifty Eight Lakhs Fifty Eight Thousand Eight Forty only)
together with interest and costs as detailed hereunder:
Heads Amount awarded by
the Tribunal
(Rs.)
Loss of Dependency 54,48,840/-
(Rs.23,740+50%-1/4th x 12x17)
Loss of Consortium - wife 40,000/-
Loss of Love and Affection - 2nd claimant 50,000/-
Maintenance - minor 2,00,000/-
Loss of Love and Affection - parents 80,000/-
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C.M.A.No.3144 of 2021
Heads Amount awarded by
the Tribunal
(Rs.)
Loss of estate 15,000/-
Funeral Expenses 15,000/-
Transportation 10,000/-
Total Compensation 58,58,840/-
4. The deceased, Surendrakumar was an Executive at Mahindra
Finance, Mumbai and was aged 29 years at the time of the accident. In the claim
petition, the respondents/claimants, who are the dependants, have pleaded that the
deceased was earning Rs.23,740/- per month, for which, they have produced salary
certificate of the deceased, which has been marked as Ex.P16, before the Tribunal.
The Tribunal has accepted the same and has assessed the monthly income of the
deceased as Rs.23,740/-(Rupees Twenty Three Thousand Seven Hundred Forty
only).
5. However, the Tribunal has erroneously adopted 50% towards loss
of future prospects to the respondents/claimants. The deceased was in probation
period. Therefore the Tribunal ought not to have awarded 50% towards future
prospects. As per the settled law, the respondents/claimants are entitled only to
40% towards loss of future prospects. Therefore, the same is modified by this
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C.M.A.No.3144 of 2021
Court to 40%, instead of 50%, erroneously awarded by the Tribunal.
6. The Tribunal has also erroneously not deducted any amount
towards Income Tax. Since the annual income assessed by the Tribunal for the
deceased is more than Rs.2,50,000/-, in accordance with law, this Court deducts
5% towards Income Tax, i..e, Rs.7432/-.
7. The Tribunal has also erroneously deducted 1/4th towards personal
expenses of the deceased. Since the father of the deceased viz., the fourth
respondent/claimant cannot be treated as a dependant of the deceased, the correct
deduction ought to have been awarded is only 1/3rd. Accordingly, this Court
modifies the same to 1/3rd instead of 1/4th, erroneously deducted by the Tribunal.
Therefore, the loss of dependency is arrived as follows:
Rs.23740(monthly income) + 40% towards future
prospects(9496) = Rs.33236 x 12 = Rs.3,98,832 (annual
income)
upto Rs.2,50,000/-, no tax. For balance Rs.1,48,832/- 5%
income tax i.e., as per slab Rs.7,432/-) Therefore, annual
income is Rs.3,98,832 – Rs.7432 = Rs.3,91,400/-
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C.M.A.No.3144 of 2021
Rs.3,91,400 - 1/3rd towards personal expenses (Rs.1,30,467) =
Rs.2, 60,933 x 17 (multiplier) = Rs.44,35,867.00
8. The Tribunal has also erroneously awarded compensation towards
maintenance for minor child at Rs.2,00,000/-, who is the 2 nd respondent/2nd
claimant, who is not legally entitled and the same will have to be set aside by this
Court. Accordingly, compensation awarded by the Tribunal towards maintenance
for the minor child/2nd respondent at Rs.2,00,000/- is set aside by this Court.
9. Insofar as compensation awarded by the Tribunal to the first
respondent/first claimant, who is the wife of the deceased at Rs.40,000/- towards
loss of consortium is concerned, the same is a correct assessment and is also in
accordance with law. Therefore the same is confirmed by this Court.
10. Insofar as the compensation of Rs.50,000/-awarded by the
Tribunal to the second respondent/second claimant, who is the minor daughter of
the deceased towards loss of love and affection is concerned, the same is on the
higher side and is not in accordance with settled law. Therefore, in accordance with
settled law, this Court reduces the compensation towards loss of love and affection
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C.M.A.No.3144 of 2021
to the second respondent/second claimant from Rs.50,000/- to Rs.40,000/-.
11. The Tribunal has correctly awarded compensation of Rs.80,000/-
towards loss of parental consortium and therefore, it is confirmed by this Court.
The Tribunal has also correctly awarded compensation of Rs.15,000/- each
towards loss of estate and funeral expenses, which are in accordance with settled
law and therefore the same is confirmed by this Court.
12. However, the Tribunal has erroneously awarded compensation of
Rs.10,000/- towards transportation expenses, which the respondents/claimants are
not legally entitled to, as it is the fatal accident claim. Hence, the compensation
awarded by the Tribunal towards transportation at Rs.10,000/- is set aside by this
Court.
13. For the foregoing reasons, compensation awarded by the Tribunal
is reduced from Rs.58,58,840/- (Rupees Fifty Eight Lakhs Fifty Eight Thousand
Eight Hundred and Forty only) to 46,25,867/ (Rupees Forty Six Lakhs Twenty
Five Thousand Eight Hundred and Sixty Seven only) as detailed hereunder.
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C.M.A.No.3144 of 2021
Heads Amount awarded by Amount awarded by Award
the Tribunal this Court (Rs.) confirmed
(Rs.) or
enhanced
or granted
Loss of Dependency 54,48,840/ 44,35,867/- Reduced
th
(Rs.23,740+50%-1/4 (Rs.23,740+40% -
x12x17) income tax(Rs.7430/-)
-1/3rd x12x17)
Loss of Consortium - 40,000/- 40,000/- Confirmed
wife
Loss of Love and 50,000/- 40,000/- Reduced
Affection - 2nd
claimant
Maintenance - minor 2,00,000/- Nil Not granted
Loss of Love and 80,000/- 80,000/- Confirmed
Affection - parents
Loss of estate 15,000/- 15,000/- Confirmed
Funeral Expenses 15,000/- 15,000/- Confirmed
Transportation 10,000/- Nil Not granted
Total Compensation 58,58,840/- 46,25,867/- Reduced
14. Accordingly, this civil miscellaneous appeal is partly allowed by
reducing the compensation amount from Rs.58,58,840/- (Rupees Fifty Eight Lakhs
Fifty Eight Thousand Eight Hundred and Forty only) to Rs.46,25,867/- (Rupees
Forty Six Lakhs Twenty Five Thousand Eight Hundred and Sixty Seven only).
15. The appellant Insurance Company is directed to deposit the
compensation amount of Rs.46,25,867/- (Rupees Forty Six Lakhs Twenty Five
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C.M.A.No.3144 of 2021
Thousand Eight Hundred and Sixty Seven only), awarded by this Court, after
deducting the amount already deposited if any, together with interest at the rate of
7.5% per annum from the date of claim till the date of deposit and costs, to the
credit of M.C.O.P. No. 213 of 2019 within a period of four weeks from the date of
receipt of a copy of this Judgment. On such deposit being made, the Tribunal shall
transfer the amount lying to the credit of MCOP. No. 213 of 2019 to the bank
account of the claimant through RTGS within a period of two weeks thereafter. The
award amount shall be apportioned among the respondents/claimants as awarded
by the Tribunal.
No costs.
02.11.2021
Index:Yes/No
Speaking order: Yes/No
rgi/sr
To
1. Motor Accidents Claims Tribunal,
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C.M.A.No.3144 of 2021
II Additional District Court,
Vellore @ Ranipet.
2. The Section Officer,
V.R.Section, High Court, Madras – 104.
ABDUL QUDDHOSE,J.
rgi
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C.M.A.No.3144 of 2021
C.M.A. No. 3144 of 2021
02.11.2021
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