Madras High Court

United India Insurance Co.Ltd vs Jayanti Nahak on 7 October, 2021

                                                                              C.M.A.No.2444 of 2021

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      DATED :07.10.2021

                                                          CORAM:

                              THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE

                                                C.M.A. No. 2444 of 2021
                                               and CMP No.13913 of 2021


                     United India Insurance Co.Ltd.,
                     Motor Third Party Claims Hub,
                     No.134, Silingi Buildings,
                     4th Floor, Greams Road, Chennai -6                                 ...Appellant
                                                       Vs

                     1.Jayanti Nahak
                     2.Prahalad Nahak
                     3.S.Kannabiran
                     4.A. Ravikumar                                                  ...Respondents

                     Prayer: The Civil Miscellaneous Appeal filed under Section 173 of Motor
                     Vehicles Act, 1988, to set aside the             judgment and decree dated
                     13.11.2019 in M.C.O.P.No.2557 of 2016 on the file of Motor Accident
                     Claims Tribunal, II Judge, Court of Small Causes, Chennai.


                                      For Appellant     : Mr.P.Sankaranarayanan
                                      For R.1 & R.2     : Mr.Amar D.Pandiya
                                      For R.3 & R.4     : Unclaimed


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https://www.mhc.tn.gov.in/judis/
                                                                        C.M.A.No.2444 of 2021



                                                      JUDGMENT

This appeal has been filed by the appellant Insurance

Company, challenging the award dated 13.11.2019, passed by the Motor

Accident Claims Tribunal, II Judge, Court of Small Causes, Chennai in

MCOP No.2557 of 2016.

2. The appellant Insurance Company has challenged only the

quantum of compensation awarded by the Tribunal under the impugned

award. According to them, the compensation awarded by the Tribunal is

excessive. They have not questioned their liability to pay compensation.

Therefore, the findings given by the Tribunal as regards the Insurance

Company's liability has become final.

3. The Tribunal has awarded a total compensation of

Rs.25,10,000/-(Rupees Twenty Five Lakhs Ten thousand only) to the

respondents/claimants as detailed hereunder:-





https://www.mhc.tn.gov.in/judis/
                                                                              C.M.A.No.2444 of 2021

                                                   Heads              Amount awarded
                                                                       by the Tribunal
                                                                            (Rs.)
                                   Loss of Dependency                       22,95,000/-
                                   Loss of Love and Affection                1,00,000/-
                                   Filial Consortium                         1,00,000/-
                                   Funeral Expenses                            15,000/-
                                   Total Compensation                       25,10,000/-

4. The deceased Pramod Kumar Nahak was aged 26 years and

was working as a Store Assistant in a private concern viz., M/s U.R.C

Construction Pvt Ltd. He died on 09.10.2015, as a result of an accident

caused by a vehicle, insured with the appellant Insurance Company. The

cause of the accident has not been disputed by the appellant Insurance

Company.

5. In the claim petition, the respondents/claimants, who are the

dependants of the deceased have pleaded that the deceased was earning a

sum of Rs.15,000/-per month in M/s U.R.C Construction Pvt Ltd,

Chennai.

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6. The Tribunal has accepted the statement of the

respondents/claimants and accordingly, fixed the notional monthly income

of the deceased at Rs.15,000/-(Rupees Fifteen thousand only). No

documentary evidence was produced by the respondents/claimants before

the Tribunal to prove that the deceased was earning a sum of Rs.15,000/-

per month. This Court is of the considered view that even though no

contra evidence was produced by the appellant Insurance Company to

disprove the statement of the respondents/claimants that the deceased was

earning a sum of Rs.15,000/- at the time of the accident, the Tribunal

ought to have assessed the notional monthly income of the deceased

based on the evidence available on record as well as the year of the

accident.

7. Since no documentary evidence was produced by the

respondents/claimants before the Tribunal to prove the monthly income of

the deceased, this Court, after giving due consideration to the avocation of

the deceased, reduces the notional monthly income of the deceased to

Rs.13,500/-(Rupees Thirteen thousand five hundred only) instead of

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Rs.15,000/-, erroneously fixed by the Tribunal.

8. As seen from the evidence available on record, the

respondents/claimants have also not examined the employer of the

deceased and since the Tribunal has erroneously accepted the statement of

the respondents/claimants that the deceased was earning a sum of

Rs.15,000/- per month at the time of the accident, this Court reduces the

monthly income of the deceased to Rs.13,500/-(Rupees Thirteen thousand

five hundred only).

9. The Tribunal, under the impugned award, has erroneously

awarded 50% towards loss of future prospects to the

respondents/claimants, which they are not legally entitled to. Since the

deceased was working in a private concern and was aged 26 years, the

Tribunal ought to have awarded only 40% towards loss of future

prospects. Accordingly, this Court modifies the same to 40% instead of

50% erroneously fixed by the Tribunal.

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10. The Tribunal has rightly adopted the correct multiplier of

"17" since the deceased was aged at 26 years at the time of accident,

which is confirmed by this Court.

11. Since the deceased was bachelor, the Tribunal has rightly

deducted 50% towards his personal expenses which is confirmed by this

Court. Therefore, this Court reassess the pecuniary loss to Rs.19,27,800/-

(Rs.18,900/-(13,500 + 5400 (40%) )x 12 x 17) instead of Rs.22,95,000/-

erroneously fixed by the Tribunal.

12. The Tribunal has erroneously awarded a higher

compensation of Rs.1,00,000/-(Rupees One Lakh only) towards loss of

love and affection. As per the settled law, the claimants, who are the

parents of the deceased are entitled only Rs.80,000/-(Rupees Eighty

thousand only) together. Accordingly, this Court reduces the compensation

towards loss of love and affection to Rs.80,000/- (Rupees Eighty thousand

only). instead of Rs.1,00,000/-(Rupees one lakh only), erroneously fixed

by the Tribunal.

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13. The Tribunal has erroneously awarded a compensation of

Rs.1,00,000/-(Rupees One Lakh only) towards loss of Consortium, which

the respondents/ claimants are not legally entitled to, as they have already

been awarded compensation towards loss of love and affection. Therefore,

the compensation of Rs.1,00,000/- awarded by the Tribunal towards

Consortium is hereby set aside.

14. The Tribunal has awarded a sum of Rs.15,000/-(Rupees

Fifteen thousand only) towards funeral expenses which is a just

compensation and it is confirmed by this Court.

15. The Tribunal has erroneously failed to award any

compensation towards loss of estate, to which, the claimants are legally

entitled to in accordance with settled law. Therefore, this Court awards a

sum of Rs.15,000/-(Rupees Fifteen thousand only) to the

respondents/claimants towards loss of estate.

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16. For the foregoing reasons, the compensation awarded by the

Tribunal is modified as under by reducing from Rs.25,10,000/-(Rupees

Twenty five lakhs ten thousand only) to Rs.20,37,800/-.(Rupees Twenty

lakhs thirty seven thousand eight hundred only).

                                     Heads               Amount         Amount        Award confirmed
                                                        awarded by    awarded by       or enhanced or
                                                       the Tribunal    this Court          granted
                                                           (Rs.)          (Rs.)
                          Loss of Dependency           22,95,000/-      19,27,800/- Reduced
                          Loss of Love and Affection    1,00,000/-         80,000/- Reduced
                          Filial Consortium             1,00,000/-                  - Set aside
                          Funeral Expenses               15,000/-          15,000/- Confirmed
                          Loss of Estate                 -                 15,000/- Granted
                          Total Compensation           25,10,000/-      20,37,800/- Reduced

17. Accordingly, the civil miscellaneous appeal is partly allowed

by reducing the award amount from Rs.25,10,000/- to Rs.20,37,800/-

(Twenty Lakhs Thirty Seven thousand eight hundred only).

18. The appellant Insurance Company is directed to deposit the

compensation amount of Rs.20,37,800/-(Twenty Lakhs Thirty Seven

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thousand eight hundred 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.2557 of 2016 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