Madras High Court
United India Insurance Co. Ltd vs Umamaheshwari on 6 September, 2022
C.M.A.No.3500 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.09.2022
CORAM
THE HONOURABLE Ms. JUSTICE P.T. ASHA
C.M.A.No.3500 of 2017
and
C.M.P.No.22253 of 2017
United India Insurance Co. Ltd.,
Divisional Office, No.I,
104-A, Peramanur Main Road,
Salem – 7. ... Appellant
Vs
1.Umamaheshwari
2.Minor.Niharika
(Minor is rep. by her NF & Mother Umamaheshwari)
3.R.Selvi
4.K.Ramasamy ... Respondents
Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor
Vehicles Act, 1988 against the Judgment and Decree dated 07.03.2016
made in M.C.O.P.No.1150 of 2013 on the file of the MACT (Spl. District
Judge) at Salem.
1/7
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
For Appellant : M/s.I.Malar
For R1, R3 & R4 : Mr.S.P.Yuvaraj
For R2 : Minor rep. by R1
JUDGEMENT
The Insurance Company as challenged the award passed by MACT
(Spl. District Judge) at Salem in M.C.O.P.No.1150 of 2013 only on the
ground of quantum.
2.The learned counsel for the appellant/Insurance Company would
submit that the deceased was aged about 33 years, however, the Tribunal
has adopted 50% towards future prospects as against 40%. She would also
submit that a sum of Rs.50,000/- has been granted under the head of loss of
consortium to the first respondent and Rs.50,000/- has been granted under
the head of loss of love and affection to the second respondent, daughter of
the deceased, which has to be reduced.
3.On the other hand, the learned counsel appearing for the
respondents would submit that the Tribunal has erred in deducting only 1/3rd
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
towards the personal expenses overlooking the fact that there are four
claimants.
4.Heard the learned counsels on both side and perused the materials
available on record.
5.As rightly pointed out by the learned counsel for the appellant, the
Tribunal has erred in taking 50% towards future prospects in the place of
40%. Therefore, the monthly income, which is Rs.19,940/- together with the
future prospects at 40% would be a sum of Rs.27,916/-. Totally, four
claimants are there, out of them, the dependants are only two, namely
respondents 1 and 2. Therefore, the Tribunal below has rightly deducted
1/3rd towards personal expenses. Therefore, the monthly contribution to the
family works out to a sum of Rs.18,611/- and the annual income would be a
sum of Rs.2,23,332/-. After deducting 10% toward income tax, the annual
income would be a sum of Rs.2,00,999/-. Taking into the age of the
deceased, appropriate multiplier would be 16. Therefore, the amount under
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
the head of loss of dependency would be a sum of Rs.32,15,984/-, which is
worked out as follows :-
Loss of Income Amount in Rs.
Notional income (Per month) 19,940
Add: Future Prospects (Rs.19,940/- x 40%) (Per month) 7,976
27,916
Less: Personal expenses (1/3rd) (Rs.27,916/- x 1/3rd) 9,305
18,611
Notional income (Per annum) (Rs.18,610/- x 12) 2,23,332
Less : Income tax (10%) 22,332
2,00,999
Loss of income (Rs.2,00,998 x 16) 32,15,984
Total 32,15,984
6.A sum of Rs.50,000/- each has been granted under the heads of loss
of consortium and loss of love and affection, which is reduced to a sum of
Rs.40,000/- each. The Tribunal has granted a sum of Rs.20,000/- towards
loss of love and affection to the respondents 3 and 4, which stands enhanced
to a sum of Rs.80,000/-. Further, a sum of Rs.15,000/- each is granted under
the heads of loss of estate and funeral expenses is also granted. Therefore,
the modified compensation payable to the respondents is as follows:
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
Heads Awarded by the Awarded by this
Tribunal Court (Amount
(Amount in Rs.) in Rs.)
Loss of income 34,45,760 32,15,968
(reduced)
Loss of love and affection (for 20,000 80,000
respondents 3 and 4) (enhanced)
Loss of consortium 50,000 40,000
(reduced)
nd
Loss of love and affection (for 2 50,000 40,000
respondent)
(reduced)
Funeral expenses 25,000 15,000
Loss of estate 15,000
Total 35,90,760 34,05,968
7.The appeal is partly allowed and the Award of the Tribunal is
modified, reducing the compensation amount from Rs.35,90,760/- to
Rs.34,05,968/-. The Appellant-Insurance Company is directed to deposit the
said amount to the credit of M.C.O.P.No.1150 of 2013 along with interest at
the rate of 7.5% per annum from the date of claim petition till the date of
deposit and costs as awarded by the Tribunal, less, the amount, if any
already deposited, within a period of six weeks from the date of receipt of a
copy of this judgment. The said amount shall be apportioned amongst the
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
claimants as per the Award of the Tribunal. On such deposit being made, the
respondents 1, 3 & 4 are permitted to withdraw the award amount falling to
their share, along with proportionate accrued interest and costs as awarded
by the Tribunal, less, the amount, if any already withdrawn, by filing
necessary application before the Tribunal. The share of the minor-second
respondent shall be deposited in any one of the nationalized bank till she
attain majority and the first respondent shall be permitted to withdraw
quarterly interest from the said amount for the maintenance of the minor.
There shall be no order as to costs in the present appeal. Consequently, the
connected miscellaneous petition is closed.
06.09.2022
Index : Yes/No
Speaking order/non-speaking order
sp
To
1.The MACT (Spl. District Judge) at Salem.
2.The Section Officer, V.R.Section, High Court, Madras.
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
P.T.ASHA, J.,
sp
C.M.A.No.3500 of 2017
06.09.2022
https://www.mhc.tn.gov.in/judis
