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The Managing Director vs D.Ganesh Babu
2023 Latest Caselaw 10719 Mad

Citation : 2023 Latest Caselaw 10719 Mad
Judgement Date : 18 August, 2023

Madras High Court
The Managing Director vs D.Ganesh Babu on 18 August, 2023
                                                                    CMA.Nos.1243 of 2023 and 62 of 2022

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 18.08.2023

                                                     CORAM

                                  THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
                                                    and
                                  THE HONOURABLE MRS.JUSTICE R.KALAIMATHI

                             Civil Miscellaneous Appeal Nos.1243 of 2023 and 62 of 2022
                                                        and
                                   CMP No.12132 of 2023 in CMA No.1243 of 2023


                     CMA No.1243 of 2023

                     The Managing Director,
                     Tamil Nadu State Transport
                     Corporation (Coimbatore)
                     Tirupur 641 604.                         ...   Appellant / Respondent

vs.

1. D.Ganesh Babu

2. Minor G.Vidhusha Dhayalini

3. T.Ramkumar

4. R.Renuka @ Renukadevi (Minor petitioner rep by father, guardina, NF D.Ganesh Babu, 1st petitioner herein) … Respondents 1-4 / Petitioners 1-4

5. V.Mythili … 5th Respondent / 1st Respondent

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

6. Divisional Manager The New India Assurance Co. Ltd.

DO III Floor, No.179 JN Street, Puducherry 605 001. … 6th Respondent/ 2nd Respondent

PRAYER : Civil Miscellaneous Appeal filed under Section 173 of Motor Vehicles Act, 1988, to set aside the judgment and decree dated 15.09.2021 made in MCOP No.3180 of 2017 on the file of the Motor Accident Claims Tribunal/ I Additional District & Sessions Judge, Cuddalore.

CMA No.62 of 2022

1. D.Ganesh Babu

2. Minor G.Vidhusha Dhayalini

3. T.Ramkumar

4. R.Renuka @ Renukadevi (Minor petitioner rep by father, guardina, NF D.Ganesh Babu, 1st petitioner herein) … Appellants / Petitioners

vs.

1. V.Mythili

2. The Managing Director,

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

Tamil Nadu State Transport Corporation (Coimbatore) Tirupur 641 604.

3. The Divisional Manager New India Assurance Co. Ltd.

DO. 3rd Floor, No.179 JN Street, Puducherry 605 001. … Respondents/ Respondents

PRAYER : Civil Miscellaneous Appeal filed under Section 173 of Motor Vehicles Act, 1988, to allow the Appeal and enhance the compensation in MCOP No.3180 of 2017 dated 15.09.2021 on the file of the Motor Accident Claims Tribunal/ I Additional District & Sessions Judge, Cuddalore.

For Appellants : Mr.M.Murali Vinodh, for appellant in CMA 1243/23 and for R2 in CMA 62/2022

For Respondents : Ms.Ramya V. Rao, for RR1 to 4 in CMA 1243/23 and Appellants in CMA 62/2022

Mr.J.Chandran, for R6 in CMA1243/23 & for R3 in CMA 62/2022

No appearance for R5 in CMA 1243/23 & for R1 in CMA 62/2022

COMMON JUDGMENT

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

(Judgment of the Court was delivered by R.SUBRAMANIAN, J.)

These two Appeals arise out of the award passed by the Motor

Accident Claims Tribunal, Cuddalore in MCOP No.3180 of 2017.

2. CMA No.1243 of 2023 is filed by the Transport Corporation,

challenging the apportionment of negligence between the drivers of the

Transport Corporation and the driver of the goods vehicle which had

carried iron rods which were protruding outside the main frame of the

vehicle.

3. CMA No.62 of 2022 is filed by the claimant aggrieved by the

deduction of Income Tax at a particular percentage without adhering to

the slab rate.

4. The claimants in MCOP No.3180 of 2017 are the husband,

minor child and parents of one Hemalatha, aged about 29 years, who was

a passenger in the bus. According to the claimants when the bus was

proceeding from west to east on Trichy to Thanjavur Main Road near

Vallam Alakkudi Byepass Bridge, the Tata Ace Goods Vehicle bearing

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

Registration No.TN.48.AF.9482 which was proceeding in front, with iron

rods projecting out in the rear portion endangering human life, slowed

down suddenly without giving any indication. As a result, TNSTC Bus

which was following the goods vehicle rammed into it, resulting in the

iron rods that were protruding piercing into the bus as well as the

passengers who were sitting in the few seats in the front portion of the

Bus. The iron-rods also pierced into the deceased body and she died on

the spot.

5. Terming the negligence on the part of the drivers of both the

vehicles as cause of the accident, the claimants sought for a compensation

of Rs.1,50,00,000/-. The quantum was sought to be justified by pleading

that the deceased was working as a Postal Assistant earning Rs.31,194/-

per month. Since she was employed in the Postal Department and she

was only 29 years old, the future prospects were claimed at 50%. An FIR

was filed against the driver of the Tata Ace Goods Vehicle.

6. At trial, the first claimant examined himself as P.W.1 and also

examined three other witnesses, of whom P.W.4 is an eye witness and

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

Exhibits P1 to P23 were marked. On the side of the respondents, the

driver of the Bus was examined as R.W.1, no documents were produced.

None was examined by the Insurance Company.

7. The Tribunal on a consideration of the manner in which the

accident had occurred concluded that both the drivers had contributed

equally to the accident and apportioned the liability at 50% each. On the

quantum, the Tribunal took the monthly income at Rs.31,194/- added

50% towards future prospects and arrived at the monthly income of

Rs.46,791/-. It worked out the annual income at Rs.5,61,492/-. It

deducted 20% flat towards Income Tax and arrived at the annual income

sans income tax at Rs.4,49,194/-. It deducted 1/4 th towards the personal

expenses of the deceased and the annual loss of dependency was fixed at

Rs.3,36,896/- applying multiplier of 17, the total loss of dependency was

arrived at Rs.57,27,232/-. The Tribunal granted a sum of Rs.44,000/-

towards loss of consortium to the husband and it also granted Rs.40,000/-

towards loss of love and affection for all the four claimants. It awarded a

sum of Rs.15,000/- for transport and Rs.16,500/- towards funeral

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

expenses, the total compensation awarded by the Tribunal worked out to

Rs.58,42,732/-.

8. Aggrieved the claimants and the Transport Corporation are on

Appeal. The Insurance Company has accepted the award and has

deposited its share of the compensation.

9. We heard Mr.M.Murali Vinodh, learned counsel appearing for

the Transport Corporation, Mrs. Ramya Rao, learned counsel appearing

for the respondents 1 to 4 in CMA No. 1243 of 2023 and the appellants

in CMA No.62 of 2022 and Mr.J.Chandran, learned counsel appearing

for the Insurance Company.

10. The first respondent in CMA No.62 of 2022 and the fifth

respondent in CMA No.1243 of 2023 though served not appearing either

through counsel or in person.

11. Mrs. Ramya Rao, learned counsel appearing for the appellants

in CMA 62 of 2022 would submit that she is aggrieved only by deduction

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

of 20% flat towards Income Tax. She would point out that the Tribunal

must have adopted the slab rates of Income Tax. Relying upon the

Income Tax slab rate for women below 60 years of age for the Financial

Year 2017-2018 which is as follows:

                                  Income Tax Slab               Income Tax Rate
                          Income upto Rs.2,50,000                        Nil
                          Income between Rs.2,50,001 –       5% of income exceeding
                          Rs.5,00,000/-                          Rs.2,50,000/-
                          Income between Rs.5,00,001 –       20% of income exceeding
                          Rs.10,00,000/-                          Rs.5,00,000/-
                          Income above Rs.10,00,000/-        30% of income exceeding
                                                                 Rs.10,00,000/-


the learned counsel would contend that the Tax payable by the deceased

at best would have been only Rs.24,800/-, if the slab rate is adopted.

Adoption of flat rate of Income Tax at 20% on the entire income, has

resulted in the Tribunal deducting a huge sum of Rs.1,12,298/- towards

income tax. We find considerable force in the submission of the learned

counsel, neither the counsel for the Insurance Company nor the counsel

for the Transport Corporation are able to support the action of the

Tribunal deducting 20% flat on the entire income. If the slab rate as

stated above is applied the income tax that should have been deducted is

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

only Rs.24,800/-. Therefore, the compensation has to be reworked.

12. The admitted income of the deceased is Rs.31,194/- per month.

If we are to add 50% towards future prospects it works out to

Rs.46,791/-. Therefore, the annual income would be Rs.5,61,492/-, if we

are to deduct Rs.24,800/- towards income tax, the annual income sans

income tax would be Rs.5,36,692/-. If we deduct 1/4th towards personal

expenses of the deceased, the annual income would be Rs.4,02,519/-.

Applying the multiplier of 17, which is not in dispute, the total loss of

dependency would be Rs.68,42,823/-. We have to add a sum of

Rs.44,000/- towards loss of consortium to the husband, Rs.44,000/-

towards loss of love and affection to the child and Rs.88,000/- towards

loss of filial consortium to the parents. The award under the head of

transport is reduced to Rs.5,000/-. The award under the head of loss of

estate and funeral expenses is fixed at Rs.16,500/- each. Thus the total

compensation is arrived at Rs.70,56,823/- and the same is rounded off to

Rs.70,56,000/-.

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

13. The same is apportioned as follows:

The husband/the first claimant will take a sum of Rs.19,56,000/-;

for the minor child/the second claimant will take Rs.36,00,000/- and the

parents/ claimants 3 and 4 will each get Rs.7,50,000/-. The claimants

would be entitled to interest at 7.5% per annum from the date of petition

till date of payment. The Tribunal is directed to deposit the share of the

minor, namely the second claimant, in an cummulative interest earning

fixed deposit in any one of the Nationalised Banks till she attains

majority.

14. Adverting to the Appeal by the Transport Corporation

Mr.M.Murali Vinodh would contend that the Tribunal erred in fixing the

liability equally. The Tribunal ought to have considered that there is a

violation of Sub Rule 8 of Rule 93 of the Central Motor Vehicles Rules,

by the owner and the driver of the Tata Ace Goods Vehicle. All the

witnesses had spoken about the fact that the iron rods were protruding

outside the main frame of the vehicle. Rule 93(8) of the Central Motor

Vehicle Rules reads as follows.

Rule 93 (8):- No motor vehicle shall be loaded in

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

such a manner that the load or any part thereof

extends.—

(i) laterally beyond the side of the body;

(ii) to the front beyond the foremost part of the

load body of the vehicle;

(iii) to the rear beyond the rearmost part of the

vehicle;

(iv) to a height beyond the limits specified in sub-

rule (4);

Sub Section (3) of Section 190 of the Act makes use of vehicle in unsafe

condition a punishable offence.

15. In view of the said statutory violation, the learned counsel for

the Transport Corporation would contend that the Tribunal should have

fixed the liability on the goods carrier at a higher rate than 50%.

Mr.J.Chandran, learned counsel appearing for the Insurance Company

would submit that the evidence of P.W.4 would go to show that the driver

of the bus had driven the bus in a rash and negligent manner , therefore,

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

the Tribunal had balanced the interest of the Insurer as well as the

Transport Corporation and said action of the Tribunal does not call for

interference at our hands.

16. We have considered the rival submissions.

17. No doubt P.W.4 in his evidence has deposed that the driver of

the bus was driving the bus in a rash and negligent manner, but the same

witness in his cross-examination has admitted that the accident would not

have happened but for the protruding iron rods. He has also admitted

that there was no red flag at the end of the iron rods to indicate that they

are protruding outside the vehicle. A Goods Carrier is prohibited from

carrying goods which extend outside its main frame under Rule 93 of the

Central Motor Vehicles Rules. If there is a violation of a Rule then the

violator must face the consequences. It is also seen that an FIR has been

rightly lodged under more serious offences against the driver of the Tata

Ace Goods Vehicle.

18. We are therefore of the considered opinion that the

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

contributory negligence cannot be equally attributed to both the vehicles.

We therefore fix the contributory negligence at 65% on the Tata Ace

Goods Vehicle and 35% on the TNSTC Bus. The Insurance Company is

stated to have deposited 50% of the compensation as awarded by the

Tribunal. It will deposit the balance amount, both the enhanced

compensation and enhanced percentage of negligence within a period of

twelve (12) weeks from the date of receipt of a copy of this order. The

Transport Corporation will also have twelve (12) weeks to deposit the

compensation as awarded by this Court. needless to state that the

claimants would be entitled to interest on the enhanced compensation at

7.5% from the date of petition till date of payment.

19. In view of the fact that the Transport Corporation has also

succeeded in the Appeal in part, we direct the parties to bear their own

costs. The claimants will pay the additional Court Fee payable on the

award. Consequently, the connected miscellaneous petition is closed.

(R.SUBRAMANIAN, J .) (R.KALAIMATHI, J.) 18.08.2023 jv

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

Index : No Internet : Yes Neutral Citation : No Speaking order

To

1. The I Additional District & Sessions Judge, Motor Accident Claims Tribunal, Cuddalore.

2. The Section Officer, V.R. Section.

Madras High Court.

https://www.mhc.tn.gov.in/judis CMA.Nos.1243 of 2023 and 62 of 2022

R.SUBRAMANIAN, J.

and R.KALAIMATHI, J.

jv

Civil Miscellaneous Appeal Nos.1243 of 2023 and 62 of 2022 and CMP No.12132 of 2023 in CMA No.1243 of 2023

18.08.2023

https://www.mhc.tn.gov.in/judis

 
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