Madras High Court

M/S.The New India Assurance vs T.Niveditha on 1 December, 2023

Author: M.Dhandapani

Bench: M.Dhandapani

                                                                       C.M.A.No.1651 of 2020

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED : 01.12.2023

                                                    CORAM

                                  THE HONOURABLE MR.JUSTICE M.DHANDAPANI

                                            C.M.A.No.1651 of 2020
                                                     And
                                            C.M.P.No.12154 of 2020

                     M/s.The New India Assurance
                     Company Ltd.,
                     No.45, V Floor,
                     Moore Street,
                     Chennai – 600 001.                            ... Appellant

                                                     Vs.

                     1.T.Niveditha
                     2.Minor.Dhandavandini
                     3.Minor.Kathirkaman

                     Both minors are represented by their
                     Mother and Natural Guardian
                     T.Niveditha

                     4.M.Karthikeyan
                     5.K.Kantha
                     6.R.Rajendran
                     7.Syed Shahinsha

                     8.M/s.Reliance General
                       Insurance Company Limited,
                       Raj Towers, II Floor,
                       Plot No.2054, II Avenue,
                       Near G.R.T.,
                       Anna Nagar,
                       Chennai – 600 040.                          ... Respondents




                     1/10

https://www.mhc.tn.gov.in/judis
                                                                                    C.M.A.No.1651 of 2020




                     Prayer:

                                  Civil Miscellaneous Appeal filed under Section 173 of the Motor

                     Vehicles Act, 1988, to set aside the decree and judgment dated

                     08.11.2019 passed by the Hon'ble Motor Accidents Claims Tribunal

                     (In the Court of the Special Sub Judge - II, Court of Small Causes) at

                     Chennai and made in M.C.O.P.No.5612 of 2014.


                                       For Appellant        : Mr.J.Michael Visuvasam

                                       For Respondents : Mr.S.Parthasarathi for R1 to R5
                                                         R6 – No Appearance
                                                         R7 – NRN
                                                         Mr.S.Arun Kumar for R8


                                                        JUDGMENT

The second respondent Insurance Company before the Motor

Accidents Claims Tribunal is the appellant herein. This appeal has

been filed against the judgment and decree dated 08.11.2019 passed

by the Motor Accidents Claims Tribunal (In the Court of the Special

Sub Judge - II, Court of Small Causes) at Chennai, in

M.C.O.P.No.5612 of 2014.

2.The brief facts of the case is that on 26.05.2015, at about

18.30 hours, the deceased Thiyagarajan was travelling in a Car

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bearing

Registration No.TN-05-AF-2161 from Gingee to Chennai at

Tindivanam at Tindivanam to Gingee Road near Melperadi Kuppam.

At that time, a private Bus bearing Registration No.TN 25 D 8457

came from opposite direction in a rash and negligent manner and

dashed against the car, due to which, the deceased died on the spot.

3.Thereafter, the dependants of the deceased Thiyagarajan/

first respondent filed claim petition before the Motor Accidents Claims

Tribunal, claiming compensation of Rs.99 Lakhs. After adjudication,

the Motor Accidents Claims Tribunal awarded a sum of Rs.26,98,000/-

with interest at the rate of 7.5% p.a. from the date of numbering of

the petition (27.08.2014) till the date of deposit and costs and

directed the appellant Insurance Company to deposit the

compensation. Aggrieved by the same, the appellant Insurance

Company has filed this appeal.

4.The learned counsel appearing for the appellant submitted

that the appellant has filed this appeal questioning the quantum of

compensation awarded by the Tribunal. The learned counsel further

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submitted that the without following the guidelines issued by the

Hon'ble Apex Court in MANU/SC/1366/2017 [National Insurance

Company Limited Vs. Pranay Sethi and others] and in Syed Sadiq

case, awarded onerous compensation, which is not sustainable one.

5.The learned counsel appearing for the respondents 1 to 5/

claimants fairly submitted that the calculation made by the Tribunal is

not in terms with the guidelines issued by the Hon'ble Apex Court in

MANU/SC/1366/2017 [National Insurance Company Limited Vs.

Pranay Sethi and others] and in Syed Sadiq case.

6.Heard the learned counsel appearing for the appellant

Insurance Company as well as the learned counsel appearing for the

respondents 1 to 5 and 8 and perused the materials available on

record.

7.Admittedly, on 26.05.2015, at about 18.30 hours, the

deceased Thiyagarajan was travelling in a Car from Gingee to

Chennai at Tindivanam at Tindivanam to Gingee Road near Melperadi

Kuppam. At that time, the private Bus belonging to the sixth

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respondent and insured with the appellant came from opposite

direction in a rash and

negligent manner and dashed against the car, due to which, the

deceased died on the spot.

8.The tribunal after elaborately discussing the factual aspects

awarded a sum of Rs.22,68,000/- for loss of dependancy, Rs.40,000/-

for loss of consortium, Rs.15,000/- for loss of estate, Rs.15,000/- for

funeral expenses, Rs.2,00,000/- for loss of love and affection,

Rs.80,000/- for parental consortium, Rs.80,000/- for filial consortium

and arrived at a total compensation of Rs.26,98,000/- with interest at

the rate of 7.5%p.a. from the date of numbering of the petition

(27.08.2014) till the date of deposit.

9.The accident and the manner in which the accident happened

are not disputed. The negligence aspect is also not in dispute. The

only dispute is that the calculation made by the Tribunal is not in

terms with the guidelines issued by the Hon'ble Apex Court in

MANU/SC/ 1366/2017 [National Insurance Company Limited Vs.

Pranay Sethi and others] and in Syed Sadiq case and the learned

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counsel appearing for the respondents 1 to 5 also conceded the same.

10.The deceased was aged 39 years at the time of death. This

Court fix the notional monthly income of the deceased as Rs.12,000/-

and deduct ¼ towards his personal expenses. Hence, after deducting

¼ towards his personal expenses, the notional monthly income of the

deceased comes to Rs.9,000/-. The correct multiplier to be adopted

is 15. Hence, the actual loss of dependancy works out to

Rs.16,20,000/- [Rs.9,000/- X 12 X 15 = Rs.16,20,000/-]. This Court

is of the opinion that some amount has to be awarded for future

prospects. Accordingly, this Court awards 40% of loss of dependancy

for future prospects and the same works out to Rs.6,48,000/- [40%

of Rs.16,20,000/- = Rs.6,48,000/-]. The amount awarded under the

heads, loss of consortium, loss of estate and funeral expenses, in the

opinion of this Court, are just and reasonable and the same are

confirmed. The amount awarded under the head loss of love and

affection, in the opinion of this Court is high and hence, the amount

awarded under the head loss of love and affection is reduced to

Rs.1,60,000/- from Rs.2,00,000/-. The amount awarded under the

heads for parental consortium and for filial consortium, in the opinion

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of this Court are not necessary and the same are deleted.

11.Accordingly, the compensation amount is re-assessed as

follows:

S.No. Description Amount Awarded Amount Awarded by the Tribunal by this Court

1. Loss of dependancy Rs.22,68,000/- Rs.16,20,000/-

2. Loss of consortium Rs. 40,000/- Rs. 40,000/-

3. Loss of estate Rs. 15,000/- Rs. 15,000/-

4. Funeral expenses Rs. 15,000/- Rs. 15,000/-

5. Loss of love and affection Rs. 2,00,000/- Rs. 1,60,000/-

6. Parental consortium Rs. 80,000/- ---

7. Filial consortium Rs. 80,000/- ---

8. Future prospects --- Rs. 6,48,000/-

Total Rs.26,98,000/- Rs.24,98,000/-

12.The respondents 1 to 5/ claimants are entitled to total

compensation of Rs.24,98,000/- along with interest at the rate of

7.5% p.a. from the date of numbering of the petition (27.08.2014) till

the date of deposit.

13.The civil miscellaneous appeal is partly allowed. The

judgment and decree dated 08.11.2019 passed by the Motor

Accidents Claims Tribunal (In the Court of the Special Sub Judge - II,

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Court of

Small Causes) at Chennai, in M.C.O.P.No.5612 of 2014, is modified to

the above extent.

14.The appellant Insurance Company is directed to deposit the

modified award amount before the Tribunal less the amount already

deposited if any, within a period of six weeks from the date of receipt

of a copy of this judgment. On such deposit being made, the

claimants/ respondents 1, 4 and 5 are permitted to withdraw their

respective shares as apportioned by the Tribunal, along with accrued

interest and proportionate costs, on making proper and necessary

application before the Tribunal. The respondents 2 and 3 are

permitted to withdraw their respective shares as apportioned by the

Tribunal, along with accrued interest and proportionate costs, on

making proper and necessary application before the Tribunal and on

production of necessary proof with regard to their majority. If the

respondents 2 and 3 are still minors, their shares shall be kept in an

interest yielding fixed deposit with anyone of the Nationalized Bank,

initially, for a period of three years to be renewed at periodic

intervals until they attain majority and the interest derived from out

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of the said share of the minor shall be paid to the first respondent/

mother every quarter to be utilized for the welfare of the said minors.