Madras High Court
The National Insurance Company ... vs Tamilzharasi on 13 July, 2023
CMA No. 1237 / 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 13.07.2023
CORAM :
THE HONOURABLE MR. JUSTICE SUNDER MOHAN
Civil Miscellaneous Appeal No. 1237 of 2022
and
C.M.P. No. 8987 of 2022
The National Insurance Company Limited,
Third Party Claim Office,
MACT Cell, Regina Mansion,
3rd Floor, No. 46, Moore Street,
Chennai – 600 006. ... Appellant
Versus
1.Tamilzharasi
2.Manoharan ... Respondents
PRAYER : Civil Miscellaneous Appeal filed under Section 173 of the
Motor Vehicles Act, 1988 seeking to scale down the award that has been
passed in this matter by the Motor Accident Claims Tribunal (Chief
Judge, Court of Small Causes) at Chennai, in M.C.O.P. No. 4357 of 2018
dated 18.11.2021 allow the appeal.
For Appellant : Mr. R. Ravichandran.
For Respondents : Mr. H.D. Stalin for Mr. V. Sakthivel.
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CMA No. 1237 / 2022
JUDGMENT
The appeal has been filed by the insurance company challenging
the award passed by the Motor Accident Claims Tribunal in M.C.O.P.
No. 4357 of 2018 dated 18.11.2021.
2.The claim petition has been filed by the petitioners / respondents
stating that on 26.05.2018 at 03.20 p.m., when the deceased was
travelling as a pillion rider in a motor cycle, the first respondent's car
bearing Registration No.TN-11-C3537 was driven by its driver in a rash
and negligent manner and hit the motor cycle from behind as a result of
which the deceased sustained head injuries and multiple injuries in the
body and in spite of treatment in various hospitals, he died on 04.06.2018
and that they were entitled for a compensation.
3.The appellant / second respondent filed a counter denying all the
allegations stating that the driver of the vehicle had not possessed valid
driving license and submitted that in any case the compensation claimed
is excessive.
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CMA No. 1237 / 2022
4.The first respondent remained ex-parte before the Tribunal.
5.The petitioners examined two witnesses on their side and marked
Ex.P.1 to Ex.P.21. The respondents have neither examined any witness
nor marked any documents.
6.The Tribunal on considering the oral and documentary evidence
found that the accident took place due to the rash and negligent driving
of the 1st respondent's driver and hence the second respondent / insurer is
liable to pay the compensation of Rs.53,12,000/-. Aggrieved by the
same, the appellant / insurance company has filed the instant appeal.
7.The learned counsel for the appellant submitted that the appellant
is aggrieved only with regard to the quantum and there is no dispute with
regard to the finding on negligence. The learned counsel further
submitted that as regards the quantum, the Tribunal had not deducted the
income tax payable by the deceased while computing the loss of income.
Hence, the compensation under the head loss of income has to be
reduced after deducting the income tax payable by the deceased.
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CMA No. 1237 / 2022
8.The learned counsel for the respondents fairly conceded that the
income of the deceased exceeded the threshold limit and was liable for
tax.
9.This Court finds that the award of the Tribunal is correct in all
aspects except for not deducting the income tax component from the
income. The question is what should be the income tax that is liable to
be deducted. The Tribunal on considering Ex.P.6 / pay slip fixed a sum
of Rs.34,000/- as monthly income of the deceased. After adding the
future prospects of 50%, his income would be Rs.51,000/- (Rs.34,000/- +
50%). Thus, the annual income of the deceased would be Rs.6,12,000/-.
(Rs.51,000 X 12). The accident occurred on 26.05.2018. During the
financial year 2018-2019, upto Rs.2,50,000/-, there was no tax. For the
income between Rs.2,50,001/- and Rs.5,00,000/-, the tax was 5% and for
the income between Rs.5,00,001/- and Rs.10,00,000/-, the tax was 20%.
Since the deceased was a bachelor, multiplier '17' has been rightly
adopted by the Tribunal and 50% has been deducted towards his personal
expenses. Thus, the calculation for arriving of the loss of income is as
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CMA No. 1237 / 2022
follows;
Monthly salary of the deceased --- Rs.34,000
50% enhancement towards
future prospects --- Rs.17,000
------------------
Rs.51,000/-
--------------------
Annual income (Rs.51,000/- X 12) --- Rs.6,12,000/-
Income Tax Slab for financial year 2018-2019:
Upto Rs.2,50,000/- – Nil
From Rs.2,50,001/- to Rs.5,00,000/- - 5%
[Rs.2,50,000/- X 5%] - Rs.12,500/-
From Rs.5,00,001/- to Rs.10,00,000/- - 20%
[Rs.6,12,000/- (-) Rs.5,00,000/-] - Rs.1,12,000/-
- Rs.1,12,000/- X 20%
- Rs.22,400/-
(Rs.22,400/- + Rs.12,500/-) Income Tax - Rs.34,900/-
Annual income after deducting income tax- Rs.6,12,000/- (-) Rs.34,900/-
- Rs.5,77,100/-
Thus the compensation awarded towards loss of income is Rs.49,05,350/-
(Rs.5,77,100/- X 17 X ½). Thus, the compensation awarded by the
Tribunal is modified as follows:
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CMA No. 1237 / 2022
S. No Description Amount Amount Award
awarded by awarded by confirmed or
Tribunal this Court enhanced or
(Rs) (Rs) granted
1. Loss of income 52,02,000 49,05,350 Reduced
2. Loss of Estate 15,000 15,000 Confirmed
3. Loss of 80,000 80,000 Confirmed
Consortium
4. Funeral 15,000 15,000 Confirmed
Expenses
Total 53,12,000 50,15,350 Reduced by
Rs.2,96,650/-
10.With the above modification, this Civil Miscellaneous
Appeal is partly allowed and the compensation awarded by the Tribunal
at Rs.53,12,000/- is hereby reduced to Rs.50,15,350/- together with
interest at 7.5% per annum (excluding the default period if any) from the
date of petition till the date of deposit. The appellant is directed to
deposit the award amount now determined by this Court along with
interest and costs, if not already deposited, within a period of six (6)
weeks from the date of a receipt of copy of this Judgment or the appellant
is permitted to withdraw the excess amount if the entire amount has
already been deposited. On such deposit the respondents are permitted to
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CMA No. 1237 / 2022
withdraw the award amount along with proportionate interest and costs,
less the amount if any, already withdrawn as per the apportionment fixed
by the Tribunal. No costs. Consequently, the connected Miscellaneous
Petition is closed.
13.07.2023
ay
Index: Yes/No
Speaking Order / Non-Speaking Order
Neutral Citation: Yes / No
To
The Motor Accident Claims Tribunal,
(Chief Judge, Court of Small Causes) ,
Chennai.
https://www.mhc.tn.gov.in/judis
CMA No. 1237 / 2022
SUNDER MOHAN, J
ay
C.M.A. No. 1237 of 2022
and
C.M.P. No. 8987 of 2022
https://www.mhc.tn.gov.in/judis
CMA No. 1237 / 2022
Dated: 13.07.2023
https://www.mhc.tn.gov.in/judis
