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The New India Assurance Company ... vs K.Premi Sakay
2023 Latest Caselaw 2234 Mad

Citation : 2023 Latest Caselaw 2234 Mad
Judgement Date : 10 March, 2023

Madras High Court
The New India Assurance Company ... vs K.Premi Sakay on 10 March, 2023
                                                                                 C.M.A. (MD)No.321 of 2021


                             BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                  DATED : 10.03.2023

                                                        CORAM:

                                  THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR

                                               C.M.A.(MD)No.321 of 2021
                                                         and
                                               C.M.P.(MD)No.2716 of 2021


                The New India Assurance Company Ltd.,
                No.41, Nageswaran Sannithi Street,
                Kumbakonam,
                Thanjavur District.                                 ...Appellant/ 2nd Respondent


                                                         Vs.
                J.Irudayaraj (died)

                1.K.Premi Sakay
                2.K.Jenet Pavithra
                3.B.Prakasam                                        ...Respondents


                PRAYER: This Civil Miscellaneous Appeal is filed under Section 173 of the
                Motor Vehicles Act, 1988, to modify the decree and judgment dated 19.11.2019
                made in M.C.O.P.No.1795 of 2013 on the file of the Special District Judge,
                Tiruchirappalli.


                                        For Appellant   : Mr.A.Ilango
                                        For R1 & R2     : Mr. T.Selvan

                1/15

https://www.mhc.tn.gov.in/judis
                                                                                          C.M.A. (MD)No.321 of 2021


                                           For R3              : No Appearance


                                                           JUDGMENT

Challenging the quantum fixed by the Claims Tribunal fixing the

compensation of Rs.10,83,696/-, the Insurance Company has preferred the present

appeal.

2.The brief facts, leading to the filing of this Civil Miscellaneous

Appeal, are as follows:-

(i) For the sake of convenience, the parties are referred to herein, as per

their rank before the Trial Court.

(ii)Originally, the claim petition was filed by the insurer/first petitioner

claiming compensation of Rs.5,00,000/- for the injuries sustained by him in a

motor accident. According to him, on 12.09.1999, while he was riding his TVS

moped bearing Registration No.TCY 544 at about 15.00 hours near Veereswaram

Junction Road in Amma Mandapam to Membalasali east west road, an ambassador

car bearing Registration No. TN-59-A-5859 coming in the opposite direction

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

driven by its driver in a rash and negligent manner dashed against him, as a result,

he was thrown out in the road and sustained multiple grievous injuries all over his

body including fracture in his both legs. He was taken to Veerasamy Hospital at

Thillainagr, wherein he was admitted as an inpatient and both of his legs were

operated.

(iii)He filed an application claiming compensation of Rs.5,00,000/- for

the injuries sustained by him in the said accident. The said petition was pending

for more than 11 years, some way or the other. It appears that the first

petitioner/original claimant died in the year 2012, during the pendency of the

claim petition. Thereafter, his legal heirs have been impleaded in the claim

petition and they have filed an amendment application claiming enhanced

compensation of Rs.25,00,000/-, contending that the first petitioner was died due

to the injuries sustained in the accident and due to that accident, he has voluntarily

retired from service in the year 2004, whereas his retirement falls only in the year

2010.

3.It is the case of the Insurance Company that the accident was occurred

due to the contributory negligence on the part of the first petitioner. In the counter

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

affidavit, it has been stated that after a lapse of eleven days, the first petitioner has

lodged the FIR in collusion with the owner and driver of the offending vehicle.

The case has been filed in the year 2000. But, the first petitioner was examined

only on 15.03.2005. Subsequently, due to the delay caused by the petitioners, the

petition was pending for a long time. It is the main contention of the Insurance

Company that though the second and third petitioners are entitled to for the estate

of the first petitioner, they are not entitled for the death benefits as the deceased

died only due to some natural causes.

4.To substantiate the case, before the tribunal, on the side of the

claimants P.W.1 to P.W.7 were examined and Ex.P1 to Ex.P23 were marked and

on the side of the respondents R.W.1 was examined and Ex.R1 to Ex.R2 were

marked. Ex.X1 and Ex.X2 were also marked.

5.The trial Court, after analyzing the oral and documentary evidence

adduced on both sides, held that the accident had taken place due to the rash and

negligent driving of the first petitioner. Further, the trial Court has also held that

there was no nexus between the accident and the death of the first petitioner, since

he died after 11 years of the accident. However, the trial Court considering the

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

voluntary retirement in the year 2004 adopted the relevant multiplier and fixed the

compensation as follows:

                       S.No.                         Head                         Amount
                            1.       Compensation for partial permanent Rs.    98,000/-
                                     disability
                            2.       For pain and sufferings             Rs.   75,000/-
                            3.       Loss of earning capacity            Rs. 7,87,791/-
                            4.       Attender charge                     Rs.   10,000/-
                            5.       Nutritious Food                     Rs.    5,000/-
                            6.       Transport Expenses                  Rs.    5,000/-
                            7.       Partial loss of income              Rs.   13,802/-
                            8.       Medicine and Medical Expense        Rs.   89,103/-
                                                                    Total Rs.10,83,696/-



Challenging the same, the present Civil Miscellaneous Appeal has been filed by

the Insurance Company.

6.It is the contention of the learned counsel for the appellant that

originally a sum of Rs.5,00,000/- was claimed by the deceased/original claimant

for the injuries sustained by him and the said claim petition was filed in the year

2000. But for somehow or the other, the said claim petition was dragged for a

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

period of 12 years. On 17.03.2012, after the death of the first petitioner, the legal

representatives have been impleaded and they have filed an amendment petition

claiming compensation of Rs.25,00,000/-. He submitted that there is no nexus

between the death and the accident. Further, when the person who claims

compensation dies, the cause of action also dies with that person. At the most the

legal heirs are entitled to the estate of the deceased such as medical charges,

attendance charges, nutritious charges and transport etc.,. But, the Tribunal has

adopted the multiplier and fixed the compensation for loss of earning capacity,

which is not in accordance with law. Hence, he seeks to set aside the award.

7.The learned counsel for the respondents would submit that the tribunal

has adopted the relevant multiplier after taking note of the fact that the first

petitioner, after the accident, was not able to attend his regular work and took

voluntary retirement and also by considering his monthly salary. Hence, the

compensation awarded by the Tribunal does not require any interference.

8. In the light of the above submission, now the points arise for

consideration in this appeal are:

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

(1)Whether the legal heirs are entitled to claim compensation beyond

the loss of estate of the deceased?

(2)Whether the multiplier method adopted by the tribunal is proper in

the eye of law?

9. The negligence is not disputed by the Insurance Company, only

quantum is challenged in this appeal. Admittedly, the accident had taken place on

12.09.1999, while the deceased was riding his TVS moped and he sustained

injuries in the said accident. Immediately, he was admitted in the hospital. For

certain fractures in his legs, he took treatment. He has originally filed an

application claiming compensation of Rs.5,00,000/-.

10.Though the original claim petition was filed in the year 2000, for

somehow or the other, the application got dragged till 2012, till the date of death

of the original claimant. Thereafter, the legal heirs have been impleaded in the

claim petition and thereafter, they sought for an amendment seeking enhanced

compensation of Rs.25,00,000/- contending that there is a loss of earning capacity

to the deceased and he died due to the injuries sustained by the accident in the year

1999.

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

11. P.W.1, the first petitioner/ original claimant was also examined in the

year 2005 and extensively cross examined before the tribunal. His evidence itself

clearly shows that he suffered only fractures in his legs and he had taken treatment

in the hospital for a period of four months from the date of accident. According to

him, he has spent about Rs.1,00,000/- for surgery in his both legs. Further, during

the period when he was taking treatment, he only got half of his salary. Further, he

proceeded to his job only in the car and he has spent a sum of Rs.38,000/- towards

the same.

12.It is relevant to note that in the cross examination he has clearly

admitted that after the treatment period of four months from the date of accident,

he was regularly working in his job as Teacher for more than five years and he was

also drawing salary. Thereafter, he had applied for voluntary retirement. From the

admission of P.W.1/original claimant in his cross examination, it is made clear that

he had undergone treatment only for a period of four months and not beyond that.

The above admission runs to the contrary of the stand of the respondents, who are

the legal heirs of the original claimant that the deceased died only due the injuries

sustained in the accident occurred in the year 1999. The evidence of the wife of

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

the original claimant, who was examined as P.W. 6, itself clearly shows that his

husband was died due to the heart pain and not due to the injuries sustained in the

accident. Further P.W.7, Doctor's evidence also clearly shows that the deceased

was having diabetic and Blood Pressure.

13. Having considered these documents, the trial Court has rightly found

that there was no nexus between the injuries and the death of the original claimant.

The exhibits, filed to show that the original claimant sustained serious injuries,

indicate that the original claimant has only sustained fractures in his legs.

Therefore, this Court is of the view that when the deceased himself has

categorically admitted that even after the treatment, he worked as a Teacher for a

period of five years and thereafter only, he took voluntary retirement, the question

of granting compensation under the head of loss of earning capacity does not arise

at all. The tribunal has in fact misdirected itself in awarding compensation on the

said head by applying multiplier.

14.It is seen from the award that the Tribunal has fixed the disability at

49% as partial permanent disability. The Tribunal has applied the multiplier 13

after taking note of the date of accident and the date of death of the original

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

claimant. The tribunal has awarded the compensation towards loss of earning

capacity to the tune of Rs.7,87,790.64/-.

15. The Tribunal also relied on Ex.P14 to show that the first respondent

has applied for voluntary retirement because of the injuries sustained in the

accident. On perusal of Ex.P14, this Court is at a loss to understand as to how the

tribunal has considered this document as an application for voluntary retirement.

Ex.P14 is a letter sent by the original claimant to the Headmaster of the School

seeking some particulars of his salary in the event of his continuance to the work

till the date of his superannuation. The very letter itself clearly indicates that he

has voluntarily retired on 01.06.2004 and he has sent the said letter seeking some

particulars for claiming compensation. Therefore, merely on the basis of the said

letter, it cannot be presumed that because of the injuries sustained in the accident,

he could not work in the school and hence, he took voluntary retirement. Such

finding of the tribunal is without any evidence and an improper appreciation of

evidence and the same has to be necessarily set aside.

16.From the admission of the original claimant, it is very clear that he

worked for about five years after the date of accident. It is well settled that when

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

the death was not due to the accident or the injuries sustained in the accident, the

legal heirs are only entitled to the loss of estate such as the medical charges

attendant charges, nutritious charges and transportation etc..

17.In the judgment of the Hon’ble Division Bench of this Court in the

case of Branch Manager, Oriental Insurance Company Ltd., vs. Manohar and

others reported in 2017 (2) TN MAC 81 (DB), it has been held that in the absence

of any nexus between the injuries and the death, compensation awarded by the

tribunal fixing the liability at 100% is set aside applying the legal maxim of actio

personalis moritur cum persona, for claiming compensation for the expenses

incurred. Therefore, this Court is of the view that the legal heirs of the original

claimant are entitled to loss of estate such as medical expenses, attender charges

etc.,

18.However, the claim with regard to the pain and sufferings and future

loss of income is personal to the injured alone and cannot be continued after his

death. As there is no proximity between the injury and death in the present case,

the award of the tribunal in awarding compensation for loss of earning capacity

and also for pain and suffering suffered by the original claimant is not sustainable

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

in the eye of law. The tribunal has fixed the disability at 49% as partial permanent

disability and awarded a sum of Rs.2,000/- per each percentage of disability. This

Court is of the view that the award of the tribunal under the head of permanent

disability has to be increased to Rs.3,000/- (Rupees Three Thousand only). As the

deceased, has also underwent surgery in different hospitals in his both legs, the

attendant charges granted by the Tribunal is enhanced to Rs.50,000/- (Rupees Fifty

Thousand Only) and award under the nutritious food is also enhanced to

Rs.50,000/- (Rupees Fifty Thousand only).

19.Accordingly, the award of the Tribunal is modified as hereunder:

S.No. Head Amount

1. Compensation for partial permanent Rs.1,47,000/-

disability

2. Medical Bills Rs. 89,103/-

                       3.             Attendant charges                     Rs. 50,000/-
                       4.             Nutritious Food                       Rs. 50,000/-

5. Loss of earning during the treatment Rs. 13,802/-

as per the evidence of P.W.1

6. Transportation Charges Rs. 20,000/-

                                                        Total               Rs.3,69,905/-
                                                                            (Rs.3,70,000        rounded
                                                                            off)




https://www.mhc.tn.gov.in/judis
                                                                                      C.M.A. (MD)No.321 of 2021




20.The appellant is directed to deposit the entire compensation amount

as modified by this Court with interest at the rate of 6% per annum and costs to the

credit of M.C.O.P.No.1795 of 2023, on the file of the Motor Accident Claims

Tribunal / Special District Court, Tiruchirappalli within a period of one month

from the date of receipt of copy of this judgment, less the amount, if any already

deposited. On such deposit, the first respondent herein is permitted to withdraw a

sum of Rs.2,00,000/- (Rupees Two Lakhs Only) and the second and third

respondents are permitted to withdraw a sum of Rs.85,000/- (Rupees Eighty Five

Thousand Only) each, less the amount, if any already withdrawn, by making

necessary application before the Tribunal. No costs. Consequently, connected

miscellaneous petition is closed.

10.03.2023 NCC : Yes / No Index : Yes/No Internet : Yes/No

ta

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

To

1.The Motor Accident Claims Tribunal, Special District Court, Trichirappalli.

2.The Section Officer, Vernacular Records, Madurai Bench of Madras High Court, Madurai.

https://www.mhc.tn.gov.in/judis C.M.A. (MD)No.321 of 2021

N.SATHISH KUMAR, J.

ta

C.M.A.(MD)No.321 of 2021

10.03.2023

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

 
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