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The New India Assurance Co. Ltd vs Rekha
2024 Latest Caselaw 91 Mad

Citation : 2024 Latest Caselaw 91 Mad
Judgement Date : 3 January, 2024

Madras High Court

The New India Assurance Co. Ltd vs Rekha on 3 January, 2024

                                                                                        C.M.A. No. 1724 of 2021


                                     IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                       DATED : 03.01.2024

                                                            CORAM:

                                    THE HONOURABLE MR. JUSTICE K. RAJASEKAR

                                                   C.M.A. No. 1724 of 2021
                                                  and C.M.P. No.1724 of 2021

                     The New India Assurance Co. Ltd.,
                     Bombay Mutual Building, 6th Floor,
                     No.232, N.S.C. Bose Road,
                     Chennai 600 001.                   ... Appellant / 2nd Respondent

                                                                Vs.

                     1.           Rekha
                     2.           P. Elumalai                    ... Respondents / Petitioners

                     3.           S. Tamilarasi                  ... Respondents / 1st Respondent


                                  Civil Miscellaneous Appeal filed under Section 173 of Motor
                     Vehicles Act, 1988 against the Judgment and decree dated 20.09.2020
                     passed in M.C.O.P. No. 550 of 2019 on the file of the III Judge (F.A.C),
                     Motor Accident Claims Tribunal, III Court of Small Causes, Chennai.

                                  For Appellant    :       M/s. K. Vinod

                                  For RR 1 & 2     :       Mr. L.K. Manjunath
                                                           (M/s. Sri Manjunath Law Associates)

                                  For R3           :       No Appearance

                     1/10
https://www.mhc.tn.gov.in/judis
                                                                                  C.M.A. No. 1724 of 2021


                                                        JUDGMENT

This Civil Miscellaneous appeal has been filed by the insurance

company seeking reduction of compensation awarded in M.C.O.P. No. 550

of 2019, dated 20.09.2020 on the file of the III Judge (F.A.C), Motor

Accident Claims Tribunal, III Court of Small Causes, Chennai.

2. For the sake of convenience, the parties are referred herein

according to their litigative status and rank before the Tribunal.

3. On 25.09.2018, at about 17:30 hours, the deceased

Manikandan, who was aged about 6 years at the time of occurrence, was

walking at left side of the Polur - Chetpet Road, near Devikapuram

Muthalamman Nagar, Tiruvannamalai District, at that time, a lorry bearing

Registration No.TN-11-AD-9571 driven by its driver in a rash and negligent

manner, hit on the deceased causing grievous injuries. The deceased was

admitted in various hospitals for treatment and succumbed to injuries at

Rajiv Gandhi Government General Hospital, Chennai on 22.11.2018. A

criminal case was registered against the driver of the lorry in

Cr.No.359/2018 under section 279, 337 of IPC on the file of Inspector of

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

Police, Chetpet Police Station, Tiruvannamalai District. For the loss of

deceased Manikandan, the claimants, who are the parents of the deceased

has filed claim petition seeking compensation for a sum of Rs.30,00,000/-

under Section 166 of the Motor Vehicles Act, 1988.

4. The first respondent is the owner of the offending lorry has not

contested the claim and remained ex-parte. The second respondent -

insurance company, who is the insurer of the offending lorry has filed a

counter and contended that the driver of the first respondent's lorry has no

valid driving licence at the time of accident. The insurance company has

further contended that the accident was taken place only due to the

negligence on the part of the deceased and the compensation claimed under

various heads are on the higher side.

5. Before the Tribunal, on the side of the claimant, P.W.1 and

P.W.2 were examined and Exs.P.1 to P.12 were marked. On the side of the

respondent, no witnesses were examined and no exhibits were marked.

6. Based on the evidence placed on record, the Tribunal in point

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

no.1, has held that the rash and negligence on the part of the driver of the

first respondent's lorry is responsible for the accident. In point no.2, the

Tribunal has quantified and granted compensation for a sum of

Rs.17,80,607/- along with interest @ 7.5% per annum from the date of filing

of petition till the date of realization and fixed the liability on the part of the

insurance company to indemnify the first respondent and to pay

compensation to the claimants.

9. Aggrieved over the quantum of compensation awarded, the

insurance company has filed this appeal seeking reduction of compensation.

10. The learned counsel appearing for the insurance company

submits that the Tribunal without any basis fixed the notional income of

Rs.10,000/- per month and also awarded 50% future prospectus, while

awarding compensation adopted multiplier as '18', which is against the

settled principle laid down in Hon'ble Apex Court judgements in Meena

Devi vs. Nunu Chand Mahto @ Nemchand Mahto and others [2022

LiveLaw (SC) 841], hence prays to modify the award.

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

11. The learned counsel appearing for the claimants submits that

the deceased was aged about 6 years, at the time of accident and also he is

an intelligent child of the claimants and based on the evidences placed on

record, the Tribunal has rightly fixed the notional income and awarded a just

compensation, hence there is no need for any interference in the award of the

Tribunal.

12. I have heard the submissions made on both sides and perused

the materials available on record.

13. Recently, the Apex Court judgment in Meena Devi vs. Nunu

Chand Mahto @ Nemchand Mahto and others cited supra based on the

judgement of Kishan Gopal and another vs. Lala and others [2014 1 SCC

244], has fixed notional income of Rs.30,000/- per annum, awarded

Rs.5,00,000/- including Rs.50,000/- under other conventional heads. In this

case, the Tribunal has not followed the previous judgements of the Apex

Court, which prescribes fixing of notional income and II schedule of the

Motor Vehicles Act for adopting multiplier, but the Tribunal has deviated

from the same and fixed the notional income of Rs.10,000/- per month on

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

the deceased minor child and granted 40% future prospectus, which is not in

accordance with the principle laid down in the Apex Court judgements cited

supra.

14. The learned counsel for the claimant relied on this Court

judgment in K. Kalaiselvi and another vs. The Managing Director, TNSTC

in C.M.A. No.2845 of 2015, dated 08.12.2016, wherein the judgement of

Apex Court in Kishan Gopal and another vs. Lala and others cited supra,

has not been considered and for the loss of 12 years boy therein, this Court

has fixed the notional income of the deceased at Rs.60,000/- per annum and

adopted the multiplier as per the age of the deceased mother and quantified

Rs.9,60,000/- (Rs.60,000/- X 16) as compensation and also followed the

Hon'ble Apex Court judgment in Kanhsing and another vs. Tukaram and

others [Civil Apeeal No.347 of 2015 arising out of SLP (C) No.976 of

2014], awarded Rs.1,00,000/- towards loss of love and affection.

15. This Court in Stalin and another vs. S. Baskaran and another

in C.M.A. No.4422 of 2019, dated 17.03.2021, wherein for the loss of 14

years boy, this Court has fixed the notional income of Rs.45,000/- per annum

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

and as per II Schedule of the Motor Vehicles Act, fixed the multiplier as ''15''

and awarded compensation towards pecuniary loss.

16. In Divya vs. The National Insurance Co. Ltd. and Another

[2022 LiveLaw (SC) 892], the Apex Court has fixed the multiplier of "15"

for the victim upto the age group of 15 years as per the previous Three

Judges Bench judgment in Reshma Kumari and Others Vs. Madan Mohan

and Another [(2013) 9 SCC 65].

17. This Court in Iffco Tokio Gen. Ins. Co. Ltd. Vs. B. Anithadevi

and Others [2022 (2) TNMAC 731], for the deceased minor aged about 7

years, fixed a sum of Rs.3,000/- per month and deducted one-third of his

income towards his personal and living expenses and by adopting multiplier

of "15" and awarded a compensation for a sum of Rs.3,60,000/- under the

head loss of dependency.

18. Based on all the above previous observations of Apex Court and

considering the date of accident, this Court is of the view that fixing

Rs.40,000/- per annum as the notional income of the minor deceased herein

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

would be proper and by adopting the multiplier as ''15'', this Court is inclined

to award Rs.6,00,000/- (Rs.40,000/- X 15) under the head pecuniary loss and

Rs.50,000/- under the conventional head. Based on Ex.P.3- medical bills,

this Court is also inclined to award Rs.1,48,607/- under the head medical

expenses to the claimant. Accordingly, total compensation of Rs.7,98,607/-

(Rs.6,00,000/- + Rs.50,000/- + Rs.1,48,607/-) is awarded to the claimants.

19. In the result, this Civil Miscellaneous Appeal is allowed and the

compensation awarded by the Tribunal at Rs.17,80,607/- is hereby reduced

to Rs.7,98,607/- [Rupees Seven Lakh Ninety Eight Thousand Six

Hundred and Seven only] together along with interest at the rate of 7.5%

per annum from the date of filing of Claim Petition till the date of deposit,

excluding the default period, if any. The second respondent -Insurance

Company is directed to deposit the amount awarded by this Court along with

interest and costs, less the amount already deposited, if any, within a period

of six weeks from the date of receipt of a copy of this judgment to the credit

of M.C.O.P.No.550 of 2019 on the file of the III Judge, Motor Accidents

Claims Tribunal, III Court of Small Causes, Chennai. On such deposit, the

claimants are permitted to withdraw the award amount now determined by

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

this Court along with interest and costs, less the amount if any, already

withdrawn, as per the apportionment fixed by the Tribunal. The Tribunal

shall disburse the amount now awarded by this Court by directly giving

credit to the Savings Bank Account of the claimants. Consequently,

connected civil miscellaneous petition stands closed. There shall be no order

as to costs in the present appeal.

03.01.2024

stn Index:Yes/No Speaking Order:Yes/No Neutral Citation Case: Yes/No

To:

1. The III Judge, Motor Accident Claims Tribunal, III Court of Small Causes, Chennai.

2. The Section Officer, V.R.Section, High Court, Chennai.

K. RAJASEKAR, J.

stn

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

03.01.2024

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

 
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