Madras High Court
The National Insurance Company Limited vs Nithya on 28 October, 2024
Author: R.Hemalatha
Bench: R. Hemalatha
CMA.No.2862 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 28.10.2024
CORAM:
THE HONOURABLE MRS.JUSTICE R. HEMALATHA
C.M.A.No.2862 of 2024 and
C.M.P.No.23496 of 2024
The National Insurance Company Limited,
Motor Third Party Cell,
Murugesa Naicker Complex,
First Floor, No.66, Greams Road,
Chennai - 600 006. ... Appellants
vs.
1. Nithya
2. I.Mohisha Devi (Minor)
Minor Rep. by her Mother and
next friend Nithya
3. Parimala
4. M.Manickam
5. R.Prabhu ...
Respondents
PRAYER: Civil Miscellaneous Appeal filed under Section 173 of the
Motor Vehicles Act, 1988, against the Award dated 31.01.2024 in
M.C.O.P.3033/2019 on the file of the Motor Accident Claims Tribunal,
Chief Judge, Court of Small Causes, Chennai.
For Appellant : Mrs.R.Sreevidhya
For R1 to R4 : Mrs.A.Subadra for
1/8
https://www.mhc.tn.gov.in/judis
CMA.No.2862 of 2024
Mrs.M.Malar
JUDGMENT
Challenging the quantum of compensation awarded by the
Motor Accident Claims Tribunal, Court of Small Causes, Chennai in
M.C.O.P.No.3033/2019, the present appeal is filed by the appellant, the
National Insurance Company Limited. The claimants / respondents 1 to 4
filed the claim petition under Section 166 of Motor Vehicles Act and Rule
3 of the Motor Vehicles Rules, seeking compensation of Rs.2,00,00,000/-
for the death of one M.Ilayaraja (husband of claimant 1; father of claimant
2; son of claimants 3 and 4) in a road accident that occurred on
29.01.2019.
2. The brief case of the claimants is as follows:
On 29.01.2019, M.Ilayaraja (deceased) was riding a two
wheeler bearing Registration number TN 23 CF 7736 on Vellore - Arni
road and when he was nearing Adukkamparai, a speeding lorry bearing
Registration number KA 01 MD 9619 which was going ahead of him,
suddenly turned right hand side without any signal or indicator, as a result
of which, M.Ilayaraja (deceased) hit the lorry from behind and sustained
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injuries all over his body. He was immediately rushed to hospital.
However, he died on the way to hospital.
3. According to the claimants, the rash and negligent driving of
the driver of the lorry was the cause of the accident and that since the said
vehicle was insured with the second respondent, the National Insurance
Company Limited, the owner and the insurer are jointly and severally
liable to pay compensation to them.
4. In the Tribunal, the owner of the vehicle remained absent and
was set exparte. The appellant Insurance Company resisted the claim
petition on all the grounds available to the insurer under Section 170 of
the Motor Vehicles Act.
5. The Tribunal after analysing the evidence on record fastened
negligence on the part of the driver of the lorry and awarded compensation
of Rs.1,10,33,000/- together with interest at the rate of 7.5% per annum
from the date of petition till the date of realisation, vide its orders dated
31.01.2024. The Tribunal also held that the liability of the owner of the
lorry and the insurer is joint and several.
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6. Aggrieved over the quantum of compensation awarded by the
Tribunal, the appellant / Insurance Company has filed the present appeal
under Section 173 of the Motor Vehicles Act.
7. Heard Mrs.R.Sreevidhya, learned counsel appearing for the
appellant and Mrs.A.Subadra, learned counsel for the respondents 1 to 4.
8. It is seen from the records that the deceased was working as a
Naik in Indian Army, earning a sum of Rs.55,609/- (gross salary) per
month. The Salary Certificate was marked as Ex.P5. The Tribunal fixed
notional monthly income of the deceased as Rs.47,202/- as per pay slip for
December 2018 (Ex.P21). To this amount, 50% was added towards future
prospects as per the decision in National Insurance Co. vs Pranay sethi
and others reported in 2017 (2) TNMAC 601. The Tribunal adopted
multiplier '17' as per the decision rendered in Sarla Verma and others vs.
Delhi Transport Corporation and another reported in (2009) 6 SCC
121. However, the Tribunal did not deduct any amount towards income
tax.
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Income Tax Slab for the Financial Year 2018 - 2019
Upto Rs.2,50,000 -Nil
Rs.2,50,000/- to Rs.5,00,000/- -5%
Rs.5,00,000/- - Rs.10,00,000/- - 20%
Annual Income - Rs.47,202 X 12 = Rs.5,66,424
Future Prospects 50% added - Rs.2,83,212/-
Rs.8,49,636/-
Nil Income Tax (-)Rs.2,50,000/-
Rs.5,99,636/-
5% Tax of Rs.2,50,000/- - Rs.12,500/-
20% Tax of Rs.3,49,636/- - Rs.69,927/-
Tax - Rs.82,427/-
Principal amount - Rs.8,49,636/-
Less Tax - Rs.82,427/-
- Rs.7,67,209/-
Annual income of the deceased - Rs.7,67,209/-
Loss of dependency
Rs.7,67,209 X 17 = 1,30,42,553
Since there are four dependants 1/4 is deducted towards his personal
expenses.
1,30,42,553 X 3/4 = 97,81,914.75
round off to Rs.97,81,915/-
In addition to that the claimants are entitled to Rs.1,60,000/- (40,000/-x4),
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Rs.15,000/- and Rs.15,000/- towards loss of consortium, loss of estate,
and funeral expenses respectively as per the decision in National
Insurance Co. vs Pranay sethi and others (cited supra). Thus, the
claimants are entitled to a total compensation of Rs.99,71,915 ( 97,81,915
+ 1,60,000 + 15,000 + 15,000 = 99,71,915) as shown in the following
tabular column:
S.No. Head Amount granted by this court
1. Loss of dependency Rs.97,81,915/-
2. Loss of consortium Rs.1,60,000/-
(Rs.40,000/- x 4)
3. Funeral expenses Rs.15,000/-
4. Loss of Estate Rs.15,000/-
Total Rs.99,71,915/-
9. Thus, the compensation awarded by the Tribunal is scaled
down to Rs.99,71,915/- from Rs.1,10,33,000/- which would carry interest
at the rate of 7.5% per annum.
10. In the result,
i. The Civil Miscellaneous Appeal is partly allowed. No costs.
Consequently, connected miscellaneous petition is closed.
ii. The compensation awarded by the Tribunal is scaled down to
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Rs.99,71,915/- from Rs.1,10,33,000/-.
iii. The liability of the first respondent (owner) and the appellant (the
National Insurance Company Limited) is joint and several and the
appellant / the National Insurance Company Limited is directed to
deposit the modified compensation amount i.e., Rs.99,71,915/- (less
the amount already deposited) together with interest at the rate of
7.5% per annum from the date of claim petition till the date of
realisation, within a period of four weeks from the date of receipt of
a copy of this order / uploading of this order to the credit of
M.C.O.P.3033/2019 on the file of the Motor Accident Claims
Tribunal, III Court of Small Causes, Chennai.
iv. On such deposit being made, the claimants are at liberty to
withdraw the same as per the orders passed by the Tribunal after
following due process of law. The ratio of apportionment made by
the Tribunal shall be kept intact.
28.10.2024
Index : Yes/No
Speaking/Non-speaking order
Neutral Citation : Yes / No
vum
R.HEMALATHA, J.
https://www.mhc.tn.gov.in/judis
vum
To
1.The Motor Accidents Claims Tribunal,
Chief Judge, Court of Small Causes, Chennai.
2.The Section Officer, VR Section, Madras High Court, Chennai.
C.M.A.No.2862 of 2024 and
28.10.2024
https://www.mhc.tn.gov.in/judis
