Madras High Court
The Branch Manager vs Tr.Arumugam on 3 September, 2024
Author: R. Hemalatha
Bench: R. Hemalatha
CMA.No.2074 of 2023
and C.M.P.No.20227 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03.09.2024
CORAM:
THE HONOURABLE MRS. JUSTICE R. HEMALATHA
CMA.No.2074 of 2023
and C.M.P.No.20227 of 2023
The Branch Manager,
Reliance General Insurance Company Limited,
1st Floor, Dhanam towers,
No.1, Binny Main Road,
Park Road, Tirupur. ... Appellant
Vs
1. Tr.Arumugam
2. R.R.Kavin ... Respondents
PRAYER: Civil Miscellaneous Appeal filed under Section 173 of the
Motor Vehicles Act, 1988 against the Award, dated 28.02.2023 in
M.C.O.P.1545/2019 on the file of the Motor Accidents Claims Tribunal,
Tirupur.
For Appellant : Mr.G.Vasudevan
For Respondents : No appearance
JUDGMENT
Questioning the quantum of compensation awarded by the
Tribunal, the present appeal is filed by the Reliance General Insurance
Company Limited.
https://www.mhc.tn.gov.in/judis
2. Though notice was served on the respondents and their names
are printed in the cause list, there is no representation on behalf of them.
3. Heard Mr.G.Vasudevan, learned counsel for the appellant.
4. Mr.G.Vasudevan, learned counsel appearing for the appellant
contended that though the Medical Board assessed the partial permanent
disability of the claimant as 26%, the Tribunal had wrongly taken it up as
30% and also fixed monthly notional income of the claimant as Rs.12,000/-
in the absence of any proof of income. He also relied on the decision of the
Hon'ble Division Bench of this Court in Mohammed Babu Vs. MGM
Travels reported in 2019 (1) TN MAC 18 (DB) and contended that when the
Tribunal adopted multiplier method to assess loss of future earning capacity,
no amount can be awarded towards loss of income. He, therefore, prayed
for scaling down the compensation awarded by the Tribunal.
https://www.mhc.tn.gov.in/judis
5. A perusal of the disability certificate (Ex.P10) shows that the
claimant has suffered the following injuries:
"Grade 3 compound comminuted metaphyseal fracture tibial
condyle on the right leg" and split skin grafting (SSG) has also
been done after fixing of plate on his right leg.
6. Since there is a functional disability, the Tribunal has adopted
multiplier method for awarding loss of future earning capacity. However,
the Tribunal after adopting multiplier method, also awarded a sum of
Rs.60,000/- towards loss of income for five months (12000 X 5) and the
same cannot be sustained in view of the fact that the Tribunal had adopted
multiplier method for awarding compensation towards the loss of future
earning capacity.
7. In the instant case, the claimant was aged 22 years at the time
of accident. According to him, he was earning a sum of Rs.15,000/- p.m.
However, he did not substantiate the same by adducing acceptable evidence.
https://www.mhc.tn.gov.in/judis
In the circumstances, considering the age of the claimant and the year of
accident, his notional monthly income is fixed as Rs.12,000/-. As per the
decision of the Supreme Court of India in National Insurance Co. vs
Pranay sethi and others reported in 2017 (2) TNMAC 601, 40% is added
towards future prospects of the claimant. The proper multiplier is 18 as per
the decision rendered in Sarla Verma and others vs. Delhi Transport
Corporation and another reported in (2009) 6 SCC 121.
Calculation for loss of earning capacity
Notional income - Rs.12,000/-
40% Future prospects - Rs.16,800/-
Loss of earning capacity - 16,800 x 12 x 18 x 26/100
= Rs.9,43,488/-
8. The following comparative chart would show the amount
awarded by the Tribunal and the amount awarded by this Court under
various heads:
S.No Heads Amount Amount
awarded by awarded by this
Tribunal Court
1. Loss of earning for a Rs.60,000/- Nil
https://www.mhc.tn.gov.in/judis
S.No Heads Amount Amount
awarded by awarded by this
Tribunal Court
period of five months
during the period of
recovery
2. Compensation for Rs.10,88,640/- Rs.9,43,488/-
future loss of income
3. Expenses towards Rs.10,000/- Rs.10,000/-
transportation
4. Expenses towards Rs.25,000/- Rs.25,000/-
extra nourishment
5. Expenses towards Rs.25,000/- Rs.25,000/-
attender charges
6. Damages to cloths Rs.5,000/- Rs.5,000/-
and articles
7. Pain and Suffering Rs.1,00,000/- Rs.1,00,000/-
and Loss of amenities
(Rs.50,000/- +
Rs.50,000/-)
8. Medical expenses Rs.3,36,397/- Rs.3,36,397/-
TOTAL Rs.16,50,037/- Rs.14,44,885/-
9. Thus, the compensation awarded by the Tribunal is scaled
down to Rs.14,44,885/- from Rs.16,50,037/- 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.
https://www.mhc.tn.gov.in/judis
Consequently, connected miscellaneous petition is closed.
ii. The compensation awarded by the Tribunal is scaled down to
Rs.14,44,885/- from Rs.16,50,037/-
iii. The appellant, Reliance General Insurance Company Limited, is
directed to deposit the modified compensation amount i.e.,
Rs.14,44,885/- (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 deposit 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.1545/2019 on the file of the Motor Accident Claims
Tribunal, Tirupur.
iv. On such deposit being made, the Respondent / claimant is at liberty to
withdraw the same as per the orders passed by the Tribunal after
following due process of law.
03.09.2024
Index : Yes/No
Speaking / Non-speaking order
vum
To
1. The Motor Accidents Claims Tribunal,
https://www.mhc.tn.gov.in/judis
Tirupur.
2. The Section Officer,
VR Section, Madras High Court,
Chennai.
R. HEMALATHA, J.
vum
https://www.mhc.tn.gov.in/judis
03.09.2024
https://www.mhc.tn.gov.in/judis
