Madras High Court
United India Insurance Co.Ltd vs / on 24 September, 2025
Author: G.Jayachandran
Bench: G.Jayachandran
C.M.A.Nos.2654 of 2019 and 621 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :24.09.2025
CORAM
THE HONOURABLE Dr.JUSTICE G.JAYACHANDRAN
and
THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR
C.M.A.No.2654 of 2019
and
C.M.A.No.621 of 2025
and
C.M.P.No. 13061 of 2019
C.M.A.No.2654 of 2019
United India Insurance Co.Ltd.
Muthiah Complex, 2nd Floor,
1170, Mettur Salai, Erode. ..2nd Respondent/Appellant
/versus/
1.Pavayammal, 7 years,
W/o Late Govindasamy
2.Ganesan, 55 years,
S/o Late Govindasamy,
3.Rajendran,53 years,
S/o Late Govindasamy
4.Mahalingam, 51 years,
S/o Late Govindasamy
5.Kumar, 44 years,
S/o Late Govindasamy
1/14
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C.M.A.Nos.2654 of 2019 and 621 of 2025
6.Arumugam, 36 years,
S/o Late Govindasamy
All are residing at Koodakkal,
Poolampatti, Edapadi Taluk,
Salem District.
(As per I.A.No.806/2017, dated
22.06.2017) ..Petitioners
7.Rajappan,
S/o Angaiya,
Residing at No.1/207, Jittandahalli,
Palacode, Dharmpuri District. ..1st Respondent/
Respondents 1 to 7
Prayer: Civil Miscellaneous Appeal has been filed under Section 173 of
Motor Vehicles Act, 1988, against the award and decree dated 30.11.2017
made in M.C.O.P.No.229 of 2011 on the file of the Motor Accidents Claims
Tribunal, Sub Court, Sankari.
For Appellant :Mr.S.Arun Kumar
For Respondents :Mr.T.S.Arthanareeswaran for R1 to R5
R6-died
R7-No appearance
----
C.M.A.No.621 of 2025
1.Pavayammal (70), W/o Late Govindasamy
2.Ganesan (55(, S/o Late Govindasamy,
3.Rajendran (53), S/o Late Govindasamy
4.Mahalingam (51), S/o Late Govindasamy
5.Kumar (44), S/o Late Govindasamy
6.Arumugam (36), S/o Late Govindasamy
All are residing at Koodakkal,
Poolampatti, Edapadi Taluk,
Salem District.
..Appellants/Petitioners
2/14
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C.M.A.Nos.2654 of 2019 and 621 of 2025
/versus/
1.Rajappan, S/o Angayya,
1/207, Jittandahalli,
Palacode, Dharmpuri District.
2.United India Insurance Co.Ltd.
Muthiah Complex, 2nd Floor,
1170, Mettur Salai, Erode.
(Notice to R1 may be dispensed with
for the set ex-parte before the Tribunal)
..Respondents/Respondents
Prayer: Civil Miscellaneous Appeal has been filed under Section 173 of
Motor Vehicles Act, 1988, against the judgment and decree in
M.C.O.P.No.229 of 2011, dated 30.11.2017 on the file of the Motor
Accidents Claims Tribunal, Subordinate Judge Court, Sankari.
For Appellants :Mr.T.S.Arthanareeswaran
For Respondents :Mr.S.Arun Kumar for R2
R1 dispensed with
----
COMMON JUDGMENT
(The Order of the Court was made by Dr.G.JAYACHANDRAN,J.)
These appeals have been filed against the judgment and decree in
M.C.O.P.No.229 of 2011, dated 30.11.2017 on the file of the Motor
Accidents Claims Tribunal, Subordinate Court, Sankari.
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C.M.A.Nos.2654 of 2019 and 621 of 2025
2. One Mr.Govindasamy, a former MLA of the Tamil Nadu State
Legislative Assembly met with a road accident on 06.04.2010, while riding a
two wheeler bearing Reg.No.TN 52 K 4576 (TVS XL Super). At the time of
the accident, he was 74 years old and engaged in agriculture activities
besides receiving a pension payable as a formal MLA. Stating his income
and loss caused due to his death, his wife and five sons joined together and
filed a claim petition seeking a sum of Rs.25,00,000/- as compensation for
the loss of income of the deceased Govindasamy arising out of the road
accident. The owner of the offending vehicle and the insurer are arrayed as
respondents 1 and 2. The owner of the offending vehicle remained exparte.
Whereas, the Insurance Company contested the claim petition on liability as
well as on quantum.
3. The Tribunal framed the following Issues:-
(i)Whether the death of Govindasamy was caused due to rash and
negligent driving of the rider of the two wheeler bearing Reg.No.TN 29 AZ
4285 and who is liable to pay compensation?
(ii)Whether the petitioners are the legal heirs of the deceased
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C.M.A.Nos.2654 of 2019 and 621 of 2025
Govindasamy?
(iii)Whether the petitioners are entitled to the compensation
claimed?
4. Before the Tribunal, three witnesses were examined on behalf of
the claimants and one witness was examined on behalf of the Insurance
Company. 31 documents were marked by the claimants as Ex.P1 to Ex.P31.
On behalf of the respondents, a copy of the Insurance Policy was marked as
Ex.R1.
5. Taking into consideration the Income Tax Return filed by the
deceased and the pension documents as well as evidence of PW-3, who had
spoken about the esteemed income derived by the deceased Govindasamy
through his agricultural property, the Tribunal had fixed notional income
from agricultural property at Rs.5,00,000/-, from business at Rs.1,91,370/-
and from annual pension of Rs.1,20,000/- and fixed the total annual income
of the deceased Govindasamy at Rs.8,12,000/-.
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6. Considering his age, the Tribunal applied the multiplier '5' and
deduced 1/5th of his income towards his personal expenditure. Accordingly,
a sum of Rs.32,48,000/- was fixed towards loss of income and thereafter, by
applying the principle laid down in National Insurance Co.Ltd., v. Pranay
Sethi and others reported in [2017(16) SCC 680], the Tribunal awarded a
sum of Rs.25,000/- each to the sons, who are the claimants 2 to 6 towards
loss of love and affection and awarded a sum of Rs.50,000/- to his wife
towards loss of love and affection. The deceased Govindasamy died three
days after the accident and therefore, Rs.50,000/- was awarded towards pain
and sufferings. In addition, towards loss of estate and funeral expenses, a
sum of Rs.15,000/- each was awarded. Thus, a total sum of Rs.35,08,000/-
was awarded as compensation, which is rounded off Rs.35,10,000/- with
interest at the rate of 7.5% per annum was awarded by the Tribunal. The said
amount was directed to be apportioned between the claimants 1 to 6 as
follows:-
1st claimant/petitioner :Rs.10,10,000-00
Claimants 2 to 6/Petitioners
2 to 6 :Rs.5,00,000-00 each
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C.M.A.Nos.2654 of 2019 and 621 of 2025
7. Being aggrieved, the Insurance Company/appellant has
preferred an appeal in C.M.A.No.2654 of 2019. The claimants have joined
together and preferred the appeal for enhancement in C.M.A.No. 621 of
2025.
8. Mr.S.Arun Kumar, learned counsel appearing for the Insurance
Company/appellant in C.M.A.No.2654 of 2019 submitted that the deceased
is an income tax assessee and he has not disclosed the income from the
agriculture. However, the Tribunal had fixed a sum of Rs.5,00,000/- towards
loss of income through agriculture. It was further submitted that the
agriculture land was admittedly held by the family jointly and therefore, the
death of Govindasamy had no impact on the income allegedly derived from
the agriculture land. The fanciful claim of the claimants that they had lost the
agriculture income ought not to have been considered.
9. The learned counsel for the Insurance Company submitted that
there is no evidence to show that any income was derived from the
agriculture land. Though the documents filed to show that the deceased had
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C.M.A.Nos.2654 of 2019 and 621 of 2025
purchased the agricultural property during his lifetime, the oral evidence of
villagers, neither supported by the income returns, nor any documents issued
by the revenue department to prove the cultivation and income, is unjustified.
Therefore, the award of Rs.5,00,000/- towards loss of income from
agriculture is baseless and hence, it has to be reduced.
10. Per contra, the learned counsel appearing for the claimants,
who have also filed an appeal for enhancement submitted that the Tribunal,
having held that the estimated income from the agriculture land would be
around Rs.35,00,000/- per annum, should not have reduced the agriculture
income to Rs.5,00,000/- per month and awarded lesser compensation.
11. He further submitted that the deceased, at the age of 74 years,
was in good health and earning around Rs.1,00,000/- per month. Due to his
sudden demise, the claimants who are the family members have lost the said
income of the victim who is the kartha of the family. Therefore, the claim is
that the award of the Tribunal for loss of income is to be enhanced to
Rs.25,00,000/-.
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12. Heard the learned counsels appearing on both sides and their
rival submissions.
13. A perusal of the records indicates that at the time of his death,
the deceased Govindasamy was 74 years old. He was an income assessee
and his income tax return indicates that the annual income of Govindasamy
during the previous year (financial year 2008-2009) was Rs.1,91,370/-.
Though Ex.P11 to Ex.P27-sale deeds of property were purchased between
07.09.1977 and 12.09.2008, either for the financial year 2007-2008 or for the
financial year 2008-2009 income from the agriculture was not disclosed. For
the first time, it is contended that for the sake of claim that the deceased
Govindasamy was earning Rs.35,00,000/- p.a., through his agriculture
property.
14. The Trial Court had considered the said plea and in the light of
information provided by PW-3, had tentatively estimated that the deceased
Govindasamy should have earned a sum of Rs.5,00,000/-. The contention
that the land held by Govindasamy should have earned a sum of
Rs.35,00,000/- per annum is taking into account that the claimants 2 to 6
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were also taking care of the land and the income was the joint accrual of the
entire family, a sum of Rs.5,00,000/- has been fixed as notional income of
Govindasamy towards agriculture lands.
15. This Court finds that the manner in which the income from the
agriculture land was fixed by the Tribunal, is not based on sound proportion
or evidence. As pointed out by the learned counsel appearing for the
Insurance Company, the income from the agriculture land is not altered due
to demise of Govindasamy and it is admitted by the witness, who is the son
of Govindasamy that they are still carrying on agriculture activity and
deriving income. However, they deposed that due to demise his father, the
aid and advise of his father was lost, which was reflected in the income from
the agriculture land.
16. This Court finds that for the loss of aid and advise in the
agriculture activity, a sum of Rs.5,00,000/- per month is excessive. More so,
there is no evidence to show the actual income from the agriculture land
either by way of income tax returns or certificates from the revenue
authorities, which could reflect that the lands which covers Ex.P11 to Ex.P27
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were really under cultivation and yielded income.
17. In the said circumstances, there cannot be any loss of income to
the claimants from the agriculture land on account of the demise of
Govindasamy. The property is still with the claimants and any income
therefrom should be assessed by them. The death of Govindasamy is
immaterial inso far as the income derived from the agriculture land is
concerned. Therefore, for loss of aid and advise the fixation of Rs.5,00,000/-
per annum is unwarranted and the same is to be deleted.
18. In view of the above, the award of the Tribunal is modified as
below:-
Loss of income
(Rs.1,91,370/- p.a+ Rs.1,20,000/-p.a)
after deducting 1/5th for personal
expenditure
(Rounded to Rs.3,12,000-1/5=62,400
Rs.2,49,600x5) :Rs.12,48,000-00
Loss of consortium for
claimants 1 to 6(Rs.40,000/-each) :Rs. 2,40,000-00
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Loss of pain and sufferings :Rs. 15,000-00
Loss of Estate :Rs. 15,000-00
Funeral expenses :Rs. 15,000-00
--------------------
Total :Rs.15,33,000-00
--------------------
19. As a result, the Civil Miscellaneous Appeal filed by the
Insurance Company in C.M.A.No.2654 of 2019 is partly allowed. The
Civil Miscellaneous Appeal filed by the claimants in C.M.A.No.621 of
2025 is dismissed. The award of the Tribunal in M.A.C.T.O.P.No.229 of
2011 dated 30.11.2017 is hereby modified from Rs.35,08,000/- to
Rs.15,33,000/- with interest at the rate of 7.5% p.a. from the date of the
petition, till the date of realisation. The first claimant, being the wife of the
deceased is entitled to a sum of Rs.6,00,000/- with accrued interest and the
other claimants, who are the sons of the deceased, are entitled to their
respective shares (Rs.1,86,600/- each of the claimants)from the remaining
amount of Rs.9,33,000/- with accrued interest
20. The learned counsel appearing for the Insurance Company
submitted that the entire award amount has already been deposited before the
Tribunal.
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21. In view of the above, the claimants are directed to withdraw
their respective shares in accordance with the apportionment made by this
Court by filing of an appropriation petition before the Tribunal. The
Insurance Company is directed to withdraw the balance amount, if any, by
filing of an appropriate petition before the Tribunal. Consequently,
connected Miscellaneous Petition is closed.
(Dr.G.J.J.) & (M.S.K.J.)
24.09.2025
Index:yes/no
Internet:yes
Speaking order/non speaking order
Neutral citation:yes/no
ari
To
1.The Motor Accidents Claims Tribunal, Subordinate Court, Sankari.
2.United India Insurance Co.Ltd. Muthiah Complex, 2nd Floor, 1170, Mettur
Salai, Erode.
Dr.G.JAYACHANDRAN, J.
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and
MUMMINENI SUDHEER KUMAR,J.
ari
and
and
24.09.2025
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