Madras High Court
United India Insurance Co. Ltd vs Umamaheshwari on 6 September, 2022
Author: P.T. Asha
Bench: P.T. Asha
C.M.A.No.3500 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.09.2022
CORAM
THE HONOURABLE Ms. JUSTICE P.T. ASHA
C.M.A.No.3500 of 2017
and
C.M.P.No.22253 of 2017
United India Insurance Co. Ltd.,
Divisional Office, No.I,
104-A, Peramanur Main Road,
Salem – 7. ... Appellant
Vs
1.Umamaheshwari
2.Minor.Niharika
(Minor is rep. by her NF & Mother Umamaheshwari)
3.R.Selvi
4.K.Ramasamy ... Respondents
Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor
Vehicles Act, 1988 against the Judgment and Decree dated 07.03.2016
made in M.C.O.P.No.1150 of 2013 on the file of the MACT (Spl. District
Judge) at Salem.
1/7
https://www.mhc.tn.gov.in/judis
C.M.A.No.3500 of 2017
For Appellant : M/s.I.Malar
For R1, R3 & R4 : Mr.S.P.Yuvaraj
For R2 : Minor rep. by R1
JUDGEMENT
The Insurance Company as challenged the award passed by MACT (Spl. District Judge) at Salem in M.C.O.P.No.1150 of 2013 only on the ground of quantum.
2.The learned counsel for the appellant/Insurance Company would submit that the deceased was aged about 33 years, however, the Tribunal has adopted 50% towards future prospects as against 40%. She would also submit that a sum of Rs.50,000/- has been granted under the head of loss of consortium to the first respondent and Rs.50,000/- has been granted under the head of loss of love and affection to the second respondent, daughter of the deceased, which has to be reduced.
3.On the other hand, the learned counsel appearing for the respondents would submit that the Tribunal has erred in deducting only 1/3rd 2/7 https://www.mhc.tn.gov.in/judis C.M.A.No.3500 of 2017 towards the personal expenses overlooking the fact that there are four claimants.
4.Heard the learned counsels on both side and perused the materials available on record.
5.As rightly pointed out by the learned counsel for the appellant, the Tribunal has erred in taking 50% towards future prospects in the place of 40%. Therefore, the monthly income, which is Rs.19,940/- together with the future prospects at 40% would be a sum of Rs.27,916/-. Totally, four claimants are there, out of them, the dependants are only two, namely respondents 1 and 2. Therefore, the Tribunal below has rightly deducted 1/3rd towards personal expenses. Therefore, the monthly contribution to the family works out to a sum of Rs.18,611/- and the annual income would be a sum of Rs.2,23,332/-. After deducting 10% toward income tax, the annual income would be a sum of Rs.2,00,999/-. Taking into the age of the deceased, appropriate multiplier would be 16. Therefore, the amount under 3/7 https://www.mhc.tn.gov.in/judis C.M.A.No.3500 of 2017 the head of loss of dependency would be a sum of Rs.32,15,984/-, which is worked out as follows :-
Loss of Income Amount in Rs.
Notional income (Per month) 19,940
Add: Future Prospects (Rs.19,940/- x 40%) (Per month) 7,976
27,916
Less: Personal expenses (1/3rd) (Rs.27,916/- x 1/3rd) 9,305
18,611
Notional income (Per annum) (Rs.18,610/- x 12) 2,23,332
Less : Income tax (10%) 22,332
2,00,999
Multiplier 16
Loss of income (Rs.2,00,998 x 16) 32,15,984
Total 32,15,984
6.A sum of Rs.50,000/- each has been granted under the heads of loss of consortium and loss of love and affection, which is reduced to a sum of Rs.40,000/- each. The Tribunal has granted a sum of Rs.20,000/- towards loss of love and affection to the respondents 3 and 4, which stands enhanced to a sum of Rs.80,000/-. Further, a sum of Rs.15,000/- each is granted under the heads of loss of estate and funeral expenses is also granted. Therefore, the modified compensation payable to the respondents is as follows: 4/7
https://www.mhc.tn.gov.in/judis C.M.A.No.3500 of 2017 Heads Awarded by the Awarded by this Tribunal Court (Amount (Amount in Rs.) in Rs.) Loss of income 34,45,760 32,15,968 (reduced) Loss of love and affection (for 20,000 80,000 respondents 3 and 4) (enhanced) Loss of consortium 50,000 40,000 (reduced) nd Loss of love and affection (for 2 50,000 40,000 respondent) (reduced) Funeral expenses 25,000 15,000 Loss of estate 15,000 Total 35,90,760 34,05,968
7.The appeal is partly allowed and the Award of the Tribunal is modified, reducing the compensation amount from Rs.35,90,760/- to Rs.34,05,968/-. The Appellant-Insurance Company is directed to deposit the said amount to the credit of M.C.O.P.No.1150 of 2013 along with interest at the rate of 7.5% per annum from the date of claim petition till the date of deposit and costs as awarded by the Tribunal, less, the amount, if any already deposited, within a period of six weeks from the date of receipt of a copy of this judgment. The said amount shall be apportioned amongst the 5/7 https://www.mhc.tn.gov.in/judis C.M.A.No.3500 of 2017 claimants as per the Award of the Tribunal. On such deposit being made, the respondents 1, 3 & 4 are permitted to withdraw the award amount falling to their share, along with proportionate accrued interest and costs as awarded by the Tribunal, less, the amount, if any already withdrawn, by filing necessary application before the Tribunal. The share of the minor-second respondent shall be deposited in any one of the nationalized bank till she attain majority and the first respondent shall be permitted to withdraw quarterly interest from the said amount for the maintenance of the minor. There shall be no order as to costs in the present appeal. Consequently, the connected miscellaneous petition is closed.
06.09.2022 Index : Yes/No Speaking order/non-speaking order sp To
1.The MACT (Spl. District Judge) at Salem.
2.The Section Officer, V.R.Section, High Court, Madras. 6/7 https://www.mhc.tn.gov.in/judis C.M.A.No.3500 of 2017 P.T.ASHA, J., sp C.M.A.No.3500 of 2017 06.09.2022 7/7 https://www.mhc.tn.gov.in/judis