Saraladevi & Ors vs Div.Mgr.,M/S.Royal Sundaram ...

2. The necessary relevant facts are stated hereunder to appreciate the case of the appellants with a view and to ascertain whether the appellants are entitled for the enhancement of compensation as prayed in this appeal.

The deceased met with an accident on 28.01.2009 on account of rash and negligent driving of the motor vehicle bearing registration No. TN-23-AF- 0048, which hit the back side of the deceased’s motor cycle. The deceased sustained grievous injuries and succumbed to the same. A post-mortem was conducted on 29.01.2009 and inspection report was filed in CC.No.55 of 2009 before the Court of Judicial Magistrate No. II, Walajahpet by the Inspector of Police against the driver of the offending vehicle. The prosecution has failed to prove the case against the driver beyond reasonable doubt, therefore, the learned Judicial Magistrate had acquitted the driver of the vehicle from the charge framed against him vide order dated 31.05.2010.

4. The Insurance Company filed its counter statement stating that the accident occurred only due to the negligent riding of the two wheeler by the deceased-Vasanthan and that they are not liable to pay the compensation amount as claimed by the appellants.

5. The MACT has conducted an enquiry by giving an opportunity to the parties to adduce evidence in support of their respective claim. Three witnesses (PW-1 to PW-3) were examined on behalf of the appellants and the exhibits were marked as Exs. P-1 to P-15. On behalf of respondents two witnesses RW-1 and RW-2 were examined and exhibits were marked as Exs. R-1 and R-2. The Tribunal on appreciation of pleadings and legal evidence on record came to the right conclusion and held that the accident occurred due to the negligence of the driver of the offending vehicle. Thereafter, on the basis of legal evidence on record the MACT determined the quantum of compensation. For this purpose, the Tribunal has taken the monthly salary of the deceased at Rs.50,809/- as per the salary certificate Exh.P-7. Therefore, his annual income was fixed at Rs.6,09,708/-. The deceased was aged 58 years at the time of the accident and the Tribunal has taken the multiplier as 8. Therefore, the total loss of income of the deceased would be Rs.48,77,664/-. 1/4th of this amount i.e. Rs.12,19,416/- was deducted towards his personal expenses as his dependents are four in number. Hence, the loss of dependency of the appellants was calculated at Rs.36,58,248/-. For funeral expenses, a sum of Rs.5,000/- was awarded. For loss of estate Rs.10,000/- and for loss of consortium to the 1st appellant, a sum of Rs.10,000/- was granted. For loss of love and affection, a sum of Rs.50,000/- was granted to the appellants. Thus, the Tribunal has assessed the total compensation under different heads as mentioned above and passed an award for a sum of Rs.37,33,248/- to the appellants with interest @ 7.5% from the date of petition i.e. 08.06.2009 and further directed the Insurance Company to pay the said amount by indemnifying the owner of the vehicle as the same was insured with it.

7. The High Court, after examining the facts, evidence and circumstances of the case, has held that as per the judgement in Sarla Verma & Ors. vs. Delhi Transport Corporation & Anr.[1] the correct multiplier between the age group of 56-60 should have been 9 since the deceased was 58 years at the time of his death. Further, the High Court held that if the actual salary of Rs.50,809/- is taken into consideration, the annual loss of income of the deceased works out to Rs.6,09,708/- and 10% of the amount is liable to be deducted towards income tax deduction. 10% in the sum of Rs.6,09,708/- comes to Rs.60,970.80 and the same can be rounded off to Rs.61,000/-. If so, the balance amount works out to Rs.5,48,708- (Rs.6,09,708/- minus Rs.61,000/-), rounded off to Rs.5,49,000/- as the annual income of the deceased. Hence, annual loss of income could be fixed at Rs.5,49,000/-. For the first two years, the loss of income would be Rs.10,98,000/- (Rs.5,49,000/- x 2 years). For the balance 7 years, only 50% annual income has to be taken into consideration as notional income, which comes to Rs.19,21,500/- (Rs.2,74,500/- x 7 years). Therefore, the total loss of income works out to Rs.30,19,500/-. Further, the High Court was of the opinion that 1/3rd amount is liable to be deducted towards personal expenses of the deceased. If this amount is deducted out of the annual income of the deceased, the balance amount works out to Rs.20,13,000/- which amounts to a total loss of dependency (Rs.30,19,500/- minus Rs.10,06,500/-). The High Court further held that there is contributory negligence on the part of the deceased which was assessed at 25% which amount would be Rs.5,03,250/-. When this amount was deducted out of Rs.20,13,000/-, the High Court held that the legal heirs of the deceased are entitled to Rs.15,09,750/- towards loss of dependency.

8. Thus, the High Court while partly allowing the Civil Miscellaneous Appeal of the Insurance Company, directed it to deposit the above said amount with an interest at the rate of 7.5% per annum from the date of the petition, within a period of six weeks before the Tribunal after deducting the amount already deposited.

14. In the result, the impugned judgment and order of the High Court is liable to be set aside and accordingly set aside and the Award of the Tribunal is affirmed. Therefore, the appellants shall be entitled to compensation under the following heads:

Thus, the total compensation payable to the appellants/claimants will be Rs.37,33,248/- with interest @ 7.5% per annum from the date of filing of the application till the date of payment. The apportionment of the compensation in favour of the appellants is as per the Award of the Tribunal.

15. Accordingly, we allow this appeal in the above terms. The respondent- Insurance Company shall either pay the compensation by way of demand draft/drafts in favour of the appellants or deposit the same with interest as awarded by the Motor Accidents Claims Tribunal within six weeks from the date of receipt of the copy of this judgment, after deducting the amount already deposited.