CMA(MD)/327/2018 of M/S.CHOLAMANDALAM Vs MANI on 2 November 2026

JUDGMENT

The third respondent in M.C.O.P. No.430 of 2015, on the file of the Motor Accident Claims Tribunal, Special District Judge, Tiruchirappalli, has filed the present appeal in C.M.A.(MD).No.327 of 2018, challenging the award passed in M.C.O.P. No.430 of 2015 dated 06.12.2017.

2. Facts of the case:

2.1. The deceased, Janagaraj, was riding his two-wheeler bearing Reg No.TN-48-U-6145, on 15.01.2015 at about 9.30 a.m. on Kumulur Road. While he was so riding, the vehicle (bus) bearing Registration No.TN-48-L-1786, insured with the appellant Insurance Company, came from behind at a high speed and hit the two-wheeler ridden by the deceased. As a result, he sustained injuries and subsequently died in the hospital.

2.2. The deceased was a Diploma holder in Mechanical Engineering and was working as a welder. He was aged about 21 years and was earning more than Rs.20,000/- per month. Therefore, his parents filed the claim petition claiming compensation of Rs.20,00,000/-.

2.3. The Insurance Company filed its counter denying the manner of the accident, the negligence attributed to the driver of the offending vehicle and the quantum of compensation claimed by the claimants.

2.4. In order to prove their case, on the side of the claimants P.Ws.1 and 2 were examined and Exs.P1 to P15 were marked. On the side of the respondents, neither any witness was examined nor any document was marked.

3. Findings of the Tribunal:

3.1. The Tribunal, after considering the entire evidence available on record, fixed the negligence on the driver of the offending vehicle and awarded a sum of Rs.18,04,144/- with interest at the rate of 7.5% per annum from the date of petition, by award dated 06.12.2017 on the following heads: Sl.No. Heads Amount in Rs.

Loss of Dependency 15,84,144/-

Funeral and Transportation Expenses 20,000/-

Love and affection for the petitioner 2,00,000/- Total 18,04,144/-

3.2. Aggrieved by the said award, the Insurance Company has filed the present appeal.

4. Submissions of the learned counsel appearing for the appellant/Insurance Company:

4.1. The learned counsel appearing for the Insurance Company would submit that the Tribunal, while computing the loss of dependency, had deducted only one-third towards the personal and living expenses of the deceased, though the deceased was a bachelor and, as per the principles laid down by the Hon'ble Supreme Court in the case of National Insurance Company Limited v. Pranay Sethi, 50% ought to have been deducted. It is further submitted that the Tribunal had awarded a sum of

Rs.2,00,000/- towards love and affection, which is contrary to the principles laid down in Pranay Sethi case. Hence, the learned counsel sought reduction of the compensation.

5. Submissions of the learned counsel appearing for the third respondent: Per contra, the learned counsel appearing for the claimants would submit that, though the Tribunal had deducted one-third towards personal expenses, 50% ought to have been deducted considering that the deceased was a bachelor. However, the Tribunal had awarded only 10% towards future prospects, whereas, considering the age of the deceased, 40% ought to have been awarded in terms of the decision in Pranay Sethi case. Hence, the learned counsel sought redetermination of the compensation.

6. This Court considered the rival submissions and perused the entire records.

7. The point for determination in this appeal is:

7.1. “Whether the compensation awarded by the Tribunal requires modification?”

8. Discussion and findings:

8.1. This Court has carefully perused the evidence of P.W.1, who has clearly deposed regarding the occupation of the deceased. This Court also perused the driving licence and other documents produced to establish the educational

qualification of the deceased. Ex.P6 establishes that the deceased had completed a Diploma in Mechanical Engineering.

8.2. Considering the oral and documentary evidence available on record, this Court finds that the Tribunal was justified in fixing the monthly income of the deceased at Rs.10,000/-. The same is also in consonance with the principles laid down by this Court in [2016 (1) TN MAC 90].

8.3. As regards future prospects, the Tribunal had awarded only 10%. The same is not sustainable in view of the law laid down by the Hon'ble Supreme Court in Pranay Sethi case. Considering the age of the deceased as 21 years, 40% has to be added towards future prospects. Accordingly, the monthly income of the deceased is re-determined at Rs.14,000/- (Rs.10,000/- + 40%).

8.4. Since the deceased was a bachelor, 50% of the income has to be deducted towards his personal and living expenses. Applying the multiplier of 18, the loss of dependency is calculated as follows: Rs.14,000/- × 12 × 18 × 1/2 = Rs.15,12,000/-.

8.5. The Tribunal had awarded Rs.20,000/- towards funeral and Transport expenses. This Court finds the said amount to be reasonable. A sum of Rs.80,000/- is awarded towards loss of love and affection instead of Rs.2,00,000/- and a sum of Rs.10,000/- towards loss of estate is awarded.

9. Conclusion:

9.1. Accordingly, the compensation is re-determined as follows: Sl.N o. Heads Award

of Tribunal Requantified by this Court Status

Loss of Dependency 15,84,144/- 15,12,000/- Reduced

Funeral and Transportation Expenses 20,000/- 20,000/- Confirmed

Love and affection for the petitioners 2,00,000/- 80,000/- Reduced

Loss of estate ---- 10,000/- Awarded Total 18,04,144/- 16,22,000/- Reduced

9.2. Thus, the compensation is re-determined at Rs.16,22,000/-. Accordingly, the award of the Tribunal is reduced from Rs.18,04,144/- to Rs.16,22,000/-.

10. Result:

10.1. In the result, this Civil Miscellaneous Appeal is partly allowed.

10.2. The award dated 06.12.2017 in M.C.O.P.No.430 of 2015 on the file of the Motor Accident Claims Tribunal, Special District Court, Tiruchirappalli is modified and the compensation is reduced from Rs.18,04,144/- to Rs.16,22,000/- together with interest at the rate of 7.5% per annum from the date of the claim petition.

10.3. The insurance company is directed to deposit the modified award amount of Rs.16,22,000/-, together with interest at the rate of 7.5% per annum from the date of the claim petition, within a period of eight weeks from the date of receipt

of a copy of this judgment.

10.4. On such deposit, the claimants are entitled to withdraw the same equally as per the Tribunal Award.

10.5. If the insurance company has already deposited any amount in excess of the modified award amount, it is permitted to withdraw the excess amount. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed. 02-11-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No sbn

To

1. The Motor Accident Claims Tribunal, Special District Court, Tiruchirappalli.

2. The Section Officer, V.R.Section, Madurai Bench of Madras High Court, Madurai.

K.K.RAMAKRISHNAN, J. sbn CMA(MD) No. 327 of 2018 02-11-2026