CMA(MD)/475/2024 of The Oriental Insurance Company Limited Vs Lakshmi on 2 November 2026

JUDGMENT

The second respondent-Insurance Company in M.C.O.P. No.484 of 2018, on the file of the Motor Accident Claims Tribunal, Special Sub Court dealing with Motor Accident Claims Cases, Tirunelveli has filed this C.M.A.(MD).No.475 of 2024, challenging the award dated 22.11.2023 passed in M.C.O.P. No.484 of 2018.

2. Facts of the case:

2.1. The claimant in M.C.O.P. No.484 of 2018 filed the claim petition under Section 163-A of the Motor Vehicles Act, 1988, claiming compensation of Rs.25,00,000/- with interest at 12% per annum from the date of filing of the petition till the date of payment.

2.2. According to the claimant, she is the mother of the deceased Ayyappan. On 29.09.2017, at about 9.30 p.m., the deceased was travelling as a passenger in an auto bearing Registration No.TN-72-AC-3208, belonging to the second respondent herein and insured with the appellant-Insurance Company. When the said vehicle was proceeding on the Sankarankoil Road, another auto bearing Registration No.TN-72-P-9667 came from the opposite direction and dashed against the auto in which, the deceased was travelling. Due to the impact, the deceased fell down and sustained multiple injuries. He was immediately taken to the Government hospital, where he succumbed to the injuries.

2.3. The deceased was aged about 16 years at the time of the accident and was studying in Plus One in a Higher Secondary School, Tirunelveli. According to the claimant, he was proceeding to school when the accident occurred. The claimant, being the mother of the deceased, filed the claim petition under Section 163-A of the Motor Vehicles Act, impleading the insurer of the vehicle involved in the accident. A First Information Report was also registered against the driver of the auto.

2.4. Before the Tribunal, the claimant was examined as P.W.1, and the relevant documents were marked as Exs.P.1 to 6 on the side of the claimant. On behalf of the respondents, R.W.1, a police officer, was examined and Exs.R1 and R2 were marked.

3. Findings of the Tribunal:

3.1. Upon consideration of the oral and documentary evidence, the Tribunal awarded a sum of Rs.9,64,500/- as compensation, together with interest at 7.5% per annum from the date of filing of the claim petition till the date of realization. Sl.No Heads Amount in Rs.

Loss of Income 9,60,000/-

Loss of Estate 2,500/-

Funeral Expenses 2,000/- Total Compensation Awarded Rs.9,64,500/-

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

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

4.1. The learned counsel appearing for the appellant-Insurance Company submitted that the claim petition was filed specifically under Section 163-A of the Motor Vehicles Act and that the claimant had not sought any amendment of the claim petition so as to invoke Section 166 of the Act. However, the Tribunal had

proceeded to apply the principles governing a claim under Section 166 and awarded a sum of Rs.9,64,500/-.

4.2. According to the learned counsel, such computation is not sustainable in a claim confined to Section 163-A. It was therefore submitted that the liability of the appellant could only be determined in accordance with the parameters applicable to the claim under Section 163-A and that the compensation should be restricted to Rs.4,84,530/-.

5. Though notice has been served on the respondents/claimants, there is no representation on their behalf.

6. This Court has considered the submissions made on either side and perused the materials available on record.

7. Discussion and Findings:

7.1. Admittedly, the claim petition was filed under Section 163-A of the Motor Vehicles Act. It is also not in dispute that the claim petition was not amended at any stage so as to convert or pursue the claim under Section 166 of the Act. Therefore, the compensation has to be determined within the scope and parameters of the provision under which the claim petition was instituted.

7.2. Section 163-A provides for payment of compensation on a structured formula basis in accordance with the Second Schedule, subject to the statutory framework governing such claims. In the present case, the Tribunal, while considering a claim specifically instituted under Section 163-A, has adopted the principles applicable to the determination of compensation under Section 166 and has consequently arrived at a sum of Rs.9,64,500/-.

7.3. When the claimant has consciously invoked Section 163-A and the claim petition has remained unamended throughout the proceedings, the compensation cannot be enhanced by adopting the principles applicable to a claim under section

166. The nature of the statutory remedy invoked by the claimant has to be kept in view while determining the quantum of compensation.

7.4. In the circumstances of the present case, this Court is of the view that the compensation awarded by the Tribunal requires modification. The sum of Rs.9,64,500/- awarded by the Tribunal is therefore reduced to Rs.4,84,530/-, which is the amount permissible on the basis of the computation applicable to the claim under Section 163-A. Accordingly, the award of the Tribunal is modified from Rs.9,64,500/- to Rs.4,84,530/-

8. Result:

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

8.2. The award dated 22-11-2023 in M.C.O.P. No. 484 of 2018, on the file of the Motor Accidents Claims Tribunal cum Special Sub Court dealing with MCOP Cases, Tirunelveli is hereby modified and the compensation is reduced from Rs.9,64,500/- to Rs.4,84,530/- together with interest at the rate of 7.5% per annum from the date of the claim petition.

8.3. The appellant-Insurance Company is directed to deposit the modified award amount of Rs.4,84,530/-, together with the interest at the rate and from the date as directed by the Tribunal, if not already deposited, within a period of eight weeks from the date of receipt of a copy of this judgment.

8.4. On such deposit, the claimant is entitled to withdraw the amount in accordance with the directions issued by the Tribunal.

8.5. If the Insurance Company has already deposited and the claimant has withdrawn any amount in excess of the modified award, the appellant-Insurance Company is at liberty to seek refund of the excess amount, together with the proportionate accrued interest, in accordance with law.

No costs. Consequently, the connected Civil Miscellaneous Petition is closed. 02.11.2026 NCC :Yes/No Index :Yes/No Internet :Yes/No AKM To

1. The Motor Accident Claims Tribunal cum Special Sub Court dealing with MCOP Cases, Tirunelveli.

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

K.K.RAMAKRISHNAN,J. AKM C.M.A.(MD).No.475 of 2024 and C.M.P (MD)No.6336 of 2024 Dated: 02.11.2026