CMA(MD)/978/2023 of MANOhARAN Vs TAMIL NADU STATE TRANSPORT CORPORATION on 2 November 2026

J U D G M E N T

The claimants in M.C.O.P. No. 360 of 2019, on the file of the Motor Accident Claims Tribunal-cum-III Additional District Court, Coimbatore, have filed the present C.M.A.(MD).No. 978 of 2023, seeking enhancement of the compensation awarded by the Tribunal by its judgment dated 16.06.2022.

2. Facts of the case:

2.1. The claimants are the parents of the deceased Naresh. At the time of the accident, the deceased was pursuing B.Tech. in Food Technology at Sakthi Engineering College, Coimbatore. On 05.07.2018, at about 10.35 a.m., while he was riding his two-wheeler bearing Registration No. TN-60-AY-5843 on Pappanaickenpalayam Road, Coimbatore, the offending vehicle, namely, the Tamil Nadu State Transport Corporation bus bearing Registration No. TN- 30-N-1322, came from behind in a rash and negligent manner and dashed against the two-wheeler. In the impact, the deceased sustained grievous injuries and was admitted to the hospital, where he succumbed to the injuries.

2.3. The parents of the deceased instituted the claim petition seeking compensation of Rs.50,00,000/- with interest at the rate of 12% per annum, for having lost their son contending that the accident occurred due to the rash and

negligent driving of the Corporation bus driver.

2.4. The Transport Corporation filed its counter, disputing the manner of the accident, the allegation of negligence against its driver and the quantum of compensation claimed by the claimants.

2.5. To substantiate their claim, the claimants examined P.W.1 and P.W.2 and marked Exs.P1 to P15. On the side of the Transport Corporation, its driver was examined as R.W.1, but no documentary evidence was marked.

3. Findings of the Tribunal:

3.1. Upon consideration of the oral and documentary evidence, the Tribunal held that the accident occurred due to the rash and negligent driving of the Corporation bus and awarded compensation of Rs.15,47,000/- by its award dated 16.06.2022. Sl. No. Heads Amounts in Rs.

Loss of Income 15,12,000/-

Loss of Estate 10,000/-

Funeral Expenses 15,000/-

Transportation Expenses 10,000/- Total Compensation Awarded 15,47,000/-

3.2. Aggrieved by the quantum of compensation, the claimants have preferred the present appeal seeking enhancement.

4. Submissions of the learned counsel appearing for the claimants:

4.1. The learned counsel appearing for the claimants would submit that the deceased was pursuing his third year of B.Tech. in Food Technology at Sakthi Engineering College and was a promising student with considerable employment prospects. He had participated in a Tamil literature certificate competition and had also represented at the State level in tennis-ball cricket. The certificates and other documents marked as Exs.P14 and P15, along with the remaining documentary evidence, are relied upon to establish his educational credentials and future prospects.

4.2. The learned counsel would further submit that the Tribunal, while assessing the loss of dependency, fixed the monthly income of the deceased at only Rs.10,000/-, without giving due consideration to his educational qualifications, achievements and the employment opportunities that would

reasonably have been available to him upon completion of his course. He would therefore seek fixation of the monthly income at Rs.15,000/- and a consequential enhancement of the compensation.

5. Submissions of the learned counsel appearing for the respondent/ Transport Corporation:

5.1. Per contra, the learned counsel appearing for the Transport Corporation would submit that the claimants have not produced sufficient material to establish that the deceased would have secured employment to ascertain a particular income. Mere educational qualifications and participation in extracurricular activities, without proof of prospective employment or earnings, would not justify the enhancement sought. He would therefore seek dismissal of the appeal.

6. Point for consideration:

6.1. In view of the rival submissions, the following point arises for consideration: Whether the compensation awarded by the Tribunal requires enhancement by reassessing the notional income of the deceased, having regard to his educational qualifications, crediantials and future employment prospects?

7. Discussion and findings:

7.1. There is no dispute that the deceased was a student pursuing B.Tech. in Food Technology at Sakthi Engineering College, Coimbatore, at the time of the accident. The evidence on record also indicates that he had participated in a Tamil literature certificate competition and had achieved recognition as a State- level tennis-ball cricket player. These circumstances demonstrate that the deceased was pursuing higher education and had prospects of entering employment upon completion of his course.

7.2. The assessment of income in the case of a student who had not yet commenced earning presents a question of reasonable estimation. The absence of an established salary cannot, by itself, result in the loss of dependency being assessed on an unduly low notional income. At the same time, the assessment cannot proceed on speculative assumptions that the deceased would necessarily have secured a particular position or earned a particular salary immediately upon graduation. The proper course is to make a reasonable assessment, having regard to the deceased's educational background, the stage of his studies, his demonstrated abilities and the prevailing economic circumstances.

7.3. The learned counsel for the claimants has relied upon the principles laid down by the Hon'ble Supreme Court in the case of Syed Sadiq Etc. v. Divisional Manager, United India Insurance Co. Ltd., reported in (2014) 2

SCC 735 concerning the assessment of compensation in cases involving persons who had not established actual earnings. The relevant principle is that the assessment must be reasonable and the Court should take account of the circumstances bearing upon the deceased's earning potential. The application of a price or cost index, as indicated by Hon'ble Division Bench of this Court in the case of Aandal & Others v. Avinav Kannan & Another reported in 2019

(1) TNMAC 54 (DB), may also assist in arriving at a realistic assessment.

7.4. In the present case, the Tribunal fixed the monthly income of the deceased at Rs.10,000/-. Having regard to the fact that he was pursuing a professional degree, had completed his third-year examinations and had demonstrated achievements beyond his academic curriculum, this Court is of the view that the notional monthly income fixed by the Tribunal warrants enhancement. However, such enhancement is to be founded on a reasonable assessment of his educational status and potential, and not on an assumption that a particular campus placement or salary was assured.

7.5. Accordingly, the monthly income of the deceased is enhanced from Rs.10,000/- to Rs.15,000/-. By adding 40% towards future prospects, a sum of Rs.6,000/- is added, resulting in a monthly income of Rs.21,000/- for the purpose of calculating the loss of dependency.

7.6. The deceased was a bachelor. Therefore, a deduction of 50% towards

his personal and living expenses is applicable. Having regard to the age of the deceased, the multiplier of 18 is adopted. The loss of dependency is calculated as follows: Rs.21,000 X 1/2 X 18 X 12 = Rs.22,68,000/- 7.7.Accordingly, the loss of dependency is fixed at Rs.22,68,000/-.

7.8. As regards the conventional heads, the parents of the deceased are entitled to compensation towards loss of filial consortium. Applying the principles laid down by the Hon'ble Supreme Court, a sum of Rs.40,000/- is awarded to each parent, totalling Rs.80,000/-. A sum of Rs.15,000/- is awarded towards funeral expenses and Rs.15,000/- towards loss of estate. A further sum of Rs.10,000/- is awarded towards transportation expenses, subject to the evidence and the applicable principles governing such expenses.

7.9. The compensation is therefore recalculated as follows: S.No Heads Amount awarded by the Tribunal (Rs.) Re-quantified amount by this Court (Rs.) Status

Loss

of dependency 15,12,000/- 22,68,000/- Enhanced

Loss of filial consortium to both parents ----- 80,000/- Awarded

Funeral expenses 15,000/- 15,000/- Confirmed

Loss of estate 10,000/- 15,000/- Enhanced

Transportatio n expenses 10,000/- 10,000/- Confirmed Total 15,47,000/- 23,88,000/- Enhanced

7.10. The Tribunal awarded Rs.15,47,000/- by the above reassessment, the compensation is enhanced to Rs.23,88,000/-, resulting in an enhancement of Rs.8,41,000/-.

8. Result:

8.1. In the result, this C.M.A.(MD).No.978 of 2023 is partly allowed.

8.2. The award dated 16.06.2022 passed in M.C.O.P. No.360 of 2019 on the file of the Motor Accident Claims Tribunal (III Additional District Court) Tirunelveli, enhancing the compensation from Rs.15,47,000/- to Rs.23,88,000/-.

8.3. The enhanced compensation shall carry interest at the rate of 7.5% per annum from the date of the claim petition until the date of deposit, excluding any period of delay attributable to the claimants, if applicable.

8.4. The Transport Corporation is directed to deposit the enhanced compensation of Rs.23,88,000/-, together with the applicable interest and costs, if any, within six weeks from the date of receipt of a copy of this judgment, after giving credit to any amount already deposited.

8.5. On such deposit, the claimants are entitled to withdraw the amount in accordance with the apportionment ordered by the Tribunal, subject to the applicable rules. There shall be no order as to costs.

02.11.2026 NCC :Yes/No Index :Yes/No Internet :Yes/No aas To

1. The Motor Accident Claims Tribunal, The III Additional District Court, Tirunelveli.

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

K.K.RAMAKRISHNAN,J. aas C.M.A.(MD).No.978 of 2023