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CDJ 2026 MHC 7285 print Preview print Next print
Court : Before the Madurai Bench of Madras High Court
Case No : C.M.A.(MD). No. 1624 of 2010 & M.P.(MD). No. 3 of 2010
Judges: THE HONOURABLE MR. JUSTICE K.K. RAMAKRISHNAN
Parties : National Insurance Co. Ltd., Rep. by Divisional Manager, Tirunelveli Versus K. Ganesh & Others
Appearing Advocates : For the Petitioner: V. Sakthivel, Advocate. For the Respondents: R1, K.N. Thambi, R2, G. Solairaja, R5, M. Prakash, Advocates, R3 & R4, Dispensed.
Date of Judgment : 28-09-2026
Head Note :-
Motor Vehicles Act, 1988 - Section 173 -
Summary :-
1. Statutes / Acts / Rules / Orders / Regulations, and Sections Mentioned:
- Section 173 of Motor Vehicles Act, 1988

2. Catch Words:
- Compensation
- Negligence
- Overlapping
- Loss of earning
- Permanent disability
- Interest
- Civil Miscellaneous Appeal

3. Summary:
The appellant‑insurance company filed a civil miscellaneous appeal under Section 173 of the Motor Vehicles Act, 1988 against the award of Rs. 2,40,000 by the Motor Accident Claims Tribunal. The claim arose from a road accident involving a government bus and an insured vehicle, resulting in injuries to the claimant. The Tribunal had awarded compensation on several heads, including partial loss of income, medical expenses, permanent disability, loss of earning and loss of earning capacity. The appellant contended that the award contained overlapping amounts, particularly between loss of earning and loss of earning capacity. The court examined the award and found an overlap of Rs. 40,000, deeming it unjustified. Consequently, the court reduced the total compensation to Rs. 2,00,000 with interest at 7.5% per annum from the date of filing. The insurance company was directed to deposit the reduced amount within eight weeks. No costs were awarded, and the connected petition was closed.

4. Conclusion:
Appeal Allowed
Judgment :-

(Prayer:- Civil Miscellaneous Appeal is filed under Section 173 of Motor Vehicles Act, 1988 to set aside the fair and decreetal order dated 24.04.2006 and made in M.C.O.P.No.80 of 2004 on the file of the Motor Accident Claims Tribunal (Sub Judge), Kuzhithurai.)

1. The fifth respondent in M.C.O.P. No.80 of 2004 on the file of the Motor Accidents Claims Tribunal, Kuzhithurai, has filed the present Civil Miscellaneous Appeal, challenging the quantum of compensation awarded by the Tribunal in M.C.O.P. No.80 of 2004, vide the impugned order dated 24.04.2006.

2. Facts of the case:

                     2.1.The claimant in M.C.O.P.No.80 of 2004 stated in the claim petition that on 22.02.2004, while he was travelling in a Government bus bearing Registration No.TN-32-N-1239, the driver of the bus was driving the vehicle without following the traffic rules. At that time, the offending vehicle, namely, the appellant-insured vehicle bearing Registration No.WB-41-7285, came in the opposite direction and dashed against the said tourist van. Due to the accident, the claimant sustained injuries and was admitted in the hospital, where he underwent treatment for the injuries sustained by him. Hence, he filed the claim petition claiming compensation of Rs.3,00,000/-.

                     2.2.The Insurance Company filed its counter denying the allegations made in the claim petition and disputed the quantum of compensation as well as the negligence alleged therein. The Transport Corporation also filed its counter denying negligence on the part of the driver of the Transport Corporation bus.

                     2.3.Before the Tribunal, the claimant examined P.W.1 and P.W.2. On the side of the respondents, R.W.1 to R.W.3 were examined. Exs.P1 to P7 were marked on the side of the claimant and Exs.R1 and R2 were marked on the side of the respondents.

3. Findings of the Tribunal:

                     3.1.After considering the entire evidence available on record, the Tribunal fixed negligence on both the vehicles and awarded a sum of Rs.2,40,000/- as compensation with interest at 7.5% per annum from the date of filing of the claim petition. Challenging the said award, the Insurance Company has preferred the present appeal.

4. Submissions of the learned counsel for the appellant/insurance company:

                     4.1.The learned counsel for the appellant /Insurance Company, without disputing the finding regarding negligence, confined his submissions only to the quantum of compensation. The learned counsel submitted that the Tribunal had awarded overlapping amounts under different heads. In particular, a sum of Rs.30,000/- was awarded towards permanent disability; thereafter, a further sum of Rs.40,000/- was awarded towards loss of earning; and another sum of Rs.40,000/- was awarded towards loss of earning capacity. Hence, the learned counsel submitted that the said overlapping compensation requires to be deleted or reduced.

5. Submissions of the learned counsel appearing for the respondent:

                     5.1.The learned counsel appearing for the claimant submitted that the Tribunal was justified in awarding compensation under the respective heads and that the amounts awarded towards permanent disability, permanent loss of earning and loss of earning capacity were legally sustainable.

6. This Court has carefully considered the submissions made on either side and perused the award passed by the Tribunal and the records available before it.

7. The following points arise for consideration of this appeal:

                     (i)Whether the learned Tribunal Judge is correct in fixing the compensation as awarded?

8. Discussion and findings:

                     8.1.The Tribunal awarded a sum of Rs.2,40,000/- as compensation on the following heads, together with interest at the rate of 7.5% per annum:

Sl.No

Heads

Award in Rs.

1

Partial Loss of Income

50,000/-

2

Transport expenses

5,000/-

3

Nourishment

5,000/-

4

Medical expenses

50,000/-

5

Loss of pain and sufferings

60,000/-

6

Permanent Disability (15%)

30,000/-

7

Loss of earning capacity

40,000/-

Total

2,40,000/-

                     8.2.On consideration of the above compensation under various heads, this Court finds that there is an element of overlapping in the award of compensation towards permanent disability, loss of earning and loss of earning capacity. The Tribunal had awarded a sum of Rs.30,000/- towards permanent disability and Rs.40,000/- towards loss of earning, apart from awarding another sum of Rs.50,000/- towards partial loss of income. Thus, awarding a total sum of Rs.80,000/- under the heads relating to loss of earning and loss of earning capacity is not justified in the facts and circumstances of the case. Therefore, this Court is inclined to reduce a sum of Rs.40,000/- from the compensation awarded by the Tribunal. Accordingly, the compensation awarded by the Tribunal is reduced from Rs.2,40,000/- to Rs.2,00,000/-, with interest at 7.5% per annum from the date of filing of the claim petition.

9. Result:

                     9.1.In the result, the Civil Miscellaneous Appeal is partly allowed. 9.2.The award dated 24.04.2006 in M.C.O.P.No.80 of 2004, on the file of the Motor Accident Claims Tribunal, Special Sub Judge, Thanjavur is modified and the compensation is reduced from Rs.2,40,000/- to Rs.2,00,000/- together with interest at the rate of 7.5% per annum from the date of the claim petition.

                     9.3.The Insurance Company is directed to deposit the reduced award amount of Rs.2,00,000/-, together with accrued interest of 7.5% per annum from the date of the claim petition, if not already deposited, within a period of eight weeks days from the date of receipt of a copy of this judgment.

                     9.4.On such deposit, the claimant is permitted to withdraw the same in accordance with law.

                     9.5.If the Insurance company has already deposited any amount in excess of the modified amount, it is permitted to withdraw the excess amount.

There shall be no order as to costs. Consequently, connected Miscellaneous Petition is closed.

 
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