(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, pleased to enhance the compensation amount made in Judgement and decree dated 03.11.2020 made in M.C.O.P.No.369 of 2019 on the file of the MACT and Additional District Court, Hosur by allowing this CMA.)
1. This appeal has been filed against the award passed by MACT and Additional District Court, Hosur, in M.C.O.P.No.369 of 2019 dated 03.11.2020, wherein the claimants are seeking for enhancement of compensation.
2. The first claimant is the wife and the second claimant is the minor daughter of the deceased Prem Kumar. The third and fourth respondents are the parents of the deceased. The case of the claimants is that on 09.03.2018, the deceased Prem Kumar was returning back in his two-wheeler from Hosur and at about 17.30 hours near Barandur Bus Stop, the offending vehicle which was a car belonging to the first respondent was driven in a rash and negligent manner and it dashed on the two-wheeler. As a result of which, the deceased was thrown out of the vehicle and he sustained fatal injuries and died on the spot. The First Information Report came to be registered in Cr.No.109 of 2018 against the owner of the offending vehicle. It is under these circumstances, the Claim Petition came to be filed before the Tribunal.
3. The Tribunal, on considering the facts and circumstances of the case and on appreciation of evidence came to the conclusion that the accident on taken place only due to the rash and negligent driving on the part of the driver of the offending vehicle.
4. The Tribunal having rendered the above finding, fixed the total compensation in M.C.O.P.No.369 of 2019 at Rs.26,09,000/- under the following heads:-
S.I.No. Heads Calculation
Annual Income (Rs.15,000 x 12) Rs.1,80,000/-
Less-personal expenses 1/5th of income – Rs.36,000/- Rs.1,44,000/-
Compensation for loss of dependency after multiplier of ‘16’ is applied (As per Sarala Verma case) Rs.23,04,000/-
2. Loss of love and affection (Rs.40,000/- each) Rs.1,60,000/-
3. Loss of consortium (1st petitioner) Rs.20,000/-
4. Transportation Rs.10,000/-
5. Funeral expenses Rs.75,000/-
6. Loss estate Rs.40,000/-
Total Compensation Awarded (by adding Sl. Nos. 1 to 6) Rs.26,09,000/-
5. The above compensation amount was directed to be paid along with interest at the rate of interest 7.5 % per annum. Aggrieved by the same, the present Appeal has been filed before this Court by the claimants seeking for enhancement of compensation.
6. Heard the learned counsel for appellants / claimants and the learned counsel for respondents. This Court has carefully considered the submissions made on either side and also went through the award passed by the Tribunal.
7. The bone of contention is regarding the annual income that was fixed by the Tribunal while calculating the compensation under the head of loss of dependency. The claimants by relying upon Ex.P8, Ex.P11, Ex.P13 and Ex.P.14 claimed that the deceased was earning a sum of Rs.50,000/- every month. The Tribunal on appreciation of evidence fixed the annual income at Rs.15,000 /- including future prospects. In the considered view of this Court, this is clearly on the lower side and this Court is inclined to fix the notional monthly income at Rs.16,000/- to which 40% will be added towards future prospects. The Tribunal has deducted 1/5th towards personal expenditure of the deceased and it will be appropriate to deduct 1/3 towards personal expenditure of the deceased. Consequently, the compensation under the head of loss of dependency is calculated as follows:-
Monthly Income : Rs. 16,000.00
Add: 40% future prospects : Rs. 6,400.00
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Rs. 22,400.00
Less: Personal expenses (1/3) : Rs. 7466.00
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Rounded off : Rs. 14,934.00 x 12
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Annual income : Rs. 1,79,208.00
Multiplier : x 16
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Loss of income :
Rs.28,67,328.00/-
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8. The Tribunal has granted a sum of Rs.1,60,000/- under the head of loss of love and affection and further sum of Rs.20,000/- under the head of loss of consortium for the first claimant. Having granted a sum of Rs.1,60,000/- for the wife, minor child and the parents of the deceased, a separate sum of Rs.20,000/- under the head of loss of consortium cannot be granted to the first claimant. Hence, the same is set aside.
9. The Tribunal has granted a sum of Rs.75,000/- towards funeral expenses and the same is reduced to Rs.15,000/-. Similarly, the Tribunal has granted a sum of RS.40,000/- towards loss of estate and the same is reduced to Rs.15,000/-.
10. In the light of the above discussion, the compensation fixed by the Tribunal is modified as follows:-
S.I.No. Heads Calculation
1. Loss of Dependency Rs.28,67,328/-
2. Loss of love and affection (Rs.40,000/- each) Rs.1,60,000/-
3. Transportation Rs.10,000/-
4. Funeral expenses Rs.15,000/-
5. Loss estate Rs.15,000/-
Total Compensation Awarded Rs.30,67,328/-
11. The compensation awarded by the Tribunal at Rs.26,09,000/- is enhanced to Rs.30,67,328/-. The Insurance Company is directed to deposit the enhanced compensation of Rs.4,58,328/-, less the amount already deposited, together with interest at 7.5% p.a. from the date of claim petition till the date of deposit within a period of six (6) weeks from the date of receipt of this judgment. Insofar as the enhanced compensation is concerned, the appellants / claimants will not be entitled for interest for the period of delay of 946 days as was ordered by this Court in C.M.P.No.3713 of 2026, dated 03.03.2026. Insofar as the enhanced compensation is concerned, the deficit court fee, if not paid, shall be paid by the appellants / claimants. The other directions issued by the Tribunal with regard to the mode of payment of compensation remains unaltered. The guidelines issued by the Division Bench of this Court in C.M.A.No.2064 of 2026, dated 08.07.2026 shall be strictly complied with respect to disbursement of the compensation amount to the claimants.
12. In the result, the Civil Miscellaneous Appeal is partly allowed in the above terms. No costs.
