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2019 DIGILAW 2128 (MAD)

Akilambal v. V. M. Sajan

2019-08-20

ABDUL QUDDHOSE, N.KIRUBAKARAN

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JUDGMENT : N. Kirubakaran, J. 1. The appeal in CMA No. 1734 of 2019 has been preferred by the insurance company against the award of Rs. 3,78,84,640 granted as compensation for the death of one J. Venkat Raghavan aged about 38 years, I.T. Engineer earning about Rs. 35,75,520 per annum in the State of Michigan in the accident occurred on 2.12.2009, when the deceased and his brothers, travelling in Maruti Gypsy driven by its driver Rajasekar, were hit by a van bearing registration No. KL 07-AH 8673 driven rashly and negligently by its driver and the appeal in CMA No. 2584 of 2019 has been preferred for enhancement of the said compensation. 2. Heard Mr. S. Arunkumar, learned counsel for the insurance company, and Ms. Shabnam Banu, learned counsel for the appellant in CMA No. 2584 of 2019, and Mr. J. Franklin, learned counsel for the respondent Nos. 1 to 3 in CMA No. 1734 of 2019. 3. A perusal of the records would reveal that the Tribunal found that the accident occurred because of rash and negligent driving of the van. For coming to the said finding, the Tribunal relied upon the evidence of PW 3-eyewitness who categorically stated about rash and negligent driving of the van and the filing of the F.I.R., viz., Exh. P1 against the driver of the van and rightly found that the accident occurred because of rash and negligent driving of the van. Therefore, the finding rendered by the Tribunal is confirmed. 4. The main contention of Mr. S. Arunkumar, learned counsel for the insurance company, is that the deceased was earning about Rs. 1,99,760 (converted in Indian money value) as per Exh. P21-salary certificate. After deductions as per Exh. P22-statement of earnings and deductions, the monthly income earned by the deceased is $ 4,317.22 (US dollars). As per Exh. P25 the exchange rate of dollar is Rs. 46.27 per dollar. Hence, the total income of the deceased converted in Indian currency would be $ 4,317.22 x Rs. 46.27 = Rs. 1,99,757 rounded off to Rs. 1,99,760. The said determination of Rs. 1,99,760 per month is as per the evidence on record and exhibits and, therefore, the said finding cannot be disturbed. Even though Mr. 46.27 per dollar. Hence, the total income of the deceased converted in Indian currency would be $ 4,317.22 x Rs. 46.27 = Rs. 1,99,757 rounded off to Rs. 1,99,760. The said determination of Rs. 1,99,760 per month is as per the evidence on record and exhibits and, therefore, the said finding cannot be disturbed. Even though Mr. S. Arunkumar, learned counsel for the insurance company, would argue that the accident occurred because of the mechanical defect, viz., breakage of U clamp, the Tribunal rightly rejected the same based on motor vehicle inspection and report and, therefore, this court also agrees with the said finding. 5. The Tribunal rightly added 40 per cent towards future prospects as the age of the deceased was 38 years as per Exh. P11, transfer certificate of the deceased. If 40 per cent is added, the annual income would be Rs. 33,55,968 [Rs. 1,99,760 + 40 per cent (Rs. 79,904)]. Income tax has to be deducted as per the rates applicable for the year 2008-2009 and thus, the income tax deductions are as follows: 2008 – 2009 Rs.1,10,001/- No Tax Rs.1,10,001 to 1,50,000/- Tax 10% Rs.40,000 x 10/100 = Rs.4,000/- Rs.1,50,000 to 2,50,000/- Tax 20% Rs.1,00,000 x 20/100 = Rs.20,000/- Above Rs.2,50,000/- Tax 30% Rs.31,05,968 x 30/100 = Rs.9,31,790/- Rs.33,55,968 - Rs.9,55,790 (Tax) = Rs.24,00,178/- 6. The Tribunal applied multiplier 15' whereas Mr. S. Arunkumar relied upon the judgment of United India Insurance Co. Ltd. v. Patricia Jean Mahajan, 2002 ACJ 1441 (SC) and would urge this court to adopt multiplier 13' taking into consideration the differences in the two currencies and the spending rate in two different countries. However, Ms. Shabnam Banu, learned counsel for the appellant in CMA No. 2584 of 2019, would submit that the Tribunal rightly applied multiplier 15' as per Sarla Verma's case, 2009 ACJ 1298 (SC) and there is no occasion for reducing the same. Even though there is no straight-jacket formula, this court has to balance the rights of the parties and, therefore, instead of multiplier 15' this court deems it fit to adopt multiplier 14'. 7. If multiplier 14' is adopted, loss of income would be Rs. 3,36,02,492 (Rs. 24,00,178 x 14). Further, the Tribunal rightly deducted 1/4th towards personal expenses since the size of the family is 4 and after 1/4th deduction, the loss of income would be Rs. 2,52,01,869. 8. Rs. 7. If multiplier 14' is adopted, loss of income would be Rs. 3,36,02,492 (Rs. 24,00,178 x 14). Further, the Tribunal rightly deducted 1/4th towards personal expenses since the size of the family is 4 and after 1/4th deduction, the loss of income would be Rs. 2,52,01,869. 8. Rs. 40,000 awarded towards loss of consortium, Rs. 15,000 awarded towards loss to estate, Rs. 15,000 awarded towards funeral expenses, Rs. 10,000 awarded towards transportation are all confirmed. However, Rs. 50,000 awarded towards loss of love and affection is too negligible and, therefore, this court enhances the same to Rs. 75,000 each to the minor children and Rs. 50,000 to the mother which sums up to Rs. 2,00,000. Therefore, the sum of Rs. 3,78,84,640 awarded by the Tribunal is modified as follows: SI. No. Head Amount (Rs.) 1. Loss of Income 2,52,01,869/- 2. Loss of Love and affection 2,00,000/- 3. Loss of Consortium 40,000/- 4. Funeral Expenses 15,000/- 5. Loss of estate 15,000/- 6. Transportation 10,000/- Total 2,54,81,869/- 9. Hence, compensation of Rs. 3,78,84,640 is reduced to Rs. 2,54,81,869. The interest awarded by the Tribunal at the rate of 7.5 per cent per annum is confirmed. The respondent Nos. 1 to 3, widow and children of the deceased in CMA No. 1734 of 2019, are entitled to Rs. 2,00,00,000 and respondent No. 4, mother of the deceased in the said appeal, is entitled to Rs. 54,81,869. 10. The insurance company is directed to deposit the entire award amount as per the order of this court before the Tribunal along with interest and costs after deducting the amount, if any, already deposited within a period of four weeks from the date of receipt of a copy of this order. On such deposit being made, the Tribunal is directed to transfer the shares of the major claimants to their respective accounts through RTGS within a period of one week except the shares of the minors which shall be deposited in the interest bearing fixed deposit in any one of the nationalised banks until they attain majority. 11. In the result, the appeal filed by the insurance company in CMA No. 1734 of 2019 is partly allowed by reducing the compensation from Rs. 3,78,84,640 to Rs. 2,54,81,869 and the appeal filed by the claimant in CMA No. 2584 of 2019 is allowed by enhancing the share of the appellant from Rs. 3,78,848 to Rs. 11. In the result, the appeal filed by the insurance company in CMA No. 1734 of 2019 is partly allowed by reducing the compensation from Rs. 3,78,84,640 to Rs. 2,54,81,869 and the appeal filed by the claimant in CMA No. 2584 of 2019 is allowed by enhancing the share of the appellant from Rs. 3,78,848 to Rs. 54,81,869, which has to be paid out of the total compensation of Rs. 2,54,81,869. Out of the remaining amount of Rs. 2,00,00,000, the respondent No. 1 in CMA No. 1734 of 2019 who is the wife of the deceased is entitled to a sum of Rs. 1,00,00,000 and the respondent Nos. 2 and 3 in CMA No. 1734 of 2019 who are the minor children of the deceased are entitled to a sum of Rs. 50,00,000 each. As far as the share of the minor claimants is concerned, the same shall be deposited in interest bearing fixed deposit in any one of the nationalised banks till they attain majority. The respondent No. 1-mother is permitted to withdraw interest accruing on such deposit once in three months. No costs.