Full Judgment Text
NONREPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7180 OF 2022
[Arising out of SLP (C) No. 10206 of 2020]
S. VASANTHI & ANR. ...APPELLANT(S)
VERSUS
M/S ADHIPARASAKTHI ENGG.
COLLEGE AND ANOTHER ...RESPONDENT(S)
J U D G M E N T
B.R. GAVAI, J.
1. Leave granted.
2. This appeal challenges the judgment and order dated
st
31 January, 2020, passed by the High Court of Judicature
at Madras in CMA No. 2518 of 2016.
3. The facts, in brief, giving rise to the present appeal
are as under:
nd
3.1 On 22 May, 2010, S. Sathiyanarayan was riding on
a Bajaj Avenger motorcycle, bearing registration No. TN04
S6492, at GST Road, Tambaram. While he was travelling
from the south to north direction by the western side of the
road, a bus owned by M/s Adhiparasakthi Engineering
College (respondent no. 1 herein), bearing registration No.
1
TN21H2727, which was being driven rashly and
negligently, came from the same direction and dashed
against his motor cycle from the backside, thus dragging
him under the wheels of the bus. S. Sathiyanarayan
perished on the spot.
3.2 Thereafter, the bereaved parents of the deceased,
who are the appellants herein, filed a claim petition before
the Motor Accident Claims Tribunal, Poonamallee
(hereinafter referred to as “the Tribunal”), under Section 166
of the Motor Vehicles Act, 1988, being M.C.O.P. No. 1201 of
2010, for grant of compensation to the tune of
Rs. 30,00,000/ with interest, on account of the death of
their son.
3.3 The Tribunal, noting that the deceased S.
Sathiyanarayan was, at the time of the accident, twenty
three years of age and a student in the second year of the
MBA course at SRM University, passed an award amounting
to Rs. 7,48,052/ as compensation with interest at the rate
of 7.5% per annum from the date of the petition till the date
of realization. Pertinently, the Tribunal fixed the notional
monthly income of the deceased at Rs. 7,000/ per month,
2
since he was not earning any salary at the time of the
accident.
4. Aggrieved by the amount of compensation so
awarded, the appellants herein carried an appeal to the High
Court seeking enhancement of the compensation.
5. Noting that the notional income fixed by the Tribunal
was meagre, the High Court enhanced the notional income
to a sum of Rs. 10,000/ per month. Thus, the High Court
enhanced the compensation from Rs. 7,48,052/ to
Rs. 16,27,000/. Within that amount, the High Court also
enhanced the amount of loss of dependency, loss of love and
affection as well as funeral expenses, and further granted an
amount of Rs. 15,000/ as loss of estate.
Being aggrieved thereby, the present appeal.
6.
7. We have heard Mr. T. Harish Kumar, learned
counsel appearing on behalf of the appellants and Mr. A. K.
De, learned counsel appearing on behalf of respondent No.
2United India Insurance Co. Ltd.
8. Mr. T. Harish Kumar, learned counsel for the
appellants, submits that both the Tribunal and the High
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Court have grossly erred in calculating the notional monthly
income of the deceased S. Sathiyanarayan at the rate of Rs.
10,000/. He submits that the High Court ought to have
considered that S. Vasanthi appellant No. 1, in an affidavit
filed by her before the Tribunal, had stated that two
classmates of her deceased son would go on to get
employment with reputed companies in India on a monthly
salary of approximately Rs. 40,000/. The learned counsel
submits that appellant No. 1 had, in fact, produced the
salary certificates of the said two classmates with her
affidavit. The learned counsel therefore submits that the
deceased S. Sathiyanarayan, being an engineering graduate
who was pursuing an MBA degree to further his career,
would have attracted wellpaying jobs had he been alive. The
learned counsel therefore submits that the notional monthly
income of the deceased S. Sathiyanarayan should be
enhanced to Rs. 42842/. The learned Counsel relies on the
judgment of this Court in the case of
Kurvan Ansari Alias
Kurvan Ali and Another vs. Shyam Kishore Murmu and
1
, in support of his contention.
Another
1 (2022) 1 SCC 317
4
9. Per contra, learned counsel for the respondents
contend that both the Tribunal and the High Court were
correct in assessing the notional income at the rate of
Rs. 7,000/ and Rs. 10,000/ per month respectively, as the
deceased S. Sathiyanarayan was not yet in employment and
was merely a secondyear student of his MBA course at that
time.
10. A perusal of the affidavit filed by appellant No. 1
before the Tribunal would reveal that she had specifically
stated that two of her son’s classmates were gainfully
employed with wellknown companies in India and were
drawing monthly income of Rs. 39,869/ and Rs. 44,588/
respectively. It will be relevant to note that neither the
Tribunal nor the High Court has adverted to these
averments made by appellant No. 1.
11. It could thus be seen that the deceased S.
Sathiyanarayan was twentythree years of age at the time of
the accident. He was a qualified engineering graduate and
was pursuing an MBA degree at SRM University to further
his professional capabilities. In view of the specific
averments made in the affidavit as to the employment
5
prospects of the classmates of the deceased S.
Sathiyanarayan and also his young age at the time of the
accident, we are of the considered view that the Tribunal
and the High Court have erred in not giving due weightage
to the same. Had the deceased S. Sathiyanarayan not met
with the unfortunate accident, he would have surely drawn
a salary equivalent to that of his classmates or at least an
amount near the said amount. Furthermore, the deceased
was the only issue of the appellants. Since no parent should
have to suffer through the death of their children, much less
their only child, we are of the considered view that the
monthly income as calculated by the High Court is
inadequate.
12. Thus, we find that the compensation to be paid on
account of the death of deceased S. Sathiyanarayan ought to
be worked out by enhancing his monthly income to Rs.
30,000/. However, we find that, since he was the only child
of the appellants, in view of paragraphs (31) and (32) of the
judgment in the case of Sarla Varma (Smt.) and Others v.
2
, as upheld by
Delhi Transport Corporation and Another
2 (2009) 6 SCC 121
6
a Constitution Bench decision in the case of National
Insurance Company Limited v. Pranay Sethi and
3
Others , 50% of the amount would have to be deducted as
personal and living expenses. We further find that, insofar
as the loss of consortium is concerned, an amount of Rs.
40,000/ will have to be awarded. The compensation on
account of the death of the deceased S. Sathiyanarayan is,
therefore, being reassessed as under:
| Sr. No. | Heads | Calculation |
|---|---|---|
| 1. | Income | Rs. 30,000/ per month |
| 2. | 40% to be added to<br>Future Prospects | 30,000/ + 12,000/ =<br>Rs. 42,000/ per month |
| 3. | 1/2 deducted towards<br>personal expenses | 42,000/2 = Rs. 21,000/ |
| 4. | Yearly Income [(Sl. No.2<br>Sl. No. 3) x 12] | 21,000 x 12 =<br>Rs. 2,52,000/ |
| 5. | Compensation after<br>Multiplier | 2,52,000 x 18 =<br>Rs. 45,36,000/ |
| 6. | Conventional Head<br>(Funeral Expense and<br>Loss of Estate) | Rs. 30,000/ |
| 7. | Loss of Consortium | Rs. 40,000/ |
3 (2017) 16 SCC 680
7
| 8. | Transportation<br>Expenses | Rs. 5,000/ |
|---|---|---|
| | Total Compensation<br>Awarded (5+6+7+8) | Rs. 46,11,000/ |
| | Enhanced amount of<br>Compensation from<br>MACT<br>(Rs. 7,48,052/) | 46,11,0007,48,052 =<br>Rs. 38,62,948/ |
| | Enhanced amount of<br>Compensation from HC<br>(Rs. 16,27,000/) | 46,11,000 – 16,27,000 =<br>Rs. 29,84,000/ |
13. The enhanced compensation of Rs. 29,84,000/
along with interest at the rate of 7.5% per annum shall be
paid to the appellants within a period of three months from
the date of this judgment.
14. The appeal is allowed in the aforesaid terms. No
order as to costs. Pending application(s), if any, shall stand
disposed of.
…..….......................J.
[B.R. GAVAI]
.…….......................J.
[C.T. RAVIKUMAR]
NEW DELHI;
OCTOBER 11, 2022.
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