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Civil · Reportable judgment

Munusamy & Ors. vs The Managing Director, Tamil Nadu State Transport Corporation (Villupuram) Ltd.

Court
Supreme Court of India
Date
9 February 2018
Case No.
Civil Appeal No. 1754 of 2018
Result
Allowed
Bench
Dipak Misra, D.Y. Chandrachud, A.M. Khanwilkar
Citation
[2018] 2 S.C.R. 629 : 2018 INSC 127
Supreme Court Reports [2018] 2 S.C.R. 629 : 2018 INSC 127
Headnote

Motor Vehicles – Motor Accident Claim – Compensation – Computation of – Claim for enhancement – Deceased, around 21 years of age, was riding a motorcycle along with his friend when they collided with a bus belonging to respondent-Corporation – Plea of appellants that compensation granted by High Court be further enhanced as High Court did not provide for future prospects while computing the compensation amount under the head ‘loss of dependency’ – Held: Applying the dictum of Constitution Bench in National Insurance Company Ltd. case, the claim of appellants for grant of future prospects at the rate of 40% of the established income is justified – High Court took the earning of deceased at the relevant time as Rs.4,000/- p.m., but did not provide 40% towards future prospects on the established income of the deceased – Thus, in the facts of the present case, monthly loss of dependency would be Rs.4,000 + 1,600 = Rs.5,600/- – Amount awarded by High Court towards loss of dependency accordingly stands modified from Rs.4,32,000/- to Rs.6,04,800/- with interest @ 9% p.a. – Respondent to deposit the entire award amount with interest @ 9% p.a., less the amount already deposited if any – Appellants shall be entitled to the compensation in the proportion specified by Tribunal.

Allowing the appeal, the Court

Read the full headnote (2 more paragraphs)

HELD: 1.1 Applying the dictum of the Constitution Bench decision in National Insurance Company Ltd. case, the appellants are justified in insisting for grant of future prospects at the rate of 40% of the established income. The High Court had held that the earning of the deceased at the relevant time could be taken as Rs.4,000/- per month. The High Court did not provide 40% towards future prospects on the established income of the deceased. Thus, the monthly loss of dependency, in the facts of the present case would be Rs.4,000 + 1,600 = Rs.5,600/-. In other words, instead of amount awarded by the High Court towards loss of dependency in the sum of Rs.4,32,000/-, the same would stand modified to Rs.6,04,800/- along with interest at the rate of 9% per annum. Other directions given by the High Court in respect of other heads are not being disturbed. Accordingly, respondent Transport Corporation must deposit the additional amount of compensation of Rs.1,72,800/- along with interest, as awarded, within a period of eight weeks from the date of receipt of the copy of this judgment in the Court of Additional District & Sessions Judge, Fast Track Court-IV, Chennai (Motor Accident Claims Tribunal, Chennai). [Paras 5, 6][634-F-H] National Insurance Company Ltd. v. Pranay Sethi and Ors. AIR 2017 SC 5157– followed.

1.2 The compensation awarded by the High Court is enhanced from Rs.5,01,500/- to Rs.6,74,300/- [Rupees six lakh seventy four thousand three hundred only]. The respondent Transport Corporation is directed to deposit the entire award amount as indicated above with interest at 9% (nine percent) per annum less the amount already deposited if any, within a period of eight weeks from the date of receipt of a copy of this judgment and the appellants shall be entitled to the compensation in the proportion specified by the Tribunal. [Para 8][635-C-E]

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

The Judgment of the Court was delivered by A. M. KHANWILKAR, J. 1. This appeal emanates from the judgment and order passed by the High Court of Judicature at Madras dated 16.04.2013 in C.M.A. No.2819 of 2012. The High Court allowed the prayer for grant of enhanced compensation amount in favour of the appellants. The appellants seek further enhancement of compensation amount on the ground that the High Court has not provided for future prospects, while computing the compensation amount. The appellants rely upon the recent decision of the Constitution Bench of this Court in the case of National
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