NATIONAL INSURANCE CO LTD Vs. S UMASUNDARI

JUDGEMENT

(1.) (PRAYER: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, against the judgment and decree dated 6.12.2005 made in M.C.O.P.No.2706 of 2000 on the file of the Motor Accidents Claims Tribunal (III Judge, Small Causes Court), Chennai.) This appeal is by the Insurance Company questioning the award of a sum of Rs.22,00,000/- as excessive and not based on any material.

(2.) IT is seen that the claimants are the wife, minor child and the parents of the deceased Santhana Krishnan. At the time of the accident on 12.12.1999, the deceased was 30 years old. Apart from being a partner in M/s.S.R.Traders, he was a Consulting Engineer, earning a sum of Rs.5,500/- per month. The first claimant, as P.W.1, stated that her husband had 50% share in the partnership firm having its earnings to the extent of Rs.1,60,000/- per year. In support of her claim, Ex.A3, partnership agreement and Exs.A11 and A12, the accounts relating to the firm, and the balance sheet Exs.A13 and A14 were marked. The Chartered Accountant auditing the firm's account was also examined as P.W.3. He deposed as regards the earnings of the firm. He also stated that for the year 1999-2000, the deceased Santhana Krishnan paid a sum of Rs.32,578/- as income tax. The Tribunal observed that on an analysis of Exs.A11 to A16, it showed that the deceased was earning a sum of Rs.25,000/- per month. P.W.4, a Building Contractor, stated that the deceased had done business along with him and he was earning a sum of Rs.4,500/- per month. Going by the evidence available, the Tribunal came to the conclusion that the deceased was earning not less than a sum of Rs.15,000/- per month. Taking note of the age of the deceased and the claimants, the Tribunal applied the multiplier of 18 and fixed the following award: Contribution (Rs.10,000/- X 12 X 18) : Rs.21,60,000/- Transportation charges : Rs. 1,000/- Loss of consortium : Rs. 10,000/- Loss of love and affection to all the claimants : Rs. 10,000/- Funeral expenses : Rs. 10,000/- Loss of estate : Rs. 10,000/- Total sum awarded by the Tribunal : Rs.22,01,000/-, restricted to : Rs.22,00,000/- with interest at 7.5% per annum. The Tribunal granted a sum of Rs.13,00,000/- to the wife, Rs.5,00,000/- to the minor son and Rs.2,00,000/- each to the parents.

(3.) A perusal of the evidence of the Chartered Accountant showed that the firm had a net profit of Rs.2,51,623/-. Even after working out the share income from that, and taken along with the other income as a Consulting Engineer, the contribution fixed is excessive and is not substantiated by any direct or indirect evidence. Hence, keeping in the background the earnings as certified by the Chartered Accountant, the contribution could reasonably be fixed at Rs.1,00,000/- per year.