MUNUSAMY & ORS. versus THE MANAGING DIRECTOR, TAMIL NADU STATE TRANSPORT CORPORATION (VILLUPURAM) LTD.

Citation: [2018] 2 S.C.R. 629 · Decided: 09-02-2018 · Supreme Court of India · Bench: DIPAK MISRA, D.Y. CHANDRACHUD, A.M. KHANWILKAR · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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629
MUNUSAMY & ORS.
v.
THE MANAGING DIRECTOR, TAMIL NADU
STATE TRANSPORT CORPORATION (VILLUPURAM) LTD.
(Civil Appeal No. 1754 of 2018)
FEBRUARY 09, 2018
[DIPAK MISRA CJI,  A. M. KHANWILKAR AND
DR. D. Y. CHANDRACHUD, JJ.]
 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
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%
  [2018] 2 S.C.R. 629
 629
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SUPREME COURT REPORTS
[2018] 2 S.C.R.
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]
Case Law Reference
AIR 2017 SC 5157
   followed
Para 5
CIVIL APPELLATE JURISDICTION :  Civil Appeal No. 1754
of 2018.
From the Judgment and Order dated 16.04.2013 of the High Court
of Judicature at Madras in C.M.A. No. 2819 of 2012.
K. V. Jagdishvaran, Ms. G. Indira, Advs. for the Appellants.
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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 Insurance Company Ltd. Vs. Pranay Sethi and
Ors.1 to buttress their subm
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