- Bookmark
- Share
- CaseIQ
M.G Bros. Lorry Service, Madras And Another v. S. Andalammal And Others
Court Opinion Summary — Ramanujam, J.
Factual and Procedural Background
This opinion concerns multiple appeals arising from two motor-accident claim petitions that stem from a single collision on 20 January 1978, at about 8:30 p.m., on Sriperumbudur bypass road.
The vehicles involved in the incident were: (1) car TNH 2565; (2) lorry TMY 3885; and (3) lorry MSV 9380. The car's sole occupant—its owner Sanjeevi Mudaliar (and its driver Mahendran)—died instantly in the accident.
Two claim petitions were filed before the Motor Accidents Claims Tribunal, Chingleput:
- M.O.P. No. 76/79 — filed by the widow and children of Sanjeevi Mudaliar, claiming Rs. 3,00,000 against the owner and insurer of lorry TMY 3885;
- M.O.P. No. 57/79 — filed by the legal representatives of Mahendran (the driver of the car), claiming Rs. 40,000.
The driver and insurer of lorry TMY 3885 resisted both petitions, contending that the collision was not caused by TMY 3885 but was between the car and lorry MSV 9380, and further contending that the Tribunal's awards (when made) were excessive.
The Tribunal framed questions about (1) whether the accident was due to rash and negligent driving of lorry TMY 3885; and (2) the quantum of compensation. The Tribunal found TMY 3885 solely responsible and awarded Rs. 90,000 to the claimants in O.P. No. 76/79 (Sanjeevi Mudaliar) and Rs. 15,000 to the claimants in O.P. No. 57/79 (Mahendran).
The owner and insurer of TMY 3885 (respondents in the claims) filed Civil Miscellaneous Appeals (CMA) Nos. 209 and 218 of 1980 challenging the awards; the claimants filed CMA No. 234 of 1980 seeking enhancement of the Rs. 90,000 award. The Court heard these appeals together.
Legal Issues Presented
- Whether the collision that caused the deaths was due to the rash and negligent driving of lorry TMY 3885 (and thus whether that lorry/its driver and insurer are liable), or whether the collision was between the car and lorry MSV 9380 (thereby absolving TMY 3885)?
- What is the fair and reasonable quantum of compensation in O.P. Nos. 57 and 76 of 1979, and specifically whether the Tribunal's awards are adequate or require interference (enhancement or reduction)?
Arguments of the Parties
Appellants (Owner and Insurer of lorry TMY 3885 — CMA Nos. 209 & 218 of 1980)
- Main contention: There was no collision between lorry TMY 3885 and car TNH 2565; instead the collision was between lorry MSV 9380 and the car. Therefore the appellants are not liable for compensation.
- Additionally contended that the monetary awards made by the Tribunal were excessive (at least in respect of Mahendran's claim).
- Their defence relied in part on the testimony of their driver (R.W.1), who stated MSV 9380 overtook and then hit the car; R.W.1 explained his own vehicle later hit a telephone post because he lost control out of fear.
Respondent/Defence Evidence (R.W.1 — driver of TMY 3885 as examined before the Tribunal)
- R.W.1 testified that his lorry (TMY 3885) was proceeding on the left side, was overtaken by MSV 9380 (driven by P.W.1), and that MSV 9380 struck the car TNH 2565 coming the other way; R.W.1 said he then lost control and hit a telephone post.
- R.W.1 shifted blame entirely to P.W.1 in his account.
Claimants' Arguments and Evidence (including P.W.1 and P.W.3)
- P.W.1 (driver of MSV 9380) gave testimony that his lorry was overtaken and then the overtaking lorry (TMY 3885, driven by R.W.1) hit the car, after which the overtaking lorry hit the telephone post and overturned. P.W.1 filed a report to the police describing the collision as between TMY 3885 and the car.
- P.W.3 (the widow and claimant) gave evidence of the deceased Sanjeevi Mudaliar's business income and produced income-tax clearance certificates (Exhs. A.6 and A.7) showing assessed incomes for several years; this evidence was relied upon to establish the deceased's earnings for quantum calculation.
- Photographs (Exhs. B.2–B.8), the Motor Vehicles Inspector's report (Exh. B.1), and the fact that R.W.1 was prosecuted and convicted (on his own plea) under section 304-A IPC were advanced to support the claim that TMY 3885 had in fact collided with the car and was responsible for the accident.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Court reviewed the evidence holistically and explained why it agreed with the Tribunal's finding that the accident was caused by the rash and negligent driving of lorry TMY 3885:
- Evaluation of testimony: The Court found R.W.1's sole defence account to be "mostly artificial and improbable;" it noted R.W.1's version lacked corroboration and appeared to be an afterthought, particularly in light of R.W.1's later conviction under section 304-A IPC on a plea of guilt (and his not blaming P.W.1 in the criminal proceedings).
- Corroborative material: The Court placed weight on P.W.1's account (which it described as "natural and probable"), the First Information Report given by P.W.1, and the photographs (Exhs. B.2–B.8) filed by the respondents. Those photographs showed positional and damage evidence inconsistent with R.W.1's theory that MSV 9380 struck the car and TMY 3885 was uninvolved.
- Physical/damage analysis: The Motor Vehicles Inspector's report (Exh. B.1) showed damage patterns to both lorries, with more significant right-side damage to TMY 3885 (the lorry driven by R.W.1). The Court reasoned that the nature and location of the damage to TMY 3885 were consistent with its having struck the car and could not be explained merely by falling over.
- Position of vehicles after the accident: Photographs showed MSV 9380 on the western (correct) side of the road while TMY 3885 lay overturned on the eastern side near a fallen telephone post; the Court found that these positions did not fit the scenario asserted by R.W.1.
- Criminal conviction: R.W.1's prosecution and conviction (by plea) under section 304-A IPC for causing death by negligence, and his failure to implicate P.W.1 in those proceedings, was treated as a significant corroborating circumstance undermining R.W.1's denial of responsibility.
- Conclusion on causation: Considering the testimony of P.W.1, the photographs, the M.V.I. report, and R.W.1's conviction, the Court agreed with the Tribunal's conclusion that TMY 3885's driver was rash and negligent and that TMY 3885 collided with the car TNH 2565.
On quantum, the Court analysed the two awards separately:
Quantum in O.P. No. 57/79 (Mahendran, the driver)
- The Tribunal had awarded Rs. 15,000, based on findings that the deceased earned Rs. 200 per month, contributed Rs. 150 monthly to the family, and considering the deceased's age. The Tribunal also set aside Rs. 4,000 for the marriage of the second petitioner (sister of the deceased).
- The appellants contended the award was excessive; the Court rejected that contention and held the Rs. 15,000 award to be "highly fair and reasonable" given the facts and therefore declined to interfere.
Quantum in O.P. No. 76/79 (Sanjeevi Mudaliar, owner)
- The Tribunal fixed annual income at Rs. 40,000 based on income-tax returns (Exhs. A.6–A.7), and treated a 25% loss of business income on the theory that business could continue under a salaried manager. The Tribunal incorrectly calculated 25% of Rs. 40,000 as Rs. 9,000 (actual 25% is Rs. 10,000). Using a multiplier of 15 and after deductions (including Rs. 25,000 received under a life insurance policy), it rounded the net award to Rs. 90,000.
- The Court examined the composition of the assessed income and observed that assessed income included agricultural income, house property income, and investment income. The Court held those sources would continue after death and thus should not be treated as loss of earning capacity.
- When excluding non-business income, the Court estimated average business income to be about Rs. 27,000 per year and accepted an annual loss figure of about Rs. 9,000 (which corresponds to the Court's view of actual business-loss from the deceased's services). Using an appropriate multiplier (the Court reasoned that even if longevity to age 70 were assumed, a multiplier of 10 would be appropriate to yield the same annual loss figure), the pecuniary loss came to Rs. 90,000.
- The Court added Rs. 5,000 for loss of consortium to the pecuniary loss, thereby increasing the Tribunal's award from Rs. 90,000 to Rs. 95,000. The Court expressly corrected or adjusted calculations and reasoning where necessary (for example noting the Tribunal's arithmetical mistake and refining the basis for loss of income by excluding non-business income sources).
Holding and Implications
Holding:
AAO Nos. 209 and 210 of 1980 are dismissed; AAO No. 234 of 1980 is allowed in part.
Direct consequences for the parties:
- The Tribunal's award in favour of the claimants in O.P. No. 57/79 (Mahendran) of Rs. 15,000 is upheld.
- The Tribunal's award in O.P. No. 76/79 (for the death of Sanjeevi Mudaliar) is increased from Rs. 90,000 to Rs. 95,000 (an additional Rs. 5,000 awarded for loss of consortium after reassessment of the proper basis for computing loss).
- There is no order as to costs in these appeals.
Broader implications:
The decision resolves the parties' disputes about causation and compensation on the specific facts—evaluating witness credibility, photographic and M.V.I. evidence, and the effect of a criminal conviction on civil liability. The opinion does not purport to set out or establish any new legal precedent beyond its application of established causation and compensation principles to the facts of this case.
Note: This summary is strictly confined to the facts, reasons and outcomes stated in the provided court opinion and does not add material beyond that text.
Ramanujam, J.:— As all these appeals arise out of the claim petitions filed in respect of the same accident, it is convenient to deal with them together.
2. On 20.1.1978 at about 8.30 p.m There was a motor accident in Sriperumbudur by pass road. The vehicles which are alleged to have been involved in the accident are: (1) A car bearing Regn. No. TNH 2565(2) a lorry bearing Regn. No. TMY 3885; and (3) a lorry bearing Regn. No. MSV 9380. As a result of the said accident the driver of the car and the only occupant, who was none else than the owner of the car, died on the spot.
3. Alleging that the accident was due to rash and negligent driving of the lorry TMY 3885 by its driver, the widow and the children of the deceased, Sanjeevi Mudaliar, who was the owner of the car, filed a claim petition M.O P. 76/19 before the Motor Accidents Claims Tribunal, Chingleput, claiming a sum of Rs. 3,00,000/- as against the owner of the lorry and the insurer of the lorry.
4. For the death of Mahendran, the driver of the car, his legal representatives filed a claim petition, M.O.P No. 57/79 before the Tribunal claiming a sum of Rs. 40,000/- as compensation.
5. The driver and the insurer of the lorry TMY 3885, resisted the said two claim petitions M.O.P Nos. 57 and 76 of 1979, on the ground, that the accident was not due to rash and negligent driving of the lorry TMY 3885, by its driver, but another lorry MSV 9380 which overtook the lorry TMY 3885 dashed against the car, and thus the collision was only between the other lorry MSV 9380 and the car TNH 2565 and therefore the owner of the lorry TMY 3885 and the insurer are not liable to pay compensation towards the accident. They also further contended that the compensation claimed in both the claim petitions are excessive. Taking into account the defences, the Tribunal set down the following two questions for consideration:
(1) Whether the accident was due to rash and negligent driving of the lorry TMY 3885 by its driver? and
(2) To what compensation, if any, the claimants are entitled?
6. On the first question, the Tribunal after analysing the evidence adduced by both parties in detail, held that the accident was solely due to rash and negligent driving of the lorry TMY 3885 by its driver, that the collision was between the said lorry and the car and the allegation of the respondent that the collision was between the car and another lorry MSV 9380 has not been established. Regarding the question of quantum of compensation, the Tribunal held, that the claimants in O.P No. 76/79 are entitled to compensation of Rs. 90,000/- while the claimants in O.P No. 57 of 1979 are entitled to compensation of Rs. 15,000/-. The Tribunal, therefore passed an award for a sum of Rs. 90,000/- for the death of Sanjeevi Mudaliar, the owner of the car and Rs. 15,000/- for the death of Mahendran, the driver of the car. The owner of the lorry TMY 3885 and its insurer, who were respondents 1 and 2 in the claim petition, have filed CMA Nos. 209 and 218 of 1980 questioning respectively the award passed by the Tribunal in O.P Nos. 57 and 76 of 1979. The claimants in O.P No. 76 of 1979 have filed CMA No. 234 of 1980 contending that the compensation awarded by the Tribunal is too low and that it should be enhanced. Thus the common question that arise for consideration in all these appeals are:
(1) Whether there was a collision between the car and the lorry TMY 3885 or between the car and the lorry MSV 9380 and which the lorry driver was responsible for the accident?
(2) What is the fair and reasonable compensation to be awarded in O.P No. 57 and 76 of 1979 or whether the compensation awarded by the Tribunal is adequate in both cases?
7. As regards the nature of the accident, according to the appellants in CMA 209 and 210/80, there was no collision between the lorry TMY 3885 and the car TNH 2565 and the collision in fact was between the lorry MSV 9380 and the car TNH. 2565. Thus the substantial contention urged by the respondents in CMA Nos. 209 and 210 of 1980 is that the lorry TMY 3885 was not involved in the accident, which resulted in the death of the driver of the car and the only occupant who was none else than the owner of the car, and that therefore, they are not liable to meet the compensation claimed. In support of their pleas, they have examined before the Tribunal the driver of the lorry TMY 3885 as R.W 1. He has deposed that he was driving his lorry TMY 3585 along the left side of the road and when he was nearing the place of the accident the lorry bearing Regn. No. MSV 9380 driven by P.W 1, overtook his lorry and in that process, the lorry MSV 9380 hit and dashed against the car TNH 2565, which was coming in the opposite direction resulting in the instantaneous death of the driver of the car and the owner of the car, who was the only occupant of the car. On seeing the accident, according to R.W 1 he developed a fear in his mind and lost control of his vehicle, namely the lorry TMY 3885, as a result of which his vehicle went to the right extreme portion of the road and hit against the telephone post and ultimately got overturned and fell down on the eastern side of the road. The evidence of R.W 1 apart from the fact that it does not get corroboration from any other evidence available in this case, is mostly artificial and improbable. If really the collision was between the lorry MSV 9380 and the car TNH 2565 and his vehicle namely the lorry TMY 3885 had nothing to do with the accident, we do not see, how he could lose control of his vehicle and allow his vehicle to go to the extreme edge of the road on the right, and to hit the telephone post. It is true that R.W 1 has thrown the entire blame for the accident on P.W 1 who was the driver of the lorry MSV 9380. Apart from the mere ipse dixit of R.W 1 there is no other material to indicate that the lorry MSV 9380 collided with the car, resulting in the death of the driver of the car and the lone occupant, the owner of the car. The evidence of P.W 1 which appears to be natural and probable, is to the effect that he was going in front and his lorry was overtaken by R.W 1 and in that process R.W 1's lorry hit against the car, it proceeded further and hit the telephone post and thereafter fell down in the eastern side and got overturned. It has to be remembered that P.W 1 has gone to the police station sometimes after the occurrence and reported about the accident. In that report, he has stated that the collision was between the lorry TMY 3885 and the car TNH 2565. If really, R.W 1 also went to the police station and gave report about the accident, he could have stated the manner in which the accident took place. The photographs Exhs. B.2 to B.8 filed by the respondents in the claim petitions sufficiently corroborate the evidence of P.W 1 and goes against the evidence of R.W 1. In Exh. B.2 we see the lorry MSV 9380 driven by P.W 1 lies on the left side of the road and the back wheels of the lorry MSV 9380 have come out from their position with the axle. It is further seen that the lorry driven by R.W 1, TMY 3885 is lying overturned down the road on the right side of the road and a telephone post has also fallen due to the hitting. Exh. B.4 shows the distance between the place of the accident and the place where the lorry driven by R.W 1 was lying. If the impact was between the lorry MSV 9380 and the car as stated by R.W 1 then the said lorry MSV 9380 should have gone to the eastern half of the road in which the car was coming. But as the lorry MSV 9380 is found on the western side of the road, which is the correct side of the lorry, the theory that, that lorry collided with the car, does not fit in with the position of the vehicle after the accident. Exh. B.1 the M.V.I's report shows damage to both lorries. As per this report the damage to the lorry which hit the car must be on the right side of the lorry. The lorry driven by R.W 1 TMY 3885 had the damage on the right side of his lorry. Four lamps were damaged, right side corner body bent and cut and the door was also broken. Therefore, the damages 9 to the lorry driven by R.W 1 were more on the right side. The lorry driven by P.W 1 also had some damages on its right side. On a perusal of Exhs. B.5 and B.6, except a small dent in the lights and mud guard, we do not see any other damage to the lorry MSV 9380, on the right side. If the lorry MSV 9380 had caused the impact on the car TNH 2565 certainly the damage to the right side of that lorry must be severe but except a small dent on the back of right side of the lorry, we do not see any other severe damage. The bridge with which the lorry MSV 9380 had hit can be seen from Exh. B.2 and there is damage to this bridge also. Considering the damage to the lorry driven by R.W 1 there were more damages to the right front and to the right body of this lorry. Further the Motor Vehicles Inspector has mentioned the dent and cut from the right side top body and such a damage could not have been caused by the mere falling of the lorry on the ground. Therefore, these damages must have been due to the impact between the car and the lorry. Therefore, considering all these damages to the lorry TMY 3885 we are of the view that it must be the lorry which collided with the car. Yet another circumstance will also indicate that the collision should have been between the car and the lorry driven by R.W 1. R.W 1 has been prosecuted by the police and has been convicted on his own plea of guilty for an offence under section 304-A of the Indian Penal Code. If really the accident was between the P.W 1's vehicle and the car, we do not see any reason why the police should proceed against R.W I alone. The significant factor to be noted here is that even before the criminal Court, R.W 1 did not throw the blame on P.W 1 and on the other hand he pleaded guilty of the charge and got convicted. This conduct on the part of R.W 1 shows that his personal theory that the accident was between P.W 1's lorry and the car, is clearly an after thought. Merely because that there were certain damages to the lorry driven by P.W 1 no inference can be drawn that due to the impact between that lorry and the car, those damages were caused especially, when it is seen from the photographs that the damages sustained by the lorry MSV 9380 should have been due to its hit on the culvert on the left extreme of the road. Considering the photographs filed by the respondents themselves, Exh. B.1 report of the Motor Vehicles Inspector, First Information report given by P.W 1 and the conviction of the criminal Court in preference to the solitary evidence of R.W 1 which appears to us to be artificial and improbable, we have to, therefore, agree with the conclusion arrived at by the Tribunal, that the accident was due to rash and negligent driving of the lorry TMY 3885 by its driver, R.W 1.
8. Let us come to the quantum of compensation awarded in O.P No. 57 of 1979. In that petition, the claimants have claimed a sum of Rs. 40,000/- and the Tribunal has awarded a sum of Rs. 15,000/- taking into account the facts that the deceased Mahendran, the driver of the car, was getting a sum of Rs. 200/- per month as salary, out of which his contribution to the family was Rs. 150/- per month and the age of the deceased on the date of the accident. Only after due consideration to the above facts, the Tribunal has computed the aggregate loss of dependency at Rs. 15,000/- out of which a sum of Rs. 4,000/- has been set apart for the marriage of the 2nd petitioner, who is the sister of the deceased. Though the learned counsel for the appellants in CMA. No. 218/80 submits that the compensation awarded is excessive, we are of the view that the sum of Rs. 15,000/- awarded as compensation by the Tribunal is highly fair and reasonable and it does not call for any interference in our hands and it cannot be said to be excessive, taking into account the age of the deceased, the income that was earned by the deceased and the total award of Rs. 15,000/-.
9. Coming to the quantum of compensation awarded by the Tribunal in O.P No. 76/79 the claimants as well as the respondents in the claim petition, are vehement in challenging the award of the Tribunal. The claimants in O.P No. 76/79 contended that the award of Rs. 90,000/- awarded by the Tribunal is too meagre. On the other hand, the respondents contended that the sum of Rs. 90,000/- awarded by the Tribunal is excessive. It is in the light of these rival contentions, we have to consider as to what is the fair and reasonable compensation that could be awarded to the claimants in O.P No. 76/79. As regards the income of the deceased, his wife has been examined, who is one of the claimants, as P.W 3. According to her, her husband was earning Rs. 20,000/- to Rs. 45,000/- per year in mundy business, in addition to his getting other income, particularly from agriculture. In support of her case, she has filed Exhs. A.6 and A.7 clearance certificate obtained from the Income Tax Deptt. Exh. A.6 and A.7 show that for the year 1974-1975 the deceased was assessed to Rs. 22,540/-, for the year 1975-1976 he was assessed to Rs. 31,400/-, for the year 1976-1977 Rs. 23,460/-, for the year 1977-1978 for Rs. 50,290/- and for the year 1978-1979 he was assessed to Rs. 38,070/-. Taking note of all these returns, the Tribunal has taken Rs. 40,000/- as the fixed income of the deceased from the business namely (i) mundy business carried on by him in his own name and another business called Muruga vilas in which he was a partner. After fixing the annual income of the deceased at Rs. 40,000/- the Tribunal took the view that even after the death of the deceased Sanjeevi Mudaliar, the business could be carried on by employing a suitable person on a salaried basis to look after the business and, therefore it can be taken that there is a loss of 25% of the income from the business resulting from the death of the deceased. But while calculating 25% as the loss of income it has arrived at Rs. 9,000/- which is the mistake for Rs. 10,000/- as 25% of Rs. 40,000/- is Rs. 10,000/- and not Rs. 9,000/-. Taking the loss as Rs. 9,000/- per year and the age of the deceased, who was aged 50 years on the date of the accident it adopted 15 as the multiplier and the gross loss was arrived at Rs. 1,35,000/-. After giving deductions for a lump sum payment and also other imponderable circumstances such as uncertainty of life, it arrived at a sum of Rs. 1,14,750/- as the net loss of income from the said sum the Tribunal deducted a sum of Rs. 25,000/- received by the claimants from the insurance company being the sale proceeds of the life insurance policy taken by the deceased while he was alive. The Tribunal ultimately arrived at Rs. 89,750/- and rounded of at Rs. 90,000/- and fixed that amount as compensation payable to the claimants. Even taking Exhs. A.6 and A.7 as the basis for finding out the average earnings of the deceased from all sources, it cannot be taken to be Rs. 40,000/- per year as has been held by the Tribunal. It is not in dispute that the deceased was earning the income assessed in his hands for all the above years, consisted of not only the income from two businesses referred to above but also the agricultural income, the house property income and the income from investments. The income from agriculture, house property and from the investments cannot be taken into account for determining the loss of income, for, those are sources which still continued to exist even after the death of Sanjeevi Mudaliar. Therefore, there cannot be said to be any loss from those three sources. If we exclude income received from other resources, the average income per year can be about Rs. 27,000/- only. Even taking ⅓rd of the income as the business loss, arising out of the death of the deceased 25% arrived at by the Tribunal, the annual loss can come only to Rs. 9,000/-. Even if we adopt a different basis, the amount of Rs. 9,000/- can be taken to be fairly the loss of income arising out of the death of the deceased Sanjeevi Mudaliar. The deceased was admittedly doing mundy business in paddy and for that business, the services of the deceased had been completely lost. Even in mundy business, the deceased would have deposited or invested as capital for advancing the amounts to the owners of the paddy and procuring the business. That fact that the services of the deceased Sanjeevi Mudaliar are not available to the business now cannot at all be doubted and that his place can be replaced by employing a suitable person on salaried basis to attend to the business as efficiently as Sanjeevi Mudaliar, the deceased, was doing. For such an experienced person in the same business, as the deceased Sanjeevi Mudaliar had, atleast a sum of Rs. 750/- had to be paid as salary per month. Therefore, to replace the deceased Sanjeevi Mudaliar in the business carried on by him, atleast a sum of Rs. 9,000/- has to be spent. Thus the average loss can reasonably be taken to be Rs. 9,000/- per year having regard to the age of the deceased, who was aged 50 years, at the time of accident. Even assuming that the longevity of the deceased is 70 years, as contended by the learned counsel for the claimants, we can adopt only 10 as the multiplier, for multiplier should be such to yield the same sum of Rs. 9,000/- per every year. Thus the loss of pecuniary benefit comes to Rs. 90,000/-. In addition, the first claimant, who is the widow of the deceased, is entitled to get Rs. 5,000/- as the loss of consortium. We, therefore, increase the award from Rs. 90,000/- to Rs. 95,000/-.
10. A.A.O Nos. 209 and 210 of 1980 are dismissed and A.A.O No. 234/80 is allowed in part. There will be no order as to costs in these appeals.
Alert