Telangana High Court
Reliance General Insurance Company Ltd vs Kothapalli Sumalatha on 9 January, 2024
HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY
M.A.C.M.A.NO.177 OF 2023
JUDGMENT:
Heard learned counsel Sri Harinath Reddy Soma for the appellant-insurance company and Sri. C.Mohan Prakash, learned counsel for respondents-claimants.
2. The present appeal has been filed by the appellant/ insurance company challenging the award passed by the Chairman, Motor Accident Claims Tribunal (Prl.District Judge) at Suryapet (for short, 'Tribunal') in MVOP No.10 of 2016, dated 14.09.2022, thereby seeking to set-aside the award against the insurance company.
3. The brief factual matrix of the present appeal is as under. 3.1. On 08.08.2015, while the deceased-K.Ramakrishna was going towards Mehdipatnam from Patancheruvu on his motor cycle bearing registration No.AP-24-AK-5706 and on the way he stopped the vehicle and was answering call of nature, at that time, the driver of water tanker bearing registration No.AP-28-Y-3305, drove it in rash and negligent manner with high speed and dashed the deceased from his back side, due to which, the deceased sustained LNA,J MACMA No.177 of 2023 2 severe injuries to his head, right side ribs and right hand. Immediately, he was shifted to citizen Hospital for treatment and from there, he was shifted to NIMS hospital, Hyderabad for better treatment and he succumbed to injuries on 09.08.2015 at 4.30 a.m., while undergoing treatment. The Police, Chandanagar P.S. registered a case in Crime No.310 of 2015 for the offence under Section 337 IPC against the driver of the crime vehicle and after completion of investigation charge sheet was filed under Section 304-A IPC.
3.2. The claimants i.e., wife, children and mother of the deceased have filed claim petition against driver, owner, insurer and the insurance company under Section 166 of Motor Vehicles Act, 1988 and the Rule 455 of APMV Rules, 1989, before the Tribunal claiming compensation of Rs.60,00,000/- along with interest from the date of the petition till the date of realization. 3.3. The deceased was aged about 32 years and was earning Rs.20,700/- per month as a contract lecturer in history at Tara Government College, Secunderabad and contributing the same to the welfare of his family. Due to sudden death of the deceased, the LNA,J MACMA No.177 of 2023 3 claimants lost the love and affection of the deceased and also their breadwinner and they became destitute.
4. The respondent Nos.5 and 6 herein, who are the driver and owner of the offending vehicle, remained ex-parte.
5. The appellant-Insurance Company filed counter denying all the allegations made in the claim petition and contended that the driver of the offending vehicle was not having valid and effective driving license to drive the vehicle at the time of accident. It is contended that respondent no.3 has not furnished the particulars of the accident to the insurance company as required under Section 134(C) of MV Act, that the accident occurred due to sole negligence of the deceased who did not take safety precautions or observe traffic rules and prayed to dismiss the claim petition.
6. On the basis of the above pleadings, the Tribunal framed the following issues:
i) Whether on 08.08.2015 at 3.40 p.m., the 1st respondent drove the vehicle bearing No.AP-28-Y-
3305 and caused the accident to the
deceased/K.Ramakrishna at Gulmoharpaka of
Sherlingampalli and thereby caused his death ?
ii) Whether the petitioners are the dependents on K.Ramakrishna by the date of accident ?
LNA,J MACMA No.177 of 2023 4
iii) Whether the petitioners are entitled to seek compensation on the ground of death of Ramakrishna in the motor vehicle accident, if so, to what amount and who are liable to pay such amount ?
iv) To what relief ?
7. In order to substantiate the case, on behalf of the claimants, P.Ws.1 to 3 were examined and Exs.A1 to A13 were marked. On behalf of the appellant-insurance company, RW.1 was examined and copy of insurance policy was marked as Ex.B1.
8. The Tribunal, on due consideration of the evidence and material placed on record, came to conclusion that the accident took place due to rash and negligent driving of the crime vehicle and awarded compensation of Rs.45,77,320/- along with costs and interest @ 7.5% per annum from the date of petition till the date of realization.
9. During the course of hearing of the appeal, learned counsel for appellant-insurance company submitted that the sole issue which requires consideration is in this appeal is with regard to proper deduction of personal expenses of the deceased.
10. On the other hand, learned counsel for claimants submitted that the Tribunal, on due consideration of the evidence and LNA,J MACMA No.177 of 2023 5 material placed on record, had rightly awarded the compensation on other counts. However, he admitted that Tribunal erred in deducting 1/5th towards personal expenses of the deceased, instead of 1/4th.
11. The counsel for appellant did not press any other ground except the ground of wrong deduction by the Tribunal towards personal and living expenses of the deceased. Consideration:
12. Insofar as the contention raised by the appellant with regard to personal and living expense of the deceased is concerned, as per the Hon'ble Apex Court in Sarla Verma (Smt) and others Vs. Delhi Transport corporation and another 1 , the Hon'ble Apex Court at paragraph-30 held that where the deceased was married, the deduction towards personal and living expenses of the deceased should be one-fourth (1/4th), where the number of dependent family members is 4 to 6.
13. In view of the above decision, as the dependents of the deceased are four in number, one-fourth (1/4th) of the income of 1 (2009) 6 SCC 121 LNA,J MACMA No.177 of 2023 6 the deceased should be deducted towards his personal and living expenses. However, the Tribunal deducted 1/5th of the income of the deceased towards his personal and living expenses erroneously, instead of 1/4th, which requires consideration of this Court.
Conclusion:
14. In view of the above discussion, the compensation amount is recalculated as under:
Sl.No. Head Compensation awarded
1 Income Rs.2,46,000/- per annum
(Rs.20,500/- per month)
2 Future prospects Rs.98,400/- (i.e., 40% of the annual
income i.e., Rs.2,46,000/-)
3 Deduction towards personal Rs.86,100/- (i.e., one-fourth (1/4th)
expenses of Rs.2,46,000/- + Rs.98,400/-)
3 Total Income Rs.2,58,300/- (i.e., Rs.2,46,000/- +
Rs.98,400/- (-) Rs.86,100/-)
4 Multiplier 16
5 Loss of dependency Rs.41,32,800/- (i.e., Rs.2,58,300/-
x 16)
6 Consortium (Rs.40,000/- x 4) Rs. 1,60,000/-
7 Funeral and transport charges Rs. 9,000/-
Total compensation to be paid: Rs.43,01,800/-
15. In the result, Appeal is partly allowed and the impugned award passed by the Tribunal insofar as compensation amount is LNA,J MACMA No.177 of 2023 7 concerned, is modified. The above compensation amount shall carry interest @ 7.5% per annum from the date of the claim petitions till the date of realization. The appellant is directed to deposit the above compensation amount within a period of six weeks from the date of receipt of copy of this order, duly adjusting the amount already deposited by the appellant. The claimants are entitled to the apportionment of the amount as directed by the Tribunal. There shall be no order as to costs.
Pending miscellaneous applications if any shall stand closed.
__________________________________ LAXMI NARAYANA ALISHETTY,J Date: 09.01.2024 kkm LNA,J MACMA No.177 of 2023 8 HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY M.A.C.M.A.NO.177 OF 2023 Date: .01.2024 kkm