Telangana High Court
The New India Assurance Co. Ltd vs Malinati Jagadamba on 11 June, 2024
THE HON'BLE SRI JUSTICE SUJOY PAUL
AND
THE HON'BLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO
M.A.C.M.A.No. 750 of 2022
JUDGMENT:
(per Hon'ble Sri Justice Namavarapu Rajeshwar Rao) This Motor Accident Civil Miscellaneous Appeal is filed by the appellant-Insurance Company aggrieved by the order and decree dated 03.08.2022 passed in M.V.O.P.No.210 of 2015 on the file of the Chairman, Motor Accidents Claims Tribunal-cum-Principal District Judge, Suryapet (for short 'the Tribunal').
2. For convenience, the parties will be referred to as arrayed before the Tribunal.
3. The brief facts of the case are as follows:
On 12.10.2014, the deceased late Malinati Yedukondalu, was proceeding with his friend Kamalla Venkata Ramaiah in a motorcycle bearing No.AP-36-5196 on some personal work. On the same day, while returning, they reached near Swagruha Foods at about 11.30 pm, and while crossing the Bundar Road signal point at Vijayawada, the 1st respondent drove the Kaveri Travels Bus bearing No.AP-27-T-7227 at a high speed and in a rash and negligent manner and dashed the said motorcycle, which was being driven by the deceased's friend, Sri Kamalla Venkata Ramaiah. Resultantly, the deceased fell from the motorcycle and sustained bleeding injuries to 2 SP,J and RRN,J MACMA No.750 of 2022 his head. He was rushed to the Government Hospital Vijayawada, where he succumbed to the injuries while undergoing treatment. The Station House Officer, Suryaraopet, registered a case in Crime No.349 of 2014 for the offences punishable under Sections 304-A and 337 of the IPC against the driver of the offending vehicle and subsequently filed a charge sheet in CC No.728 of 2014. The deceased was aged about 46 years at the time of the accident and was working as a Record Assistant at APSTDCL Circle Office, Guntur, earning Rs.48,724/- per month as salary. The petitioners along with Respondent No.4 depend on the deceased's earnings. Therefore, the petitioners filed the claim petition seeking compensation of Rs.81,70,000/-.
4. Before the Tribunal, Respondent Nos.1, 2 and 4 remained ex- parte.
5. Respondent No.3 filed a written statement denying the allegations made in the claim petition.
6. To prove the petitioners' case, PWs.1 to 3 were examined, and Exs.A1 to A7 were marked. No oral evidence was adduced on behalf of the respondents, but Ex.B1-Copy of the Insurance Policy was marked.
7. The Tribunal, after considering the oral and documentary evidence available on record, allowed the claim petition in part by 3 SP,J and RRN,J MACMA No.750 of 2022 granting a sum of Rs.59,22,664/- (Rupees Fifty Nine Lakh Twenty Two Thousand Six Hundred Sixty Four Only) with costs and interest @ 7.5% per annum from date of the petition till the date of realization and the Respondent Nos.1 to 3 were jointly and severally liable to pay the awarded amount. Challenging the same, respondent No.3/Insurance Company filed the present appeal.
8. Heard Sri A. Ramakrishna Reddy, learned counsel for the appellant-Insurance Company and Sri C. Mohan Prakash, learned counsel for the respondent Nos.1 to 3 and perused the record.
9. Learned counsel for the appellant-Insurance Company contended that the Tribunal committed a serious illegality in not deducting the Income Tax from the earnings of the deceased and it ought to have seen that if the monthly income of the deceased is taken at Rs. 35,627/-, the annual income would arrive at Rs. 4,27,524/-. If the income tax is calculated as per the slab rates of the Assessment Year 2015-2016, a tax liability of Rs.17,752.40/- has to be deducted from the said annual income of the deceased. The Tribunal failed to consider the same and has erroneously awarded excessive compensation.
10. Learned counsel for the appellant further contended that the Tribunal erroneously deducted 1/5th towards the personal expenditure of the deceased, when it ought to have deducted only 4 SP,J and RRN,J MACMA No.750 of 2022 1/4th of the deceased's income since the dependants are only 4 in number, i.e., wife, two minor children and mother.
11. Learned counsel for the appellant further contended that the appellant has already deposited Rs.50,00,000/- with interest.
12. Learned counsel for the claimants has not opposed the same.
13. This court, having considered the said submissions of the learned counsel for the respective parties is of the considered view that the deduction towards the personal expenses of the deceased has been clearly laid down in the decision of the Hon'ble Apex Court in National Insurance Company Limited Vs. Pranay Sethi 1. A perusal of the impugned order goes to show that the Tribunal erred by wrongly deducting 1/5th of the income when it ought to have deducted 1/4th towards the personal expenditure of the deceased, in terms of Pranay Sethi (supra) as the dependants are four in number. Hence, the deduction towards the personal expenditure of the deceased is liable to be fixed at 1/4th of the deceased's income. Further, the Tribunal ought to have directed the appellant-Insurance Company to pay the compensation amount to the claimants after deducting the income tax.
1 2017 (16) SCC 680.
5 SP,J and RRN,J MACMA No.750 of 2022
14. Therefore, the order dated 03.08.2022 passed by the Tribunal in M.V.O.P.No.210 of 2016 is modified as follows :-
S.No. Particulars Amount
1. Annual salary of the Rs.4,27,524/-
deceased (Rs.35,627/- X
12)
2. Less: Professional Tax (-) Rs.2,400/-
(Rs.200/- X 12)
3. Less: Income Tax (-) Rs.17,752/-
4. Net Income [1-(2+3)] Rs.4,07,372/-
4. Add: 30% Future Prospects Rs.1,22,212/-
5. Sub-Total Rs.5,29,584/-
6. Less: 1/4th towards (-) Rs.1,32,396/-
Personal Expenditure
7. Sub-Total [5-6] Rs.3,97,188/-
8. Total Loss of Dependency Rs.51,63,444/-
(Rs. 3,97,188/- x 13)
9. Add : Conventional Heads Rs.36,300/-
(Funeral Expenses and
Loss of Estate)
(Rs.15,000/- + Rs.15,000/-
+10%+10%)
10. Add: Loss of spousal Rs.48,400/-
consortium (Rs.40,000/-
+10%+10%)
11. Add : Loss of filial Rs.40,000/-
consortium
12. Add : Loss of parental Rs.80,000/-
consortium
11. Total Compensation Rs.53,68,144/-
6 SP,J and RRN,J
MACMA No.750 of 2022
15. The Tribunal has rightly awarded the rate of interest at 7.5% per annum which needs no interference by this Court.
16. In the result, this M.A.C.M.A. is partly allowed and the compensation amount awarded by the Tribunal is reduced from Rs.59,22,664/- to Rs. 53,68,144/- (Rupees Fifty Three Lakh Sixty Eight Thousand One Hundred Forty Four Only) with interest @ 7.5 % p.a. from the date of petition till the date of realization. Respondent Nos. 1 to 3 are directed to deposit the said amount with costs and interest, after giving due credit to the amount already deposited, if any, within a period of two months from the date of receipt of a copy of this judgment. On such deposit, the claimants are permitted to withdraw the said amount in the same manner and ratio as apportioned by the Tribunal. No order as to costs.
As a sequel, miscellaneous petitions, if any are pending, shall stand closed.
________________ SUJOY PAUL, J _____________________________________ NAMAVARAPU RAJESHWAR RAO, J June 2024 Prv